The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1909-08-13
UNCLE SAM TAKES
COOL TEN THOUSAND
IN CASCADE CASE
oIsTILLERY MADE TO PUT UP
THIS SUM IN ADDITION
TO COSTS.
TWICE THE AMOUNT OFFERED
Found Guilty Of "EquaIlzino" spIrita
And Hailed Before The Commission
er to Pay Penalty-criminaI Pros.
eeution May Follow.

WASHINGTON, Aug. 11.-Acting
Attorney-General WADE Ellis Tuesday
afternoon signed the papers in the
Cascade Distillery case, releasing v.
E. Schwab, and the distillery property
on payment of 10000 This is about
$4,000 more than the Cascade people
proposed in their proposition OF COM
promise. This sum was fixed as the
amount required to reimburse the gov
eminent for amount lost in interna-
tional revenue tax for "equalizing
spirits in warehouses and removing
spirits on which the tax had not been
paid"
When Col Frank Bond, attorney for
the Cascade people, first came to
Washington to work for the relief OF
mis- clients he made the proposition to
pay $4,000 to compromise the case.
After Commissioner of Internal Rev
enue Williams finally reached a settle
ment on this basis. When this prop
osition was hanging fire Collector
Sharpe rushed to Washington and In
sisted that the amount was too small
and insisted that the amount should
be at least doubled. He insisted that
the infractions of the law by Schwab's
company had been fragrant, and that
they should not be let off with such a
small fine. How successful he was in
his argument can be judged from the
conclusion of the letter OF the acting
attorney-ge general, addressed to the
secretary of the treasury, which reads
as follows:
After careful consideration OF
the matter and in view of the fact that
developments subsequent to the re-
ceipt of your communication show a
very much larger tax loss to the gov
than was at first supposed,
am unable to recommend the accept
ance of the amount referred to. In
my judgment no less than $4,000
and costs should be paid in compro-
mise of the liability of Mr.. Schwab d
Son, and for the release OF the prop
erty under seizure"
A story is making the rounds here
hat the internal revenue bureau 10
aking steps to prosecute a number OF
parties who were actually guilty or
,onnived at the illegal transaction OF
spirits-in other words,
,utting whisky in barrels of old whis-
~ held in bond. 1t is said that the
'f1cials of the department of justice
consider this compromise of the Cas-
ade matter anything but a clean
ill of health" for the Schwabs. They
ave been found guilty, and they have
ad $4,000 to keep the case out OF
curt, which can be considered moth.
ng less than fine. 1t is seldom that
licensed distiller is ever forced to
nswer charges in the courts for try
1g to evade the payment OF a tax, but
Or some time 1t looked very much as
nough Mr.. Schwab would have to
ace Judge. AS stated by acting
commissioner Williams some time
go, the government is always open
} a compromise, regardless Of how
srious the case might be. This case
considered one of the most serious
lat have come to the attention Of the
1vernment. 1t is said but few, IL
ny, compromises of this kind have
'er been made at such high figure.
Col. Bond, who has been here for
ne weeks fighting for the schwabs,
# Tuesday night for Nashville.