The Sentinel=record., 1913-01-17
REVENUE COMMISSIONER MAKES SENSATIONAL ARGES
 AGAINST U. $. COURT.
SHIELD LIQUOR VIOLATIONS
Charged That Judge Aided DistIIers to Beat Government Out of Large Sum-Protected Men Accused
 of Frauds.

Washington, Jan. I6.-A sensation al report by Royal 10. Cabell, commis- sioner of internal revenue, to Secre- tary MacVeagh, telling 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 situation
 Mr. Cabel describes the conditions in the case, directed against D. C.. Foster. a distiller of Williams N. C., and N. Glenn Williams, the alleged purchaser of the whisky in question as "a history of frauds against the government embracing debauchery or employees, bribery of revenue officers and successful theft"
 The commissioner declares that Judge Boyd has issued three 1njunc- tions to restrain the government from seizing and selling the whisky for taxes He points out that his author ity to act under the revenue laws and adds in reference to the inIlnetions: ''In view of the positive and em- nhatic language of the supreme court it would seem incredible that the court should lend itself to the consid- eration of so plain violation Of law
 
 as this proceeding is"
 The case began with the seizure in 1905 of the rectifying plant known AS "Old Nick" at Williams, N. C., not far from Winston-Salem. The seizure was made on what the reve- me officers charge were frauds dis covered in a two-year investigation that resulted in the indictment of N. Glenn Williams, D. E~ Kennedy, D. c. Foster and others. Their com pany was found guilty, and Williams and Kennedy acquitted. The commis- sioner ordered the distillers to give q 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 en- joined by Judge Boyd. The last ef- fort of the commissioner contemplat- ed the transfer of the whisky to general bonded warehouse at Louis vile. The issue is pending in the courts.
 MT. Cabell said that the official re- ports appeared to demonstrate that the "Old Nick distillery company had disposed of it's property so that there were no longer any assets from which to collect judgment and said that evidence indicated that during one period the frauds ran from $25O to $500 a day The commissioner told of heated language between him self and R. H. McNeill, attorney for the distillery in connection with ths case when he declared McNeill said the bureau was allowing itself to be used to wreak personal and political vengeance on Williams. and that Williams had powerful friends who would not see him injured. The commissioner said MT. McNeill re- ferred to Judge Boyd among others in this connection.
 There are now stored near Will liam. in an out of the way place, re- port concluded, more than 500 bar rels of whisky on which S40O0O tax is due this government and there are large claims pending. If the, distiller could be apprehended and brought to justice he would be convicted, prob ably imprisoned and heavily fined. 1 In addition to the internal revenue frauds in which the claimant, N. Glenn Williams, has figured, he stands today convisted by a jury though sentence has yet to be im- posed, on account of frauds against the postoffice department For long time it has been necessary to maintain day and night guards at a cost of thousands of dollars to pro : tect these spirits in this distillery.
 MT. Cabell later will testify before the committee.