Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-08-25
Complete Investigation to Be
Made of Suspected DistiIIery.
MAY HAVE TO EXPLAIN
Intimations That Revenue Official
May Be Called Upon.
TALK OF A COMPROMISE
Opinion Expressed by 0Mcial Fa-
miliar With Methods Of the In
ternal Revenue Service.

Thorough examination of the books and
affairs of the distillery of the Capital
Supply Company. four of the officers and
employees Of which have been arrested on
charges of violating the internal revenue
laws. will be the next step to be taken
by the internal revenue officers to stop
the making of Illicit liquor in the Ma
tional Capital.
The arrests of the two officers and OF
the superintendent of the distillery at
the foot of 10Th street southeast yester-
day afternoon as followed by the seiz-
ure of the plant by United States offi-
cials. Its operation. however, is being
continued today. just as II II had not
been placed in the hands OF the govern
ment. Four days supply Of grain is al
ways kept fermenting in distillery: and
to avoid waste 1t was necessary to con-
tinue the operations today.
j. A. Pierce. gauger OF the revenue SER
vice. is in charge. and there were a num-
Der of more or less rickety country wag-
ons carrying of "slops.' as the refuse
from the big vat is technically called.
With those implicated in the case under
with the plant in the possession Of the
ficials will now devote their efforts to an
extensive investigation of the operations
Of the distilery company. Its object, ac-
cording to the officials. will be to determine
to what extent the government has been
defrauded Of revenue and whether or not
there are others implicated.
Error or CollusionP
These Investigations will also reveal
ii is claimed, whether or not the bar
rel Of whisky taken from the distillery
two days ago and seized by internal
revenue officers was taken out Of the
distillery through error, as claimed by
the defendants. or was part of a wide
spread col1usIon to defraud the gov
ernment of taxes.
These Investigations are under the
general direction of Collector Colds
borough of Baltimore. head of the rev.
enue district in which the District Is
included. -...
Capt. Wheeler. acting commissioner OF
internal revenue. said today that he had
not received from Collector Goldsborough
an official report connected with the seiz-
ure OF the distillery Of the Capital Supply
Company and the arrests OF four persons
connected with II.
The fact that no further warrants had
that no others may be involved. although
there are fntimations that a revenue on
cial may have to explain how the law
could be violated under his supervision
without his knowledge.
The report of Collector Goldt6rough will
show who was the storekeeper and gauger
on duty at the distillery. Ii is said at the
internal revenue bureau that q storekeep-
er is supposed to be on duty at all hours
while the dstillery is In operation In the
cases of large distilleries a gauger is also
sent to the distillery to settle with these
concerns when taxes are to be paid on
goods In the bonded warehouse
In the case OF small distilIeries the store
keeper and gauger are frequently one Of
hcial. 1t Is explained. though that store
keepers are often occupied in the ware
house attending to the weighing OF meal
and looking after other duties, and that
II would be possible for the law to be
evaded. as Is charged in this case with
out knowledge Of the revenue ofYlciaI on
duty. Consequently collusion frequently
does not exist IN cases similar to the one
in Washington that have often been re-
vealed by the revenue bureau.
May Be Compromised.
Company may be compromised" an Of
fetal who is posted on :ne methods oi
business in the interna: revenue serv.
;ce said today. If the officers OF the
company make proposi lion satisfao-
tory to the internal revenue collector
the prime object OF the collector is 10
secure to the government revenue, and
there is generally no disposition to IN
lict punishment unless the case is a
very hagrant one.
THE greater majority of cases never
come to trial for the reason that the of.
fender makes an offer of settlement sat
icfa N Ga
offers must always be accompanied with
cash or a certified check to the full
amount offered"
After their arrest yesterday afternoon
Cole, Hall and Whitaker were taken be-
fore Commissioner Anson Taylor and
charged with violation OF the revenue
laws They waived examination end
| were released on bond. They were rep