Los Angeles daily herald., 1876-01-26
Night Disr atches.
EASTERN ~. WS.
~. Louis Crooked whisky.


ST. LOUIS, Jan. 25th.-This morn
ing's Court proceedings had far more
interest for those who are curious as
to whisky matters than those of any
otlier day since the Mckee case open
ed, as there wassupposed to be q vague
possibility that the case would reach
an abrupt termination with the ruling
of the Court on the question announc-
ed yesterday. Judge Dillon proceed
ed at once, after approval of the min
utes, to announce his decision on the
pending case which was as follows !:
The evidence of certain witnesses
have been given going to show con-
spiracy between certain citizens of st.
Louis and the Revenue officers, to de-
fraud the Government from week to
week of the tax on distilled spirits
manufactured at their ditilleries.
are that the Government was to
be defrauded out of its revenue
in this way, viz: One-half of the tax
on each gallon was to be retained by
the distillers for their share of the
fraudulent payments, and the other
half was to go to the revenue officers
and other conspirators. This scheme
did not contemplate single fraudu-
lent transaction, confined to one dis
tillery, but extended to nearly every
distillery in the city, and was to con-
tinue for an indefinite period. This
scheme was testified to by Megrue,
Engelke and Thorpe, all of whom con-
fess themselves members of the con-
spiracy, and to be under indictment
for these frauds. The witnesses have
given evidence which, if true, tends to
defraud the department and the de-
fendant as being in the conspiracy,
which commenced in 1871 and
continued till May, 1875, when
the distilleries were seized and
criminal prosecutions were soon
afterwards set on foot. Megrue
testifies that he took charge of this IL
legal organization in Sept, 1871, and
that he received weekly, every Satur-
day, from distillers in the Organiza-
tiOn, the amount of stolen tax as his
interest, and disbursed the half of it
received by witness to certain parties
as follows: Money left after paying
gaugers and store keepers was divided
by witness into five packages. One
was given to Joyce, a revenue agent,
one-fifth to Mcdonald, Supervisor of
Internal Revenue, one-fifth was kept
by witness, and two-fifths were given
by witness to one John LeavenwOrth,
n gauger. since deceased. The share
of the witness between September :
and November II he states to have
been about $4,000 or 100000. 1t is
L. I,n ~
ask the witness Mcguire what dircc-
tions he gave Leavenworth as to the
disposition of the packages containing
the two-fifths; that it is proposed to
show that he was directed at the
time by Mcguire to pay it to the
defendant and the Collector of Inter-
nal Revenue; to show, furthermore,
the subsequent declarations of Lea
venworth To witness that the money
intended for Mckee, the defendant,
had in fact been paid to Mckee by
Leavenworth. Judge Dillon contin-
ued at some length, when he concluded
the delivery of his opinion. Witness
Megrue was indisposed and confined
to his bed. A carriage, however, was
sent for him. While waiting for Me
grue Sanford L. Barton was called.
He testified: / have lived here since
1871; have been acting as agent for
Brigham Brothers, at the Stone
Spring distillery; there was not
much Illicit whisky made by us till
I 1874, and for about four months
onethird Of our product was crooked
The money on Illicit whisky was paid
mostly to Mr. Babb, but some was
paid to Mr.. Crapsy, who succeeded,
and on one occasion payment was
made to Everest. We paid all the
way from $500 to $4,000 per week, and
when the latter figure was reached
Bingham ordered the house to shut
down. Money was sometimes paid
for other than crooked whisky. We
paid money to Hoag's Revenue agent
who was here last Winter. He re-
ceived two payments of five thousand
each. | suppose to buy off Judge
| Glover.
Congressional.
WASHINGTON, Jan. 25th.-SENATE.
MIR. Harvey moved to take up the
bill comforting the pre-emption of an
ti-homestead settlers on public lands
with railroad grants, &c.
Mr.. Morrill,, of Vermont, said 1t was
q wide sweeping bill, and his colleague
Mr.. Edmund, now absent, had taken
some interest in it, and he would like
that the location be not taken until
his return. A motion to take up was
agreed to and Mr.. Harvey then ex-
planned the operation of the bill.