0:02 [SPEAKER_00]: After the Civil War in 1875, America seemed to be moving toward recovery from the trouble of the last few years. 0:11 [SPEAKER_00]: Still, hidden in the shadows, there was a plot, ruling. 0:17 [SPEAKER_00]: A plot involving a secret society, a scandal, and barrels of whiskey. 0:29 [SPEAKER_00]: Welcome back, friend, to hometown history. 0:32 [SPEAKER_00]: In today's episode, we are exploring an important chapter of U.S. history in the late 18th century. 0:40 [SPEAKER_00]: The Whiskey Ring of 1875. 0:42 [SPEAKER_00]: This takes us to the city of St. Louis, a bustling metropolis, a hub of commerce, and 0:58 [SPEAKER_00]: before his time was the American Civil War, taking place from April 12th, 1861 to May 26th, 1865. 1:08 [SPEAKER_00]: A conflict that pitted the Union against the Confederacy, composed of states that had seated from the Union. 1:17 [SPEAKER_00]: At the heart of the war was a disagreement, over the expansion of slavery into the Western territories, 1:25 [SPEAKER_00]: Basically, this dispute revolved around the question of whether new territories would allow slavery, leading to the formation of additional slave states, or prohibit it with the expectation that this would eventually lead to the end of slavery. 1:42 [SPEAKER_00]: It was obviously a tough time for the United States. 1:47 [SPEAKER_00]: The war lasted for four years, and there were a total of 237 major battles, and many smaller fights during that time. 1:56 [SPEAKER_00]: Now obviously these clashes were really intense, and a lot of soldiers on both sides were either injured or lost their lives. 2:07 [SPEAKER_00]: According to British historian John Keegan, the Civil War was one of the fiercest wars ever fought. 2:14 [SPEAKER_00]: In many cases, the only goal for each side was to defeat the others soldiers as there weren't always specific places they were trying to capture. 2:23 [SPEAKER_00]: The war was really harsh and it had a big impact on the country. 2:32 [SPEAKER_00]: So during the presidency of Ulysses Grant, the country was recovering from the effects of the Civil War. 2:40 [SPEAKER_00]: Things were on their way toward improvement, but little to the citizens of St. Louis now that beneath the surface of their daily lives, yet another operation was unfolding. 2:52 [SPEAKER_00]: The stage was set in the back rooms of whiskey distilleries around the country. 2:57 [SPEAKER_00]: And then, while began as a covert collaboration between government agents, politicians, and whiskey industry insiders erupted into the public eye, shaking the foundations of trust and integrity. 3:15 [SPEAKER_00]: It was the year 1875 when the whispers of conspiracy turned into a full-blown scandal. 3:23 [SPEAKER_00]: May of that year marked the revelation, a moment when the hidden dealings of the whisky ring were exposed to the light of public scrutiny. 3:33 [SPEAKER_00]: So with that, St. Louis, a city that had thrived on the spirit of commerce, found itself at the center of the scandal. 3:45 [SPEAKER_00]: We will have to go back to the Civil War. 3:48 [SPEAKER_00]: To support the financing of the Civil War, the Congress led by the Republicans consistently raised excise taxes on the sale of beer and liquor. 3:59 [SPEAKER_00]: These high taxes, which were initially implemented during the Civil War, continue to be a significant aspect of the economic policies of the Republican Party throughout the Korean administration. 4:16 [SPEAKER_00]: So to deal with this, whiskey distillers in the Midwest created a secret fund driven by a desire to maximize their financial gains and operate with less oversight or interference from the government. 4:31 [SPEAKER_00]: So basically, by bribing government officials, treasury agents to be precise, and avoiding paying taxes on the whiskey they made and sold, they created their secret fund. 4:44 [SPEAKER_00]: This laid the groundwork for what would later be known as the whiskey ring. 4:50 [SPEAKER_00]: Fast forward to 1871, a group of Republican party members formed the Whisky Ring, claiming it was to fund party candidates, but the actual contributions to political campaigns were small, while the leaders of the ring pocketed substantial amounts, estimated at $45 to $60,000 each, which is equivalent to around $1.5 million today. 5:19 [SPEAKER_00]: Operating mainly in St. Louis, Chicago, and Milwaukee, the ring involved distillers, internal revenue service agents, and treasury clerks. 5:30 [SPEAKER_00]: By the end of Grant's first term, the ring had shifted from politics to become a true crime syndicate, using force to keep treasury agents involved and their activities silent. 5:44 [SPEAKER_00]: So, even though following the posts of a war, excise tax increased laws by Republicans, whiskey was supposed to be taxed as 70 cents per gallon. 5:55 [SPEAKER_00]: The whiskey ring distillers paid treasury officials at 35 cents per gallon bribe. 6:01 [SPEAKER_00]: And in return, the official stamped the illegal whiskey as if the taxes had been paid. 6:08 [SPEAKER_00]: The saved money from unpaid taxes 6:13 [SPEAKER_00]: This is why, before their exposure, a group of participating politicians managed to divert millions of dollars in federal taxes. 6:25 [SPEAKER_00]: In St. Louis, the rings leader was Missouri revenue collector, John McDonald, who was appointed by Ulysses Grant in 1869, operating in collaboration with Grant's private secretary, or Ville Babcock. 6:40 [SPEAKER_00]: They orchestrated a strategy to keep the ring concealed and prevent exposure. 6:47 [SPEAKER_00]: But, the turning point came in 1874. 6:51 [SPEAKER_00]: When President Grant appointed Benjamin Bristo to replace Secretary of the Treasury William Richardson, who had resigned over another scandal. 7:01 [SPEAKER_00]: And upon discovering the whiskey ring, Briscoe committed to exposing the scheme, 7:09 [SPEAKER_00]: Now, to grasp the situation fully, let's rewind and look at Secretary Bristol's early days in the cabinet. 7:18 [SPEAKER_00]: His attempts to revamp the Treasury Department faced strong opposition from established power circles, leading to a chaotic period that was filled with political pressures in personal grudges. 7:32 [SPEAKER_00]: Initially, he encountered resistance from external sources, political rivals, influential rings, railroad lobbies, and clay agents. 7:43 [SPEAKER_00]: And while external forces posed significant hurdles, internal cabinet dynamics had yet to show signs of resistance. 7:53 [SPEAKER_00]: Despite disruptions caused by the interior department, its leader hadn't openly opposed 8:02 [SPEAKER_00]: a new chapter in the struggle was about to start within the cabinet. 8:08 [SPEAKER_00]: X-Ciniter E. G. Kutel, the financial agent of the Treasury in London, brought increasing pressure for reappointment due to influential connections. 8:19 [SPEAKER_00]: Bristo, despite rejecting numerous reconsideration attempts, found himself at odds with the 8:31 [SPEAKER_00]: And then, Mr. Delano, from the interior department, stepped into the light, supporting Cattel's reappointment. 8:40 [SPEAKER_00]: Ultimately, the President gave him to this collective influence, essentially ordering Cattel's reinstatement. 8:48 [SPEAKER_00]: But during all of these attempts to unsettle Bristol on various fronts, he stood firm, and continued 8:58 [SPEAKER_00]: He had reservations about could tell suitability for the position, possibly due to suspicions of dishonesty, or practices contrary to the principles of the Treasury Department. 9:11 [SPEAKER_00]: So he explained that such a move would serve dishonest interests, promising to make the reason public if necessary. 9:20 [SPEAKER_00]: And this stut fast stance left those opposing him, momentarily baffled, leading to a temporary retreat. 9:29 [SPEAKER_00]: In and all of this, he took another bold step, an investigation into the whiskey ring. 9:39 [SPEAKER_00]: At first, Bristo initiated a distinct anti-frot campaign, beginning with his attention to reorganizing the treasury department, 9:49 [SPEAKER_00]: As autumn approached, he looked for some effective methods to tackle revenue frauds, but he also knew the inefficacy of conventional approaches in achieving what he sent out to achieve. 10:03 [SPEAKER_00]: We all know how difficult it is to investigate and expose corruption and that too of this level. 10:10 [SPEAKER_00]: So he contemplated a novel strategy. 10:14 [SPEAKER_00]: In February 1875, George Fishback, owner of the St. Louis Democrat, proposed a solution. 10:23 [SPEAKER_00]: He suggested a person who was capable of dismantling the powerful St. Louis whiskey ring. 10:29 [SPEAKER_00]: Fishback's water reached Bristol, and he immediately authorized action, recognizing the opportunity. 10:42 [SPEAKER_00]: urging him to provide the name of this person, assuring absolute secrecy. 10:48 [SPEAKER_00]: After initial delays and precautions, due to concerns about telegraphic security, fish back recommended myron colony for the task. 10:59 [SPEAKER_00]: With conditions set to maintain secrecy within the Treasury Department, solicitor Blueford Wilson assumed control. 11:12 [SPEAKER_00]: and ensuring utmost confidentiality. 11:15 [SPEAKER_00]: And then a consultation followed, involving the Secretary, the solicitor, Fishback, and his correspondent to outline their game plan. 11:27 [SPEAKER_00]: So as the plot against the whiskey ring unfolded, a clever use of a secret code, insured 11:37 [SPEAKER_00]: This operation remained hidden, involving private citizens unconnected to public services until its success was assured. 11:47 [SPEAKER_00]: Bristo was definitely committed to exposing this ring, and he was making sure to stay alert during this plan. 11:57 [SPEAKER_00]: Now as you would expect, the agents continued their covert operations. 12:02 [SPEAKER_00]: but they encountered challenges during that, including hired ruffs, attempting to thwart their efforts. 12:10 [SPEAKER_00]: Mr. 12:10 [SPEAKER_00]: Colony, leveraging his expertise in commercial statistics, devised a strategy to trace fraudulent shipments. 12:19 [SPEAKER_00]: He enlisted copy us to extract information from transportation offices without revealing the true purpose. 12:28 [SPEAKER_00]: This plan allowed them to compare official records with actual shipments and helped expose the extent of the fraudulent activities. 12:40 [SPEAKER_00]: After the tedious data collection, they saw how this information indicated widespread fraud in the whiskey industry, prompting collaboration within the internal revenue office. 12:53 [SPEAKER_00]: an internal revenue clerk was then dispatched to assist, working under the guidance of the solicitor and communicating through coded telegrams. 13:04 [SPEAKER_00]: At the same time, telegrams from Mr. 13:06 [SPEAKER_00]: Colony describing suspicious shipments to various cities, triggered even more investigations at those locations. 13:16 [SPEAKER_00]: Adding to that, in the midst of these major developments, 13:20 [SPEAKER_00]: there came another one, a special agent working in secrecy, uncovered a key method used in the fraud, the duplication of packages, this break through expedited the discovery of fraudulent shipments, and streamlined the case against the whiskey ring. 13:39 [SPEAKER_00]: Things were looking better now, they had tangible evidence to prove the corruption that was going on. 13:46 [SPEAKER_00]: A bristow insisted on delaying seizures until a comprehensive legal case could be constructed and that happened soon enough. 13:57 [SPEAKER_00]: By early March, Agent's fish back in colony had lay the groundwork for their mission. 14:03 [SPEAKER_00]: Their careful observations uncovered several distilleries that were engaged in fraudulent activities, warning to potential negligence, or complicity, from government officials. 14:16 [SPEAKER_00]: So using this evidence from his undercover investigators, Bristol built a compelling case, leading to the arrest of over 300 suspected ring members, in May 1875. 14:33 [SPEAKER_00]: Now there was a concern that individuals closely associated with the administration or with political ties to those implicated in the scandal, could influence the investigation or legal proceedings, which was a reasonable thing to consider and such a large scale corruption scandal. 14:53 [SPEAKER_00]: So in an effort to address these concerns of conflict of interest, Grant appointed John Henderson as a special prosecutor in the following month. 15:04 [SPEAKER_00]: Henderson and U.S. attorneys began in guiding suspects in the whiskey ring, and that included General McDonald. 15:13 [SPEAKER_00]: By mid April 1875, Bristol presented the evidence to President Grant, 15:22 [SPEAKER_00]: Learning of impending raids, John MacDonald went to Washington, DC, and with the revelation of evidence against him, MacDonald confessed to Bristo and resigned. 15:36 [SPEAKER_00]: Besides him, evidence also implicated Grant's friend and personal secretary, General Orville Babcock, the main piece of evidence here was Coded Telegrams. 15:49 [SPEAKER_00]: which suggested McDonald, might have bribed back cock to dissuade Grant from investigating the whisky ring. 15:57 [SPEAKER_00]: Grant. 15:58 [SPEAKER_00]: who initially accepted the investigation's findings, threatened to fire MacDonald because of his involvement, but MacDonald convinced the president of his innocence, claiming political motives behind the case, specifically from Treasury Secretary Bresto, according to him, Bresto had been trying to bolster his own chances of winning the 1876 Republican presidential nomination. 16:25 [SPEAKER_00]: But of course, things are never that easy. 16:28 [SPEAKER_00]: Batcock was indicted in December 1875, and by this point Grant had grown displeased with the investigation. 16:38 [SPEAKER_00]: McDonald, on the other hand, had been convicted in St. Louis, while Batcock faced trial. 16:46 [SPEAKER_00]: Now during Babcock's trial in February 1876, Grant intended to testify in his friend's defense. 16:54 [SPEAKER_00]: Upon advice from Secretary of State Hamilton Fish, Grant opted to provide a sworn deposition in the White House, and it worked. 17:05 [SPEAKER_00]: Babcock was found innocent, largely due to Grant's testimony. 17:10 [SPEAKER_00]: However, the impact of this scandal was also large, despite attempts to resume his duties, public outcry forced Batcock to resign, and he was later indicted, tried and found innocent in the safe, burglary conspiracy, another scandal within the granted administration. 17:32 [SPEAKER_00]: Basically, in September of 1876, Warfell Babcock faced another scandal, where dishonest contractors in Washington DC were on trial for bribery. 17:44 [SPEAKER_00]: Now fake secret service agents, working for these contractors, have placed some damaging evidence in the safe of the district attorney, prosecuting the case. 17:55 [SPEAKER_00]: The thing was that on the night of April 23rd, 1874, hired thieves opened the safe using explosives, making it seem like a break-in. 18:07 [SPEAKER_00]: One of the thieves took the fake evidence to the home of Columbus Alexander, an active citizen prosecuting the contractors. 18:16 [SPEAKER_00]: The corrupt agents, quote, are rusted, are quote thieves, who committed perjury by signing a false document, claiming Alexander was involved in the safe burglary. 18:28 [SPEAKER_00]: Now the conspiracy unraveled when two of the thieves cooperated with authorities, leading to Alexander's discharge and court. 18:37 [SPEAKER_00]: Babcock's role was his involvement in the schemes of the corrupt contractor's ring in Washington, and with those seeking retribution against Columbus Alexander, a vocal reformer, critical of the granted administration, but he was, again, found innocent of these charges and was able to walk free. 18:58 [SPEAKER_00]: But the public pressure did cause a decrease in his popularity, 19:04 [SPEAKER_00]: Coming back to the whisky ring, in the aftermath, a hundred and ten out of 238 individuals and died in the whisky ring case, were convicted, and over three million dollars of stolen tax revenues were recovered. 19:22 [SPEAKER_00]: Following this, Benjamin Bristo resigned as Grands Treasury Secretary, in June 1876, due 19:32 [SPEAKER_00]: Although seeking the Republican presidential nomination, Bristol lost two rutherford haze in the disputed election of 1876. 19:42 [SPEAKER_00]: On the other hand, while Grant himself was never explicitly charged with any misconduct in the scandal, the proven involvement of his associates, political and pointies, and friends significantly ruined his public image. 19:59 [SPEAKER_00]: So feeling disheartened, Grant reassured Congress and the American people that any failures on his part were due to errors of judgment, not of intent. 20:12 [SPEAKER_00]: He left office in the same year. 20:15 [SPEAKER_00]: Now Grant was not the only one who had taken that hit to his reputation. 20:21 [SPEAKER_00]: The whiskey rings symbolized corruption during the Republican administrations that took control after the American Civil War. 20:28 [SPEAKER_00]: France appointee, Bristo, was admired by reformers for his commitment to exposing the corruption going on. 20:37 [SPEAKER_00]: But Babcock, the president's private secretary, was charged as part of the ring. 20:44 [SPEAKER_00]: Even though he was later found innocent, newspapers often leaning towards a Republican bias downplayed the trial, and led many to believe the whiskey ring was a tactic to boost Republican 20:58 [SPEAKER_00]: As a result, President Grant became a symbol of Republican corruption, and the other scandals during this time only added to that corrupt image in the public mind. 21:09 [SPEAKER_00]: So the whiskey ring, coupled with alleged Republican abuse of power, ultimately led to the official ending of Grant's presidency, with the compromise of 1877. 21:23 [SPEAKER_00]: The compromise of 1877, which is also known as the warmly agreement, or the bargain of 1877, was like an unspoken political arrangement in the United States, and aimed to resolve the heated dispute over the 1876 presidential election by putting an end to the filibuster of the certified results and the potential for political violence. 21:48 [SPEAKER_00]: Now the Philopuster is basically a political procedure in which one or more members of a legislative body prolonged debate on proposed legislation, so as to delay or entirely prevent a decision. 22:02 [SPEAKER_00]: Now what happened was that in the 1876 US presidential election, Samuel Tillton had 184 uncontested electoral votes, and Rutherford Hayes had 165. 22:17 [SPEAKER_00]: but disputes in four states with 20 electoral votes led to the passage of the Electoral Commission Act. 22:24 [SPEAKER_00]: So the compromise of 1877 came into play. 22:29 [SPEAKER_00]: It was an informal and written agreement that resolved this disputed outcome. 22:34 [SPEAKER_00]: The key points here included recognizing haze as the president with drawing federal troops from the southern states. 22:43 [SPEAKER_00]: and providing federal assistance for internal improvements in the south. 22:48 [SPEAKER_00]: In return, Democrats agreed not to block Hes' inauguration and to accept Republican control in the southern states. 22:59 [SPEAKER_00]: And there you have it. 23:00 [SPEAKER_00]: The whiskey ring of 1875, a narrative of secret societies, tax evasion, and political drama. 23:09 [SPEAKER_00]: where even the highest levels of power are not immune to scandal and intrigue. 23:16 [SPEAKER_00]: Thank you for listening to Home Town History. 23:19 [SPEAKER_00]: Be sure to follow along for more interesting stories from the past.
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