The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-05-30
Issues Blanket Order
Giving Second Dis
trict Clean Slate.
FOUR PLANTS PAY
$3,750 IN FIN ES
Adjustment Drops Cases Against
Pocahontas, Henrico, Richmond
and Stony Creek Companies.
Commissioner Will Oppose
Further Settlements
Out of Court.
Under sweeping compromise ar

Under a sweeping compromise ar
ransement announced yesterday by
Commissioner OF Internal Revenue
osborn through Revenue Agent W.
ii. Chapman, all cases at present mend
Ing in the United States District
Court against distilleries in the Sec
ond Revenue District OF Virginia, are
wiped from tho docket, and the own
ers and operators under Indictment
are relieved from further civil or
criminal liability.
Tho commissioners action follows a
two-day consultation with local rev.
enue officers and the United States
District Attorney for this district, and
disposes OF the cases against the Po-
cahontas Distilling Company, of Chcs-
terfield County, and the Stony Creek,
Henrico. and Richmond Distilling Com
panies. OF Henrico County. The basis
OF settlement follows:
Pocahontas DistillIns Company.
owners and employees indicted for vio-
lations OF the internal revenue laws.
settled for $500.
Stony Creek Distiiling Company in
rem proceedings arising from charged
evasions OF part Of the tax on spirits
manufactured at the plant, settled for
$1,000.
Richmond Distilling Company and
Henrico Distilling Company. in rem
proceedings arising from alleged rev
cnue irregularities. settled respective
ly for $3.50 and $500.
Warns Diatillcrs.
The compromises thus effected clear
the Second Revenue District OF all
civil and criminal cases against dis
tilleries, and give the new admins
tration clean slate. The house
cleaning is the most thorough OF re-
cent years, and puts an end TO prose
cutions which in the course Of their
development threatened 4 complete
shnkc-up OF the revenue machinery in
this district
With the announcement of the COM
promise comes = warning from the ne ".
commissioner. which lis couched In no
uncertain terms. To Revenue Agent
Chapman, who returned yesterday from
Washington. Commissioner Osborn
said:
You may tell the distillers in your
district that I am consentinB to these
compromises only because I want TO
start my administration with clean
slate. am opposed to the principle
OF permitting compromises where the
persons are guilty of the onenses
charged. warn the distilIers oI
your district as we'll az those OF other
districts that hereafter no cases will
be admitted to compromise. Every
Buity person or plant VIII pay the
penalty adtudged b. the courts, with
out interference from me.
II have heard too much loose talk
about distilleries being able TO COM
promise for violations OF the law with
a few hundred dollars. intend to
put stop to il. Malefactors of this
class will in the future find the com
promise door closed against them"
Closes Hard-Fought Case.
The blanket compromise, in wiping
from the docket the case against the
Pocahontas Distillins. Company, closes
a chapter of internal revenue history
OF more than ordinary Significance. In
dictments returned by the Federal
grand jury on April s. 1911. charged
a. w. Jones, Burt Jones and Stephen
Bullock with concealing certain guam
titles of corn whiskey manufactured
at the plant near Petersburg. Other
indictments brought fraud charges
against A. e. Shore. I. C. Shore and
John w. Phillips, officers of the dis
tillery, and charges OF conspiracy
against the Shores. Phillips. A. C.
Scott and Solomon Mason.
The case came to trial in October,
1911, and was bitterly fought. Despite
well-authenticated reports that the
Jury stood eleven for acquittal and
one for conviction. it was found i'm
possible either to secure a conviction