The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-01-06
Reasons Of the Government for leniency
Toward the Distlers
Alleged Guilty knowledge Of Frauds Charged
Against EX-COmmSSiOner Douglass


Owing 10 The absence Of District Attorney Bangs,
expected back this morning but did not reach
here until after the Grand Jury had adjourned none OF
The important witnesses we're brought before the
Today Messrs Junke and Golsen waited all day TO be
rallied but were not and the other "squealers,"
lhey are caled-Parkcr Mason and Roelle--were also
ready to tell all they knew As District Attorney
Gangs has especial charge Of these IL deemed
best 70 defer the laying Of the important testimony
before The Grand Jury until his return. Meanwhile
two Of the minor witnesses Of the government APP
peared before them Fredenoss and Miller the owners
Of the Lake shore dstilory which, although small was
one Of the most "crooked" Of all the crooked"
establishments in Chicago Both Miller and Frederick,
who paid taxes on about half the whskcy they sold,
are under Indictment but have turned states evidence
The only man the jurors and witnesses present
n the room was Mr.. Writ Dexter, OF the special
engaged by the government for these whiskeY
tasos
EPFoRTs AT MYSTERY.
Never In the history Of Grand Jures was there
ireater taken TO exclude representatives. Of the
press. First, they banished from the door,
afterwards from the hall leading TO the door. The
most comprehensive precautions we're taken to pre-
rent anybody from obtaining linking OF the testi-
pony, and stll the HERALD VIII be accurately
informed OF its general drit given by these
Two witnesses. They gave history of
he Chicago Ring from its inception showing that
hey were decoyed into IL by corrupt officials at the
sead Of which stood Hesing and Rehm, who promised
10 assign to their dstlery connvng storekeepers and
Tnugers condition that they would divide the spois.
From their evidence II appears that Hesing and
Bohm, through their supposed ability to control the
Of Chicago dictated the assignment Of these petty
officials whatever distlery they pleased. ostcnsi
Div Collector Irwin, who is now dead made these as
pabr II
understood by all the CROOKED" distnlers,
controlled them. It also appears that large
Gums Of money paid by the wit
nesses 10 Hesng and Rehm they understanding
iha, these gentlemen had divide with Miller and
other prominent city officials, with well known Con-
Eressman-whose need not be mentioned until he
is also indcted-and with other influential persons at
Washington. They also gave some details showing
ihe mode of making these payments
SUBTLE
Both Hesing and Rehn, It seems, were too cautious
10 take checks and Insisted IN every case upon recev.
ing some OF Mr. Spinner's currency. The MODE OF
swndlng the government they also confessed frankly,
mi mailing new s 10 be said on this score as n has
been repeatedly explained In the HERALp. According
10 these witnesses the money paid TO Hesng Rehm
and Company was always charged 10 the ex-
pense account oil the distilery, in pursuance
Of an agreement made to that elect The government
has the bank accounts of these gentlemen which cor
respond closely these large entries for expenses
that the accounts received by them can be exactly
nscertained. The above information although 1t
u.
worthy II seems that the most stringent command
mas gone forth from Washington 10 all connected with
abe prosecution not to breath syllable OF the tcs
imony gwen before the Grand Jury TO mortal ear.
Even to-day Geographic inJunctions we're received 10
that effect
THE ESCAPE NINTY.
The reason for this extraordinary secrecy is
this:-It Is feared that If Hesng. Rchm and
Company learn how overwhelming is the evil
donce against them they may escape and
forfeit their bonds. They do not dream at pres
ent Of the strength OF evidence that can and VIII
tIafn How If "a for tla
government preserve the strces silence nom
the escape of Mnty, which, it appears is entirely
owing the indscretion carelessress OF gentle
attached to the District Attorneys ONCE. list
the OF the persons 10 be arrested was handed
20 MN either by the Collector or supervisor, u
has not uanspred which, and he DROPPED
the piece OF paper upon the noor. The
reporter OF an afternoon paper plcNee Up anu seeing
she name OF hinty rignt aiter that OF hesing kehm
and Miller, Immediately guessed that Deputy Collector
hiny also to be arrested, and published The fact.
This no, doubt, warned Ainty enectuaiy who ded at
once Now the government was particularly anxious
70 punish Mnty. who was, perhaps,
BLACKLIST OF ALL THE RoGUEs
IN the Ring - selling the government stamp and be-
ing the central figure in most extensive network Of
frauds on the revenue and this escape of Mnty has
been 4 serious warning 10 the officials engaged IN the
The Grand Jury, after listening 10 the testimony OF
the witnesses named above, adjourned at halt past
two O'Clock in the afternoon until ten O'Clock
90 morning. some OF the important witnesses
will called to morrow. when the session Will pro0a
bly, be longer one. Assistant District Attorney Burke
gives as his opinion that no indictments ~ the walls.
GOVERNMENT LgSlKScI APrLACpED
No additional distleries or rectying houses were
bonded out day. Ii appears that the governments
policy Of lenlcncy the dstlers who have made
breasts Of their gu and given important infor
NATION leading TO the arrest OF the really guilty par
tles-namely, the corrupt officials and politicians who
enticed them into the 'Rng'-s meeting with popu-
lar appreciation The Times and Tribune say this morn
Snr editorialy that these the really guilty men.
and that officers OF The government and their
unofficial partners who drove the disers 10 the per-
retraton OF these frauds we're really far more deserv.
Inc NJ han Id
be a good deal Of sympathy generally "ith the last
mentioned class ever since II has appeared how they
were forced by the officials into the conspiracy, how
they assessed for political purposes aud how u
utterly impossible Tor the honest to compete with
the dishonest disier when the latter could evade we
uavment OF taxes when the nrSt dishonest disthlcr
had gone into the "rng formed by Hesing, kchm. Mil
Ter and their influential aids at Washington the others
could go with their business against such over
wheming odds he had through the evasion OF taxes
and nolens votes- they were forced TO JOIN The ring
GRINDING TYRANNY Kissing REIN
During the payments % Hesing ana Rchm. testified
10 by Fredercks and Miller to-day, we're Two OF $1,000
cash, and Of sl5,sOO pad by them and other as
rers as political assessments for the benefit OF the
s'peoples partyn IL appears that when The distillers
Ala not nut forth their money literally tor Heslng's
politjcal friends he would put tue screws them
s;s,siierss thus threatening their exposure Il has
eaked out to-day that Hesng % less than three
dstilIers boids bondsman-on the Lake SHORE With
200 shares OF his paper, on coupons Wth o0V shATcs
and on the South Branch with zoo
Ex.co~xssioNyR DoCGLAss AZ ALLEGED ENGsrHE.
There is startling tonight that eN.lniernal
Revenue commissioner Douklass wiz " t..NNfNtf %
oeing alleged that evidence has been procured showing
that he knew ali about the frauds while ~ ONCE, with
ant revealing them, and that while he pretended 10
nave opy vague general dea as their existence, be
.calIy knew OF all the doings u The Chicago aud 81
LOUIS rings
DENIAL By SECRETARY BRIsrow AND SOLICITOR
WILSON OF THE RUMoRED IMPLICATION OF
FRED AND oRvIL GRANT IN THE wHIsKEY
wAsHiSeTos, Jan. 5, 1870
The HERALD special from ST. Louis to-day contained
s,a,ement that rumor there alleged The discovery
n evidence duplicating Colonel Pred Grant and orvil
Grant IN the vhiskev frauds INQUIRY Of Secretary