Savannah morning news. [volume] (Savannah) 1868-1887, 1882-06-16

ington, and from review Of the proceed
inEs one is forced TO the conclusion thst
there is some foundation for the charge.
On Wednesday LAST Mr.. White, Of Ken
lucky, asserted in the House that he had
heard Mr.. Miller, President Of the West
ern Export Association. state on cath that
Mr.. Kelley, Chairman of the House
Committee on WAYS and Means, had
gore into some kind Of an arrangement
with the distillers by which the commit
tee would help the whisky men If the
latter would help the tariff men. True,
this statement Mr.. Kelley denied, snd
was 50 excited that be forgot his age and
the respect due the House. and de-
nOunced the statement IS either the
rawlings Of s lunstic OF s deliberate false
hood. Mr.. White, however, stoutly
maintained his statement, and emphsti-
caliY asseverated its truth. and, though
the whole matter was subsequently
smooihed over, it Is plain that where
there was 50 much smoke there must
have been some fire
The impression is general that there is
5 ring, not only because of developments
such as the above which are constantly
cropping out in Congress, but also be
cause history h2s shown that a whisky
ring can exist and flourish n the country
under Radical rule, aud its influence can
Be 50 powerful, and its means Of cor
ruption SO vast, as to influence Congress,
high officials and persons very near
70 the White House. even if ii may not
extend its power beyond the threshold
Of that mansion Itself. How great was
the corruption which formerly existed
when the whisky men were in the pleni-
tude Of their power during the days Of
GranEsm, and when Radicalism held
full sway in both branches Of Congress,
Is plainly shown from the facts that when
the tax on whisky was two dollars a
gallon the revenue therefrOm was four
teen million dollars: when the tax was
reduced to fifty cents per gallon the Teve-
nue amounted to more than forty mil
lions The consumption was very nearly
the same for the two periods, but the
discrepancy was attributable to the ex-
istence Of the ring in tie former case and
70 its destruction in the latter. This is
history. Il is not strange, therefore,
that when the people recall thuse days of
fraud and corruption which cast a blight
upon the fair name Of the republic, from
the effects Of which It has not yet recov-
cred, and remember that Rsdicalism is
once more dominant in sll departments
Of the government, the mere hint of the
formation Of another whisky ring to
direct the legislation of the country ex-
cites universal alarm among honest men
Of all sections
a correspondent in Washington Of one
OF our Northern Republican exchanges
has ferreted out and disclosed to his paper
some very important discoveries in con-
uectiOn with this whisky business which
r0intt0 still further corruption. 1t seems
that the government has been and is the
victim Of extensive frauds in the character
# the bonds which many distillers give
as q guarantee Of their payment of the
internal revenue tax on the whisky
stored in bonded warehouses. 1t is
stated that as rule they are
worthless collateral, which, if it were
necessary to put them on the market,
would bring nothing. The distillers have
resorted TO various ruses in order to pass
Of these bogus securities-commonly
known as straw bonds"-upon the in
ternsl revenue officials, but it is hard tC
believe that all Of the latter have had nc
c0gnizauce Of the fraud. Certainly il
is their business, if they are honest
70 make sure that every security is first
class and negotiable to its full value be
fore they accept It for the government
They, too, are responsible for the further
fraud practiced successfully by many
distillers, who, we read, take out theil
| license in the name of one Of their EN-
ploYes, 50 that they can become theil
own bOndsmen. Well msy our North
ern Republican contemporary ask: III i
Is not the duty Of officers especially APP
pointed to protect the United States from
loss through fraudulently disposed tar
payers. to guard against such imposition
as these, then whose duty is itf"
Commenting on this development thus
made public through its correspond
ence at the capital, our contemporary
is constrained TO conclude that the
Investigation Of this affair is still il
progress, but ii has gone far enough t.
emphasize the fact that Commissions
/ Rum, Of the internal revenue, for SOME
reason yet unexplained, is not at all eagel
to assist Secretary Folger in prosecuting
his inquiry, and he displays, to say tbs
least, very bad taste in showing so much
lukewsrmness in giving his assistance il
clearing up the mystery Our sfore
said contemporary well says: IF there
is nothing wrong-if straw bonds have
not been given and accepted-it can dc
the Commissioner no harm to have The
fact iudisputably confirmed. On th'
other hand, if investigation shall dis
close corrupt practices. Mr.. Raum
though be himself may be innocent Of
them, cannot fail to excite suspicion by
his present unwillingness Unfortunately
We have not yet reached q point wher
all our government officers give eacf
other hearty cooperation in tracking
out dishonesty. but the country hai
heard too much about the whisky trans
actions, and its curiosity is too mucl
aroused, to permit the matter to droI
before it has been thoroughly sifted.
The Tariff Commission, as at present
/ constituted, is another instance of Re
4 4 e., i