, 1876-05-13
QpESIxG ARGUMENT BIZ MR.. AYE

readers of THE TRIBUNE. To make out the
case it would be sufficient to show that A1r.
Num- consplred with any Que Of the parties
named in the indictment; it was not necessary
to show conspiracy between them all. II any
overt act had been performed by the de-
sA' acy, ii u would f be ! sufficient ' to
secure conviction. For several years Mr..
Mum had been Supervisor Of the Internal Rev.
enue District Of Illinois, Wisconsin, and Michi-
gan His first appointment was in 1871, by the
Secretary Of the Treasury, under the Inv which
existed at that time. When the law was
changed in 1872 transferring the appointment Of
such officers to the President by and with the
advice and consent Of the Senate, the defendant
was commissioned by tile President to the same
Office, and assigned to the same district. At the
time Of his original appointment A1r. Mum re-
sided at Cairo, in this State, anl his headquar-
tcrs were established ct that city. He was, how
ever, in the habit Of making frequent visits and
spending large portion OF Ills time In this
city. In 18Th he removed to Chicago and
established his principal office and headquarters
here. Mr. Bridges, the other person jointly in
dicted with Mr.. Mum, WAS an internal revenue
agent appointed to assist tho local officers here
! il the execution Of the Internal Revenue law.
He occupied IN office with Mr.. Mum, and was,
| In fact, that gentleman's subordinate, whose
duty it WAS to assist him in performing the
functions Of his Office. Very large and colnpre-
hensiye powers were conferred upon the Super
visor. he had to exercise supervisor over all
| thu subordinate officers employed by the Coy
crnment in the collection Of internal revenue,
| and efficiency and honesty In the discharge Of
those duties were essentially requisite. The
| policy Of tho National Administration
was to procure revenue by indirect rather than
direct taxes on real and personal property. That
system had met with great favor, and one OF the
principal sources Of revenue thus raised was, as
was Well known, by tax on distilled splrlts
In every civilized country Large portion OF the
revenue was derived from that source; 1t was
everywhere considered one Of tho most leglti-
| mate objects of ta1ation. It was o Just impo-
sitiun, and, If the law was honestly administered,
| ell e1tctuM means Of raising revenue. From
obIained between s50,00ocO0 and s6oooo,-
| ishea I TT to this extent 1he rcycnue which
! it would be otherwise necessary to r:isc from
other sources. For the purpose OF securing tue
| COLLECTION Of this money and enabling the rev.
ruuc officers more easily to detect any frauds
| that might be perpetrated, very stringent rules
| aud regulations bad been established for the
management and conduct OF d1stllltrlcs- Mr.
| Aver then gave careful and complete analysis
Of tie law governing the distillation Of spirits
and the duties Of the revenue officers, which
| if not understood By the general public by this
| time never will be. Tie methods by which dis
/
then fully explained, together with the
steps taken in May, 1875 to ferret out
| the extensive frauds which had been committed
| i'll Chicago, St. Louis, aud milwaukee,. The OPP
| eratious of the Grand Jury after the first seiz-
rres were also gone into at length. In 1875 it
became a matter OF notor1ety all over the c0un-
| try that extensive frauds had been perpetratcd,
| and the market was flooded with large quanti-
ty Of Illicit spirits. In december last, after tie
| convictions st ST. Louis, the
FhnfcTTn nJSTlII.ERS AND HEC1lE1KES9 BECAME
UNEASY,
and concluded that the best thing they could do
was to make clean breast Of their frauds
| From their disclosures it WAS evident
| in the city, with the exception Of one,
was in tie Ring, as well as large corps
| Of revenue officers and prominent local
! politicians. What course should De pursued
vas then considered by the prosecuting officers
Of the Government. The object u the Govern
mcnt had been to ferret out and expose the
frauds in their full length and breadth, to get
| at the bottom facts, and to bring the Offenders
bis duty to pay some heed to this Information.
Accordingly in January another Grand Jury
was summoned, and upon the strength OF their
Investigations the remaining dlstllicr1es were
seized, and the proprietors nolcted. Mf. Ayer
indictment Of Messrs Hesing, Reh1n, ETC., and
proceeded to say that the evidence would
show that the frauds we're Practice! t!r oy
nine out OF ten Of the d1stAlers
Of Chicago constantly, persistently, and almost
onen1y. and that among the fifty Gaugcrs and
Storekcepcrs in the city there were not ABOVE
one or two who were honest a4u uass,
worthy ren-the rest were al in the Ring, and
conniyed at the frauds Al tue rcctylng housts @ =
would have been impossible for the supervision
during the time the Ring WAS in operation to
have visited one Of them without detecting the
frauds. There would not only be direct anu pos
the frauds, and WIGS paid thousands OF uo1faf5
for conserving to their perpctration, but clrcum-
stantial evidence to corroborate this evidence e. IN
| the strongest and most satisfactory manner. me
| evidence would cover the entire period from the
eping Of 1872 down to May, 1875, and would
show the ..
| INTIMATE CONNECTION OF THE HING WITH TIE
cb.rpca with the collection ls Of the revenue. It
would appear that Jake Rehm was used constd-
crsbjy to pacify the officers with money when
| thew scowled on the frauds. Early in the year
named several distillers complained to Mr:
Reh that the Bafkhaxk S;1n VI ~hs hs 3n3enes
| unon m Mr. Iryin, who affected not
to put much faith in his REPRESENTATIONS. IS.
| However, at Rehm's request change n
short time after this, Mr. Hesfng called upon
hshm in behalf Of Miller & Reed, OF TIE blacS-
| hawk, represented that large quan1liies u u
licit spirits we're being manufactured else"nele,
and that it was impossible for distillery to do
an honest business long: Mr. Hcsfng intinated
that his clients were willing to pay $500 month
for the privilege Of not being interfcIcd VIII
Rchm mentioned the proposition to the Coz
lector, who at once closed with 1t, and an un-
derstanding was arrived at that the black1a"k
| Djstillcry was to carry on business in its own
way, the price Of the privilege being paid oVcr bY
Rehm to 1Ir Irwin. Shortly after this arrangement
was consummated. b1r. Hesing proposed
similar arrangement with regard to the Lake
Shore Disti1Iery, which was also entered into.
4 vigilaut officer, the counsel contendcd, would
tavr It in his power to break up such COM
1ination as existed, but there seemed no desire
~, fhe mart Of those high in office here TO stop
he illegul business. Alter while
MUM WAS SOUNDED By REIN,
and he entered into the Ring, 31r. Bridges
taking the money and dividing it with him.
One nan vas Kept in the department VINO xa5
The assessment Of any distillery, was not an
honest one; and it would also be shown that NJ
[ Rehm had entire charge and control ot tne SUD-
or,iinnte officers OF the United States u tncaSo.
| Whcpcyer distillcr wished to have partEuiiasf
Gaugrr or Storekecper assigned to bis establish
mepf, application was made to Rehn, who gen
73f NJ