New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-12-13
THE FIRST FIGHT AGAINST THE WHISKY
RING

BAILEY's PROSECUTIONS IN THE FOURTH, NINTH,
AND THIRTY-sECOND INTERNAL REVENUE DIS
TR:CTs-HUSDREDs or MILLIONS OF DOLLARS
INvOLvED-How HIS COMPLICATIONS AROSE.
Most persons familiar with the late war
made by Secretary BrstOw upon the Whisky Ring In the
West will recall the principal incidents OF the raid cul
mnatng In 1859 in the fight OF Joshua f. Bailey. Col
lccor of Internal Revenue OF the XXXIId District Of
Ncw-iork He had begun the prosecution of the Illicit
dsters while Collector Of the WITH District which he
had been appointed by President johnson. His activity
In this district had been so great that President
Grant transferred him 10 the XXXIId District,
although apparent deficiency OF $4,000 existed
IN his accounts. This had arisen from the fact that
becoming Collector OF the WITH District Mr. Bailey found
that the collections had fallen behind the assessments
S4OOOOOO TO collect which he adopted a system more
rapid than careful over 10000 notices TO delinquent
taxpayers were sent out III a single mail As penalties
for delay then coeetabe, the Office OF the Collector
was oyercrOwded. A full force Of clerks employed
from O'Clock until midnight each day in receiving, Ell
tering reeeipting for and counting up this mass OF
money, mostly paid in small bills. Errors probably
numerous. Collections made day were In
correctly counted and deposited with those
Of another, that receipts held by taxpayers
ala not agree with the books and appeared TO reflect on
honesty OF Collector The pressure OF work pre-
vented accuracy and order in the accounts The
quencc apparent deficit OF about $4,000 IN Mr.
Balcys accounts, ToJCO Or winch he never was hc 10
explain This amount, he claimed, error arising
ont Of the exigcnces OF the work The $4,000 remain
ing expenditure IN prosecuting frauds which he be-
Heyed himself authorized make, and In defending him
self against conpraces by tue dsters and the Govern
Hcnt officials who formed the New-lork Ring Mr..
Bailey In statement made time time ago 10 Pres
dent Grant reces several remarkable Instances Of thcs,
cJnspiraccs In cIse, in 1867, he seized distl-
lery and placed u IN the hands OF United states
marshal who soon Gftcr permitted the Ring
10 resume operations. Bailey again seized 1t
I'm spite OF the marshas protests aud threats 10 bring
Unitedrtatcs soldiers 10 dspOsscss his officers aud finally
confscatcd the whole. In another special agent
Of the Treasury led the attack on HIM, procured
pcdurcd aGIavils against him. secured his arrest
and almost his removal. Bailey arrested oil tue
prriurerg who confessed, tiled and sent
20 state Prison, while the special agent fed.
deputy commi. Toner became the actual manager OF
distlery in Bacy3 own district Bailey seized and con
hscacd g. and the deputy commissioner resigned Local
officers Of the IXth District were discovered to he own
ors ~ a large fraudulent dstilcry. Bailey se.2cl and
couascat H. aud sent the and managers 70 tAc
Pencniary In bis zeal he went cut OF his own district
TO urosccutc and In months returned 10 TIE Treasury
$2JOOCO IN fines. and cou,Cact property IN value more
than double that amount The expenditure ot 10000
thus Incurred subsequently declared by the COmns
foncr o, internal Revenue be legal and 20 objection
was raised 10 Mr Balcys transfer 10 the XNAiId Dis
trct. the second 30 importance IN the country.
on taking charge be al began In his Jealous and
eager way 10 b=ag together the evidence of The frauds
of 1867, 'Gs. ana 90 now known 20 have aggregated
hundreds OF millions OF dollars. Several months were
occur.cd In coiun ths evidence, and In the Winter OF
lsCg-7O q simultaneous seizure was made Of large
number Of whsy houses where proof was found OF the
conspiracy OF United States gaugcrs and whisky dealers
20 dcfrlud tie Government In the drawing ct whisky
FROM the bonded warehouses without payment OF tax
supervisor Of revenue directed this League
for Mutual Protection" A storm was raised
all over tho country by this action. The
opposition TO Bailey extended throughout Tie
United States and is action OF the most desperate
charactcr the evidence Of the irregularities IN the Nth
District was collected, greatly exaggerated ana pup
lished broadcast; the Commissioner OF lnteih'u
Revenue became alarmed aud personally lnVestl-
gated the matter; delays followed houee was
brought 10 Bailey Of the purpose To suspend
him; the expense Of prosecuting tue kihS ana
defending himself increased until the deficiency rose
10 SG5OOOO and the real deficit TO 100000 Exposure
OF this was certain follow aud Mr. Bailey broken
with anxiety fed until the storm could blow over The
Ring escaped for the time being. Mr. Bailey mas only
fms returned.