The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-06-07
REVENUE SCANDAL
FOR TEN YEARS
Twenty Million Dollars Stolen from
tho Government, 10 the
Charge Made.

UNITED Press Leased Wire Service.]
WASHINGTON, June by admis-
sion at the treasury department today
| that search is being made by the
| secret service for Knox Booth, divi.
sion revenue agent for Tennessee and
| Alabama, with headquarters at Nash
vile, light was let into what is de-
| clared to be $20,000,O00 revenue
scandal extending through three ad-
ministrations.
Booth has been missing two weeks,
his disappearance being coincident, 1t
is said, with the arrest of John L.
Caspar at TT. Smith, Ark, on charge
of conspiring to defraud the govern
ment. Caspar is head of big dis
tillery that is said to have evaded
payment of large part of its taxes
through alleged conspiracy with reve-
nue. officials
The search for Booth, and the ar
only the beginning of widespread
revenue service, several other south
ern states being involved. 1t will be
shown, 1t Is said, that frauds against
the government averaged 100000
year, for the past ten years.
The system was first brought to
light in 1908, the department records
reveal. In the fall Of that year, re.
ports on conditions, particularly in
Virginia and North Carolina, resulted
in an investigation by Chief Inspector
David A. Gates and in the conviction
Of a number of gaugers and storekeep-
ers. The inquiry was dropped, how
ever, until the following spring when
1t was called to President Roosevelt's
attention and was reported to have
been the subject Of cabinet meet
ing. A conference participated In by
officials and the district attorneys of
those two states, was held at the JUS
tice department and plans laid for
complete investigation, but the matter
never came to head. No more pros
ecutions resulted Gates was trans
ferred to other work and finally quit
the service, accepting appointment as
state tax commissioner In Arkansas.
The present revenue commissioner,
VIM. H. Osborne, called Gates back
into the service and put him at work
on the distillery case last December.
Shortly afterward he was made
deputy revenue commissioner and the
Smith was left to Division Agent
Caspar and the disappearance OF
Booth, it is said 1t is the fact that
Gates has been made Commissioner
Osborne's right hand man that is TAX
en- to indicate intention to go to the
bottom of the whole matter and fore
casts a scandal that may stir the
whole south.
Division Agent Booths district for
mally embraced Arkansas and the
facts on which the prosecution is
based came to light, it is said imme-
diately after the change in district
was made. The department alleged
that for years it has been the prac-
tice Of some distillery operators to
make tax payments of only 80 to 40
percent of the amount due the gov
eminent. The principal method of
evading is said to be by "crowding
the mass" that is to say, by turning
out much larger quantity Of whisky
than the apparent capacity Of the
plant This Is possible, it is said,
only by collision with the revenue
off1cers-the gauger and storekeepers.
While 1t is not hoped Co recover a
very large part of the taxes lost, 1t Is
said the department expects to col
lect some Of the money. Commission
err Osborne is understood to be desir.
Gus of getting a big portion Of that
lost during the time he has been in
commission whether or not he Is able
/ to get any of that lost while R. E.
Cabell was commissioner under Taft
and while J. G. Caspers was commsr.
sioner under Roosevelt.