The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-17
HIS REPORT IS
SENSATIONAL
Commissioner Charges That
North Carolina Case En-
braces Debauchery of En-
ployes, Bribery of Rev
enue Officers and Sue
cessful Theft"
Washington, January 16.-A sensa-

washington, january 10 Sc'o"-
tional report by Royal E. Cabell, Conn
missioner OF Internal Revenue, to
Secretary Macveagh, teeming with
caustic criticisms of alleged whiskey
frauds In North Carolina and of the
course OF the Federal court. presided
over by District Judge Boyd, of Green's
boro, n. G.. In dealing with the condi-
tons. was made public here to-day by
the House Committee on Expenditures
in the Treasury Department, which
has undertaken an investigation OF the
situation.
MIR. CabelI describes the conditions
in the case. directed against D. G.
Foster a distiller. OF Williams, n C..
and \. Glenn Williams the alleged
purchaser Of the whiskey in question.
as history OF frauds against the
government. embracing debauchery OF
employees. bribery OF revenue officers
and successful theft
Issues Three Injunctions-
The commissioner declares that Judge
BOYD has issued a total of three injunc-
tons to restrain the government from
Selling and selling the whiskey for taxes
He points out his authority to act under
the revenue laws and adds III reference
to tho injunctIOns.
In 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 Il violation of law as TINS
proceeding is.
The case began with the seizure in
1905 of the rectifying house. 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 two
year investigation that resulted in the
Indictment of \. Glenn Williams. d. F.
Kennedy, d. c. Foster and Others
Their company was found guilty and
Williams and Kennedy acquitted. The
commissioner ordered the distillers TO
give a new bond and later. because of
the alleged frauds, ordered the whiskey
seized and sold for taxes. In three
moves in this direction he was enjoined
by Judge Boyd. The last effort of the
com missioner contemplated the trans
fer of the whisaey To u general bonded
warehouse at Louisville. The issue IS
pending in the courts
Heavy Frauds Alleged.
Mr.. Cabell asserted that the official
renorts appeared to demonstrate that
the old Nick" Distiliery Company had
disposed of its property so that there
we're no longer any assets from when TO
collect a Judgment. and said that evi@
dence indicated that during one period
the frauds ran from $3.50 to $500 day
The commissioner told of heated Ian
quaee between himself and r. H. Nc
Neill. attorney for the distillery, in
connection with the case when he de-
cIared Mcneil said the bureau was
allowing itself TO be used to wreak
personal and political vengeance on
Williams and that Williams had power
full friends who would not see MIN m
j,1red The commissioner said Mr.
Mcneil referred 10 Judge Boyd among
Others in this connection
There are now stored near Williams.
n G. in an out-of-the-way place the
report concluded more than 600 bar
rels of whiskey. on which $4,000 tax
is due this government. and there are
large claims pending If tho distiiier
could be unprecedented and brought to
Justice be would be convicted. prob
ABLY i'm prisoaed and heavily fined In
addition to the internal revenue frauds
in which the claimant. y. Glenn Will
Iiams. has figured, he stands to-day con-
victed by jury. though sentence has
ver 10 be imposed. on account of
frauds against the Postoffice Depart
ment. For long time It has been
necessary to maintain day and night
Guards. at a cost OF thousands of
dollars TO protect these spirits in this
distillery-
Commissioner CabeII later will tes-
tify before the committee
Courts Investigation
When Mr. Cabell was seen oy me
Times Dispatch correspondent to-day
and asked for a statement IN the matter
he said
THE letter which have fled with the
Committee on Expenditures OF the
treasury Department is quite lengthy.
covering more than 6fty pages of type
written matter. That letter tells all
that I know about the case and deals
with every phase of the situation from
the time the seizure was ordered made
on Fosters whiSkey I'd TO the present
II also goes into detail and relates
several conversations had between my
ssif and Mr.. Williams regarding the
matter. In addition to this ! do nos
believe there ~ anything that can say
at this time
II was said here to-day that Mr..
CabeIl is most anxious that the CON-
mittee shall take up the case immedt-
ately and courts the fullest investigs-
tioo IL was also hinted that the
Democrats in Congress would IKE
chance TO 60 after judge boyd. who =
on the other side OF the fence poiiti-
calIv. and that some interesting pro-
ceedinss may be looked for IN the near
future
Mr.. Caben also stated that unless
circtnnstauces should arse demanding
IL he will make no further statement IA
the case az the present time