The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-04-16
|JUGGLE WITH STAMPS

and What it Revealed. how One
Package Starts as As Gallons in
the West and Appears in North Car
oIina as $3.50 Gallons, all Taxes
Paid. Charges Made by Man Well
Versed in Revenue Laws and Pro-
cedure. "How Was the Collector at
Raleigh Deceived?"
Recently there have been some changes
in the personnel of the Internal Revenue
employees in this district, but nothing in
dicating the reason for these changes has
leaked out from Raleigh.
From Greensboro comes the sensational
story that there have been unearthed the
most gigantic frauds against the govern
ment ever practiced in North Carolina. A
whiskey concern at Milton, Caswell coun-
ty. North Carolina, it seems, has default
ed the government out of not less than
thirty thousand dollars. To do this it, OF
course, had to have the cooperation OF
the sworn revenue officer put in charge
of the concern by the Collector of Inter-
nal Revenue.
Upon receipt of the information yester-
day that the government had been swindled
&c
reporter of this paper called at the office
OF the collector. He was not in the city,
having been called away the previous
day by the illness of his father. Nothing
official could be learned therefore. from
the collector. but a clerk in the depart
ment admitted that certain deputies or
gaugers had been displaced and had been
convicted in the Federal Court at Green's
boro. They were Andrew j. Davis and
W. NJ. Mebane.
THE STORY OF THE CRIME.
The crime is one of the boldest and
most successful in the history of internal
revenue swindlng. There has been much
petty rascaity by the distillers, but the
gigantic scale upon which it was carried
on at Milton, is something that will
startle the State. 1t has already been
published in these columns that A.
]. Davis has been convicted, and w. M.
Mebane indicted the latter to be tried at
special term of court, but the full details
of the successful steal have not hitherto
been printed.
The following is from Mr.. b. B. Bout.
din who formerly lived in Ra,eIgh and is
well known in this State, Virginia and
other States. He has held in Washing
ton City tnd elsewhere responsible po-
sit!on in the Internal Revenue Depart
ElCnt, and is well versed in the law and
the execution of the laws regulating the
Internal Revenue service. His state
mento shsw a condition that calls for Sc
verC condemnation to say the least Here
is what Mr.. Bouldin states:
so many of our fellow citizens having
expressed an interest in the revenue case
that has occupied the time in Judge Boyds
court for several days past, and which
yesterday resulted in the conviction of
/ United States Gauger upon the charge OF
completely in the most gigantic fraud
| against the government ever prac-
tIsed in this district in the history OF the
State; and several having come to me
for statement of the facts connected with
the case, knowing that had witnessed the
for the benefit Of those who were not in
court. and who desire that l take this
method of informing them.
without giving names | will state that
it appeared from the evidence. that Ger
tain persons at Milton. N. c.. established
a rectifying and wholesale liquor estab-
lishment, year or two since. and at once
began to handle large quantities of illicit
Whiskey.
"The question Immediately arose, ''How
may we dispose of this illicit whlsaey with
the least risk of detection?'
"To attain this object one of the most
ingenious plots ever conceived in this part
of the moral vineyard was entered into,
and, if the patient reader will follow me
closely and carefully l will endeavor. in
as short a space as possible, to give an
idea of the working of the scheme.
''The Rectifier at Milton realized the
ne oessity of disposing of the whisky under
stamps instead OF risking it "bald-headed'';
and he established at Louisville, Indian
apols, and Springfield. wholesale liquor
houses, and bought up large quantity of
low-proof goods sucn as blackberry wines.
etc, in order that ne might get into his
possession the stamps covering these
goods.
Now bear in mind that this low proof
stuff is put up by rectifiers, who have n
right to withdraw from an original tax
paid package of spirits any quantity, and
Continued on Third Page.)