The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-04-22
MILTON FRAUDS
EXCEED 100000
Internal Revenue Scan
dal Stinks to Hiqh
Heaven.
mr.. DUNCAN is DUNE
MIR. MebaHe Virtually Charges Co!Iu
sion Between the Collector and
the Convicted Gauger. Full
Investigation Needed 10
Determine Respon-
sibiIity.

The frauds at Milton. by which the
Government has bsen defrauded seem tc
have grown from $4,000 TO 100000, ant
yet Collector Duncan refuses to say
word in answer to the statement of Mr.
B. E. Bouldin that the frauds could moi
have been successfully practiced if Mr.
Duncan had demanded the evidence AS
THE LAW EXPRESSLY REQUIRED
HIM TO DO"
Mr.. Bouldin's charge was made in the
News and Observer OF April 10th. Mr
Duncan declined to reply to this specific
charge by former official of the Inter
nal Revenue Department, stating that he
would have nothing to say until the cases
We're tried in the courts.
And now comes the Greensboro PATRIOT
a reliable and careful paper at Greens
boro, stating that the frauds at Milton
aggregate 100000, instead OF $4,000, as
was estimated by Mr. Bouldin. The article
in the Patriot is as follows:
Milton Frauds Aggregate S100, ,0O0
Judge James e. Boyd, Marshal Milli
kan and the other court officials have
gone to Statesville to hold the Aprli
term of the Federal Court at that place
this week. special term for the trial
OF both criminal end civil cases in wind.
ing UP the dockets will convene in Green's
.boro next Monday morning. The first cas-.
to be heard will be the one against W.
N. Mebane and others charged with be.
ing implicated with A. j. Davis, con-
yicted here last week of defrauding the
government OF $4,000 while acting az
gauger at a Milton distillery. The latest
estimates place the governments s loss at
Milton at 100000. 1t might be said in
Mr. Mebane's favor that he claims he
went to Milton UNDER EXPRESS OR
DERS FROM THE COLLECTOR TO Dc
WHAT THE GAUGER THERE, MIR
DAVIS, TOLD HIM. If such is the case
THERE, WAS EVIDENT COLLUSION
BETWEEN THE COLLECTOR AMI
GAUGER. a FULL INVESTIGATION
IS NEEDED to determine the RESPONSE
bility for the frauds, which are enormous
Davis is under bond of $4,000 fer his ap
rearance at the special term next week
when sentence will be pronounced at the
conclusion of tho hearing OF the other
defendants implicated in the same SHADY
Transaction
AS soon as the Patriots article wa.
seen a reporter of the News and Obser
ver called to see Internal Revenue Collec
tor Duncan yesterday and showed him
the article. in the Patriot, particularly
the statement " Mr.. Mebane claims that
he went to Milton under express orders
FROM THE REVENUE COLLECTOR tt
told him. If such IS the case there was
EVIDENT COLLUSION BETWEEN TFIk
COLLECTOR AND GAUGER.''
What have you to say about thi:
statement IN the Patriot" l asked Nr
Duncan.
Il have nothing to say at sill about an,
part OF this matter further than what
gave out in MY statement last week,
replied Mr.. Duncan.
/ then started to ask him this question
What have you to say about the follow
ing statement by Mr.. Bouldin, prlli.ed II
the News and Observer in its is 'ue O
April 16':
We'll, to make a long story short
the gauger did not cut out the part
showing the proof gallons, but simply
-.ported the proof $50 rer cent. when
it was in fact only 10 per cent. thus
asking for credit for 10 times the
quantity TO which the rectifer was
entitled. The collector did not demand
this evidence as the law expressly re-
CURED him to do. this beng the only
check tie collector had upon the
gaCger, but ISSUED stamps without
reference to the proper basis OF credit;
ann we find him in the position of is
suing stamps lor $3.50 gallons upon
ona little measley credit of 45 prooS
gallons. and thus defrauding the gov
er7ment out OF as much as $3 900 in
one Gay. DCcS any OiS tliiiih Ills WAS
ignorantly done?'
But, Mr.. Duncan cut the matter shor
by saying that he declined to have any
thing more to say about the matter un
Ill it came out in the courts.
"As l said in my statement on Sunda.
morning. he continued, 4 still saw tha
It would be highly improper fer me t
discuss the matter any further Will
these cases are pending in court
The Patriot is entirely rivht in sayin!
that "A FULL INVESTIGATION Il
NEEDED to determine the respoEsibilit.
for the frauds, which are enormous" |
Mr.. Bouldin and Mr.. Mebane are right
Collector Duncans office has not kept til
check upon the gauger which he is re
uuired by law to keep. II their state
ments are not correct, or it Mr.. Dun
cans office has fully observed the law
why any hesitation about saying so? |
would be very easy matter to show tn
records. if they have been kept as re
"A FULL INVESTIGATION IS NEEL
Ed and the public Is entitled to kno,
the results of such investigation.
Swindlirg the government out OF on
hundred thousand dollars in a little tow
like Milton, right here IN North Care
lima. is one of the most gigantic fraud
ever perpetrated on the internal .revenu
in North Carolina. The neople have :.
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