The New York Herald Newspaper, November 11, 1868, Page 4

4 WHISKEY RING IN Rl How the Revenue Frauds Were Covered Up. CHMOND. IMPORTANT CORRESPONDENCE ‘The following correspondence, which has been ob- tained from Mr. John H. Gilmer, of Virginia, discloses a new and startling phase of the Binckley investigations. Itdevelops an astonishing case of suppression of investigation and demonstrates that the corruptions which prevailin the revenue service are absolutely irremédiable while McCul- loch is Secretary of the Treasury and Rollins Com- missioner of the Revenue, by proving these officials the zealous, persistent and effectual aiders and abet- tors of fraud, The papers show:— That Mr. Glimer, during Bolicitor Binckley’s first visit to New York, discovered frauds in Richmond, and, on bringing them to the Secretary's notice, was employed by ira to develop the proof, with the ald of @ government detective. This detective was to mislead Gilmer and get the investigation into a fog and run it into the ground. Gilmer, however, detected him and 6X- posed him. The Secretary pleasantly calls ita “disagreemont” between him and Gilmer. A General Kobart was then sent, after which Rollins admits the evidence of the frauds, and asks Gilmer how to get at the “proof.” His reply demonstrates that the proof already before him 1s as complete a8 itcan be. They then try to get rid of Gilmer by chaf- fing about his fees, a point which Qually ends in denying that he had ever been retained as “coun- sel.” But a seizure of one of the distilleries becomes unavoidat nd all hands, therefore (but Gilmer), asing it without adjudication. Here, , & supervisor is appointed and sent Gilmer’s letter to him (Laird) and uent action show what he was appointed !, formerly an Assistant District At- comes in, Gilmer, after being for two 1s as retained counsel for the govern- »ily informed that he cannot be employed in get the “recommendation” of the government (Weed, Laird, Rol- in short, is choked of. But protest against releasing the ing in the hands of other oMcials yus ring, they are afraid to release, Now Out they libel the case before sioner named Cahoon (said to be of the nds now upon District Attorney aat Alexandria and is reported ute, whether it is not to be a sham, other branch of the business reaches . Dinckley deriving, In connection with ew York operations, information from the ar- » Richmond oMeials, authorizes Mr. mone the books, &c. The Collector ys or orders of his “superior” (Rollins), &c. ports to Binckley and Binckley reporis to McCulloch, Mr. Gilmer has no copy of the latter’s (1s Known” that be declined to interfere. nents are of universal interest and 11 from end to end by every taxpayer Our readers will shortly have from more matter of this sort. r JOUN H. GILMER, HON. ® VILLIAM R. LAR ORDER. L A NOTON, | ept, 16, 1808) down at his subs: and, "these should ber in the counir Luc Hon. Hueco McCcLioen:— lam red to furnish the names of two per- #Ons, Wi operly aathorized and protected, can ent devciop evidence, circumstances aagepariies of & Conclusive Character as to the New York matters r ed to ln your communication to me of the tected ai With suc Bot tliey must be amply pro wo act in New York, x y¥, duly considered ally recognized, I will guarantee a full ory deveiopment of the whole system of ith inst. nection. between t Artor- sable for your approval of the Attorney Gen aut counsel, properly author. tu the District Attorney in New would be free from all petsonai ueneed by any preconceived preju- secure to the government that ele- uted investigation which would at aud ihe respect of all deparimenta, by xe Integrity and discerning power of Pardoa the suggestion, 1 think it our consideration. w with yourself and Mr. Rolling it has occurred to ine that under ex- be sound policy to ed for the post of cial detective for the State of Vir- isting cure potat Li ge’ are, and J feel assared aa faithfully. noted and required to report througn aimed counsel for your department stant comusel for the” government, to with the District Atiormey in’ all osecations, 1 betieve 1 would reclaim ral hundred thousand do!lars for the or higher autho- as Tr dent, of smith stands uninjured by the eneral Mulford, as the papers on how. Ifuuy vouch for his fdelity cationa a3 a lawyer I refer you to ase. For my firmuess of purpose and to the preseut secretary JOHN H. GILMER. \SURY DEPARTMENT, Sept. 26, 1868, of the 18th and 2ist inst. came daly to ve dolgyed answering unti! I was assured that duis l0.¢r would be able to send a competent iicumond to confer with you and examine couuition of our revenue matters in that ave noty to advise you that Mr. Richards will coed to Kuchtwond without delay, H. McOULLOOH, Secretary. Joun UH. Gruen, Esq, Ricumond, Va. RICHMOND, Sept, 30, 1868, Hon. Hvom McOviiocm, Secretary of Treasury of the United Scates:— astevening and telegraphed you to- appreciate my motives. I know you you have eaid to me. I feel ui to your odiclal integrity, Ido not like Mr. Richards’ mode of investigation. He ts not wei versed in the new law. He has not followed my suggestions and requirements. He ts couvineed of frauds here, bat wavers iu some mate- rin polats. Tis powers are limited and he, I fear, wishes to limit thelr exercise, J have a thorough distaste = his mode of investigation— though he may be all right. He has certatoly dushed The Came ane does Bot seem eager in pursuit, You ny painnesa. The frauds, peculations e here are great in number avd ata. [furnished Mr. Richards yes fs and odered to go with him my- to act, and lost the opportunity, I yet make good ail { have stated to you under indictments. Lbave the proofs jen use and apply bh to say, however, that if T am promptiy & proper ofticer, with seizing po ro n place tn your departineat soney. Wilhout the powe 8 1 cannot accomnpileh my end: I de 1 other spectal duty .? Cannot @ special de- be appointed under this ta y to impose the * leteev” can it not be impar certainly Whore ’ and €X t, avaliable power, it mast be in ti r the control of the proper omicer, to be “at The power to seize is reside to be i necessary!” If a reach of anda eaercived When and as “deer hoceswary.”” If it t wit it not be im ed, asalyned or en- h agente as ‘, under tire ‘ase oF cases, “necessary uted by #law imply every power, ¢ retion necessary to carry ft into A present power, in the hands verday, here, would have ae. Fmous amount. 1 cive thia on and spirit of the law.’? authoritative action to vindl- department. Letme hear from \uis to the President aud you think proper. JOHN F. GILMER, RIcuMOND, Oct, 1, 1868, ered your telegram of this iM now und togrity, erstand each hut feared h rt u ork as mat Ad & ve xin_ and prao- fie is vow, { think, cons and reliably informed uch 1 ba we ‘ eC dertakeu, and will siep Without my concurre hee 8 he assures ority is extended to the State, and mine eu, ( will undertake \o aif! ail L pro- to Go this {must feo) that [aia properiy | be made, to the departinent. NEW YORK HERALD, WEDNESDAY, with those reesived from you, it has been determined to send cnotuer oficer to Ricamond, | General B.C, Hobart, @ geutieman of recognized | ability and of high sociat standing, in whose efi- | ciency the department has every confidence, bas 4 been selected for this duty and will probably arnive | in Richmond to-worrow morning. He wili be in- | structed to put himself in communication with you, | to make all examinations which he may deem neces- accredited by the Commissioner of the Revenue, ag Well as yourself. 1 have already expended a cons! \- erable sum of money and much time in working out these matters through detectives employed at my own expense. i ire you to inform me whether it is usual to poy 4 retaining fee to counsel retained as 1 amt, and to allow him a commission (and if so what) on what Is actually received and paid into the Treasury. General, ZOE TIgWA ns well 9a thoee OF the ANIEHY "io eee mot the power of but in cage he is ac fn comet ot the Tram Bracers | stent fe es aaa Fors hs accredited ag such, I will vindicate the integrity of | 30th, the Treasury Department and realize for the gov- Jennie Cone a cn oe ‘Treasury. ernment a very large sum of money DOW lost to it. To do this I will “need your folksy pore sae co- RICHMOND, Oct. 7, 1968 operative action. ER. | fon. Roam MoCunoce: pene On Wey «Lie cre, eae ee aa sas \. LOCH: inst., me, e ie yey Rete you:—“Richards has betrayed | ment of Mr. Richards 1 irreconcilable with those his trust and left sor Washington, 1a mn. of ex- | received from you it has been to send press agreement. Will forward you ful correspond- | auother officer to Richmond.” ence by mail.” You notify me that “General H. ©. Hobart, agen- Yesterday morning, having received abundant of ability and of high spcial evidence that Mr. Richards was not in faith | standing,” &c,, &c., “has been selected,” 4c, Tahal co-operating with me, I addressed him letter of | be most happy to co-operate tn all and in which the enclosed is an exact copy. All | the fullest confidence with tye officer thus endorsed day yesterday ({ saw him twice) he &ad recommended, essed to be too sick to transact I As to the statement of Mr, Elgnaecs, al f.degme was with bim in hig room about half-past } necessary or proper now to state 1s to call your five o'clock, He professed to be Yar but said | oificial notice to my letter of September 20, he would see me this morning. I addressed him a | for “seizing powers.” That letter waa written in the presence of and at the su; lon of Mr. Rich- morning, of whi ee note this ng, read and scrutinized by him and ch, enclosed is an exact copy. ards, and careful); You will from these facts form your own opinion. ey approved. He then stated that ‘he was satis- Copy A, a9 you wIil see, is a searching investigation fied thas frauds had been committed which would of the mode, extent and results of Mr. Ric ia? @x- | Justify seizure.” What induced so great achange amination. He is not and never will be able to | In his convictions it does not become me at this time answer any one of the questions. aud in this connection to intimate. T am now satisfied investigations were mere JOHN H. GILMER. sham manifestations, and hope ere long to be abie to RICHMOND, Oct, 13, 1868, prove the fact. Hon. Huan MoCuLLocn, 8. T. U. S,:— anes ¥ 1 eaaary, 4 27 Wa be en geo negara HO. Hobart or fax Waattngtnn yeeterd 2 je wi ju! rej aa juli Senet a ee erase | “Maat Maes tag teen e conferred with me an him in contided to him, If 80 I shall be seriously embar-,| ¢1j possession of my views an "the leading fatts and ge with interest your action on the subject Coated three distilleries, His only examined the three jos. i. matter of this letter. ‘Copy A. will speak for itself. | amination was Dot only artistic: but searching and Let me hear from you at your earliest convenicnce, thoroughly impartial. ‘He fully sustained y JOHN H. GILMER. RICHMOND, Oct. 3, 1868. Hon. BE. A, Rovtins, Commissioner Internal Reve- nue:— ‘Che detective, Mr. Wm. Richards, you accredited to me has in every instance, at every point and each particular, deceived and betrayed me. He is utterly incompetent, absolutely untrustwor- thy aud has been @ spy on me. He has violated every promise, betrayed every trust and outraged and just endorsement, both as an officer and gent man. It doea not become me to surmise as to his report. It will speak for itself. I respectfully refer you to my letter to him, with accom) Papers. I hope I may venture the supposition that the report when made will ecay you and the Commission that I am not striking in the dark or vainly pursuing shadows. Allow me to gay to you in perfect candor that in my opinion there ia not one officer in this State every sense of propriety. known tome who can be erie 8 trusted. It Ll refer you t0 my letter to him, dated: yesterday, if | gives me pain to write these words. Evidence not he has the manhood tosbow%t. 1 have enciosed a | to be gainsaid will in due time, I verily believe, sustain what I write in all particulars. Jam now quietiy uufoiding the sealed book and will candidly expose each page and figure to your omcial eve, It is proper that I should remark that I really need funds, ee expended out of my own private urse soveral hundred dollars, As to compensation leave the matter catirely to yourself and the Attor- ney General. JOHN H. GILMER. RICHMOND, Oct. 10, 1868. General H. C. Honarr:— Trespectfully call your attention to the written statements of na ge which accompanies this cominunication. 1 statements have been pre- pared and collated; they can be substantiated and verified, not only by calculations based oa material facts drawa froca the books ana papers in the Asses- sor’s office and tae office of the Collector, but upon facts outside of those ofices and the distilleries. As to the books, papers and material facts disclosed by special exaininations made by yourself I need not trowble you. A compart of the disclosures with the statements and calculations made by Mr. Smith will to your practised eye at once show the actual ascertalned difference between the amount of whls- key which was produced and the amount regular! accounted for, Strike the balance and you wiil readily ascertain the real amount of whiskey not accounted for, but which was realized by the distiller or producer, Tis is merely e work of simple calcu- Jation based on data and facts of the moat demonstra- tive character aud aceds no exempitfication at my hands, P this cénnection I respectfully refer you to My letter, addressed to Mr. Wm. RicMards on the 24 day of tals month, # cone of which is herewith far- nished you, and to which your critical attention 1s re- spectiully called. , It i8 proper that I should ay to youtnat in each and ail of my investigations I have considered the testimony required in a regular judictal tnvestiga- tion. J have good reason to belleve that, independ- ent of tho facts, data and circumstances above al- Juded to, [shall be able to produce undoubted and re.lable evidence on the following points, provided Dir. Richards bas not betrayed my conildence in the Instances stated to him, 1 will add, though he has betrayed me I will be able to prove them fully in the copy to the Secretary of the Treasury. Ican and do assore you that Mr, Richards has utterly betrayed his trust and has deliberately fatied in his duties. I have been thus plain, as I do not intend to be misapprehended, misrepresented or misconoeived by any one, I desire to hear from you at your earllest con- ventence and I wish this letter to be regarded as official, to be placed on file and shown to the Secre- tary of the Treasury, the President and Attorney General. JOHN H. GILMER. N. B.—If Mr, Richards has suppressod my letter to him the Secretary of the Treasury can farnish you with it, . RICHMOND, Oct. 2, 1968. Wint1aM RicHaRps, Esq.:— You having examined the distilleries around Rich- mond tivo successive days, in coinpany with the As- sessor and Collector, l respectfully direct your atton- tion to the following sections (a3 cited) of the new jaw and desire to be informed, if agreeable to you, how far and to what extent and in what particulars tho requirements of each and all of the said sections have been complied with or violated. In this con- nection ispecially direct your attention to tue reme- dies and penalties provided and denounced in each of the said sections, 1. Has the notice required in the sixth section beon given? If so, who are the company in each oi the three distilleries? What are the speuifications io each of the said notices? Do they correspond with the actual facts as «de veluped by the material structure of each of the suid bs faa} Same questiony as to roctiller are xe- peated. . 2. Have the bonds in each case been given and exocuted accor to tue uirements of the eighth section? Ir so, who are the owners in fee of the land, and are they the only partners or partes interested in the distillery? ‘This question, though applicable to ell the distil- leries, is directed specially to Burns’ distillery. &. Have the provisions and requirements of sec- tion nine beev complied with? Lf go, did you ex- amine arustically tue “pian and daseripiton” n F ‘tn some conspicuous place im the distil- ler nd if so, dit the “pian and descrip- tion’? spond with and truthfully represent tie Ines ~ the coper time;— . machine TPE ot i! ante ara distillery ¢ 1, That Styl & Davis have been regularly shipping Nhe ae canipared ‘With the actaal by the York Ktver !milroad and the Baltimore pack- eis thelr eurpius Whiskey, or to @ very large amount, ing capacity of the same? To these particulars your | in frand. special attention has hereto‘ore veen alrected. That Barns and Jones have regularly sent to N. 4. Havo (he requirements of the tenta section been | “zones & Co, (wo ate partners) caer sucpius whee: complied with? If 80, do the “producing capa- | Kay orto Sedgwick’s, mira, cities”? in each case correspond with and adhere to 3. That A. Smith bas sent to Joyner or his * the “surveys” a# required by law? Your special | soderates his surplus of whiscey sasha attention in each of these points Las been herevfore 4, That P, A. Davis’ bonded Warehouse, adjoining invoxed by te, and you were tnforiued that the | yovnor's, an alley of a few feet between, tas been actual “producing capacity” widely and largely | the reciplent of most of the fraudulent whtakey varied from the “measured capacity. This Warehouse was specially called to the atten- | tote EE ene are respectfully repeated as rica of Dir. Richards, as you wiil see by my letter £0 r a nin, Be questions are repeated a9 to the six- On theao points, oa & lawyer somewhat experl- . Have the provisions of the nineteenth section | OnoCd away Wo doubt of making out and sustaining were are other points which I have been honestly complied with? If so, how, by whom and am now passing under my considerate review which -— = what ene ged Lo Fog Sey tena which your special attention Ras peen repeatedly } | pelieve I shall be able to sustain, but, as I never cailed in my oMlce, between the amount of whiskey | speculate on matters of judicial investigatioa, I for the present decline to specify taem. f this Koown to have been produced and sold and that oa which duties have becn paid, explained? Particu- eto asbure you that, having undertaken sr fou Business, i, shall discharge {t with cau- larly the forty barrels produced by Buras and deliv. ered to William B. Jones & Oo., as you have been | 4, ade for the integrity of the governs siready tafonue, ahd as to the twenty berrela of | Sad'ay own persuual a profesional tenors humerous violations of the law at the bonded ware. JOUN H. GILMER, General E. O, Bomants = a Bias ahaa es Agreea’ our request here’ ® en! of shi muons wnade ‘by Abraham Smith, ¢is- tiller, from bis distillery:—September 6, twenty barrels of whiskey, serial Nos. 1 to 20; Sep- tomber 7, Nos. Zl tq 40, all of which was re- ceived, and to Joyner & Slater's, rectifiers, Cary street, delivered, and the serial numbers in each tn- stance cancelled on the said barreis of whiskey; and in additional, forty barreis of whiskey, with serial Nos. 1 to 40, res tt) from A. Smith’s distiliery to said Joyner & Slater's rectifying house, Smith now ships all his rae highwines to Gottschalk & Spiiman, rectifiers, Baltimore, marked “Diamond &.,"? and serial numbers in every instance " sepaper duly sworn to. HENRY SMITH. RICHMOND, Oct. 10, 1368. house on the 15th, and Cary, of P. A. Davia’, and he rectify! establishment of Joyner, kept within twelve feet of Davis’ warclouse, with rear windows opening in each building, 8. Have the requirements of the twentieth section been complied with? If so, how is the anomalous fact, shown to have existed at Burns’ distillery, as to the number of day4 between the first commencement of distilling and the first retura expiaiued? In this discrepaucy 1s involyed the forty barrels never ac- counted for, and which were delivered to William B, Jones & Co., who are believed to be direct partners io that ed a Your attention has already been 6 call this. 9. Have the provisions of section twenty-one been complied with? If 0, which storekeeper was on duty ail the time, and ip bis own handwriting, at the date of each transaction, made the entries? 10. If the provisions of tie twenty-second section TREASURY Daranriont, have been com} with, what explanation bas orcan OFTICE oF INTERNAL Revenva, Sept. 24, 1968, be given, and by whom, of the first working of Burns’ Treceived your several letters of recent date and distlllory thia day two weeks aud its knowg re- | have neglected heretofore to reply oy from my sulte ? Ilttle success in securing some one known ll. Have exercised or asserted the duties tm- | rit pergeeuy Sas Sarees 2 make the investi. yp tal art second or third sections af the jon Some one, however, will in a day or aw, or any one for you been requested to en- | two be found who will call uy, you in person and force any of those provisions? Yoo will remember | to whom you can submit all evidence may the distinct information givea you on all these Rave Ween eee ue Wile to re- te va your co-operation, 12. Has any direct exercise of the powers bestowed E. A. ROLLINS, Commissioner. we Fad law been invoked or made to enforce tha pro- Joann . Gruen, Esq., Richmond, Va, vi a of the thirty-sixth section ? ‘Tatasvey D: 13. You have been toformed that ‘‘distitied spirita” BV ARTMANT, have been “removed” from distilleries after “‘sun- Orrice OF INTERNAL REVENUR, ” and put on York River Railroad. by certain Washington, Oct 18, 1008, rr ” 5 violation of the provisions of the Resuming my place in the oiltce yester an thirty-soventh eoction, and this repeatedly. Have | Sbeence of 8 couple of weeks, I found shat Mr. Rich- ‘ou examined into that particular, ordo you propose | fds had returned frora Kichinoad, and that, too, Tombrace it in yourreportt having failed to give or reooive sympathy or co-oper> ‘Was your sttaation directed to or did the Collector | stion in the discovery and puatsument of frends. or Asséssor, of either of them, Ju your presenca, test | _ | must ascribe this rather to some strange distrast the “weights”? nacd in tho different distilleries, and | OF doubt or hoditancy on the part of each about other rather than any want of good Intention or atrict integrity on sue part of Mr. Richards, which you think extsted. ‘Mr, Kicharda has been connected with the office for a loug time and bas the conddence of all therein. It was unfortunate that you did not work together, Tam pleased, however, that you and General Hobart strike hands In the common cause, for in him we have like confidence as in Mr. Richarda, He reports the existence of large frauds awaiting the discovery of factiand proof. How shall tacse facts be axcestained ? You have heretofore expressed confidence in As- sessor Hudson. Can you not co-operate with him, or if he cannot give it Lis personai attention sud- clently, can there not be game good man appoluted as assistant to hima who will co-operate with you ‘both and give the subject his entire attention? Some one there thug appointed would perhaps be able to do better service one & stranger to the locality and ite people. I write this aiter conference with the Honorable Secretary of the Treasury, and shall be glad to hear from you further upoa the subject. ¥, A. ROLLINS, Commissioner. Jonn H, C1itwes, Esq., Richmond, Va. RICHMOND, Va., Oct. 15, 1868. = BE. A. Rotts, Commissioner laternal Kev- enue: Your official letter of the Lith inst. wag recelved late last eventa, { have very carefully noted its contents. ot we cannot in any particular agree a3 to Mr, Richards, ft refer you to my lever add 4th of this month as vo my sions on that sub- £% Subseqaeat tigation’ have condrmed all expressed fu tuat .ettar. Ag w General Llobart, our interviews wore cordtal and satisfav.ory in ali respect’. 1 presume we dif fered but litte on oi topics reviewou by us. can, of course, form no estimate af the report which he has maade exce Pe fom woat you state in your letter, “the existence of ange fraw Waiting ihe discovery of facts and proof.” You ask, “How shall these facts b¢ asvertamedt" J preaniae, sa Gat Bib oy! frandd 1 hare “proof jenary,” y du not vary materially from Prose farmished by Geueral itor 4 ¥ Yor example, the eatry ia my private memorandum book Is as follows. ale AL ba if so, were the tequiremeats of the torticth section of the Jaw complied with? 15. Have you examined the “books” of the ‘recti- fiers” in town, and, if #0, do they meet the require- ments of section forty-ive? I have thus enumerated a few of the points which under my consideration ip ection e ago of your visit here and cunference with me. Lrespectfully cali your attention to them, and express the earnest doéire that, in each case, you Wil furnish me with your writteu report on them, and for thts plain reason ! desire, after seolog it, if deomed necessary nd prudent, to furaisn you with the proper aM@davits op such points a8 may hav) eacaped your observation. Ifyou have not examined into li the points designated, which are puraly of a material character, then I must respectfully insist that you ye 80, ‘and not In the presence of the Cok lector or Assessor. My purpose ja to detect and punish fraud, and aot to evoxe exculpatory explanations from any quarver. Sach are my instractions from tho Secretary of the Treasury. Ihave assumed the duties, and they wil be rigidly and scrupulously discuarged. Ihave addressed you this business communica tion in consequence ‘of the briefinterview between us at your room last evening, Until the dtsttilery frauds are thoroughly investigated I respectfully de- c ine all participation in the tobacco frauda, which are fully as large aud startling as those commiited the whiskey line, I have abundant reliable oridence, but as you have undertaken to examine for yourseit tm my absence the distilleries, I respectfully hold back proofa a: my command until Lean read your report as made or to JOUN H. GILMBR. N. B.—1 have shown you the oficial letters of Mr. MeCui och and Mr, Rollins, amd there can be no mis- my position, ee ei you on the 3d or Spprebension aa to ona. Exhibit B - RicuMoxy, Oct, 3, 1808, Wa. RichAaRpe, Faq, :-— Suall lbave tie ploasare of seeing and hearin omciaily from you to-day? 1 hope you are wi enough to attend to my written communication retour ? IT was surprised to Ay er ie dapetinn Tet me fee or hear t pe | She] pg im you to-day, telegraphic and written comaunteation with Now York a4 to tobacco frauds here and t ire ‘The three dimfileries bere average 129 barrele of wht day over and above the Whiskey accounted for. per berrel this reaiiges $172,000 per month. Th: ho move to be made as Yet On the todaccd frauds. not paid on this, #¢ $20 per barrel, fs in one m ” it a ¥ Hoel ide Suna ; SOK H. GILMER. | (mated at two faa na Mem REASRY DRRALTHRNT, Oot. 6, 1868, day, onewbird more $229,409 p } Your letter of October 3 duly received ry Q5ohdo var, ous ot whieh government is defrauded. its encicaures. ‘This 8 one entry in My books. There are others, As the etalemeat of vearigg om various pois. I wii furaish you end — ie urecondtlayte NOVEMBER Hl, 1863.-TRIPLE SHEET. other ttem that you may sea I am not misinformed as lo matters transpiring around me:— On Oct. 12th four barrels of whiskey were seized in Ports. mouth, (second district,) slilpped by Jayoer « Slater, of Rich- mound. They state that they can yet from Gon. Mulford pa- Pers to cover way barrels they sbi ers or certificates, idth Oct. Gea. Mullord Las given and the duty on twenty-five barrels of whiskey has been paid, #0 asto cover shipments to Norfoik of the four ‘These items are furnished merely to show you that Ihave not been asleep. in proof. My letter to Gen, 1. aso now full banded i Hobart, com with my letter to Mr. Ric! with the 228 St Er thea tao iy ae ca} retu: charactor, existence and amount of frand mia the distilleries. I do not well see, under the express terms of the law, in this special case ae proving. how tis time [See see, 10 and 22] The “prodaciag capa ne time. ec. Godks here and in your department. ‘Do they agrect 00) re your depar! i what is the diiference? Strike the altace and the fraud, the intent and the result are plainly demonstrated, Why then call for proof? In what does crime con- aist, if 1t 1s not shown when the material facts before the eye show beyond peradventure that the law is hourly violated with the intent to defraud? ‘What I have above written, my dear sir, is simply to show you that I have not and shall not neglect or shirk the duties which I have assumed at the request of the Secretary of the Treasury and yourself. I have expended much time and great labor, with the de- termination in all things to guard the interests of the govornieny apa preserve my J personal 308] profes- sional honor above reproach from all quarters. sf JOHN i GILMER. N. B.—At ® quarter to ten o’clock this morning I telegraphed you as follows:— Letter received. Have co-operate provided without reference to ‘any responsible to you for his reports and my act No answer has come, I give one word of explana- tion. You cannot expect me, in my ition, to allow the Collect 4 Any oMioer here oes goer acts are passing y scratiny, lector or dictator of a detective to operate under me and inst My experience with Mr. Richards has satisfied me on this point, He really did com- municate to interested parties what I told him, and in my opinion did even much worse. Let me hear from you as soon as possible, as a very extensive fraud is, in my opinion, about to be consummated here. J. H. GILMER, pe Esq RICHMOND, Sept. 28, 1868, 1 i Biipeusnse Gy the authority and at the request of the Secretary of the Treasury, I select and appoint you a special confidential Yevectave to aseoiain and report to me, or such special agent as may be named and designated by the Commissioner of the Revenue, all cases of infraction or violation of the revenue laws as informer. I will see that in each and every case so reported ‘ou shall receive the full compensation allowed by jaw in such eases made and provided. You will at once enter on the duties, and reduce to writing, and when necessary to affidavits, each case of fraud, with the name or names of the parties, ane report to me as specially and fully a3 pos- aible, I furnish you with but one rule tor your guidance. Report no one from a feeling of onal ili will, and allow no ne to qiceue from A ngs of mendepih oe ood will. Let the revenue laws our only guide, F Jon H. GILMER. WiLtarp's Horet, Oct. 21, 1863. Hon. KF. A. Rowiins, Commissioner Internal Re: venue :— Mr. Laird has left for Wheeling, and will not be in Richmond for ten days, as Le informed me by a note of this day’s date. We have fully conferred on tho subject matter of Sumith’s distilier: Lhope ail questions arising may be referred to Mr. Laird, unless the distillery is placed in the hands of the Marshal. I respectfully ask that ali statements and explana- tions to be made by the Collector and Assessor, may be reduced to writing ans subraitted to tne for cou- sideration, before they are oficially acted on. This iz alike due to General Hobart and JOHN H. GILMER. WILLARv’s HOTEL, Oct. 21, 1868. Hon. Huan McOuLLoon :— My Dean Str—In accordance with your note to- day, I called on the Cominissioner of the Revenue, and to my great surprise ascertained that he had no arrangement whatever to make with me, but was about to release the distillery seized by himself, on other at youl ere one who is thoroughiv ijatormed of the corruptions, pecalations and frauds im Virginia, I desire a free and confidential inter- view with you. It is now full time that we under- atood each other in the relations which have sub- sisted between us. Allow me to assure you that the purity, dignit' and integrity of your department will be sporte: with, unlesa prompt and efiicient action ts now in- stituted and sustained. I write this under ® conviction that arrangements are 1 progress which, If no& promptly arrested, will compel me, in defence of my personal and profes- sional honor, to vindicate myself before tie Presi- dent and the country. I write you, my déar sir, asa friend. You will re- Member What has occurred between us in our ire- quent correspondence. a Please let me know at what hour J may cailon Pig RIoHMOND, Va.. Oct, 26, 1868° to-morrow. JOHN H. GILME {certify that the foregoing copies ara correct tran: Scripts from the originals, OHN H. GILMER. MR. GILMER TO MR. MULFORD, Ric#Mond, Oct, 24, 1868. General J. E. MUL¥FORD, Collector, &c.:— T have been requested by the Hon. John M. Binck- ley, Soucitor General of Internal Revenue, to ake for him @ careful examination of the books in your office, also the files, touching the release of spirits and other merchandise since tho beginuing of the year 1867, under orders from Wesningtan, in favor Ls Wi! re OF consignees, residents out of the State Binckley is engaged in revising, under the law, the compromised cases properiy and regulariy referred im, I desire tomako the examination to-day. You will please inform me by note ~ Bey hour I may call. JOHN H. GILMER, MR. MULFORD TO MR, GILMER. Unrtsp Srares INTERNAL REVENUE, COLLECTOR'S OFFICE, THIRD DISTRICI, VIRGINIA, RICHMOND, Oct. 24, 1868. J. H. Grower, Esq., Richmond, Va.:— A paper has just been handed me purporting to como from qe tn whieh you state you have been “requested to make @ careful examination of the books in my office, &c., &c., and you desire me to inform you at what hour yoo may call for that pur- ose, In reply I have to may that Iam ready at any time for an examination of the books, papers and busi- ness Ack. of mse Raps oo who may present competent eut 0 doi JOuN e. MULFORD, Colleator, Third District, Virginis. MR. GILMER TO MR. MULFORD, RICHMOND, Oct. 24, 1868, General J. F. MoLroRD, Collector:— I bave the honor to inforin you that the note T sent you was gonaine, though you say “it purporta to from you 7? “ohare to Tntosin yea that I have in my hands the official letter of the Solicitor General, ifyou The open between us on this matter is, whether you recognize that lettor and its source as competent “authority.” Please let me Know at your oe oonrwenenre tat Nason Yea pane toned . letter of ‘‘authoryty.' bie Ou 1. ciate. RD TO MR. GILM! MR. U. S. Int. Rev. Corisoron’s Orrton, Tamp Dierrior, VieGinia, * . RicayonD, Oct. 24, 1868, J, H. Giemar, Esq. 1am ready at any time to receive any letter o: communication you may have to present to me, ani when presented will give the same a careful conaid- erauon, 30! E. MULFORD, Collector, Third District, Virginia. MR. GILMER TO MR. MULFORD. RICHMOND, Oct. 26, 1963. General Jom F. MuLroxn, Colleotor:— 1 respectfully call for the return, by my confi- ential clerk, of the hy] of authority from Hon. John M. Binekley, which [ leit with you on Saturday Jost, and aiso a definite reply to my requost in wri- Hew Jd posetet ooh eee ot ne “Hles books"! as spe in Mr. Binckiey's letter. 4 JOHN H. GILMER, MA, MULPORD TO MR. GILATER, 0, 3. INTERNAL REVRNCOE CoLLRCTOR's OrFi0#, ) RIGuMOND, Oct. 26, 1868.) Taind Disrrict, Virginia, J. . Grtwer, Esq., Richmond, Va.:— Ihave tho honor to return herein the letter re- ferred toin your note of this morning, and in reply to the request you make to be allowed an examina- tion of the books and files in my office have to say: 1am tformed by my superior that you possess only tue rights of @ private citizen ta reference to my ortice, T wust therefore decline to permit an examination by you of tha “books and idles" of the same, JOUN EB. MULPORD, Collector. The leter below is a copy of Mr. Hinckley’s letter referred to in the foregoing correspondence: REASURY |/ErARTMENT, INTBANAL ROVENUE, WASHINGTON, O 1358. Understanding that you have been dd by the Honorable tue Secretary of the Treasury as special counsel the prosecution of suspected reve- nue frauds fn Virginia, 1 lave to remind you of our oral conference of this morning, to réynest, in accordance with the understanding between us, ‘thot the records and files of the proper revenue ofice iu Virginia, and persons conversant with the facts, be examtned by you touching releases of spirits and other merchandise since tie beginning of the year 1907 under orders from Washington, tu favor of owi- Aad consigaees resident Out of the State of Vir- a. ie tight to inspect any of the archives of the revenue sorvice will not be questioned, a8 my owa ryrhi could not be, Without condict with the head of the Treasury Department, and T hereby authorize you to make for me stich examinations of papers and persons as you may think At in the premises, Unless yoo shail be, a8 | do not doubt you will be, afforded ‘all proper facilities, be pteascd to make Known to me any impediment, with « view to ap- Propriate action. Wiil you be good enough, wititout delay, to report the resuit of your investigations under tis head, JOWN M. BiNCKLBY Solicitor of Internal Kevenue, To JOAN TH. Ginwen, Bsq., Counselior ab Law, &G, Wilara’s Hotel, Waskingtea, LD. MR. MICULLOCH To Mx, GILMER. : ‘TeeasuRyY Derarnt Oot, Jt, 1968, Your favor of ihe sOth ug. is recoived. daveply L y to you by telegranh:— “Lovestigations mast be made by the Supervisor or other proper revenue oMlcers, Prosecutions mist be conducted by District Attorney. Assistant counsel musk be €i. ployed on to recommendation of government oMecers, I shall request District At- toruey Beach to confer with you.” I have nothing to say in defence of the oMcers Whom you think guilty of violations of the Revenue Jaw, Whether guilty or not will appear when proper Investigations are made, It is very clear, however, to’ me, a3 it is wiso to the Attorney General, that none peri meey an Prosecutions Gin bo pro- rly or ly conducted except through t ‘oper government officers. ae ee if anything could add to the demoralization of the Service it would be the ring of these officers and devolving upon others the duty which the law de- "ae ana eget at rat ave every reason to su; that Mr. Laird, the Supervisor oft the district, rae Mr. Beach, the Dis- ave competent’ and willing to digchatge tie duos ot juLies o! their respective offices, ” You have already had conferences with Mr. Laird 4nd will soon have an opportunity,of meeting Mr. Beach. Upon their report the action of the depart- ment must depend, J have been desirous that the it should ave the benefit of your Brinig in order that they may be made truly av: le, it is necessary that the recommendation for employment should come from one or the of the officers named, H. McoCULLOOH, Secretary. Joun H. Gruen, Esq., Va, REPLY OF JOHN H. GILMER, * RIOHMOND, ‘Nove 2, 1868. Hon. HuGH McCu1Loon, 8, T. U. 8.:— Treceived your favor of the 3istult. No one could, T assure you, be less disposed to embarrass you or to force services on the department than m But for my confidence in your high official integrity and Pay sincord regard far you I should never have devoted two months to the bi T have had in hand, labor thus bestowed placing in my knowledge numerous and important facts of the pighess moment to your department Neither the District Attorney nor the Su) would, in twelve months, with every care, draw out the facts and im} te the parties at my command, ‘This work was cheerfully done for you, and, as I be- lteved, at your request, You will, 1 am sure, appreciate the innate sense of self respect which forbids my asking either the Dis- trict Attorney or the Supervisor, or any other officer, to recommend me for SuipiceEee, Mr. Laird has receiv. * soe deal of assistance from me, and will receive the aid he asks; but you will, I am sure, excuse me froin the unpleasant bad cA asking employment or recommendation at ands. Did not General Hobart report the returns made in all three of the distilleries to be, per day, about thirty barrels? Did he not report the “producing Capacity to be equal to the production of at least 140 barrels per day? I have never seen his report. A critical examination into the returns trom every Part of the country as to “producing capeciay” dis played in the notices and registers, and the return of each distiller of the whiskey guaged (as recorded in the commissioner's oftice), will, in my opinion, dis- close the fact that over $50,000,000 of fraudulent whiskey has been made and sold in the United States iu the last twelve months, This is a bold declaration, but an examination will prove it correct. What I mean is this:-.The storekeeper’s book 1s made the guage of the guager, and both always cor- Feapand without reference in many cases to the noilce bond and register. See my letter to the Super- visor, JOHN H. GILMER, MR. GILMER TO MR. LAIRD. RICHMOND, Nov. 2, 1968. THOMAS W. Latrp, Esq:— Allow me respectfully to oall your special conside- ration, as Supervisor, to the tact found fuliy stated on tue regular books of A, Smith that they ran seventy-two hours. “ ‘To run seventy-two hours only reauires cight tubs, whereas torun ninety-six hours requires ten tubs, thus showing on the face of their own books that two extra tubs are regulariy used, applied and worked, which are not in any w: counted for, You can eastly make your owa calculations and de- ductions, i would like to see you personally some time to- ay. JOHN HH, GILMER, N. B.—Seventy-two hours requires eight tubs, 114 bushels each; ninety-six hours requires ten tubs, 114 bushels each tub, Which makes a diiference of two tubs a day, at 114 bushels each; 223 bushels a day or 1,368 bushels a week, or 4,104 gallons a week or six days. J. BL G. MR, GILMER TO MR. BINCKLEY. - + RICHMOND, Oci. 26, 1863, Hon, Joun M. Binckey, Solicitor General laternal Revenue:— In answer to your letter of the 16th inst. request- ing me to furnish you with the oficial correspon- dence growing out of my investigation of internal revenue frauds in Virginia, | have the honor herewith to hand you enclosed a copy of the correspondence. I deem it proper to furnish the followin: tements and conclusions, with such additional iucts as tend to consolidate and reduce to practical results my in- vestigations. ‘The correspondence, as you will see, commences with a letter from me to the honorab'e Seorothry of the Treasury alluding to previous communications, it is proper here to remark that the private corres- pondence, though no eye but my own has seen or ever will ee it, well illustrates high offictal totegrity and stern rectitude of purpose ou the part of Mr. McCulloch, That he is faitiuful and true to the high ifusts reposed in hin I have no doubt, That he 1s and has lly @mbarrassed by the peculiar legislation of Congress ia eqnatly as certain; in my opinion, he is. always, has been and il con. tinue to be, seriously embarrassed and thwarted in hts administration of the revenue laws by the mal- administration and vicious policy of Commissioner ollins. A thorough knowledge of the general policy, cul- pable e: ents and consenting indifference to the most persistent criminality and systematized trauds, as displayed by Mr. Kolling in the accompanying correspondence, constrains me to say to you that in my opinion no successful examination of “revenue frauds” 1a thig State can be conducted so long as Mr. Rollins ig allowed to guarantea indemnity and stipulate for iniquitous corruption in tue subordinate officers under the sty sory control of his de; - ment. For example, read with care his oficial letter of tember in answer to “your? (my) “several letters of recent date.” These letters gave to nim, as Commissioner, distinct information as to frauds then being committed and about to be com- mitted, and calling for immediate action, of which no notice was ever taken up to the date of this letter. ‘This letter bears date September 24, Com- are it with the oMclal letter of the honorable Secre- ary of the Treasury of the date of September 26 and you will discern the cause of Mr. Mc- Culloch’s not having answered letters addressed to him on the same subject and calling for gy t action. Now compare my letter to ir. MoCulloch of the date of October 8, my letter to » Roliins date my letter to Mr. weaaros the date of October 2, with the letter to me from Mr. McOullooh, of the date of October 6, my letter to General Hobart of October 10, my letter of Octol 21 to Mr. Rollins and my letter to Mr. ber McCulloch of the @ist October, and you will see beyond a “‘morai dodbt,” the fact that it been bg orl the studied policy and fixed ling to connive at ged Rr ission, the “report of General Hobart” of “large awaiting the discovery of facts and f,” and asks So Seaturny tat a eli fro jow compare my Ir. ins, in reply to thia, of the oun of October, wita the Be te and you will discover what aid he Pi to furnieh me in “ascertaiging those facts,’ From these Lepes Maptet od collated, T was pain- fully tinpressed that Mr. Hollins was in @ manner un- ming his social and official position, dealing his high trusts. [ visited hun im Washington, and assured him of the ex- istence of frauds not before bronght to his attention, In those interviews my convictions were deeponed, that I was dealing with an over whose studied policy was to thwart the ends of jas- tice by throwing every possible obstacle directly in the way of a fall, manly and honest exposure of the internal revenue frauds. Heuce my letter of the @lst of October to Mr, McCulloch (No. 16) and my jetier to Mr. Rollins of the same date (No. 17.) I have never seen General Hobart's report. But if you will cail for it I erg it sustains my vie as to the three distilleries. Nor am I able to say how far it has been e@:Taced by the verbal reports of the collector and assessor. | eubmit the correspon- deuce for your inspection and that of the President, considering tats communication in all respects as confidential, unless the President acts on it, and then itis at your and his service, to be used when and as deemed most advisable under the circum- stances. The lewers, circumstances, statements and data wiii speak for themselves. ken in propor conne tion tuey are their own best expounders. Tiey evi- dence, in my opinion, guilty knowledge and painful coimplicliy on the partof Nir, Kollins, The ligat of truth flashed on his mind through General Hobart's report, to ilcket away in his studied exonerations of Mr. Richards, aud to die out in his teeble efforts to “ascertain tie Lacis” inade doubly manifest wo his convictions. The picture which I have drawn is fuily repre. sented in the letters and declarations of Mr. Reilins, He is lis own limaer. No language at my command can heighten the coloring or aud force to the relief, tis by no means pleasant to me thas to write of Mr, Lollins. He was once, doubtless, @ man of warm aad generous impulses, but as an officer his mind, hoart and nature have become deadened to the higher impuises which douvtiess once controlled his conduct. As the Comutssioner of Internal Kove. nuehein my judgment stands forth the avowed champion of oficial corruption, and the solid bar- rier ail over the country to the successful detection and prompt punisument of fraud. I hold, a8 you Know, no ofice of the government. I am not 4 volunteer in the busines® passing under my review. I feo want of no support but in- 0% tain jue, But neither their desertion nor betrayal can defeat ‘ay objects or much longer cover up tieit “deeds fa the past.” I shall not be deterred nor overthrown, but will the sooner succecd by port of the} bea! frauds i a he ity of purpose in those whose duty i 13 to sus veident aud courts, | JOUN YW. GILM ULMER TO MR. BINCKERY, RicuUonn, Oot. 26, 1868, | Hon. Jos M. Hinckisy, Solicitor General (nieraal Revenu } g, Ltave tue Honor to return for your oMetal action, paler suck consutakon With the Uregiient as you ® prompt ald and powerful say | | le no question th ST tances deem proper, cor tie ovicivi correspoadence between the colleston of is distric: luysel 1 deom tae.agiion of the resident in the premises necessary, if the President or (he secreiary of the Ti Wul empower tus to * the investigation { am Of the opinion that rtaat information may be made accessibi Lawatt vour reply with interest. JOHN H. GILMER, MR. GILMER TO MR. LAIRD. RICHMOND, Uct, 28, 1863, Taomas Larnp, Esq., Supervisor of internal Rew enue of Virginia:— | In accordance with your request, made yesterday at mp amen, Lreapectiully submit for your oxicial consideration the following suggestions in relation pe seizure and detention o: Av Sunth’s distil ‘ou have doubtless bestowed the proper consider- ation yee the copies of my letters to William Rich- ards, Eaq., and General Hobart. A reference to those letters, and an emMcial consideration of the re port of General Hobart wili at once bring to your Sonaiharenay a various seetions of the revenue ’. Points necessari it the case under review, . Sige ie to Mr. Richards Allow me to suggest that my letter will prove a valuable and bate guide to your judg- ment in seeking @ reliable resuit, based culpatory and extenuating. set forth here and in Washington by the coilector Pg et ery our su; '3 report will’ Yirsual ‘condesnnation of those ofleera, I ee fully ask, through may nader the etre you, each and both of those ot. cers each and every question which, in that letter, £ propounded to Mr. Richards; and { here distincdy announce the legai deduction that, in each and every instance in which their answers are Lot atiirnatively responsive to the mandatory requireinents of the law, they and each of them are ‘iguulty in the eye of the law.» Since they have sought tiis coatroveray I shail meet it, and respectfully ciaim a full aud fae hearing. Ishall not be forestalied by oilicial aus- Pega ‘nor intimidated e secre: examinations i the 'soMce in Wasuing.on or evasive deductions here, made to rest on verbal aud technt- cal excuses. I have. at the special instance of tne Secretary and Commissioner, undertaken to produce “facts and 7 in this and various other cases; and I shal) rtge end 1 hope, with the cour- tesy of a gentiemm@, cel wita the firm resoiu- tion of a man who seeks no favors of the government and craves no special indemnity of its ollicers. Theu, 1 ask, what answer can those officers, or either of them, give to the searching interrogatories Pp d to Mr. Richards? Gut of their owa Mouths willl condemn them. The law ascertains and defines their Roapectixe dutics and pronounces its penalties against them, as well as tue distiller, storekeeper and gauger. They are required te have on record the “producing ca- pacity” and the “returns” must correspond, refer you to sections nine and ten of the new a Here 18 the gauge, measure aad capacity of each dl tilery. The law is as clear as its provisions are m tory. ‘These sections create the exact admea- surement, ‘as estimated under the provisions of this act.” See section twenty of the law in this counece tion. The “producing capacity” 18 ascertained im the fulfilment of sections nine and ten, modined by the qualiaication (eighty per centof the producing capacity) in the twentieth section. Cousider the duties and requirements imposed on the distiller im section twenty-two of the law, and the perfect stipu- lations of the law are made manifest to the plainess understanding. There is no escape. The results are coequal to the demonsirative mandates of the law. The provisions of sections nineteen and tweaty fix, beyond a doubt, the positive requirements, im all respects, of the law. The duties imposed ta those sections do not refer to the “producing ‘capa- city,” but create and place in the distlilery the de- tective guards of the law which, if faithiully exe- cuted, render fraud impossible. The ‘producing capacity” as to quantity Is Oxed as to time, number of mashes, 4c. the provisions of sect.ong nineteen and twenty-one create the test. If more Stain other materiais are received than caa_ be consi by the “producing capacity” in a given time, and ts. actually consumed, then the law detects and exposes the fact that more than tie aliowed aud recompized number of mashea are ran, and the fraud stands revealed to the vigilant eye of the faituful onicet, Now, consider the provisions of tue tfty-ninth section of the law, defining the duties of tlie gauger. By the faithful enforcement of utis provision, if the other and precedent requirements of the jaw have been complied with, the assessor and co.iectur have in their offices the precise daily test-gauge by wines and.through which each and both can detect and expose fraud, if there is any. ’) ‘ow, sir, allow me to appiy these plain principles, Let us consider a distillery according to the “‘na- ture” and “survey,” the “producing capacity of which” 1s 114 bushels each mash, ani there are two ashes @ day, 228 bushels cach day, or 6: each day. Hore all is piain. But suppose the “store- keeper” only enters for ten consecutive days 800. bushelas, and the whiskey actually ‘gauged’ t3 the Is the come Ss oppo’ product of tis quautity. plied with? Can the diserepsucy be explained away by the assessor atid coliccwor?’ If 80, what be- comes of the mandatory provisions of tac twei second section of tie law. Is the law to stand vindicated, or its provisions to slumber, Unawa: by conselence, in the exculpatory expostalatl the assessor and collector. alpen In this case whois to blamo? The law has been Violated—not one of its requirements has boen come pited with—by the distiller, the storekeeper, the ganger, the assessor or collector ; and yet, with tute manifest, mate! and continuing evidence of the most pa!pable and flagrant Violation of its every pro- vision, i ain told that extraneous evidence is to be taken to explain why, and how, aud when, aud by whoin it has been thus violated, And-this ts the prac. tice in the Commissouer’s oftice, Lam to ve told | Lf, such is the fact no wonder that the whole country tg rife with fraud and the revenue squandered away, to the impoverishment of tho governwent and the rnin of the country. The illustration I have given you will find to be about the “producing capacity” of Smith's distiliery. L joint of fa actual “producing returns?’ To ascer- in the assessor’s and collector's orice. they? Let themspeak out. Dumb-tongued as th are they will démonstrate the fact that the taw has been violated, each and every day, on every occa- sion and m ev conceivable way. If sucit is the regult of your ocular examination of the “evideaces!? on file, as compared with the recorded ay i capacity” in Richmond and Washington, is it n needless for the Commissioner of the Revenue to cal! on me for prooft not the fact stand forth im General Hobart’s report? Can its existence be de. nied? Shall it be explained away by afidavits of the very officers whose sworn duty it was te prevent its existence by a simple enforcement of the piain provisions of the law? In suck cages low mo to assure Pad that the law is not, when ly and fatthfuily enforced, supe posed to call for or allow verbal explanations of such continued disregard of its mandatory pro- visions. To seek them is to expiain away the law; to aliow them is to violate the law; to justify ¢ ia to license fraud and add indemnity to unli gains at the expense of ube government and In conclusion then, sir, allow me to invol calm consideration and severe examination of the material facts so abundantly exposed to your vicw. fn it fng ay phy So'ea SS 10, Do oral o1 ten evidence Snouid be allowed. Your duties powers are plainly unfolded tn the foetreheee yefirst gections of the law. if the law has not nade your duty “to ald in the ‘prevention, detection “You remarked to me yevterday, ta our tatervl ‘ou me yesterday, In our lew, that you were instracted by the Commissioner to calh op me for my charges. I replied, ‘I had no chargt to make; but, as retained counsel of the Treas: Department and at the especial request of the tary and Commissioner, | had indisputabie evideace of humerous frauds, which I would at the proper produce.’ ri a time and in due order In the case now under your review behold the evi- dence as reflected in the report of General Hobart, on file in the Commissioner's ofice. Cousider the roofs and facts as they speak out in audible toues a the “notice” and ‘ iter”? on file in the asses. sors office. Contemplate them as they lie embedded among the Gles in the collector's office when the re- turns and tax collected are properly compared with the “actual producing capacity.” Regard them as unfolded in each leaf ofevery record {nm Kichmond aad Washington, ana then allow due force to the law ta all of its mandatory inhibitions and affirmative in- Junctions. Smith's case is bnt one of many which have passed under my special notice. All T have stated applica with equal iorce to the othor two distilleries, Be sides those instances I have 1n a regular commuat- pation addressed to the Commissioner cited anotier instance, and in my communication to Genorat Hoovart cited others ol ection A noty, Tam bound to presume that the honorable Coiffmissioncr has specially called your official notice to each and ail of thoae instances, Thold myself ready to meet a full in’ when and as you may desire, unless Tar Washington on business with the Depariment. ¥ respectiully, JOUN H. GILMEE ory te MR, BINCKLBY TO SECRETARY M'oULLOcH. TREASURY D&PARTON Bunwav INTERNAL REVENUE, Oot. JL, 1 sat Hon. Huan McCutocn, Secretary of the Treasury 1 have the honor to lay vefore you herowith a ter addressed to me by the fon. Jobn HH. Gin Richmond, Va, at present professiovally in tre ployment of the department, in which h copy of a letter addressed by me to finn un tho 2iss inst ad a copy of A correspondence ing from it, betweoa him and the Collector uf In Revenue at Richmond. (li may be remorked that Mr. Gilmer in his letter to General Muiford ts sighuy inaccurate in informing him that t Was engaged ta revising the Compromise cases at that time. { was not sv engaged, taougl tke mistake is of no conse- quence.) y ‘These papers show that public archives are ra- served from imspection, even of accredited agente and officials of the government, itis proper tiat £ should revive to your recollection that to ant ton of such reserve | ventured to ask you ti explicit order directed to your subordinates throu sh- out the ftevenue service requiring them to ais close their Oles and records freely to me and e me all due co-operation This was uccasion of my recond Visit to New York, by President. Such aa order ned to taene, upon the sole and consistent would be autictp Juct, 31 twas tl the revenue to give ine their owbany order. Lt will be oF to Mr. Glimer requesting Wim Co mak ain € came nations cognate to my Ivest gations In New York | Lproceeded upon the principe 14 Correotly laid down by youtsei’, Now that toe door o. tavestign Hon had been (ius Slammed ta tue face of tuquiry, #