CONTROL OF THE RING AND THE GOVERNMENT. 57

Schwab by this time had bought up nearly every official in the First, Second and Third Districts, connected with the collection of the United States revenue; and from the commencement had stood between the whisky ring and the Government officers. His control on both sides was complete. No distiller dare sell a crooked barrel of whisky; neither would an arrest or seizure be made by four-fifths of the Government officers without the consent of this ignorant, conceited clown. Should any ill-advised distiller attempt to sell any of his crooked whisky, without its passing through Schwab's hands, the latter would immediately set the Government officers upon him, and either have him heavily fined or his distillery closed.

Most all of these frauds were perpetrated during Andy Johnson's administration, and it will surprise no one, therefore, that the ring influence extended to the seat of Government, that department being managed by ring lawyers, as of course a few of these gentlemen are necessary to an organization of this kind, being paid and kept there for the purpose of having obnoxious officers removed from Schwab's kingdom, and to have distillers released when some misguided official should have the audacity to make a seizure.

CHAPTER XII

SCHWAB OPENS A STONE FRONT COMMISSION HOUSE ON VINE STREET, CIN. AT THE HEIGHT OF HIS PROSPERITY-GOVERNMENT STORE'KEEPERS APPOINTED-Two EMPLOYEES THREATEN TO PROSECUTE -HE HAS THEM WHIPPED, IMPRISONED AND FINALLY DRIVEN FROM THE STATE.

P

ETER has now abandoned his place on the canal,

and now occupies a large stone front on Vine street, where crooked whisky is shipped by hundreds of barrels daily; and here we find installed, with an interest in the business, the branding officer from Dayton, who had previously allowed Schwab such a liberal use of the Government brand. We also find here a man from Hamilton, named Henry Schlosser, having, likewise, an interest in the business. This man, with money stolen from the Government, purchased a large tract of land near Hamilton, and at the present time boasts of his farm as if it had been lawfully obtained.

Schwab has now attained the acme of his prosperity. He buys five farms in Butler County and a plantation at Little Rock, Ark. In Hamilton he purchases two of the largest hotels, two large flour mills, several fine dwelling houses and a large brewery, and builds there an opera house

SCHWAB RING-MASTER OF THE DISTILLERS. 59

that costs one hundred thousand dollars, and a private residence that costs sixty thousand dollars. He also builds a steamboat in Cincinnati, and invests largely in jewelry and fast horses.

There were at this time in Hamilton, Butler and Montgomery counties, about twenty-five distilleries. The appointment of the Government Storekeepers, was, in a manner, in the hands of Schwab; so if any one of the owners of these distilleries displeased him in any way he would inform the officer in charge that he must not allow any more crooked whisky to be made there.

At this time the law respecting the tax on whisky had become much more stringent than when the ring was first formed. In fact, the Government could not now be defrauded to any great extent, without the co-operation of nearly every revenue officer in these districts, especially the storekeeper, as it was his duty to weigh out to the distiller every pound of grain used, and then measure the yeild after distillation. But the storekeepers who were bribed by the ring would allow a distiller to use one thousand bushels of grain, and report to the Government, under oath, two hundred and fifty bushels.

Thus, every distiller who became engaged in these frauds placed his fate in the hand of this unscrupulous man, Schwab. Power discovers the real disposition of the man. We will relate an instance where he evinced his tyranical disposition.

Two German coopers in his employ in Hamilton, threatened to have him prosecuted for known violation of the revenue law; but of these threats he had no fear, well knowing that if such proceedings were taken against him, they must be brought before the United States Court in Cincinnati, and there he knew his case to be secure. For this unparalleled piece of presumption on the part of the two Germans, Peter caused them to be most unmercifully whipped on the public streets of Hamilton; and not satisfied with the punishment that he had already inflicted upon them, he went before a 'Squire and charged them with stealing whisky from his distillery at the time they were working for him, which was some three or four months past. Upon this charge they were put into jail and kept there until it pleased the soverign pleasure of the great Peter to release them, and then only on condition that they should leave the State; which they did, going to Kentucky. Nor would their friends bail them out, although perfectly satisfied that they were being persecuted, for fear of bringing down upon themselves the wrath of Schwab.

CHAPTER XIII

THE BLACKMAILING OF ROBERT HOWARD OF HAMILTON-JAMES WILLIAMS' DISTILLERY SEIZED BY THE GOVERNMENT OFFICERSDISTILLERY BURNT DOWN WHILE CASE IS PENDING IN COURTWILLIAMS RECEIVES INSURANCE MONEY-CITIZENS OF Butler COUNTY LOSE HEAVILY BY SIGNING SCHWABS "LITTLE FORMS'HONOR AMONG THIEVES DISREGARDED.

PE will give another illustration to show the du

WR

plicity of Schwab's character. He induced a man by the name of Robert Howard to start a rectifying establishment in Hamilton, reserving to himself, as usual, the lion's share of the profits. As soon as Howard had ąccumulated from the business about four thousand dollars, Peter set the Government officers upon him, who compelled him to hand over the four thousand dollars in order to get clear.

Schwab's object in committing this dirty trick was to keep Government officials satisfied and save the money from coming out of his own pocket. We could record fifty similar cases if it were necessary and space permitted. We will give one more, however.

A man named James Williams owned and ran a small distillery about four miles from Hamilton, and sold his crooked