The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-05-16
THE CHICAGO WHISKEY CASES.

ADVERSE DECISION OF THE SECRETARY OF The
TREASURY ON THE PROPOSED COMPROMISE.
WASHINGTON, May l5, 1877.
Tho Secretary OF the Treasury to-day tho fol-
lowing decision In relation various Chicago whskcy
cases:-
WASHINGTON, D. c., May 10, 1877.
Hon. Henry +. FRENCH Assistant Secretary OF tho
sInYour letter OF March Is last has not been acted
upon by reason OF the request OF tho parties affected
by tho compromise proposed, that they should have
time 10 submit n formal petition Tor tncIr relief This
petition OF Inc date OF tho yh and your letter oil the 10Th
tor compromise oil Hcsiug, Powell, Rush, Dickinson
and Others OF Chicago in certain class OF whskey
These present the same general features.
Most OF the proponents were men OF high position. of
supposed wealth, largely engaged 10 busincss-Iot
only OF distiihng spirits, but in other branches OF
business rccogU zcd MS prom incnt and Influential
cliizcns OF the city OF Chicago. some OF them have
been inflicted convicted, and have suffered line and
Imprisonment from which they have been relieved
by pardon. Their remaining liability to the govern
mcnt is pccuninry ono for taxes aud penalties or
bonds either as principals or surctics. The amounts
involved arc large.
Tho principal question you submit to me 10 whether
IT Is tho duty OF the government TO realize BY com
promise tho largest amount from these claims thar
coulu probably bc collected by legal process. la or
binary Liabilities wise business man win not seek
to hold nsolvcnt debtor TO the rigid payment Of
the iull amount OF the debt; but regard this class
0f cases rs standing upon a different footing. They
United states, the remission oi which operates
injury 10 every taxpayer and US premium
for fraud. The primary rule OF all Just taxation Is
equality and certainty. The evasion OF the lax laws Is
punished VITA greater severity Than tho neglect pay
= ordinary debt II principle Is established that u
man may cvadc taxes By becoming insoivcnt, :hcn
taxes on such productions whisHey and tobacco
be successfully collected AgplL, these claims
largely tor poualtics. he power 10 pardon may
tend release OF these penalties where they part
OF the punishment Tor n criminal oneucc, out not To
the OF taxes or to moro penalties 10 The
turc OF iquidated damages.
The President alone ca pardon, aud can do so more
freely than the Secretary OF the Treasury eau exercise
the power compromise pecuniary obligations
which power moro dangerous aud likely To ba
apuscd than that OF pardon. These claims aro not
held tho proponents us an act OF harshpcss and
injustice, but only 10 secure the payment ui just and
cQuni taxes. They not Ike Ordinary c,utfucts.
which depend upon the mutual agreement OF parties,
but they prescribed by 81 general application,
ought not be RENTED released EXCEPT Tor clear
rclsops OF public policy
have, therefore, declined IN similar cases, even In
favor oil surccs to release such pecunary legations
upon tho pay neut Of nominal nncs, aud shan have
TO do 50 III these cases.
The expectation oil compromise caused by the alleged
action Of my predecessors recent cases may Lavo
these defendants, and, therefore, am inclined
to Yield TO their wish That they have au
opportunity to appeal TO Congress Tor such
relief IL NAV think right to grant them /;
but II Is tho duty OF tho department the meant
10 put all tho claims IN judgment ard to SEE that the
properly oi the defendants IN not put beyond tho
reach OF legal process their ability to cvade he law
requisite instructions TO the officers Of this depart.
mcnt. ana through them 10 the District Attorney, to
carry this dec sion effect Very respectfully,
JOHN SHERMAN, Secretary.