New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-05-21
THE FRAUDS AT CINCINNATI

REPORTS BY TIE REVENUE AGENTS SHOWING THE
LOOSE OVERSIGHT OF The DISTRICT BY TnE
COLLECTOR.
10y TELEGRAPH TO THE TRIBUSE.l
WASHINGTON, May 20.-The revenue agents who
are engaged in the investigation of the alleged
whiskey frauds in Cincinnati have joined in a re-
port TO the Commissioner of Internal Revenue,
which was received by telegraph this morning.
The following is a copy of it:
CIYCINNiTI, May 10, 1873.
General GREEN tB. RAUM, Commissioner Of Internal
RerenUC, Washington, u. G.
In reply your application OF last evening we re-
pot that an examination Of the condition Of this dis
lct as Geen IN lot re es Of hc nVegafon
conyince that there has been elective OTganza
ton of the district portion Of the local force en-
ployed by the Collector have been dcrcict their du
lies There has general or special canvass visits
turers have been nrcquent. There has been system
attempted enforced for policing the district and we
mud ample opportunities afforded dishonest dlsllers
10 defraud the revenue,
Many liquor dealers have neglected to destroy STAMPS
empty beer kegs, and have returned some To rcci
ers, and they have been reused. large number OF
stamps for fermenied liquors, removed RON paIkases
have been found IN the possession ol dealers. Empty
beer kegs, with STAMPS perfect, have been found In
wagons. Many rectheTs have lot made proper entries
and have refed packages Some wholesale dealers have
neglected their books have rcctcd, compounded ana
manufacturers have failed to make the required entries
in their books Many cigar manufacturers have not
are defrauding the Government Several lots OF cigars
have already been obtained. The indications are that
the distlcrs are operating accordance with the
law but there IL evidence that for the last two years ana
up within two months, the Government has been de-
frauded OF considerable amount OF taxes on distilled
spirits The examination Of frauds by dsticrs Is now
progress, but not sufficiently completed to report full
The routine clerical duties in the Collectors Office
to have been fairly conducted ana Tue Collector
has "a number faithful ana competent subOrdnatcs,
but believe the loose condition Of affairs IN the dis
tct attributable TO the want OF organization and The
utter aud disregard of duty by portion Of the
force. We have Kept IN nina the fact that while the
compact and capable Of thorough and elective 0rgaui-
cation, and not difficult to police.
joins %IfcnElL, 1n?HAas j: GSIMrsoS,
Revenue Agents.
In addition to the above report 200 pages of man
uscript reports were received at the Internal Reve
nue. Bureau from the Cincinnati agents this morn
ing From these the following facts OBJ
tanned:
The internal revenue officers at Cincinnati have
been derelict in their duty The regulations 1.-THE
Department require that the Collectors subOrdi-
mates shall inspect all places where spirits or to-
bacco are sold att least once every month. The cx-
animation now III progress shows that i'll Cincin-
natl many saloon keepers and retail liquor dealers
have not been visited by revenue officials
for eight years. and one dealer III to-
bacco has not revenue Official
in his establishment for fifteen years.
Frauds have been committed by the sale at retail OF
tobacco from glass jars instead Of from the Original
packages Empty spirit packages with stamps un-
cancelled have been found almost everywhere by
the revenue agents. In many saloons kegs OF beer
were discovered on tap with the stamps removed;
in some instances they were lying on the top OF the
kegs in others on top Of the cooler uninJured and
ready to be used again. In some cases the stamps
were fresh and had not been attached at ALL but
were simply placed the top OF the keg or near 1t
for use in case revenue officer should appear
Empty cigar boxes with uncancclled stamps We're
found in great quantities. One agent found 800
Many retail dealers are doing business without "A
license and without having paid the special tax re-
quired By law Some OF them were engaged Ill COM
pounding and rectliylng spirits.
Visits to rcctfying and wholesale liquor dealing
establishments disclosed the fact that books were
not properly kept. Great numbers of packages were
found which contained marks. stamps, or brands.
The tax on whiskey has been evaded by the use OF
stand casks" that is large casks set up in retail
stores and filed periodically. without ever being
stamped. In some cases it was discovered that the
retail dealers had arrangements with distillers by
which spirits were removed from distillerics at
night by tAe.barrel, and empted into these stand
casks" No tax was paid on the whiskey TINS sup
piled TO retail dealers. In several instances
stamped packages of spirits were found in cellars.
One retail dealer had ten barrels of this character Of
whiskey. and another fifteen barrels In other cases
empty whiskey barrels were found with the stamps
uncancelled; and one retail dealer acknowledged
that he had invariably returned his empty barrels
without destroying the stamps.