The Birmingham age-herald., 1913-01-17
CAUST|C CRITICISM
OF WHISKY FRAUDS
IS MADE BY CABELL
Sensational Report by the
Commissioner of Internal
Revenue Before
the House

Washington, January ia sensational
report by Royal E. Cabell. commissioner
of internal revenue, to Secretary Mac
Veagh, teeming with caustic criticism OF
alleged whisky frauds in North Carolina
and of the course of the federal court
presided over by District Judge Boyd OF
Greensboro, n. c., in dealing with the
conditions. was made public here today
by the House committee ON expenditures
in the treasury department, which has
undertaken an investigation of the sit
uation
Mr. Cabell describes the conditions in
the case directed against D. G. Foster, a
distlller of Williams, N c.. and n. Glenn
Williams. the alleged purchaser of the
whisky in question, as "a history OF
frauds against the government, embrae.
ing debauchery of employees bribery OF
revenue officers and successful theft .
The commissioner declares that Judge
Boyd has issued three injunetions to re-
strain the government from seizing and
selling the whisky for taxes. He points
out his authority to act under the reve-
nue. laws. and adds in reference to the
injunctions:
I'm view of the positive and emphatic
language of the supreme court it would
seem incredible that the court should
lend itself to the consideration of so plain
violation of law as this proceeding
is
Case Began in 1865
The case began with the seizure in
1905 of a reetifying plant known as "old
Nick at Williams. N. C.. not far from
Winston Salem. The seizure was made
ON what the revenue officers charge were
frauds discovered in a two year investi-
CATION that resulted in the Indictment
OF \. Glenn Williams. d. T. Kennedy.
D. c. Foster and others. Their company
was found guilty and Williams and Ken
nedy acquitted. The commissioner or
dered the distillers to give a new bond
and later. because of the alleged frauds,
ordered the whisky seized and sold for
taxes. In three moves In this direction
he was enjoined by Judge Boyd. The
last effort OF the commissioner content
plated the transfer of the WHISKY to a
general bonded warehouse at Louisville
The issue is pending in the courts.
Personal Vengeance Charged
Mr.. Cabell asserted that the official
reports appeared to demonstrate that the
'sOld Nick Distilery company had dis
posed of its property so that there were
no longer any assets from which to col
lect a Judgment, and said that evidence
indicated that during one period the
frauds ran from $3.50 to $500 a day The
commissioner told of heated language
between himself and r. H. Mcneil. at.
torney for the distillery, in connection
with the case, when he declared Mcneil
said the bureau was allowing itself tc
be used to wreak personal and political
1-af1 pn Ia nj hat
liams had powerful friends who would
not see him injured. The commissioner
said Mr. Mcneil referred to Judge BOYD
among others. in this connection
There are now stored near Williams
n. c.. in an out Of the way place.
the report concluded, more than g0i
barrels of whisky on which $4,000 take.
are due this government and there art
large claims pending. If the distillet
could be apprehended and brought tc
justice he would be convicted probably
imprisoned and heavily fined. In addi-
tion to the internal revenue frauds IL
which the claimant, n. Glenn Williams
has figured, he stands today convicted
by a jury, though sentence has vet Il
be imposed. on account of frauds against
the postofTice department. For long
time it has been necessary to maintain
day and night guards. at a cost of thou.
sands of dollars, to protect these spirits
In this distillery'
Commissioner Cabel later will testif,
before the committee.