New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-04-07
WASHINGTON.
THE WHISKY FRAUDS.


PROSECUTIONS TO BE PRESSED AGAINST THE BONDS
MEN OF CONVICTED REVENUE OFFICERS.
WASHINGTON, April 6.-Assistant Secretary French
having submitted to the Secretary of the Treasury
test case of compromise with the request that he be
informed as to the policy to be pursued by the de-
partment in such cases, has received reply, OF
which the following is an extract:
TREASURY DEPARTMENT, April 5, 1877.
The offer is 81 900 by suretles gauger's bond in
satisfaction OF their liabilities upon a Judgment OF
10000 the amount OF the bond No question Is made
but that the principal had violated the terms OF his bond
had proven guilty OF criminal breach OF the law
and OF the conditions OF bond had been convicted
and sentenced to Is months imprisonment and fine
Suit commenced upon his bond and Judgment WAS
entered by There no exenuang circum-
stances in favor Of the principal OF the bond except the
guilty participation Of many Others In his crime THIS
crime was wholesale fraud and conspiracy, involving
the loss OF many millions OF public revenue aud wide be-
tray OF public trust that threatened the utter subver
sion OF the revenue laws If occurred OF open
daring aud palpabe violation OF public duty 1t was this
conspiracy known as the st. Louis Whisky Ring. Inc
sureties admitted all hands to be free from the
fraud crime of their principal but they did assume
pecuniary liability for him. and in law are holden to the
fun extent of their bond. They asserted their ability to
pay the bond by signing it, and their legal liability Is
fixed by the Judgment Their legal duty is to pay the
bond. and the Secretary ought not to relieve them iro
this liability except for clear and conclusive reasons
The reasons given by them are
First: That they have property subject to execu
ton II So the United States has remedy upon Them
aud they not likely to suffer When they signed the
bond they Justified" themselves able to pay. the
amount Nero insolvency is not a sufficient excuse for
release from penal bond and their insolvency occurring
since the policy OF the bond is not sufficiently explained
in the papers; and If it were, in my view it would not
change the case.
Second That their principal was p.rdoned for the
crime OF which convicted The power Of pardon
rests with the President, and considerations may lmpcl
him to grant pardon from imprisonment that will not
apply to q pecuniary obligation. At all events, the
granting Of pardon by him is no. an argument Tor the
release pecuniary liability by the Secretary, for the
President may have supposed the pecuary liability was
a sufficient punishment.
Third: That Judgments rendered against the dis
ters for the taxes lost by the gaugcrs crime. INC
answer Is that these judgments have been satisfied
and besides no one can say that all the
bined measure loss OF the Government ny this con
spracy The real question presented turns upon the
mowers conferred on the Secretary by Section 4G9 OF
the Revised Statutes, which is as follows: upon re-
port by DisrictAttOrney, or any special attorney or
agent having charge OF ans claim in favor OF the United
States, showing in detail the condition OF snch
claim and the terms upon which the same
may be compromised, and recommending that IL
he compromised upon the terms so ohelcu'
and unOn the recommendation of the Solicitor OF the
Treasury the Secretary the Treasury is authorized to
COMPROMISE such claim accordingly But the provisions
OF this section shall not apply to any CLAIM arising
under the postal laws" This section coniers great
power upon the Secretary of the Treasury and Is an ap
noal IN lila discretion The recommendations Of the
instruct Attorney and the Solicitor OF the Treasury are
necessary TO give him jurisdiction ana power III tAe
matter. They neither ought to control ms ]un,m'ht
nor does the law allow him TO avoid his responsibility
because their recommendation has gwen hil4
Jurisdiction. lie must not yield TO mere sJh
pathy but must be governed by Substantial lu5-
flee and public policy. The section was nanifestly In
tended 20 give a remedy ny compromise for technical
volalons OF law for mere neglect o. inddyeience ana
ucrhaps for excessive penalties but admitted crimes
and plain legal and just Liabilities should not DO com
promised especially in revenue cases where Tie result {"
fraud entails heavy losses OF revenue The TAX OH
whisky Is so large in proportion TO the value OF the ar
Gle manufactured that 4; furnishes the strongest temr
ton TO evade the law The tax can only be collected ny
the strict enforcement Of the law. The law is severe III
its pcaaltas anc must be severely enforced TEis Is
recognized in all countries where similar oAci'e
il levied natural sympathy for the defend
ants who are surctes will not Justify the Secretary
in relieving them from Judgment when by doing 70 lac
will defeat Il wise public policy for the enforcement OF
the Revenue laws. This lot mere claim, such as is
contemplated by section, but is judgment confessed
upon bond clearly violated by the commission 81 a
great crime by the principal II the Judgment cannon
he collected these persons not injured While Inc re-
lease Of the ju .ment would be of evil example If the
Secretary errs in this Congress can grant tho necessary
relief II the law IA wrong or TOO severe Congress can
remedy but charged as Nc is with the execution Oh
the Revenue laws, the Secretary must insist upon 'heir
strict enforcement and must refuse to yield to appeals
70 relieve these defendants their liability Very re
snectfully JONI sHLRMAS, Secretary.
FEDERAL APPOINTMENTS.
rur INFLUENCE OF EIGHT YEARS SEKVICE-CAM-