New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-05-06
wpIsKEY FRAUDS IN OHIO.
,vr,xrD SPIRITS SENT TO MARKET BY HE WAGON
TO Ioan-wnY COLLECTOR NEITzEL WAS ASKED

rNTAXrp SPIRITS SENT TO MARRET by HE "A"'-'
1oAp-wnY COLLECTOR wEITzEL WAS ASKED
TO REsIGN.
lBY TELEGRAPH TO TIE TRIBUNE.l
WASHINGTON. May 1.-The announcement that
,ho President had asked Collector Of Internal ReVe
,no wo4zol of Cincinnati, to resign on account OF
coma recent discoveries was made several days ago.
IT, rorlv to letter from Collector Weitzel, making
;nonrv on this point, Secretary Sherman has Wit
,n that no recent events have influenced the mat
COR This letter makes interesting a lew Iac's III
connection with Collector Wcitzels removal.
For several months previous TO the determination
of the Department to make change in the INTERNAL
Revenue Collectorship at Cincinnati officers OF INC
Treasury have been on the track OF some enormous
whskey frauds perpetTated in that district 10 ge'
sufficient evidence to complete the GoVerh'heh.
ease was found very difficult. While the TACT OF inc
frauds was we'll Known the methods OF perpetrallhs
them were so carefully concealed that for cOhsuer-
able time il seemed impossible to detect the' FROM
the first there was the feeling that the CoIectol
Office as then organized would not afiOrd such "iu
rs the officers at work in the matter hau rlgIt 10
exnoc+ There was no circumstance which pointed
10 Collector Wcizel as having guilty knowledge Oh
the frauds but he was apparently indifferent and
90 firm in bisdecared belief that the supposed frauds
did not exist, that the Treasury officers dared not
acouaint him with the full extent of their dscoy-
cries How far he was informed as to their details
cannot be ascertained; but il is certain that many
things were kept from him, not because 1t was
feared that he himself would do anything to delay
or hinder the investigation but from the fear that
some of his subordinates might play false and eX-
nose the matter In fact, it would have been mpos-
sible for the frauds in question to have occurred if
all the subordinates Of Collector WetzePs Office had
been faithful.
For obvious reasons the exact character or extent
of this new whiskey rings operations are not now
publshed but it may be said that five or six OF the
largest establishments in Cincinnati were engaged
in evadng the tax on whiskey, some of them by the
old means discovered three years ago III Chicago and
ST. Louis, and some by new methods not then pTac-
tised One of the boldest methods of the old frauds
was found TO be resored to, namely, the reuse OF
stamps which. through the neglect of subordinates
were continually allowed to go uncancelled. Large
lots of spirits we're also taken off by night, and the
packages reflled and sold without paying any tax
whatever. The frauds were on a scale that threw
the method of the liberal guage" quite into the
shade The whiskey that was put on the market
without tax was sent out by the barrel wagon-lOad
and lot
After the certainty that such things were in pro-
gress in Cincinnati was completely established
those engaged IN the investigation OF them became
convinced that the evidence could not be made
complete without the reorganization of the
Collectors Office. Indeed it was necessary to have
the cooperation of the entire force OF internal
revenue Officers in the district or the whole move
ment would be in danger Of failure. 1t was at this
point that Collector Weitzel was asked to resign
but this decision seems tOhaye come too late. By
some means the movement of the Government had
already been sufficiently exposed, probably by some
one under the Collector Those chiefly involved in
the frauds were suddenly fOnnd to be on their
guard in all directions, and to have had sufficient
notice to cover mp the evidence which was needed
10 make the Government case complete.
Ii has not been asserted or believed that Collector
Weitzel is personally involved III the matter but
it is declared that the frauds became possible
through the caressneSs of some of his subOrdnateS
and the corruption of Others and that had his Office
been properly organized and efficiently directed so
that its entire force could have cO0peTated with the
Government agents, this new whiskey ring would
have been placed at the mercy Of the Treasury
Department Whenever the latter concluded to
strike il.