3 9002 07654 3884 Siie*^ i::'ol.:tHEJ QiirWHisKEYRiNG B/ Gen': John McDonald. )*' IB- 1 hi « \i Gen. John McDonald. SECRETS OF THE Great Whiskey Rim, CONTAINING A COMPLETE EXPOSURE OF THE ILLICIT WHIS KEY FRAUDS CULMINATING IN 1875, AND THE CONNECTION OP GEANT, BABCOCK, DOUGLASS, CHESTEE H. KEUM, AND OTHEE ADMINISTEATION OFFICERS, ESTAB LISHED BY POSITIVE AND UNEQUIVOCAL 13 O C TJ 3VC E KT T -A. R. -Z" PROOFS, COMPEISING FAC-SEHILES OP CONFIDENTIAL LETTERS AND TELEGKAMS EMA NATING FROM THE WHITE HOOSE, DIRECTING THE MANAGEMENT OF THE RING. ALSO PHOTOGRAPHS OF GRANT, BAB COCK, BRISTOW, GARFIELD AND THE FAMOUS SYLPH. TO WHICH IS ADDED THE MISSING LINKS IN THE CHAIN OF EVIDENCE OF JAMES i. GARFIELD'S IMPLICATION WITH THE DISTRICT OF COLUMBIA RING AND CREDIT MOBILIER BRIBERY. BX GEH. JOffl MCDOMLD, Formerly Supervisor of Internal Revenue for the District comprising Mis souri, Arltansas, Texas, Kansas, Indian Territory, and A^ew Mexico. CHICAGO: BELFORD, CLARKE & CO. 18S0. 7c^.\b Copyrigtited, 1880, by JOHN McDONALD. LAX.. 1 1.0 Translation and aU other rights reserved. ^K ^^^6^1 [ONOHUE tmmmm kHENNEBERRY. ^^^^m^^^ 'jpt^:hi:b'J:^(d:hi Nearly five years have elapsed since my conviction as a member of the Great Whiskey Eing of 1875, or, more prop erly, of the Eing the exposure of which occurred during that year. Five years is but a short while to those whose current of life flows with the melody of prosperity and contentment, but to him whose memory is seared by the basest ingratitude man ever showed to man ; whose sacrifices for those in power above him have ruined a life, in the debris of which his eyes can never unbend their fixed gaze at his own bitter humility, it is ages. In this introduction to my thorough exposure of the whis key frauds culminating in 1875, it is my desire to qualify a most unenviable position ; one which I have no disposition to shrink from, however false appearing those sleuth hounds fresh from a gluttonoua feast of public blood ; those abusers of trust who cry " thief " loudest in order to deflect the gaze of justice from their own villanies, seek to make it. I do not approach the bar of pubhc opinion at this day, laying bare the hideous deformities of recreart high-place officials, for the purpose of vindicating myself Far from it. Denying nor affirming nothing as to my own guilt, the law has spent its force upon me ; I have paid the penalty, and further claims against me no man has ; I am, therefore, entitled to a consid erate hearing in what I have to say. Thoroughly appreciating how prone the public will be to throw discredit upon my statements, I have determined to omit much that is unsupported by written or other corrobora- IV iive evidence, and confine myself to charges which I can prove by overwhelming testimony. Every step, therefore, is cau tiously made, and if there is a singe libel contained in this book I am amenable to the law, the burden of which few men have felt more heavily. Each declaration is made as if I were Tinder oath, and in order that the true story shall appear un abridged I have dealt liberally only with the facts in which I have been as equally unsparing of myself as of all others im plicated with me. During the rigid investigation of the U. S. Grand Jury, when nearly every man in the nation believed that many of the high est officials in "Washington were beneficiaries of the whiskey fund, I was asked a thousand times to disclose the secrets I was believed to possess. Indeed, I was promised immunity irom punishment if I would become an informer ; but those secrets were not revealed, for reasons easily understood : I was an appointee of President Grant, and as his friend and the recipient of his favors, certain obligations were created which I was not forgetful to regard. Gen. Babcock was the Presi dent's private secretary, and there will be few to contradict me when I say that he was, in a great measure, the President's «hief adviser, especially in cases were his private matters were concerned. I regarded Babcock's instructions as those ema nating from the highest authority, and however my obedience to their orders may be considered, they were the excuse for my actions. Having become identified with the purposes of my superiors, sharing their benefits and entrusted with their confidence, when disclosures were made and the hour of sac rifice was at hand, I could not assume the character of a base ingrate to escape a punishment which, missing me, would in- Tolve the entire nation in the deepest disgrace. If I were convicted I knew that the tenure of my punishment would be limited to the disposition of him in whose hands the pardon ing power was vested ; having received his promise of an immediate pardon I put on the sackcloth of disgrace and, from the high position I had so many years maintained, I descended to the most humiliating, stigmatical depths — a fel on's cell. For seventeen months I wore the garb of infamy, that leprous, foul, polluted character which gnaws at sensitive nature " like a worm in the bud." I not only suffered this restraint of liberty with its unending night-mare of moral death, but lived on to see the honest accumulations of many years of patient labor wasted because I could not protect it, and from an ample fortune upon my entrance into political life I was reduced to penury when released. Those in power forgot me and their promises ; they feared to issue me an im mediate pardon because of the pressure of public opinion, which might become intensified against them at such a bold interference to defeat the sentence of the court, and I was therefore permitted to languish until my forbearance would endure no more ; then I demanded my pardon, under threats of exposure if it were not immediately granted, and I was re leased at once. To those who will cavil at my course, the question will be suggested, "Why are these disclosures made now, when the time for their effective use, in the courts, has passed :" Grant's re-nomination would have afforded a more plausible pretext for the publication of these disclosures — viewed from a strictly partisan standpoint, and unfortunately a great many persons can discover no merit in anything which may be devoid of political complexion. The purpose of this publication now has a broader base to rest upon than mere personal vindictiveness or political infiuence. It is to expose the villainies of an administration the very mention of which should excite a righteous indignation and befoul the atmosphere ; but though the crimes of Marius, who sold offices in the pubHc places of Eome, were as virtues, compared with many of the corrupt acts of Grant's administration, yet there is a very large per centage of American citizens whose eyes cannot penetrate beyond the military glory with which Grant is clothed; who parade his statesmanship and would reward his crimes with an iouor no other American ever held or sought. It is with an VI earnest and will considered belief that Gen. Grant will be a disturbing factor in the politics and parity of the nation so long as his infamies remain hidden, which furnishes one of the reasons for this exposure, and with this contribution to the literature of uncovered venality goes forth the hope that the supporters of the Grant administration wiU find the proofs herein which will cause the blush of shame to mantle their cheeks for having lent their aid to perpetuate infamies of such magnitude as were constantly developing while Gen. Grant was our Chief Magistrate, who, as will be conclusively shown, was an active participant in the frauds laid bare in this work. I have included the venal acts of Gen. James A. Garfield, because of his position now as candidate for the Presidency, and to forwarn the nation against abuses in office which he wiU certainly inaugurate if elected. I have no affiliation with the Democratic party further than my desire to see the return of honest principles, and above all, " honest acts," which will reclaim the nation from the disgrace visited upon it by corrupt officials, among which class the public will include JOHN McDONALD, Formerly Supervisor of Internal Revenue for the district embracing Missouri, Arkaiisas, Texas, Kansas, Indian Territory and New Mexico OOn^TElTTS. CHAPTEE I. Purposes of the Whiskey Eing— How I Became Supervisor — My Loss of $300,000 in the Mast Hope Disaster— How I Caught Ford — McKee's Proposal to Form a Eing — The Editorial that Moved Grant — Magrue's Entrance — Joyce's First Letter — How the Democrat was Won Over — Bittinger and his Paper — Grosvenor's Letter — Grant's Third Term Aspirations — Morton's Needs — A Consolidation of Dis tricts — Ford and McKee meet Grant and Talk with Him Freely — E. B, Grimes — Douglass, the Commissioner — The Woodward Correspondence — Fighting Carl Schurz. CHAPTEE II. Reducing the Number of Supervisors — My Appointment as One of the Ute Commission — The Demand for my Ee-ap- pointment as Supervisor — Chester H. Krum's Endorse ment — President Grant's Endorsement — Proofs of Bab cock's Connection with the Eing — My Ee-appointment as Supervisor — Casey, the President's Brother-in-Law — Ford's Death — Appointment of Maguire as Collector— Babcock's Instrumentality — Telegrams from Grant and Babcock — Visit of Eevenue Agents — Brasher Blackmails the Distillers. VII CHAPTEE III. Grant and Babcock Receive My Monthly Reports— We Send Avery $500— Doubts as to Our Security— Joyce goes to Washington—He Talks to Grant, who Assures Him that no Fear of Exposure Need be Apprehended — Joyce's Trip to San Francisco— Before Starting, he Posts the Washington Members — The Ring Stops Operations for a Time — Joyce Returns from the Pacific Coast — He Goes to Washington — Babcock and the Diamond — The President Assures Joyce that the Ring may Renew its Operations with Safety — Avery's Transfer to the Treasury Department — Avery Told to Obtain Information from Grant Respecting Ring Matters — Babcock Warns us, by Telegraph, that a Revenue Agent may Visit St. Louis — Grant and His Party Visit the St. Louis Fair — Grant and Borie Take a Drive — My Gift to the President — How Grant Obtained a Premium — The Press Criticism. CHAPTER rV. Col. Joyce as a Revenue Agent — Babcock and Joyce's Intimacy — Babcock Telegraphs that no Agent has been Sent to St. Louis — My Trip to Washington — How I gave Babcock $5,000 — I Give Grant Receipts for the Buggy and Team — I inform Him of My Gift of $5,000 to Babcock— My Ride with the President — He Promises Me that any Changes or Appointments I Desire will be Granted — The Altitudinal Dispatch — Babcock's Sylph Dispatch — Louise Hawkins,, the Sylph — How Babcock Took Her to His Bosom — An Interview in the Dark — A Remittance to Babcock in a Cigar Box. CHAPTER V. Bristow Decides Upon a Change of Supervisors — How I In fluenced Grant to Countermand the Order — Joyce's Dis patch to Babcock— Joyce's Song, " Mrs. Carney " — Pros- IX peets of a Storm — Babcock's Report of Bristow's Inclina tions — Hogue Blackmails the Distillers Out of $10,000 — Fishback's Visit to Washington — How I was Appealed to by Pishback for a Loan — Babcock Puts a Spy on Fishback — Agent Yaryan Visits St. Louis. CHAPTER VL Taking Soundings Before the Attack — The Ring takes Fright — Seizures at St. Joseph — -The Storm Approaching — My Visit to Washington — Interviews with Bristow, Grant and Douglass — My Resignation — I Advise Grant to Burn Evidence Collected — His Proposal to Check Bristow and Suppress Evidence — Bristow and Grant Together — Bris tow is Made Acquainted with Grant's Connection with the Ring — I Dine with Babcock who Assures Me that Bristow ShaU Be Dismissed — Grant Declares that Bristow Must Cease His Efforts to Expose the Ring or Leave the Cabi net — An Open Letter to Bristow — Babcock's Letter of Assurance — Another Letter from Babcock — Our Corres pondence Through Major Grimes. CHAPTER VII. Why Douglass Played a Double Role — The First Seizures in St. Louis — The Correspondence — Babcock's Letter Informing Me of Officials who Want to "Peach" — Acceptance of My Resignation — Why Grant did Not Dismiss Bristow — Grant Sorely Distressed — Babcock's Letter Inclosing an Anonymous Note — The "Lightning" Dispatch — My In dictment — Assuring Grant and Babcock of My Fidelity — Babcock's Reply — Grimes' Postoffice — Babcock Requests Grimes to See Dyer — Grimes' Serious Aspect — Grimes' Profane Note — His Testimony — Another Letter from Babcock — Babcock's Letter Informing Me Where Some Stolen Evidence May be Purchased— Krum Divides the Whisky Money — Krum's Letter Advising a Conference with Grant — Babcock and Grant Visit Me — A Champagne Dinner — Their Promises and My Pledges of Silence — Grant Humbles Himself— Giving Grant Back-bone— Grant Grieving over Lost Opportunities — Grant's Promise to Pardon Me in Case of Conviction — Preparing for Trial — The District Attorney Promises Me Immunity, if I will Tell What I Know — Beginning of My Trial — General Henderson Promises to Enter a Nolle Pros., if I will Become a Witness for the Government — My Conviction — Why I was Not Pardoned — How I Kept My Promise — Fox, the Grand-Juryman — He Keeps Grant Advised of All the Acts of the Grand-Jury — How Pox was Rewarded for Perjuring Himself — The Grand-Jury Letter — Babcock's Indictment • — Joyce's Oration Before Sentence. CHAPTER VIII. Avery's Trial and Conviction — Henderson Charged with At tacking the President — The Power of His Address to the Jury — What he Said— The President Advised of Hen derson's Fearless Denunciation of Thieves, and Peremp torily dismisses him — The Correspondence — Krum Be comes the Medium through which Babcock and I Corres pond — Pierrepont's Circular Letter to Suppress Testimo ny — Krum's Letter, — Congress Rebukes Grant Through Pierrepont — Report of the Judiciary Committee on the Pierrepont Letter — Trial and Conviction of Wm. Mc Kee — Krum, as Babcock's Attorney, Writes a Note Re questing Information Respecting a Damaging Letter from His Client — Gen. Babcock Buys the Letter from Harda- way — Babcock Placed on Trial — Everest's Testimony — Babcock Buys a Witness from the Post Office — How Ma- gill Perjured Himself— Babcock Admits that he Paid Magill to Give False Testimony — Krum Writes Me for Permission to see the Babcock letters — The Interview in My Cell— The President's Deposition — Comments on the Deposition— How Grant Perjured Himself— Porter, Bab cock's Counsel, Attacks Me— Babcock writes a Letter XI Begging Me Not to Hold Him Accountable— Why I Could Not be Forced to Testify — The Jury Acquit Bab cock — $10,000 Presented to Him at the Conclusion of his Trial— Babcock Calls on Me at My Cell — Begs Me for His Letters — Liberal Offer of Money — Promises to Par don Me — Babcock's Brother Tries to Buy the Letters From My Old Chief Clerk— Upon Refusal to Treat Theatens Him With Personal Injury — Expressions of Belief in Babcock's Guilt by Jurymen — Why He Was Acquitted. CHAPTER IX. Action of Congress on Babcock's Acquittal^Investigations by a Special Committee — Testimony of District Attorney Dyer — of John B. Henderson — of Attorney General Pierrepont — All Declare that Grant was Kept Informed of the Secrets of the Grand Jury by Fox — Bell's Testi mony — How He was Hired by Babcock, with Grant's Knowledge, to Steal Evidence — The Belknap Scandal — Babcock's Second Indictment — Babcock Continues to Act as Private Secretary to the President — Sentence of McKee — Avery's Pardon, and How it Was Obtained — Avery's History of the Ring. CHAPTER X. Efforts to Procure My Pardon — Putting the Screws to Grant and Babcock — A Letter from Krum— My Threats to Ex pose Grant — A Letter to the Proctor Knott Committee — Ex-Gov. Fletcher and his policy — Babcock Writes me Through One of His Spies — Gov. Fletcher Sees My Threatening Letter in the Hands of Mrs. President Grant — My Pardon is Granted — My Meeting with Babcock on the Fourth of March — Why Joyce Was Not Pardoned by Grant — My Last Interview With Babcock — Joyce's Let ter — Some Bitter Memories. XII CONCLUSION. The Missing Links Convicting James A. Garfield of a Corrupt Connection with the Credit MobiUer and the District of Columbia Ring. CHAPTEE I. Purposes of the Whiskey Ring — How I Became Supervisor — My Loss of $300,000 in the Mast Hope Disaster— How I Caught Ford — McKee's Proposal to Form a Ring — The Editorial that Moved Grant — Magrue's Entrance — Joyce's First Letter — How the Democrat was Won Over — Bittinger and his Paper — Grosvenor's Letter — Grant's Third Term Aspirations — Morton's Needs — A Consolidation of Dis tricts — Ford and McKee meet Grant and Talk with Him Freely — E. B, Grimes — Douglass, the Commissioner — The Woodward Correspondence — Fighting Carl Schurz. . The great whiskey frauds culminating in 1875, are a part of the history of American pohtics. No ring was ever before formed embracing such a gigan tic scope and including among its chief instigators and membership, such distinguished Grovernment officials. The original intention of the organizers, adopting suggestions from the highest authority in the land, was to make the ring co-extensive with the nation, with headquarters in all the large cities, for the purpose of raising a campaign fund with which to advance the interests of President Grant in his aspirations for a second term. So far as my 18 SECEETS OF THE GEEAT WHISKEY EING. personal knowledge extends, the money received from the distillers and rectifiers was used according to the original intention of the members, until Grant's re-election, when, the purposes of the orga nization having been accomplished, but with the management of the colossal fraudulent undertaking thoroughly in hand, it was decided to continue the appropriation of the revenue and to make the mem bers of the ring the beneficiaries of the fund. During congressional and municipal campaigns, however, a part of this fund was always used in the interests of the BepubHcan candidates. HOW I BECAME SUPERVISOR. In the years 1868-69, I was engaged in Washing ton City collecting war claims against the Govern ment and buying up Quartermaster's informal vouchers. I conducted this business vsdth much success, but in September of the latter year, being a passenger on the iU-fated train on the Erie Eaihoad which burned at Mast Hope, Pa., with such des- destruction to hfe and property, I lost my trunk containing over $9,000,000 of these claims. My in dividual loss approximated $300,000, to recover which, I went to President Grant for the purpose of obtaining from him a note of introduction to Jim Fisk, then Manager, and Jay Gould, the President of the Erie Eailroad Co. Grant dechned to give me the note, as did also Gen. Sherman, to whom I made a hke request, giving as their reason, that such an exhibition of personal interest in claims of such nature as these represented, would be improper During my conversation with the President I GEANT DESIEES MY APPOINTMENT. 19 mentioned the fact that several of my friends in St. Louis had requested me to make application for one of the Supervisorships, an office created by Con gress, July 20th, 1868. I did not tell him that I wanted the office, be cause the appointing power was with the Secretary of the Treasury, but referred to the desire of my friends merely as a casual, social remark. President Grant responded at once, saying : "Well, McDonald, I would like to give you one of those places, and if you wiU accept, aU you will have to do is to return to St. Louis and procure some rec ommendations, make your apphcation and forward your papers." Having received such a decided and unexpected promise, I begun to think seriously of accepting the position, and returned to St. Louis at once. Direct ly after my return William McKee, of the Missouri Democrat, also suggested to me that an application for Supervisor would certainly be granted. I talked with a few of my friends in St. Louis, concerning recommendations, etc., some of whom interested themselves in my behalf, and, in a few days, I had prepared a very large hst of recommendations, which,'together with my application, I carried in person to President Grant. He examined my pa pers with great care and then had them filed with Commissioner Delano, and on October 6th, 1869, my commission as Supervisor of Internal Eevenue was issued. A false impression has long prevailed respecting the character of my indorsements, created by news paper assertions that I was opposed by the members 20 SECEETS OP THE GEEAT WHISKEY EING. of the Merchant's Exchange and the best people of St. Louis. In order to disprove this false claim, I herewith copy a few of the great number of my rec ommendations, many of which were unsohcited. St. Louis, August 30, 1869. General U. S. Grant. Dear Sir : Colonel John McDonald, of this city, is an appU- cant for the office of Supervisor of Internal Revenue. I know him to be man of great energy, a true RepubUcan and a devoted friend of your administration. I beUeve he wiU discharge the duties of the office faithfully and honestly, and therefore com mend him to your most favorable considerai-ion. Very respect fully, your obedient servant, E. W. Fox On this letter were the following endorsements: I cheerfuUy join in the above recommendation. Jas. E. Yeatman. I have known Major McDonald for several years. He was one of those who promptly responded to the wants of his country, and was active in getting up the 8th Missouri regi ment, one of the fighting regiments of the war, and served in that regiment as Major and was in some of the hottest of the fights. He deserves well of his government. Wm. M. McPhekson. General Sherman's Endorsement. Washington, D. C, Sept. 8, 1869. Major McDonald served under my immediate command in 1862-3, with great honor and credit to himself. He is a very active business man of an extensive acquaintance. I am per sonally acquainted with all the parties to this document, and certify them to be of the very best in St. Louis, and they know the matters of which they write. Major McDonald is entitled to the most favorable attention of the departments of the government. W. T. Sheejian, General. MY EECOMMENDATIONS. ^1 Governor MoClurg Executive Department, | Jefferson City, September 2, 1869. [ Hon. Columbus Delano, Commissioner of Internal Revenue. Dear Sir: — I have not the pleasure of an intimate acquaint ance with Brevet Brigadier General John McDonald, who desires to be Superintending Inspector of Internal Revenue at St. Louis. He is very strongly endorsed by persons of very lagh respectabiUty whom I do know. I doubt not, from such recommendations, he would make an efficient public officer and give character to the position. I am very respectfully, your obedient servant, J. M. McClurg. U. S. Senator McDonald. Little Rock, Ark., Nov. 20, 1869. Hon. C. Delano, Commissioner of Internal Revenue. Dear Sir: — Gen. John McDonald, lately appointed Super visor of Internal Revenue, and assigned to Arkansas, is here on duty. I am highly gratified with the appointment and assignment, and I have every reason to believe that it will re dound to the interests of the public service. This State needs the watchfulness of a firm, honest and energetic man to look after revenue matters, and I feel assured from the tone of Mc Donald's circular to collectors and assessors that he is the right man and means business. Your friend and obedient servant, A. McDonald, United States Senator Mr. Delano to the President. Treasury Department, Office of Internal Revenue, \ Washington, Sept. 9, 1869. j Dear Sir: — Gen. John McDonald presents excellent recom mendations for Supervisor of Missouri, Kansas, etc., vice Mr. Marr, the incumbent. He proposes to see you and present his papers. Judging from what I know of Mr. McDonald, as well as from his endorsements I presume he will make an efficient and faithful officer. Senator Drake urges strenousiy 22 SECRETS OF THE GEEAT WHISKEY EING. Man's retention and I disUke, in view of this fact, to make a change without your approbation and advice. I am very sincerely, etc., C. Delano. To President Grant. McKee, Fishback & Co. Office of Missouri Democrat, ) St. Louis, Sept. 5, 1869. j Gen. Grant, President United States, Dear Sir.— Gen. McDonald is an applicant lor Supervisor of Internal Revenue for this district. We do not wish to multiply words in his favor. We have known him for years. He was a brave soldier, a true Republican in the day of our trouble. He never faltered in his duty. He is eminently qualified for the position he seeks. He has energy, ability and integrity, the requisites yoa require in public officers. His appointment will give general satisfaction and particularly oblige your friends here and none more than ourselves. Most Respectfully, McKee, Fishback & Co. Lieutenant Governor Stanard. St. Louis, Sept. 1, 1869. Hon. Columbus Delano, Commissioner of Internal Revenue, Sir. — It affords me more than usual pleasure to recommend for appointment to the office of Supervisor of Internal Revenue of this district. Gen. McDonald. He is an able, efficient and upright man, and I believe him peculiarly fitted to discharge the duties of the office. That his appointment wiU give general satisfaction I have no doubt, and certainly it will add strength to the party here. Very Respectfully, E. O. Stanard, Lieutenant Governor of Missouri. This was endorsed as follows: I concur with the gentlemen in their recommendation of Gen. McDonald. Nathan Cole, Mayor of St. Louis. Irwin Z Smith, Judge St. Louis County Court, James S. Farrar, Judge St. Louis County Court. MY RECOMMENDATIONS. 23 State Senator George H. Rea. Second National Bank, \ St. Louis, Sept. 7, 1869. [ Hon. Columbus Delano, Commissioner Internal Revenue, Sir. — The bearer of this. Gen. McDonald, is well known in this city as a man of sterling integrity, a hard worker and possessed of good business qualifications and great energy. Any appointment given him would give general satisfaction in this city. Truly Yours, George H. Rea. Ex-GovERNOR Fletcher. St. Louis, Aug. 31, 1869. Dear Sir. — My old friend Brevet Brigadier General John McDonald, will be an applicant for appointment of Supervis ing Inspector Internal Revenue at this place. Permit me to say that I have known him long and well; he is a gentleman of remarkable energy and fine business qualifications, and possessed of a quick perception and ready ability of reaching conclusions from combinations of facts, which eminently fit him for the' place. Gen. McDonald was one of the first among the young men of Missouri to respond to the call of the country in 1861, and was a favorite officer in one of our fighting regi ments. As a soldier he deserves well of the country, and as a business man he is well fitted to do good service in the civil department. Very Respectfully your obedient servant, Thos. C. Fletcher. Hon. Columbus Delano, Supt. Internal Revenue United States. The endorsements on this recomendation were as follows; Having entire confidence in the fitness of Gen. McDonald for the position referred to, I shall be much gratified to hear of his appointment, and believe he will give general satisfac tion. Jas. B. Eads. I cordially indorse every word of the within. Francis Rodman, Secretary of State of Missouri. 24 SECEETS OF THE GEEAT WHISKEY RING. Rooms Radical Union, Executive Committee. City and County of St. Louis, No. 11 North Fifth St, ] St. Louis, Sept. 4, 1869. Hon. C. Delano, Commissioner of Internal Revenue, Dear Sir : — I know Brevt. Brig. Genl. John McDonald well, and most cheerfully say that a more satisfactory ap pointment to the office of Inspector of Internal Revenue at St. Louis could not be made. McDonald has the requisite integrity, ability, energy and tact necessary to fill the position with credit to this administration. I speak of what I know ; having been four years President of R. U. Ex. Committee my opportunity to form a correct judgment has been good. I think, sir, you will find McDonald an officer who will obey orders promptly and do all in his power to honestly collect the Revenue so much needed by our government. McDonald can command any endorsement required. I hope you wiU appoint him to the office. I am dear sir, respectfully, your obedient servant, Alfred Clapp. P. S. I am not now the President of the above R. U. Ex. C. A. C. From Hon. Peter E. Bland. St. Louis, Aug. 31, 1869. Hon. Columbus Delano, Commissioner of Internal Revenue. Sir : — Permit me to recommend my friend Genl. John McDonald for appointment to the office of Supervisor of In ternal Revenue in this district in case of the removal of the present incumbent. Genl. McDonald's poUtical record is too well known for remark, and his promptitude, efficiency and general abiUty, peculiarly fit him for discharging the duties of that office in a manner satisfactory to the government and beneficially to the just interests of all concerned. Very respectf uUy and truly yours, P. E. Bland. MY EECOMMENDATIONS. 25 In addition to the foregoing letters were also the following which I omit for want of space : Capt. John Scudder. Geo. P. Plant, President Merchants Exchange. Capt. Bart. Abel, and a large number of other members of the Merchants Exchange. U. S. Senator Rice of Arkansas. Congressmen Logan H. Roots and Bowles of Arkansas. Gov. Powell Clayton, Arkansas. Senator Pomeroy, of Kansas, and many others. A stronger endorsment than this no man ever forwarded to Washington as I have been frequently told by those occupying the highest positions in official life. The opposition made to my appointment, and brought directly to the notice of the President, was the following telegram : St. Louis, Feby. 16, 1870. Hon. Geo. S. Boutwell, Sec'y of the Treas., Washington. If the contemplated change of Supervisor in this district is not fixed, I would suggest that the character of the new appointee should be investigated here and at Memphis. Chester H. Krum, Atty. U. S., etc. C. W. Ford, CoUector. C. A. Newcomb, U. S. Marshal. St. Louis, Oct. 7, 1869. Hon. Geo. S. Boutwell, Secretary of Treasury, Washington, D. C Please withold commission of McDonald until you hear by mail. W'e regard it as highly prejudicial to the interests of the Government. C. SCHUBZ, U. S. S., D. P. Dyer, M. C, Jko. W. Noble, U. S. Att'y., C. A. Newcomb, U. S. Marshal. 26 SECRETS OP THE GEEAT WHISKEY EING. [copy of letter.] Eastern District of Mo., I U. S. Attorney's Office, j St. Louis, Oct. 7, 1869. Ho;;. Geo. S. Boutwell, Secretary of the Treasury, Washing ton, D. C. Sir: We have to-day learned, by the telegrams of our daily papers, that John McDonald, of this place, has been appointed Supervisor of Internal Revenue, and assigned for duty to this district. We beg leave to assure you that the reputation of this man, and his associates, are such that he can bring no moral support to the Government in the enforcement of the Internal Eevenue Laws, and that it is quite certain that his qualifications, natural or acquired, are such as render the appointment an unfit one to be made. We believe that, by his being placed in so important an office, the collection of the revenue will be retarded, and the combinations which have heretofore existed against the Gov ernment, will be re-estabUshed. C. SCHUEZ, U. S. S., D. P. Dyer, M. C, Jno. W. Noble, U. S. Att'y., C. A. Newcomb, U. S. Marshal. [copy of telegram.] Hon. Geo. S. Boutvvell, Secretary of Treasury. I unite with Senator Schurz, and others, against the appoint ment of John McDonald for Supervisor. G. A. FiNKELNBURG, M. C, [copy of telegram.] To Hon. Geo. S. Boutwell, Secretary of Treasury, Washing ton, D. C. I unite with Senator Schurz, Dyer, Finkelnburg, and others, against the appointment of John McDonald as Super visor of Eevenue. R. T. VanHorn. ASSUMING THE DUTIES OF SUPERVISOR. 27 Being greatly concerned about my heavy loss in the Erie disaster, I went to New York from Wash ington for the purpose of taking steps to recover from the Erie Company a compensation for my losses. After persistent efforts I obtained a small sum, and, leaving the claim in an unsettled con dition, I returned to St. Louis, only to find that I had not been assigned to duty, and nearly all the ter ritory had been occupied by other appointees. A bitter fight was made against my assignment by Drake, Newcomb, Schurz, Van Horn, (who after wards became most instrumental in having Missouri added to my district in order to displace Supervisor Marr, then in charge of the state), and C. W. Ford, then collector at St. Louis, whose letters will be referred to hereafter. On the 12th of November, 1869, I took possession of the Supervisor's office, having charge of the district embracing Arkansas and Indian Territory, with headquarters at Little Eock. Before leaving Washington to take charge of the district, instructions were issued to me to investi gate gigantic frauds which it was reported were being perpetrated by tobacco manufacturers in the Indian Territory. I spoke to President Grant of the strength of the tobacco combination, and told him that in proceeding against these manufactur ers, I would need the assistance of himself and the revenue department. His reply was: "Proceed without fear and be assured you shall have the last hearing." I lost no time in pushing the investigation against the Indian Territory revenue evaders, and the har- 28 SECRETS OP THE GEEAT WHISKEY EING. vest of fraud was so bounteous that, in about one month's time, I had four large manufactories, to gether with large and various lots of unstamped tobacco, libeled and in court. Commissioner Delano sent me several telegrams ordering a release of the goods thus seized, which I disregarded, by not reading, for the reason that I was confident I had a clear case for the Govern ment, and therefore thought it would be criminal to stop at such a stage of the proceedings, a posi tion which afterwards brought great credit upon the administration. The Eepubhcan party in Missouri, at the time I became a revenue officer, was harrassed by dissentions, and the especial virulency of the Missouri Democrat sowed the seeds of a grow ing discord among the adherents of the adminis tration. The President was greatly annoyed at these apparently irreconcilable differences among his friends, and, to restore harmony within the party, he sent for me, and after a lengthy discussion of these difficulties, he decided to attach the state of Missouri to my district and make my headquar ters at St. Louis. This order was as follows : Treasury Department, Office Internal Eevenue. Washington, Peb'y 14th, 1870. Sir: The state of Missouri has been detached from the district of Supervisor Marr and appended to yours. Your district win, therefore, now embrace the states of Missouri and Arkan- WHAT GEANT DESIRED ME TO DO. 29 sas, and the Indian Territory, and your headquarters are fixed at St. Louis, Missouri. Very RespectfuUy, J. W. Douglass, Gen. John McDonald, Acting Commissioner. Supervisor, Little Rock, Ark. The President had confidence in my abihty to pacify the disturbing elements, and frankly con fessed that it was essentiaUy necessary for me to direct my best efforts in this direction', as his success for a second term lay chiefly in the demand for his re-nomination coming from the West. The change pleased me because St. Louis was my home, and headquarters in that city would be much more agreeable for many reasons. Immediately after assuming charge of the reve nues of Missouri I had a conversation with Wm. McKee, senior proprietor of the Missouri Democrat, in which he admitted that his opposition to the President was caused by Grant's persistency in appointing persons to office in St. Louis contrary to his (McKee's) expressed wishes, and against the best pohcy of the party in the state. He was especially bitter against Eord, the collector, and asserted that he was entitled to the benefits be stowed upon the party by his paper. Several other conversations occurred between us in which con tingencies were provided for. In the early part of April, 1870, I took a trip South and remained absent for some time; upon my return, among the communications awaiting my attention was the following, enclosed in a letter of instructions from Acting Commissioner Doug lass: 30 SECEETS OF THE GEEAT WHISKEY EING. St. Louis, Mo., April 4th, 1870. Dear Sir : Yoa had better examine Mr. Ford's affairs at once, as well as L. Card's distiUery; if you do so, as it ought to be done, you will find something which will astonish you. R. D. Simpson. (Private.) In this connection it is proper that the reader understand the fact that nearly every distillery in the district was, at that time, libeled and shut up, and the revenue was coming in at an exceedingly slow rate ; but I at once acted upon the suggestion of this letter and thoroughly investigated Mr. Eord's books, and also the distillery. During the progress of this investigation, which was made without the suspicion of Mr. McKee, the following editorial appeared in the Missouri Democrat of August 12th, 1870. AN OPEN LETTER TO THE PRESIDENT. When you said " Let us have peace ! " Mr. President, and the people, taking that phrase as their battle cry, elected you, we at once began to labor for the policy thus marked out — Political disabilities still kept aUve in this State the passions of war, and, that the State might have peace, we advocated their removal. Every form of prejudice, and passion, was at once appealed to by those who resisted that course. We were accused of a design to betray and destroy the party, when, in truth, we had only advocated the very policy upon which a Republican President had just been elected. The Uberal policy triumphed in the Legislature; first in the election of a Senator, and finally in the submission of Consti tutional Amendments, removing a disfranchisement no longer required or justified by pubUc safety. But notwithstanding this deliberate decision of the representatives of the party, there were mc'kee's theeatening lettee. 31 men who refused to accept. The advocates of your poUoy they denounced as "infamous," as "traitors," and the like. The attempt is now being industriously made, in every part of the State, to control the Convention of the party against that pohcy which will give the State a perfect peace. And, satis fied that they cannot prevail by the honest vote of the party, a deliberate effort is made to swindle the majority of the Rad icals out of their rights: first, by the election of delegates in meetings not called«for that purpose; and, second, by a repre sentation which enables 35,000 Radicals, in sparsely settled counties, to overpower and vote down in Convention 50,000 Radicals in the more populous counties. All these things are done to control the party in this State against the policy of which you are the author, and which men have been encour aged to advocate by your high authority. In these schemes, Mr. President, there are busily engaged a few of the men who hold federal offices under you. They were selected, in part, for their supposed fidelity to the party, and to the liberal principles which it advocates. But they use the official position and influence thus given to them in desperate efforts, not only to defeat that policy which originated with yourself, but to defeat it by swindling the majority of the party out of its legitimate power to out -vote a minority. It seems to us, Mr. President, that the few individuals referred to, as they are engaged in making war upon a vital feature of your administration, and by methods calculated to divide and disrupt the party, may very fitly be deprived of official influence and position that strengthen them in their undertaking. We commend the subject to your consideration. Sir, and shall take occasion to mention, in a less public man ner, the names of these disturbers of the party, and opposers of the policy of your administration. Meanwhile, with, or without, any aid, the majority of the Radical party will carry the liberal policy forward to a com plete and glorious triumph. The result is not in doubt The amendments will be indorsed by the Convention, and adopted 32 SECRETS OF THE GREAT WHISKEY EING. by the people. The question is rather this: Whether the administration shall be more or less fully identified with the iberal poUcy, which the President himself originated and pro claimed. The people wiU support the administration. They would also be pleased to see the administration support itself. The fuU intent of this editorial was not doubtful. McKee* was anxious for the removal of several rev enue officials distasteful to him, and particularly C. W. Ford, the CoUector, who was such a warm bosom friend of the President's that only extraor dinary influences could accomphsh his removal. Hence the editorial was in the nature of a threat, a part of which was carried out by Mr. McKee in the organization of the Liberal party in Missouri, the following faU. A very sudden change now transpired, which transformed the elements of discord into the hap piest reconciliation. In the investigation I prose cuted at Uhici's distiUery (formerly run by Card & Lawrence, as referred to in Simpson's letter of in formation,) a most glaring fraud was unearthed, viz. the discovery of 48,000 bushels of grain, which had been used for distillation and unaccounted for to the Government. The magnitude of this fraud was equal to stealing directly from the Government the sum of ^117,600, and I at once accused Mr. Eord of guilty knowledge in the disposition of that money. After a season of skillful evasion Mr. Eord admitted the frauds, and exhibited the deepest humility and remorse of conscience. I reported to Mr. McKee the result of my investigation, and from that moment he was anxious for the retention of Mr. Ford in the Collector's office, and expressed his WE IMPORT A SING MANAGER. 33 sorrow at having published in his paper the editorial just referred to and printed in full. For some time before this McKee had made sug gestions to me about organizing a ring among the revenue officials in St. Louis, to derive profits from iUicit distiUing, but Ford prevented a consummation of this intention ; and after Ford was detected, in connection with Concannon, his deputj^, in defraud ing the Government, he still refused to treat with McKee, because of the antagonisms which had ex isted between them. The matter was then laid before President Grant, together with an explana tion of McKee's opposition to the administration. Soon afterwards Ford signified his wiUingness to meet and arrange details with McKee, which, (I can state with only circumstantial proof,) was caused by instructions from the President to Mr. Ford Having come to an understanding, arrangements were completed by which McKee, Ford and myself were to control aU the federal appointments in Mis souri, the Senators of that time, (Hon. Frank Blair and Hon. Carl Schurz,) not being in sympathy with the administration, and were consequently ignored by the President. The revenue was honestly coUected and returned until the fall of 1871, when, at the suggestion of Mr. McKee, one Conduce G. Magrue was imported from Cincinnati to manage the iUicit distilling, and to arrange for the coUection of the assessments to be made on the distillers and rectifiers. Magrue's qualifications for this position were of the highest order, as he had successfully conducted two or three enterprises of hke character before. His introduc- 34 SECEETS OF THE GEEAT WHISKEY EING. tion to St. Louis was, ostensibly, as an agent for some patent paving company in the East. The Eing would have begun operations much ear- her than it did, had it not been for the fact that every distiUery in St. Louis was libeled, with the single exception of Ulrici's, at which Ford's crook edness was first discovered. A removal of these hb^ls, necessary to a release that would permit the distilleries to run again, required the labor of sev eral months ; not that there was any opposition to their release, but because of the delay in accumu lating the evidence and advancing the cases, in the department, for final disposition. I went to Wash ington myself and remained there until I had pro cured the release of all the hbeled distilleries. During my stay in Washington, I received the fol lowing letter from John A. Joyce, my private secre tary, who was well acquainted with the purposes of the Eing and that the President was to share its profits : St. Louis, Mo., Oct. 15th, 1870. Dear General : I have had a talk with McKee to-day with regard to the situation in Missouri. I know that down deep in his breast is a wann spark (ironical) for the President. That spark can be fanned into a flame that wiU burn brightly until 1872, and culminate in a grand ovation for the hero of the war and Ught his way to the White House. It is no use disguising the fact, the Missouri Democrat is a great power in this State, and we must secure it for Grant now and for 1872. I hope your interview with the President wiU be satisfactory to aU concerned and that he wiU turn a kind ear to what you Jiiay relate. You are his friend. Joyce's epistolaey suggestions 35 Be sure and fix our St. Louis cases, for they will materially- advance the interests of the administration. Yours in haste, John A. Joyce. Enclosed with this letter was a shp upon which was written in lead pencil the foUowing : " I send you this letter for the purpose of good. If you see the President and have a chance, take it out of your side- pocket and let him read it. Think and act." There was, I repeat, an understanding between the President, McKee, Ford, Joyce and myseU that a Eing should be formed, the proceeds from which should constitute a campaign fund to advance the interests of the administration, hence the manner in which Joyce writes, also the following : St. Louis, Nov. 28th, 1870. Dear General: Yours of the 24th, was received this, Monday morning. I am pleased to know that Sec'y Delano, John & Co., (referring to the Secretary's son and others) are as ever your warm friends. By this time I presume you have had a talk with the Chief at the W^hite House, and learned whether Drake has suc ceeded in pumping any vitriol into the mind of the President against the supervisors. If Gen. Cowan is made commissioner we will not, I pre sume, suffer thereby, as he will have every reason to be our I read the article in the St. Joe. Herald to Capt. Ford, and be was highly delighted to know that a Brown (B. Gratz) paper had taken that shoot, and was curious to " know how in the world did you get him to publish it." I informed him that you had a way of doing things, and gave Bittinger (the editor) to understand that it was to his interest to support the adminis tration. ********* 36 SECRETS OF THE GREAT WHISKEY EING. I hope your interview with the President wiU be of a satis factory character, and that you wiU return to your district stronger in his estimation than ever. ******** * * This office is running as smooth as a sunbeam, and my only anxiety is that you wiU, this time, make talk and promise (sic) count " greenbacks," for what is a man in this world without a good supply of the " filthy lucre " obtained honorably and honestly. I am ever yours, John A. Joyce. A thorough understanding of this latter letter can only be obtained through a knowledge of the current events of that time : Col. Bittinger was a U. S. Ganger and was also one of the editors and proprietors of the St. Joseph, Mo., Herald, an in fluential Eepublican sheet which had foUowed the dictation of the Missouri Democrat and espoused the Liberal movement whose candidate and cham pion was B. Gratz Brown, in 1872 the candidate for Vice President, with Horace Greeley. Presi dent Grant, being ambitious for a second term, saw the necessity of reclaiming the Herald and Demo crat. How he obtained the support of the latter will be more fully related hereafter. I was the in strument used by the President in each case to pacify and win over these recalcitrant sheets. Be ing well fortified with instructions, I saw Col. Bit tinger, and, finding him plastic to essential over tures, promised to place him in a position by which he might be a beneficiary of a fund created through iUicit distiUing in St. Joseph. In addition to this promise to permit the St. Joseph distiUeries to run crooked, I also agreed to secure for him an appoint ment as consul to one of the important cities of HOW I SECURED NEWSPAPER INFLUENCE. 37 England. C. B. Wilkinson, also one of the pro prietors of the Herald, had a claim against the Government amounting to nearly $10,000, in his settlement upon going out of the office of Collector in about 1865. This claim (I was told by Wilkin son) had been ignored, although the influence of Ben. Loan, Van Horn, Asper, Senator Hender son, Jim Craig and Senator Drake, I beheve, and many other influential pohticians had been exerted for its allowance. I also promised to collect the claim, and to give the paper certain federal patron age, if the Herald would renounce its hberal course, and come out strong for the administration. My ofiers were accepted, and when I went to Washing ton I told President Grant of my arrangements, and drew his attention to the condition of Wilkin son's claim. I further told him that Mr. Wilkin son was especially anxious to secure this money, as he would then be enabled to increase the power of his paper. The President replied : " There wiU be no trouble about that, for I will see Mr. Boutwell and have the matter attended to." Upon my return to St. Louis, I reported to Mr. Wilkinson the readiness of the Government to set tle the claim, and in two weeks thereafter I ap peared in Washington with Wilkinson, and took him to the Treasury Department. Upon meeting Mr. BoutweU, the Secretary, Wilkinson announced the object of his visit, where upon the Secretary replied: "Yes, I have aheady been spoken to about that matter ; if you will come back about two o'clock we will fix your claim," 38 SECRETS OP THE GREAT WHISKEY RING. and calling a messenger he sent out for the Comp troller and the papers in the case. Wilkinson kept the engagement, and at the ap pointed hour he received a draft on the Assistant Treasurer at New York for the full amount of the claim. Thus the engagement with the Herald was con summated, and to the more thoroughly seal the compact and utilize Bittinger and Wilkinson the latter was, in February 1873, appointed coUector of the revenue at St. Joseph, and the "machine" there went into full operation under a new regime. The district had been running crooked, however, for some time before, but now the earnestness of the illicit distillation was pronounced and bold. Con. Magrue having arrived in St. Louis in Sep tember, 1871, everything was then fixed for the manufacture of illicit whiskey throughout the dis trict. The foregoing is a succinct statement of the suc cessive steps leading to the organization of the Whiskey Eing at St. Louis; but the same history has been partially written before, with greater mi nuteness, by Wm. Grosvenor, formerly editor in chief of the Missouri Democrat, when that paper was the property of Mr. McKee. Mr. Grosvenor was, owing to a peculiar relation (not criminal) with the St. Louis members of the Eing at the time, well qualified to write a true history of its superfi cial operations and, barring three or four material errors which I will correct, his statement is a true one. It is as follows : THE GEOSVENOE LETTER. 39 " Prior to Grant's inauguration there had been a Whiskey Ring in St. Louis — officials under Andrew Johnson had made money; favored distillers had spent money freely to sustain the party which Johnson aided. But the ring of those days ".vas, in comparison, a laughing affair. It served to excite the cupidity of certain Republicans who sought the control of certain offices after Grant was elected. Nearly all were disap pointed. Grant had formerly lived at St. Louis and had there a set of friends to reward, a few of whom had been active partisans. Mr. McKee, senior proprietor of the Democrat, then the leading Republican organ in that part of the country, demanded the appointment of Col. Constantine Maguire as collector, with the expectation that his brother, Henry McKee, would be deputy collector. Now the deputy collector has charge of the distilleries. But Grant appointed Col. Ford unknown as a Republican, who had loaned money to Grant when he was in great need, and who subsequently acted as his confidential adviser in the disposition of his private means. Well known Republicans were recommended for supervisor of internal revenue in that district. Grant appointed Gen. John McDonald, a man who had held intimate relations with him when Grant was in command in the Mississippi Valley and who was understood to have made some money in cotton operations below Memphis at that time. When it was known that McDonald was likely to be appointed there was a general opposition alike by business men and Republicans; the Union Merchants' Exchange protested; prominent citizens and the newspapers protested. What business men had known of McDonald did not lead them to think him a suitable person for such an office. Leading Republicans protested. Members of Congress from Missouri, then all Republicans, led by Carl Schurz and Drake, who were at bitter warfare personally, all united in protest. But while this opposition was most threat ening, McDonald remained in St. Louis, saying openly: "They need not trouble themselves; I know Gen. Grant better than any of them, and I shall be appointed, no matter who pro- 40 SECRETS OP THE GREAT WHISKEY EING. tests." He was right. McKee was indignant and bitter. He had not been able to control the collectorship, and from that tinie spoke of Grant in terms which it would not be decent to repeat. Early the next year the controversy respecting a removal of disfranchisement began, and the Democrat's readi ness to split the Republican party on that issue was almost wholly due to McKee's vindictiveness toward Grant and desire to show his power. He and his active partner, Mr. Houser, had been among the most bitter disfranchisers, and could in no way have been led to take position against disfranchisement but for desire to control the federal offices in St. Louis. Grant, fully advised of this, and supposing that no higher motives governed Schurz and other Republicans who opposed continued disfranchisement, made war on the Liberal move ment, quite unnecessarily, for nine-tenths of those who sup ported it cared nothing about the offices, and had at that time no feeling of antagonism towards him or the Republican party. The result was the Liberal victory of 1870 in Missouri. McKee felt that the power of his paper had been shown, and began to talk freely of a National movement against the Re pubUcan party, of which his paper was to be the chief organ, and Gratz Brown, his former associate in the Democrat, the presidential candidate. Then began the Whiskey Ring. Early in 1871 McKee said to me, at that time editor of the Democrat, that reasons had been presented to him for chang ing the course of the paper ; that the opposition to Grant ought to cease ; that there were very important arrangements on foot which would be highly profitable to all of us if we could be on good terms with the federal officials. Naturally insisting upon more light, I was told by him at last, after many significant winks and nods, that the matter in question con cerned the revenue service, and that we could just as well make $100,000 each if we would let him arrange it and say nothing more in the paper against Grant. I dechned to change my poltitical opinions so readily, and was presently notified that my services as editor were no longer needed. I THE GROSVENOR LETTEE. 41 demanded reasons, but was peremptorily refused any explana tion. This was in February, 1871. The paper did suddenly wheel around to the support of Grant, and in March the first general assessment of whiskey distilleries was made. Accord ing to testimony given at St. Louis, a regular share of the money collected from distilleries was, from the first, paid to John Leavenworth, since deceased, for delivery to Mr. McKee. How far the promise of this share in the profits of illicit dis tilling influenced the sudden conversion in the political opin ions of McKee and his paper others can judge. The first assessment was made, professedly, to raise a cam paign fund, for the city election in April, 1871. As soon as the Democrat changed its course, a great effort was made to put an end to the liberal organization, and unite all former Republicans in support of the administration, and a victory in St. Louis was reached, as proof that the re-union had been effected. How much of the money raised, professedly for this purpose, was actually paid for campaign expenses, is not known. But more than one distiller has told me how he was induced to contribute, and how, if he objected to fraud, he was forced to choose between participation with the Ring or bankruptcy. Col. Ford was at that time coUector, and Mr. Concannon, who has since made his peace with the Govern ment, by testifying, I believe, was deputy in the collector's office. If distillers, or rectifiers, declined to act with the Ring, care was taken, first, to entrap them in some apparent or technical violation of the law, which, by pre-arrangement among officials, was detected at once — in some cases, before the di:,tillers or rectifiers had time to discover that the " crooked " stuff was on their premises. Then their establish ments -svere seized, and they were told to see Mr. Ford. When they saw Ford, they were told to go to Concannon, When they went to Concannon, they were told that there was a little difficulty, which they could arrange by seeing John Leaven worth. When Leavenworth had explained matters, they per ceived that if they did as he desired them, there would be no 42 SECRETS OP THE GREAT WHISKEY RING. trouble; if not, they would be prosecuted and convicted for violation of law, and bankruptcy would be inevitable. How many men in St. Louis were forced into the Ring by this and other ways, and how many went into it voluntarily, probably, nobody will ever know. Leavenworth is dead; Ford is dead, and others who had part in the earlier transactions are no longer accessible. But Megrue, then an official, in whose room, in a building on the corner of Fifth and Pine streets, it is said, the spoils were at first divided every week to the sev eral parties in interest, has testified to transactions in his time. After his departure, and Leavenworth's death, one Everist, for whom officials are now searching, and J. N. Fitz- roy, who has recently pleaded guilty and testified, acted as confidential coUectors and disbursers of the funds. Thus it is probable that abundant proof wiU show to whom money was paid. For whom, may, in some cases, be a more difficult ques tion to answer. Ostensibly, the funds were originally collected for party pur poses. During the Presidential campaign, in 1872, when Republican leaders were alarmed, a dispatch was sent by one of them, a very prominent Senator, calling for a new assess ment on distillers, unless this dispatch itself was forged by some member of the Ring, as a pretext for unusual demands. But neither that year, nor any other, was the conduct of Republi can campaigns, in St. Louis, or Missouri, such as to warrant the belief that any large sums was at the disposal of the com mittee. On the other hand, the sums collected were very large. One after another, distillers and rectifiers became aware that the greater part of the funds collected from them was consumed for other than party purposes. But in 1872, the excuse was made that it was necessary to establish a reli able Grant organ. Early in that year, the Democrat had been forced to sale under order of court for dissolution of partner ship, and McKee, and Houser, had been bought out by Mr. Fishback. Whether he would restore the paper to the liberal position it had taken in 1870, was not known, but he was not THE GEOSVENOE LETTER. 43 deemed " a reliable Grant man." The Ring needed an organ — McKee reeded a paper as a reason for confined payments to him. Accordingly, the Globe was estabUshed by McKee and Houser, and it is stated that the payments to Leavenworth, for McKee, were nearly $1,000 a week, amounting to over $44,000 within less than a year. Even this large sum was but a small part; it is said one-fifth — of that portion of the profits which distillers were required to pay. Many gangers and subor dinate officials were paid extra salaries by the distiUers them selves, but about forty per cent, went to the higher officials. How this portion — the fund of the Ring, proper — was divided at different times, the testimony will probably show. It is alleg ed that one portion went to the supervisor, another to the con fidential agent, and another to McKee for himself; another to him, professedly, to deliver to Ford, the coUector; another to " the man in the country," a phrase supposed to refer to some body in Washington; for at an early day, the Ring must have secured some powerful influence at the Capital — that the supervisor had considerable influence, either with Grant him self, or through somebody else, was obvious when he was appointed. Col. Ford, the collector, had so great an influence with the President, that his appointment as Secretary of the Interior, when Delano was about to vacate that office, in 1873, was confidently expected by the Ring, and, I believe, was actu ally determined upon by the President at the time of Ford's sudden death. It is not known to me whether any evidence proves that money set apart and paid for Ford, ever reached him, and he may, perhaps, have supposed that the only collec tions made were for political uses. But, however strong Mc Donald and Ford may have been, there was needed, and there was secured, somebody at Washington to give the Ring early warnings of the treasury investigations, and to stop all com plaints from reaching the Secretary or the President, for the conduct of the President, since the exposure, makes it im possible to believe that he was in any sort of complicity with the Ring. Yet complaints were forwarded, sometimes to the 44 SECRETS OF THE GEEAT WHISKEY EING. Secretary, and sometimes to the President himself, without result. If investigations were ordered, either the person selected and sent out, was one whose eyes and ears could be closed by a bribe, or the Ring was warned by telegraph before he had left Washington, and had ample time to put everything in readiness to receive him with equanimity. That complete immunity was thus secured at an early day, is certain. Mr. Avery, the chief clerk of the treasury, is under indictment for compUcity, and there is testimony that $200 per week was set apart for him. But he was not the only person at Washington whose constant aid was needed, and, if statements of the division of funds are correct, the amount sent thither was much greater than he was said to have received. It is stated in recent dispatches that telegrams and docu ments sent from Washington to members of the Ring have been placed before the grand jury now in session. Of course persons having part in this dangerous business did not sign their own names; fictitious signatures were used at both ends. But the original telegrams, if obtained from the office by legal authority, may be in recognizable handwritings, and rumor says that at least one person nearer the President than Mr. Avery, wiU thus be proved to have been telegraphing to the Ring with a fictitious signature. It was at one time openly alleged by distillers that Commissioner Douglass was in the Ring, but, if they had been told so by officials in St. Louis that alone would prove nothing, and I know of no other evi dence concerning him. What the Ring needed at Washing ton was not influence with any department. When Mr. Doug lass suggested, and Secretary Bristow ordered a transfer of supervisors to different districts, a measure which would cer tainly have uncovered fraud. Gen. McDonald declared in the most confident manner that the order would be immediately recinded; he jumped on the cars, went to Washington, saw the President and telegraphed back that all was right. The order wap recinded. What representations could have led the Presi dent to believe it wise or necessary to revoke such an order, it THE GEOSVENOR LETTEE. 45 is hard to guess. But the Ring openly boasted that it had a power at Washington which could not be resisted nor broken. Moreover, the members undoubtedly believed it themselves. That is the mysterious part of the whole business. No man who watched the proceedings of these people can possibly doubt that they were absolutely fearless of exposure, and per fectly convinced that their power was greater than that of Secretary Bristow himself. Repeatedly they boasted, even after the exposure had begun, that they would have him out of the cabinet in a few days. At one time they named the day on which Delano would become Secretary of the Treasury. They did not go about like men who had anything to hide. Dia monds, for which official salaries would not account, were worn openly and purchased several thousand doUars' worth at a time, without attempt at concealment. Officials with moderate salaries lived with their families at hotels, expending obviously more than their known incomes, and yet made open purchases of costly summer residences. If whiskey operators or dis charged revenue officials threatened to make exposures at Washington, they were kindly invited to " expose and be " not blessed. One at least tried it, made a dead failure, came back to St. Louis, and was told that he had better keep his mouth shut in future, or he would get sent to the penitentiary for defrauding the Government. When McDonald, now indicted, went to Washington, he was received by the President and rode with him on the avenue. When the President visited St. Louis, McDonald was usually in his company, and as late as October, 1874, when the Presi dent visited the Fair grounds, in the presence of 50,000 peo ple, McDonald was by his side. It was currently reported at the time, that, having praised a horse at the Fair, the Presi dent received it the next day as a present from his friend Mc Donald; that he permitted the officials there to have a carriage manufactured expressly for him, and to pay his bUls at the hotel. How many of these stories were falsely set afloat by members of the Ring, in order to strengthen their claim of 46 SECRETS OF THE GEEAT WHISKEY RING. great influence with the President, I cannot say. But one thing is certain, this Ring had some pecuUar power at Wash ington, and the investigation will not be complete until the nature of that power is thoroughly made known. The Presi dent owes it to himself to have that thing exposed, if nothing else. As it stands the matter is both ugly and mysterious. The Ring actually had great power at Washington; boasted that it had absolute power, and apparently believed it, and yet members of it have been convicted. I confess that these things lead me to suspect that somebody, known to be influen tial with the President, traded on that influence, received money for it, and made members of tlie Ring believe that the President himself winked at the conspiracy. The Ring was broken two or three times, and payments stopped. Once there was a quarrel about the amount of assessments. It made quite a noise in St. Louis, and everybody expected a general explosion. Presently it was settled by some new ar rangement, and everything went on peacefuUy again. In the faU of 1873, there was a cataclysm of some sort, so violent that for a time the Globe published bitter anti-third- term articles. If this Ring kept books it would be safe to wager that about that time the usual weekly settlements were interrupted, and in point of fact, there was a notorious run about Busby's distillery, and daily expectation of disclosure. In due time harmony was restored, and the Globe recovered its loyalty. The sudden death of Col. Ford, the collector, caused a brief disturbance. But the Ring urged the immediate appointment of the same Colonel Maguire, whose selection for that office McKee demanded in 1869. He was appointed; Fitz- roy became his deputy, and from that time forward the loyalty of the Globe was intense and glowing. Indeed, so violent was its attachment to Republicanism, pure and undefiled, that in 1874, when four-fifths of the Republicans in the State desired to join with the independent Democrats -in the support of a no-party anti-Bourbon ticket, McKee agreed to support the movement only on condition that he should name the candi- THE GROSVENOR LETTER. 47 date for State Treasurer. When that was impossible, the Globe denounced the plan as treachery to the party, and McKee himself, with others in the Ring, went to the State convention and tried to organize a bolt, and the nomination of a strict party ticket against the formal decision of a party convention. Failing in that, he used his paper throughout the campaign in savage hostiUty to the independent ticket, and helped the Bourbons materially. Republican ward meetings were packed by companies of men gathered up from distilleries, under the lead of revenue officials. Republican candidates for the legis lature, who would not pledge themselves to vote against the re-election of Senator Schurz, were openly denounced by this Ring and its organ, and defeated wherever it was possible. Doubtless this opposition helped to insure the election of a former Confederate general. For this most important service to the RepubUcan party, after leading members of the Ring had been indicted, they claimed that they were entitled to executive favor. This behavior of the Ring in the campaign of 1874, led to its destruction. Men who had no knowledge of its existence, except by general rumor, set themselves to find out something about this influence which had marched men from distiUeries to RepubUcan ward meetings. When the Merchant's Exchange statistics for 1874 were pubUshed, some men compared the receipts and shipments of whiskey with the official report of the quantity produced in the city. It was at once apparent that the quantity consumed and shipped was greatly in excess of the quantity received and said to be manu factured. The excess represented a loss of revenue, in St. Louis alone, of $1,200,000 yearly. This suggested a new mode of detecting the fraud — namely, an examination of the bills of lading, or other commercial reports of receipts and shipments. It soon became evident that fraud could be fastened upon individuals. Mr. Fishback, proprietor of the Demccrat, com municated confidentially with Secretary Bristow. Without the knowledge of those who had been accustomed to warn the Ring of doings at Washington, the Secretary commissioned 48 SECRETS OF THE GREAT WHISKEY RING. Mr. Coloney, commercial editor of the Democrat, as special officer of the revenue. Thus armed with ample authority, Mr. Coloney proceeded first to coUect, as if for the newspaper, a complete statement of every bUl of lading or shipment during the year, not of whiskey alone, but of all important articles, so that his object was not suspected. But the comparison of these shipments, from operators in whiskey at St. Louis, with official reports at Washington, gave conclusive proof against nearly all the illicit establishments, and led to the general exposure of whiskey frauds all over the land. Thus a few commercial statistics upset the most powerful conspiracy ever formed against the revenue service in this country. When the long labor of tracing and comparison had progressed far enough to insure the conviction of the leading distiUers and rectifiers, the Secretary sent on from Washington special agents to make seizures. But in doing so, he found it neces sary for the first time to make known to a few 'trusted officials the work he had on hand, and that very night the telegraph took from Washington to Gen. McDonald at St. Louis the announcement: "Lightning will strike on Monday." For about two months before Mr. Fishback had been offering to sell his controlling interest in the Democrat to Mr. McKee, of the Globe. All offers had been disregarded. Mr. Bowman, as attorney for the Globe, had made efforts for amiable settle ment, and through him Mr. Fishback had been led to name terms which he would accept, but for weeks those terms had been treated as totally inadmissable by the owners of the Ring organ, and Mr. Bowman, not imagining that anything could occur speedily to bring the parties together, had left town for a few days. On Monday Ughtning did strike. The distilleries were seized by special officers from Washington. Even then the RiQg was perfectly defiant, and predicted that in a very few days every establishment would be released, and Secretary Bristow removed from the Cabinet. But the next morning's Democrat, contained a dispatch of several columns from Wash ington stating the nature of the evidence which had been THE GEOSVENOE LETTEE. 49 collected. Then, for the firt time, the Ring saw that it had to fight hard. That morning there was a hurried meeting of the Ring, and books were consulted. That very afternoon Mr. Fishback's proposition was accepted, and the Democrat passed into con trol of the Ring. That same night editorials, congratulating the President and Secretary upon the exposure of the fraud, being in type of the Democrat office, were sent to Mr. McKee, of the Globe, for approval, and the proofs were returned by him with an order not to publish them. From that day noth ing was admitted to the Democrat in the nature of further exposure or comment favorable to the government. So much in haste was the Ring to complete the purchase, that it could not wait the return of the attorney who had acted for the Globe in the matter, but others were at once employed to draw up the necessary papers. The Democrat was speedUy consoli dated with the Globe, and ceased to exist." One of Grosvenor's mistakes is in his assertion that " the first assessment was made professedly to raise a campaign fund for the city election in April, 1871." The first money derived from iUicit distilhng was in September, 1871, the month Magrue appeared in St. Louis to put the machinery of the Eing into op eration. I cannot give the minute details of the collection and disbursment of the iUicit fund for the reason that there was no rule estabUshed for the government of the Eing members in their opera tions. One month an assessment of f 20,000 may have been levied on the distillers and rectifiers and during the next month five times that sum may have been called for. Much depended upon the de mand for money made by Gen. Babcock for division among the administration conspirators, and the de mand for local purposes. D 50 SECEETS OF THE GEEAT WHISKEY EING. In addition to this the Washington segment of the Eing was in the habit of sending agents into my district for the sole purpose of blackmail. I can have no doubt that Hogue, Brasher, and others who appeared here as revenue agents were sent by Babcock, and Eogers the deputy commis sioner (whom I conversed with and received almost admissions of the fact), for the purpose of scaring the St. Louis distiUers into the payment of large sums of money for their silence. More than $100,- 000 was paid out of the fund in this way and that some of this money went into the White House has always been my positive belief. Grosvenor aUuded to the fact that in the f aU of 1873 an explosion occurred which well nigh dis rupted the Eing and seriously disturbed the loyalty of the Globe. The statement is correct and here I will explain the cause : As previously stated, Grant's coUusion with the Eing consisted in his utilization of corrupt money to secure his re-election. After this purpose was accomphshed I vras anxious to see the Eing organization dissolved because its ramifi cations were so extensive, and included such a vast number of men of every character that I was in constant dread of pubhc exposure. Time and again I talked with McKee and the other managers urging upon them the danger of our position and the bad policy of continuing the corruption after our purposes were accomphshed. I laid the matter before Grant who referred me to Babcock whose judgment he rehed upon. McKee, in the meantime became very much offended at my determination to break up the Eing, and finding the SENATOR Morton's visit home. 51 administration rather according to my wishes he brought the pressure of his paper against me and was loud in his demands for my removal, being un able to accomplish which he attacked the third- term idea. At length, by seductive argument, the administration concurred in McKee's opinion that the Eing could be run successfully by creating a fund to advance Grant's third-term aspirations. When this view became pronounced I at once accepted the purpose as a self-sufficient one and harmony again prevailed among all the members of the Eing. An explanation of this extract in Grosvenor's letter, " During the presidential campaign of 1872, when Eepublican leaders were alarmed, a dispatch was sent by one of them, a prominent Senator, call ing for anew assessment on distillers," is as foUows : A few days before the demand was made Senator Morton came to see me, while on his way to Hot Springs, and although he was badly crippled he as cended the stairs to my office by the aid of his crutches and spoke to me in words of great friend ship, saying that he had not climbed a pair of stairs for a long time before and that he did so in this in stance out of compliment to me. We only talked of politics in general, but a few days afterwards Henry T. Blow came to me and said : " The Eepub- licans over in Indiana need our aid very badly and require money to help them through the campaign. ' ' I gave Mr. Blow $1,000, and understood through Mr. McKee that $30,000 was collected and sent to Indiana by Mr. Blow. Mr. Grosvenor, while editor of the Democrat, learned some of the secrets of the Eing through the 52 secrets of the great whiskey eing. suspicious actions of Mr. McKee and at length, in order to pacify him, Joyce gave him under pretence of a loan the sum of $500, to cease exercising his cu riosity, and soon thereafter he was notified that his services, as editor, were no longer required. Hisletter bears the impress of a disturbed mind having some jealousies to vindicate, but under the circumstances he writes with an unusual regard for facts which, however, are bad enough to afford him much satis faction in airing. The Grosvenor letter carries the narrative far be yond the regular order, and creates a hiatus in events which compels me to return and gather up the broken threads. I desire, here, to impress upon the reader a very essential fact which I trust wiU not be forgotten nor misconstrued : In producing corroborative evi dence I must use the proofs furnished by my co conspirators and such fragments as may be gathered from the statements of parties engaged in the pros ecutions, or newspaper writers whose facts have been gleaned from interviews with indescreet mem bers of the Eing. The copious reference I make to the letters of Col. John A. Joyce, my private sec retary and confidant, is pardonable I hope for these reasons. In order to show the unanimity and complete ac cord of mutual understanding between President Grant, Babcock, Douglass and others at Washing ton with the members at St. Louis, the following letter is produced, written while I was in Washing ton seeking the compromise that would permit the libeled distiUeries in St. Louis to resume operations. a seriatim letter FEOM JOYCE. 53 St. Louis, Nov. 22, 1870. Dear General: By attending to the following suggestions the interest of the Government will be advanced. 1st. Have the Department compromise the Curran and Thompson cases, sure ! 2d. See Avery and have him remember that Bittinger is to remain in office — and fix for him to get the other position hereafter. 3d. Be sure and fix the Leavenworth matter. 4th. Have General Sanford set right. 5th. Fix things so that your " say " under section 49 will remove and transfer storekeepers and gangers. 6th. *****. 7th. *****. 8th. Above all things remember while in Washington that talk and promises will not pay and that theory does not amount to a row of pins unless put into practice. 9th. Let me know what's what. 10th, The future looks bright, and if you only get down to business while at the Capital all will be well. 11th. Gunther starts on his round for the benefit of Alex McDonald, to-morrow. We must strain every nerve to elect McD. to the Senate. Yours, J. A. J. This letter requires comments that wiU show the fuU meaning of the writer, John A. Joyce. In the beginning he refers to advancing the inte rest of the Government in an ironical manner. His true meaning is, " advance the interest of the Eing." The explanations seriatim are as follows : 1st. Ford and McKee were especially anxious to have the Curran and Thompson distUleries resume, and to run crooked. 54 SECEETS OF THE GEEAT WHISKEY EING. 2d. Avery was chief clerk of the Internal Eev enue Bureau, and all appointments had to go through his hands. The desire of Joyce was to have Avery allow Bittinger to remain ganger until other arrangements, previously explained, were con summated. 3d. McKee had recommended the appointment of John and Zeb. Leavenworth, the former as ganger and the latter as storekeeper, and it was particular for the Eing's purposes to have these two men appointed. 4th. Sandf ord was a relative of President Grant 's wife by marriage, and it was at Mrs. Grant's desire that I asked for him an appointment as a special clerk in my office, to look after tobacco stamps, etc. The aUusion to him by Joyce was merely to caU the matter to my mimd. 5th. This meant to obtain unhmited authority from the department, which I did, Douglass furn ishing me with orders, and remarking at the time : " I know you feUows out there are doing something for pohtical purposes, but I don't want to know the details." I had previously spoken to President Grant and Babcock asking them to speak to Doug lass and have him give me the authority I required to make our purposes successful. They each told me they would, and the gratuitous remark of Mr. Doug lass led me to believe they had kept their promises. 9th. By this he exhibits his desire to know if the President and his nearest officers in the departments are favorable to the combination for illicit distilhng, and what he must expect. 10th. Is the same idea. VAN HOEn's TESTIMONY. 55 11th. This statement furnishes another proof that the Eing was a political combination. Mc Donald was at that time Grant's favorite, but events occurred after this which caused us to leave McDon ald, and throw our support to Clayton, under his written promise to support Grant's administration, which elected him. The next letter from Joyce, betraying the mo tives of the Eing and who its members were, reads as f oUows : St. Louis, Mo., Dec. 1st, 1870. Dear General: ********* By this time I presume you have seen the President, and talked over the consolidation of districts, and that a conclusion has been reached as to Missouri. I had a talk with Ford yesterday and read him part of your letter. He is highly delighted at your success in the Thomp son and Curran cases. These gentlemen happened in to-day, and I gave them the good news. This move of yours will do the administration great good and tend to a reconciliation o the contending elements here. Col. Van Horn was in this morning, on his way to Washing ton. He and Burdett are at the Planter's House. I told Van Horn a few things, and I know he will set Burdett right, if his machinery needs adjusting. You will see them both in Wash ington in a few days. Van was much interested in the con solidation matter and was much relieved when I told him that "things were all right in his neighborhood." Van went away feeling good and determined to pull any kinks out of Burdett that got twisted in the late mill. *******<* Yours as ever, John A. Joyce. The consoUdation of districts, referred to a reduc tion of the number of collectors and assessors, ac- 56 SECEETS OF THE GEEAT WHISKEY EING. cording to an act of the previous Congress. My letter, to which Joyce makes reference, was a noti fication of the fact that I had succeeded in releas ing the Thompson and Curran distUleries, and had completed our combination with Grant, Babcock, and those at the Washington end of the line. The attitude of Mr. Ford towards me, whUe it might have appeared more properly in an earlier part of this book, is not "now whoUy out of place, and if pardon is necessary, I ask it for including this array of circumstances here. After my first appointment as supervisor, but be fore Missouri had been attached to my district, dur ing the opposition of Krum, Newcomb, YanHorn, Dyer, (then a member of Congress,) all of whom subsequently urged my re- appointment, Mr. Ford attacked me with extreme virulency. He addressed two letters to the President, appeahng to him in the name of a life-long devoted friend, not to have any thing to do with me. His denunciation embraced all the imprecations he could command, and aU the indignation of his nature was emptied upon my head. EeceiAdng no reply to the first letter, two weeks afterwards he wrote a second, excusing the extraor dinary tone of that communication by his disinter ested devotion to his most valued friend, the Presi dent, but warmsd up to his task and poured out fresh vials of abuse upon my character, befouling me in the most ingenious manner. Mr. Ford was aware of the effort then being made to enlarge my district (which only included Arkan sas and Indian Territory) so as to embrace Missouri, and he having been engaged filching from the Gov- A LETTEE FEOM MC'eEE. 57 ernment was afraid that my transfer to St. Louis would result in his exposure. This reason was clearly demonstrated afterwards, for after I had un covered his frauds and provided means to prevent a pubhc disclosure of his acts he became my warmest friend, and in 1872 he wrote the strongest letters to the President urging my re-appointment. The foUowing letter will also furnish another reason for Ford's change of attitude towards me : (strictly confidential. ) Office of the Missouri Democrat, McKee, Fishback & Co., Prop's., St. Louis, February 13th, 1871. Friend McDonald; Joyce informs me he leaves to-day for Washington. I send by him a few Unes to call your attention to the conversation we had before you left. I have seen Ford but have had no conversation with him. He expressed the greatest suprise at your influence with heads of departments, and was delighted with the manner in which you went into Thompson, talked to members of Congress, etc. You have convinced him (Ford) of a very important fact and he wiU have full confidence here after. I am very sorry your consolidation plan fell through. Our enemies could have been wiped out completely if you had sue- ceeded. ********** ** Don't forget our newspapers here. They must be supported and the Government is able to do this. ******** * * * * Joyce will report fully. I am yours in haste, Wm. McKee. I received this letter through Joyce while I was iu Washington. Its plain language requires little 58 SECRETS OF THE GREAT WHISKEY EING. explanation. In the first paragraph where he says he has seen Ford but has had no conversation, pro ceeding at once to give expressions of Ford, is only an apparent contradiction. His meaning is that he did not converse with Ford concerning the arrange ment made for manufacturing iUicit whiskey. While Mr. Ford treated me with much defference after my discovery, hopelessly involving him in the whiskey frauds, and was willing to talk with me about our interests in the illicit whiskey combination, yet I could plainly see that both he and McKee did not place implicit confidence in my assertions that the White House was possessed of all our secrets. To satisfy them thoroughly upon this point I made ar- rangementsthrough Babcock and Joyce to have them meet me in Washington for the purpose of having a personal interview with the President. I wrote to Joyce to see McKee and Ford, and convey to them the wish of Babcock and myself, that they should appear in Washington at their earhest con venience. In proof of this I give the following ex tract from one of Joyce's letters. St. Louis, March 3d, 1871. Dear General; **=i=******** I have not seen Ford or McKee in regard to going to Wash ington, but will have an interview with them to-day if I can. Have you had Babcock write them to proceed to Washing ton? etc. *********** Yours etc., John A. Joyce. Neither of these responded to my invitation so I returned to St. Louis and, urging them to accom- MC KEE AND PORD WITH GEANT. 69 pany me, in April, I think, we proceeded to Wash ington together. Before our arrival Babcock, being notified of our coming, made arrangements for Mc Kee and Ford to dine at the White House. This they did, but I was not one of the party having de chned so as to allow the President, McKee and Ford to talk the matter over free from the restraint which I was afraid my presence would impose. They returned to me at the Ebbett House about seven o'clock p.m. and informed me that they had passed a most agreeable time with the President, though they had not spoken to him upon pohtics but had made an engagement to meet him again, in com pany with myself, at eight o'clock p. m. At the ap pointed hour we visited the White House, when, after saluting Mrs. Grant, in company with the President we retired to the Blue Eoom and spent a long while thoroughly canvassing the political issues in the West, and particularly our scheme for creating a campaign fund. The President distinctly informed both Mr. Ford and Mr. McKee that he had intrusted certain matters to me, that he under stood everything, and that whatever we wanted would be forthcoming upon request. Mr. McKee then told the President that the quartermaster in charge of the Government stores at St. Louis might be dispensed with and the interests of the party promoted by the appointment of a more in fluential working Eepubhcan. The President re plied : " Well, name your man and I wiU see Belk nap and have him appointed." Mr. McKee then named Maj. E. B. Grimes, who was then stationed in the extreme West, as the successor. 60 SECEETS OF THE GEEAT WHISKEY EING. The following day McKee, Ford and myself called on Secretary Belknap, who upon our enterance re marked: "What do you feUows want; another quartermaster at St. Louis, eh? I understand that you are in control of matters out West, and what I can do, which I presume is not much, will be done vpith promptness." McKee and Ford returned to St. Louis highly delighted with their visit, and fully satisfied that they had harbored a most unjust suspicion against me, which they tried to atone for by giving me their implicit confidence thereafter. McKee and Ford are both dead, and therefore unable to give their testimony, either in corrobora tion or denial of this plain, unvarnished statement. I am sorry that the record of men who have made their final accounting with life, must be used to their discredit, and but for the truth of history which circumstances force me to disclose, no power could induce me to unseal my hps. To the hving, however, there is due a certain regard for their peace of mind, and to sacrifice the hving for the dead would be as unholy as to make a peace offering of the innocent. What I here declare is a solemn assertion resting upon my honor and the pride that is stiU left me, not a mite of which have I ever forfeited. In future chapters I will give let ters concerning both these men, furnishing positive proof of my statements. The foUowing letter furnishes what I will call very strong presumptive proof of the general under standing had between the President, Babcock, Joyce and myself in the management of our pecu- FINDING A MAN WHO CAN. 61 liar interests in St. Louis; this leter bears the same date as the one last quoted : St. Louis, March 3d, 1871. Dear General : * * * * ***** Now I want you to put in your bes-t licks for our mutual friend, Avery, who is in every sense fitted for the vacancy. I believe you have influence enough with Col. Thomson and Pleasanton to have him appointed. If you can't do the thing yourself you can find a Man who can. Avery is our friend and we want as many of his sort as we can get. You might have Gen. Babcock speak to Pleasanton in Avery's behalf Ford wants you to come back, etc. ********* Yours truly, John A. Joyce. There was an understanding in the appointment of Avery which is plainly apparent in the above letter, and which subsequent events abundantly proved. The phrase "You can find a Man who can " referred to President Grant. In the disclosures, and connections of individuals with the Eing, the name of John W. Douglass has only been mentioned as a faithful executive officer, performing aU the duties as Commissioner of Inter nal Eevenue. It wiU astonish many when I declare that he, too, was weU acquainted with the Eing organization, and was, in fact, appointed to his position through our influence, and that he ren dered efficient aid in promoting our interests. The foUowing letters will furnish the necessary evidence connecting him with the Eing. They explain themselves, the first being written to me wlxile I was in Washington : 62 SECEETS OP THE GREAT WHISKEY EING. St. Louis, Aug. 16th, 1871. Dear General : ********* I had a talk with Ford this morning. He wrote a strong letter to the President in behalf of Mi-. Douglass. I have just finished a letter to Douglass, in your name, inclosing a copy of Ford's letter, and I know that Douglass wiU be tickled away down into his boots. ********* Yours, etc., John A. Joyce. The following letter I received after my return to St. Louis : Treasury Department, ) Internal Revenue Bureau. [• Washington, Aug. 21st, 1871. ) My Dear Sir : Your letter of August 16th has just been received with very great pleasure. I feel truly grateful for its complimentary congratulations. I am also much obliged for your kindness in offering to give me your warm and valued support in the Senate. I hope you are not mistaken in the good opinion you hold. ****** Please thank Mr. Ford for his letter to the President and for the kindly interest in my behalf, also to Col. Joyce, etc. * ******** Very truly yours, J. W. Douglass. Hon. John McDonald. The f oUovping letter, when thoroughly understood, establishes the guilty knowledge of Commissioner Dou.glass, and also the venal understanding of Brasher, the revenue agent. (private.) Cincinnati, Oct. 21st, 1871. Gen. McDoN.iLD: Dear Sir: As I desire, particularly, to spend a short time in Kansas, I should be very glad to be ordered to report to BRASHEE'S APPLICATION FOE LEISURE 63 you for special duty, without at all interfering v/ith your pres ent arrangements. Com. Douglass will order me to you as soon as he learns it will be agreeable to you. If my coming wiU occasion you any inconvenience, I shall be glad to hear from you to that effect, that I may make my arrangements accordingly. I presume you have heard from Mr. Douglass on this subject. Very truly yours, B. P. Brasher. The import of this letter is readily explained. The distiUers had just begun their iUicit work, and the appearance of a revenue agent wordd, naturally, create much alarm ; in addition to this, in the earlier existence of the Eing, the distillers did not know that the Washington officials were participants in the combination, but presumed that the criminal knowledge was confined to St. Louis members. " Hoping that this visit would not interfere with my arrangements," had reference to this fact. Another matter was provided for by the words, "If my coming wiU occasion you no inconvenience," etc., in that, there might be enemies, who had dis- discovered some irregularities; some discharged employe, or others, who had obtained such knowl edge, who, seeing a revenue agent in my district, might insist upon an investigation. The result of his apphcation was a permission to visit Kansas, where he remained some time, pre sumably occupying his time practicing the best manner of enjoying an elegant leisure. I herewith append a correspondence, the date of which is out of place here, but its immediate appli cation as a proof of Douglass' thorough knowledge of the whiskey frauds being perpetrated in my dis- 64 SECRETS OF THE GREAT WHISKEY RING. trict, is conclusive, and, therefore, proper in this connection : St. Louis, Mo., June 11, 1874. Hon. j. W. Douglass, Commissioner of Internal Revenue, Washington, D. C. * * * * jyjy client, who was engaged in manufac turing whiskey, during the years 1871 and 1872, and who hav ing those years distilled over $500,000 worth of whiskey, of which amount some $300,000 was "crooked whiskey," and, of course, unreported to the Government, states that this was done through the agency of a ring at that time composed of government officers, as follows : C. W. Ford, Jno. McDonald, Joe. Fitzroy, James H. Concannon, John A. Joyce, John Leavenworth, Henry Hardaway, Charles Hardaway. Douglass Thrope, Andy Megrue, and Theodore Hemans. In this Ring was Wm. McKee, now of the Globe, and one Maj. Con. Megrue, at this time in Washington, in the interest of the new Ring, now in successful operation. McKee was then in for the reason that he was the only man who could be trusted to reach Mr. Ford, which service he successfuUy performed, and received his weekly reward. The money from distilleries was coUected every morning, and in the afternoon was apportioned out to each member of the Ring in Con. Megrue's room, No. 8, over " Billings' Bank,'' south-east cor ner of Fifth and Pine streets. It will serve no useful purpose at this time to give you aU the particulars that justify me in the conclusion that the entire matter may be exposed, and the gmlty parties brought to justice; and, therefore, I submit a synopsis of what he can prove, if permitted so to do. This, after making due allow ance for the purchasable power of the old and new Rings. (1.) The main facts as above stated. (2.) The quantity of whiskey shipped from St. Louis during 1871, 1872, and 1873, was fully three times the amount manufactured and taxes paid in St. Louis. (3. ) Will show that the amount of grain dis tiUers purchased for manufacturing whiskey, was four times THE WOODWARD CORRESPONDENCE. 65 the amount as represented on Government books. (4.) That whiskey represented as dumped in St. Louis, has been shipped direct from the distillers to Cincinnati, Baltimore, New York, and New Orleans. (5.) That for the stubs on the gangers' reports, in St. Louis, as half-barrels and kegs, the duplicate stamps on the barrels will show a fall barrel of proof whiskey. (6.) That when Gen. Lowell suddenly made his appearance here (I think in the spring of 1872), he worked with such celerity that Bevis, Frazer & Co. had barely time to save themselves, by tapping 100 barrels of whiskey in a slush hole underneath their store; and Peter Curran, another house, dumped an entire mash. (7.) That a special agent of the department, one B. Penn Brasher, came here twice, and his eyes were closed by the receipt, the first time of $7,000, and the second of $5,000. (8.) That in almost every instance, they were successful in closing the mouths of the Government officials sent here, and the time of their arrival was known a week in advance. As to who is in the new Ring, my client says he has not learned fully, but knows of its existence, and speaks of the same as an established fact. Concannon, McDonald, Fitzroy, and Joyce, of the old Ring, agree, however, as he says, that Con. Maguire must be in, as, without his assent, the business could not be carried on for a week; and he supports this by an explanation of the working of the department. He is, also, wary of District Attorney Patrick, but the grounds do not, in my mind, outweigh his unexceptionable reputation for honesty and integrity in this community. I have thought it advisable to mention the fact, however, as you know the difference between affirmative and negative action. My client wiU expose the old Ring, and break the new, if the government will just give him complete indemnity for past offenses, which he says he was led into committing by the old Ring, at a time when he was whoUy ignorant of their opera tions, and of the business, the Government to give him the necessary authority to work up the case, and the aid of an additional detective. D 66 SECRETS OF THE GREAT WHISKEY EING. It is proper here to explain that the usual course would have been to communicate direct with Commissioner Delano, but the confidential clerk, who opens his mail, my client says, was in the old Ring, and it is probable he is in the new arrange ment. If, upon reflection, and in view of the statements made, as they have been given to me by a client, who, of my personal knowledge, during the years named, was engaged in the busi ness ot distilling, and whose word I have reason to place con fidence in, you deem the matter of sufficient importance to lay the same before Mr. Delano, in person, I wiU be under obU- gations. I wish to add that, inasmuch as two of the parties. Ford and Leavenworth, are dead, and the former's character has never before been questioned, and I entertain a high personal regard for him, it is desirable to avoid having his name mentioned, except so far as may be necessary to protect the Government. P. S. Since writing the above, Concannon has resigned, and Megrue has returned to the city. I will further add that my client, if absolved, wiU, upon request of Commissioner Delano, lay the matter before him in person — ^the expense of the trip to be that of the Government. I need not mention that it is most desirable to keep these matters secret until the Government has fully investigated the matter, as any other course would defeat the ends of justice. Aside from this, I do not want to do any injury to any of the parties, or do them any injustice. This can only be avoided by keeping the matter quiet until the Government is ready to make arrests. Truly yours, Jesse B. Woodward. St. Louis, Mo., Aug. 19, 1874. Hon. j. W. Douglass, Washington, D. C. Dear Sir ; — I returned yesterday, and find that there has been considerable change in the situation since I was in Wash ington. Fitzroy has ostensibly been thrown out of the com- THE WOODWARD CORRESPONDENCE. 6T bination but his successor, Theodore Hemans, in point of fact is simply his pupil. Concannon complains to us if the department had a skillful agent here to protect him he would teU all he knows. He has been open in his expressions to Mr. Downs, and is exceedingly anxious to break the new Ring, although such action may un cover the operations of McDonald, Maguire & Co. Mr. is in straits in respect to his property, and if protected will, I am assured, expose not only the old but new combinations as weU. He is a man of good character and his testimony wUl go far toward the conviction of the old and new Ring. The distilleries that are running are working at this time their full capacity and with the knowledge of Maguire & Co. They are open and defiant, and say that they have their support in the administration at Washington and wUl not be injured. Please advise me if the government proposes to move in the premises. If the government will act, I will guarantee that the guilt of those named can be established by competent testimony, and brought to a realizing sense of the law which they so flagrantly violate. If desired, I have reason to believe that two of the leading Journals in this city wiU open the ball upon my suggestion, and bring these government officers to their feet. This in event the administration does not care to take the responsibil ity of moving first in the premises. Trusting to hear from you soon I remain your obedient ser vant. Jesse B. Woodward. Treasury Department, ^ Office of Internal Revenue, >- Washington, Sept. 5, 1874. ) Sir: Your letter of the 19th ult., in regard to " Ring " affairs, as you designated them, was duly received. You remember that when I saw you here I said to you that the matter should be referred to the United States District 68 SECRETS OF THE GREAT WHISKEY RING. Attorney. You objected to this, urging that his interest was such that you would not trust him with the management of the business. I replied that I had to use the present prosecut ing officers provided by the government and would be obliged to do so until they were changed for others, and that your course was to show the proper department that the present district attorney was unfit, and thus endeavor to secure a bet ter one, and that your unwillingness to lay the evidence, what ever it was, before the district attorney, rendered this officer powerless to act. On the strength of your former letters I sent a special agent to you in St. Louis to get information, but he returned, having seen you, and investigated the allegations for several days, without obtaining anything upon which to base official action. Whenever you can feel assured that the instruments pro vided by law for the detection and punishment of these crimes aUeged are trustworthy, I shall gladly co-operate with you ; until then I do not see what more this office n do in the matter. Respectfully, J. W. Douglass, Com'r. St. Louis, Sept. 15, 1874. Dear Sir : Your letter of the 5th inst. (1 B. 77) received, and in view of what has passed, I feel compelled to explain that Mr. Hinds stated to me that he was expected to return in one week, which arrangement would give him but two or three days in St. Louis ; that he knew nothing of the internal rev enue law in respect to distillers and, therefore, refused point blank to make any personal investigation, for the reason that he would be unable to determine as to whether a particular case was a violation of the law ; that he did not know what he was sent here for, as by reason of his unfamil- iarity with the law and modes of steaUng, he could be of no service. For fuUer exposition I copy a letter to me now in my possession as follows : " When Mr. Hinds, agent for the THE WOODWAED CORRESPONDENCE. 69 government, came here, I was with him nearly all the time, and gave him information where irregularities were being car ried on, both in stiUs and rectifying houses, and urged him to go with me and see a certain house that was then mashing four times the amount of grain their permit aUowed ; that the gauging was performed by boys, the ganger being absent and holding a position in the office of the Globe while ostensibly filling that of the government. I requested him to submit to an interview with the internal revenue officer in respect to these and other frauds. This he decUned, assigning as a reason for his refusal, that he knew nothing of the law, and if irregularities were developed he would do nothing ; that he had no instructions or authority to make any examinations of houses, and he hardly knew what he was sent here for. He told Hon. Erastus Wells the same, and on leaving stated that he had all the information he thought necessary to have." In this connection permit me to caU your attention to the fact, that information of Hind's arrival here was received by me from an attorney for the whiskey ring, which attorney gave me his name and the purpose of his visit, and described him accurately. This fact being brought home to Mr. Hinds he ex pressed great surprise, and I wUl do him the justice to say that I have no thoughts that the information came from that source. It is quite singular that the members of the Ring boast openly of their acts, and say they are too strong, soUd, to be broken, and further, that you are a member. I have not asked, and do not ask, that Mr. Patrick be re moved ; what I ask is that, without his or the Ring's know ledge, one or more experienced detectives, familiar with the whiskey business be employed, and that no case be submitted to him until the chain of evidence is complete. Then he will be compelled to prosecute or faU. I can designate two men, and, if employed, I will guarantee not only the exposure but conviction of the first government officials of this city. Truly yours, Jesse B. Woodward. 70 SECRETS OP THE GREAT WHISKEY EING. Our efforts to have Douglass appointed Commis sioner of Internal Eevenue were successful, and everything was then secure for practical operations and, as previously stated, in September foUowing the distiUeries throughout the district begun to run crooked. The next letter indicating the direction of the zephyrs, in the beginning of the iUicit distilling, reads as f oUows : St. Louis, Sept. 19, 1871. Dear General: I had a talk with McKee and Ford this morning and they are pleased with the last move. ********** Mr. M. left for New York last evening after satisfying aU at this end of the avenue. ***** **** Get all the facts you can regarding Schurz, and bring them home for campaign consumption. ********** Yours in the Faith, John A. Joyce. The last move referred to as pleasing Ford and McKee was the appointment of Douglass, there be ing a thorough understanding between us all with Douglass that he was to perform his duties with special regard to the interest of the Eing. The party referred to as "M." was Con. Magrue, who had just then assumed the management of the Eing. Carl Schurz was an enemy of Grant's and one of the obligations of the Whiskey Combination was to fight him to the death if possible. CHAPTEE II. Reducing the Number of Supervisors — My Appointment as One of the Ute Commission — The Demand for my Re-ap pointment as Supervisor — Chester H. Krum's Endorse ment — ^President Grant's Endorsement — Proofs of Bab cock's Connection with the Ring — My Re-appointment as Supervisor — Casey, the President's Brother-in-Law — Ford's Death — Appointment of Maguire as Collector — Babcock's InstrumentaUty — Telegrams from Grant and Babcock — Visit of Revenue Agents — Brasher Blackmails the Distillers. The wheels of the Eing were kept weU oiled, and nothing interfered to mar the smooth tenor of our purposes untU Congress, by an act passed during the preceding winter, and which took effect August 1st, 1872, legislated aU the Supervisors out of office. Up to this time the law provided for the appoint ment of twenty-five Supervisors by the Secretary of the Treasury, but after this new law went into effect another act passed Congress providing for the ap pointment of ten Supervisors by the President, subject to confirmation by the Senate. The change therefore consisted in a reduction of the number of Supervisors, and transferred the power of appoint- 72 SECRETS OF THE GREAT WHISKEY RING. ment from the Secretary of the Treasury to the President. About six weeks previous to the expiration of my office by limitation of the act referred to, I went to Washington and had an interview with the Presi dent. At this meeting I told him that in the ap pointment of the ten Supervisors under the new act, if he consulted my wishes, he would leave me out. I explained to him the pressure that would be exerted for the place, and assured him that my desire was to enter the campaign actively in his behalf; that out of office my influence would be greater and I could work more persistently. The President's reply was that his preference would be to have remain in the service. Leaving the matter in this shape, I returned to St. Louis, and when my office expired, the President, finding himself overrun with applicants for Super visor, and the political pressure of officials being almost irresistible, yielded to my wishes and omitted my name in his list of new appointments. Imme diately thereafter, however, I was appointed as one of the Commission, composed of Gov. Edwin M. McCook, then Governor of Colorado, Hon. Jno. D. Long, of Maine, and myself, to treat with the Ute Indians for a relinquishment of their reservation in Colorado to the Government. While absent performing my duties as one of the Commission, there was a general demand made for my re-appointment, engineered by Mr. McKee and others. The prime cause for this desire was in the ambition of the old members to continue the opera tions of the Eing. Through these efforts the State JUDGE KEUM S ENDORSEMENT, 78 Central Committee of Missouri, of which Hon. Henry T. Blow was chairman, prepared and for warded to President Grant a series of reasons why I should be re-appointed. Among the large number of written requests was the following, the signer of which bitterly opposed my first appointment, and who v^ill figure more prominently in this history hereafter : Eastern District op Missouri, J U. S. Attorney's Office, >- St. Louis, July 26th, 1872. ) Hon. Geo. S. Boutwell, Secretary of the Treasury. Sir: — Having seen, in the telegraphic news of yesterday, that Supervisor John McDonald has not been retained in office under the recent consolidation, I take this occasion to express my regret that it has been deemed expedient and proper to make a change in this Department. Soon after having been appointed to my present position, an effort was made to add Missouri to the district of Supervisor McDonald. I opposed this change, and joined in a remon strance. But the change was made, and since that time I have had abundant opportunity to satisfy myself that it was for the benefit of the Internal Revenue service. Supervisor McDonald has been, to my personal knowledge, an active and efficient officer. He has placed me under obligations for valuable aid rendered me in the discharge of the duties of my office. He has always been ready and willing — more than that — solicitous to secure a prompt and vigorous enforcement of the Revenue Laws in the Judicial dis trict. Aside from the fact that Supervisor McDonald has been a competent officer, it is equally true that his large acquaintance in this State renders him especially valuable to the Republican party, as a powerful adherent for the coming campaign. I trust that this communication will not be regarded as officious, but as truthfully stating not only my own views, but those of many influential men, with whom I have conferred 74 SECEETS OF THE GEEAT WHISKEY EING. since the announcement of the change in the Supervisor's office. Without the request or suggestion of the Supervisor, I have given him this letter as a sincere expression of my conviction that the proposed change can secure no beneficial result. I have the honor to be your obedient serv't, Chester H. Krum, U. S. Attorney. After this paper reached the department. Presi dent Grant wrote on the back of the endorsement the foUowing : "RespectfuUy forwarded to the Secretary of the Treasury: The dispatches and letters received in favor of Sup'r Mc Donald are so numerous, and from people of such standing and responsibility, that I do not know but that his name had not better be substituted for retention in place of Emory's, or any other who you may think can be best spared. U. S. Grant. Aug. 1st, '72. In blue ink the foUowing : Vice Cobb, H. S. R. [A fac-simile of this endorsement is found on the opposite page.] The extraordinary language and bad grammar used in the President's note, on the back of Krum's endorsement, will excite comment, but the note is in Grant's own handwriting, and the errors are therefore his ovni. Among the other requests for my re- appointment was the foUowing telegram : St. Louis, July 25th, 1872. To Gen. Jno. McDonald, Ripon, Wisconson. Ford gone West. The thing is done. Telegram sent Presi dent. (Signed) J. A. Joyce. This telegram was a notification that Col. Ford had sent a personal request to the President to have me re-appointed. /^i-c-'^Ct^.^^ly^ Jf'^^'^.->'7Sc^^9 a^t.^ iSt.^ ^^-»v>^ ^'-'<^'^i.-£^ ^