The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-04-13
Government WINS
O|ST|LL|NG CASE
BROAD ROCK COMPANY Is FOUND
GUILTY or DEFRACDING on
PAYMENT of TAXES.
TO CONFISCATE OUTFIT
ATTORNEY FOR COMPANY TAXES
An APPEAL AND SAYS HE WILL
CARRY THE CASE TO THE
SUPREME COURT.


ment was returned yesterday after
noon by the jury which has been hear
Ing the in rem proceedings against
the Broad Rock Distiling Company in
Federal Court for the past week. This
means that the property. Of the dis
tilling company, which consists Of a
complete distilling outfit. valued at
several thousand dollars. will be con-
fiscated by the Federal government.
1t means that the government was
able to sustain Its charge OF fraud
to evade the revenue laws brought
against the company.
The arguments In the case were
made this morning. The opening
speech was made by Assistant District
Attorney Tally. Mr.. Tally ridiculed
explanations Of the defense which
were brought forward to discredit the
evidence introduced during the trial.
The presence Of hidden watts, the pur-
pose Of which the defense had not
been able to explain. he argued, point
ed conclusiveiy to the intention of the
officials OF the company to defFaud the
government The records OF the bank
account OF the company which were
introduced yesterday. Mr.. Tally de-
clared, proved conclusively that the
distillery would have been operated at
q loss unless fraud was practiced.
Attacks Government Witness.
The speech Of Attorney G. A. Han
son for the defence. who followed As
sistant District Attorney Tally. was
largely an attack on the principal
witness for the government. Ethelbert
Gilmore. who was the bookkeeper at
tho plant He criticised the revenue
ofiicers for their methods OF securing
the testimony Of Witness Elmore.
The closing argument for the gov
eminent was made by District Attor-
ney Lewis. who reviewed the evidence
In the case in an impassioned manner
and summed up the case for the gov
eminent.
In charging the Jury, Judge wad-
Of the hidden vAts which were not
mentioned in the description of the
distillery which the government re-
Qu.rex to be furnished when operation
II begun. Assistant Attorney Tally
declared sarcastflly that the watts
were placed under the distillery az
swimming pools for the employees. al
though when found they were filled
with high proof spirits. Judge Wad-
dill charged the jury that the mo-
tives and Incentives Of the different
witnesses were to be taken into ac-
count In reviewing the evidence. He
specifically instructed the Jury that
the case was civil action and that
The verdict should be determined by
s. preponderance OF the testimony in.
stead OF the stereotyped conviction
beyond the shadow OF doubt which
determines the verdict in criminal
cases.
VIII Appeal Case.
When the verdict of the jury was
announced, Attorney Hanson for the
defense made a motion to have the
verdict set aside. The grounds upon
which the motion was made was that
the court did not have Jurisdiction to
entertain the proceedings. because
the proceedings were predicated upon
the seizure by the revenue officers
OF real estate. which under the statute
the officers have no right to do.
Another gOund for the motion as
stated by Mr.. Henson was that the
case had been tried N a civil Case,
whereas II should have been tried as
Z criminal case. The case will be
appealed on these grounds by the de-
fendants. and Mr.. Hanson declare
his intention Of carrying II to the Uni
ted States supreme court on the issue
OF lack OF Jurisdiction by the circuit
court.
The criminal case against the of1i-
GERS OF tho distillory win likely be
taken up today or Monday. Tho ON
cials are charged with violation Of
the revenue laws In attempting to
svade the payment OF the revenue tax
on their product.