The New York herald., 1876-01-22
MEGRUE'S STORY.
Business Like Organization Of the
Conspiracy.
Collection and Distribution
Of the Spoils.
"a SACRED SECRET" +"

TO the court room is much greater than during tho
trials of Joyce and Mcdonald BY nine O'Clock this
morning every seat taken, the asles alled and
every available spot or of the
taken up by the eager visitors. Several hun
dred persons unable TO obtain admission
though many Of them continued to linger around the
doorway all day. The venerable defendant made his
appearance in court for the first time being accom-
panied by his chief counsel Dan W. Voorhees,. 1t was
rather strange spectacle the old Missouri abol
tonist and barnburner such close and confidential
communion with the virulent copperhead of Indiana
William Mckee air of ease and composure
and was in manner depressed by his surroundings
Most of the morning exhausted in
SECURING JURY,
although the time occupied in this preliminary pro-
ceedng was not near great had been expected
The jury plain, honest country looking body OF
men, all from counties of the State, and there is
every reason believe that both sides will receive
an impartial hearing at their hands. Only
eight jurors challenged. The jury was at
once put into the box, and Colonel Dyer
the prosecuting attorney, read the indictment against
Mckee TO the jury, and at the close addressed them in
speech Of great length in which he said''The gov
ernment proposes to show you, by preponderance of
evidence, that Mckee, with others, did form a
spracy, commencing in June, 1871 and continuing TO
May, 1875, by which large frauds committed in
eNdulnB tue TAX we pro-
pose to show you that William Mckee
in combination with John A. Joyce and John
Mcdonald IN deiraudng the government The law
qures that dstillers shall have tax paid stamp upon
every gallon OF spirits the casks containing the
spirits before they be removed from the distllery
but we will show you that the conspiracy in
spirators embraced not only the officers
toned but also the storekcepers and gaugers,
through whose connivance the frauds could
be easily perpetrated. We will show you also that the
conspiracy was so great that these subordnes could
not hold their positions without being implicated with
the conspiratorS We will show you, ALSO that man
came here from Cincinnati IN 1871 and remained until
1872 and during this time did agree with the disters
and effected combination by which the government
defrauded out Of thirty five cents gallon all
the proof spirits manufactured which was distributed
TO the members of the ring" that this
DISTRIBUTION MONEY
occurred weekly, in five parts, as ioows-one1nht to
John A. Joyce, one-hth TO John Mcdonald, one1fh TO
Conduce Megrue the organizer and that the remaining
two-6fths were given to William Mckee, the defendant
In this trial; that there was collected from Bevs 4
Fraser dstiers, weekly from 81 500 to sl,s0o; from
Mackli, Thompson x Co, $1,000; from Ulrci,
parties We expect to show you that rectiers stamp
must be placed upon every package of spirits that goes
four books, containing 400 stamps each, to the
dstiery OF Bevis Fraser, and that they were
the deputy collector charging himself with S4oo that
these stamps taken and placed l600 barrels of
rauded out OF S42 each barrel We will also show
you that this conspiracy was not confined
10 ST. Louis, but extended TO Washington city,
where officers were sent out to make examinations
only after the dstllers apprised OF visits
plated by the collectors that the dstilers might
10 you that the why Mr. Mckee included in
the "ring' was because Of his prominence and
influence with the administration at Wash
ingion, and because he was tho head
OF the administration organ Of the West
He then proceeded TO explain the operations Of the
spirators. We will show you that Joyce himself col
ected money from the dstilleres and made tho dis
s1sS aS na an deTiy ~ $50 6aH PaSr he s0T
succeeded by Everis acted the collector of the rng
aud paid into McGrue's hands the money so collected
distributed the funds TO the consprators himself
We will show you also that the defendant under
trial Of the parties interested in the suppress
uon OF evidence before the Grand jury that the con-
spracy not only combination TO defraud the gov
ernment, but also became combination TO keep all
evidence from the Grand Jury, and that to that end
Everist sent out OF the country. When
Megrue was brought here upon capias Mckee
had three interviews with him. and that proposition
was made by number OF the members of the "rng'-
Mckee being one-to buy OF Aegrue to prevent his dis
the money could not be raised Colonel Dyer,
rudng, sad:-l will show to you gentlemen, that the
$500 TO 81 900 900 year since 1871 half going
10 the dstlers and the rest to the members OF the
iring."
MKoRuK ON THE STAND
The District Attorney asked that the Court might ad
tourn until tomorrow, IN order TO give time to arrange
the request and the trial proceeded The FIRST witness
called was Mr.. Conduce G. Megrue The examination
conducted Colonel Dyer for the prosecution and
Colonel Voorhees, for the defence Being sworn Mr. Me-
gue sad:I reside in CINCINNATI am acquainted with
Mckee.
May, 1877 came here In response TO letter from
John A. Joyce TO organize whskey ring IL was about
September 1871, that entered upon that duty the
way this TO be done by evasion OF the tax
on whisksy; about this time Bevis and Frazier and
Thompson came into the organization; Mr.
Uirici did not 20 into the organization until
the spring Of 1872; the arrangement was that the
distleries would be protected by the conspiracy in
paying tar on only onehalf OF the spirits manufac-
tured was receive the money from the dstilleres
and disburse TO certain parties did so receive tho
money from Bevis and Frazier Thompson Curran and
finally from JlriCi. received 10 once week, every
Saturday; remained here til the forepart
Of November; ! received from s., 900 to s25oo
from $500 TO $500 from Thompson,
aoOui the same nom curran and Aser ulric came in
paid mo by the distllers themselves; as rule II
paid to me in my room at the corner ofFinh and
Pine streets; had conversations with gaugers and
storekeepers but they were generally left IN
the charge Of John Leavenworth, who
Raugerj after received the money certain portion
set aside TO pay subordinate officers that the
remainder was divided into ave paris; some SET
pointing clerk OF the Revenue Bureau in Washington
hundred dollars was set aside fer him every week
at nrsb and aiierward $500 per week
M'KER REcEyNo
Here the government attorneys announced that they
would withdraw the witness for the present Joseph
NJ Ftzroy, the cashier Of the Rring, was next called
His testimony was quite lengthy, but the only part
bearing directly Mckee as follows;-I collected
once week nom these dstilercs between June, 1873
and August lS74; collected rom all the dstileries
nom $1,000 70 5000 week that Is returned that
keepers; this money was taken 20 the supervisor 3
ONCE where Il was divided into ave parts up 70 the
death Of Mr.. Ford by Colonel Joyce and myself Then
the money was LETT there for Joyce 20 Distribute
met the defendant al the once oncei u
was alter Fordis death; IL between tho
time OF Ford's death and Mr.. Nagure's appontment;
General Mcdonald and joyce present at the time
A was on Saturday afternoon; had taken the money
there which had collected from the distertes; had
been there half hour when Mckee came In she
supervisor had two rooms, the main Office being on
Fth and Pine streets and the private ofce back Of
the rooms connected by door; was in the back
room when saw Mckee; the money had been divided
by Joyce and, somebody coming Mcdonald went In 10
see who IL was and anerward came into the back
room with Mckee; as Joyce handed Mckee one OF
the money packages, Mckee said, "FZroy Is herc;'
Mcdonald replied, ''Fitzroy Is all right then Nc
Kee turned 70 me In funny way aud said, "Ftzroy,
this rs q sacred thing; keep it secret"
Fitzroy asked IL Mckee said anything more
and added that be remarked that It was more