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The Whiskey Ring took place from 1871 to 1876 centering in St. Louis during the presidency of Ulysses S. Grant. The ring was an American scandal, broken in May 1875, involving the diversion of tax revenues in a conspiracy among government agents, politicians, whiskey distillers, and distributors.
The worst and most famous scandal to hit the Grant administration was the Whiskey Ring of 1875, exposed by Treasury Secretary Benjamin H. Bristow and journalist Myron Colony. Whiskey distillers had been evading taxes in the Midwest since the Lincoln Administration. [ 38 ]
The Whiskey Ring was organized throughout the United States, and by 1875 it was a fully operating criminal association. The investigation and closure of the Whiskey Ring resulted in 230 indictments, 110 convictions, and $3,000,000 in tax revenues that were returned to the Treasury Department.
Whiskey Ring was a massive corruption of Ulysses S. Grant's (R) administration involving whiskey taxes, bribery and kickbacks ending with 110 convictions. (1875) [45] Orville E. Babcock (R), a personal secretary to Grant, was indicted in the Whiskey Ring scandal and ten days later in the Safe Burglary Conspiracy. He was acquitted both times.
On May 13, 1875, armed with enough information, Bristow struck hard at the ring, seized the distilleries, and made hundreds of arrests; the Whiskey Ring ceased to exist. Although Grant and Bristow were not on friendly terms, Bristow sincerely desired to save Grant's reputation from scandal. [ 7 ]
On May 7, 1875, Bristow gave Grant the investigation findings of corruption by the Whiskey Ring and stressed the need for immediate prosecution. [35] Without hesitation Grant gave Bristow permission to go after the ring, and told Bristow to move relentlessly against all those who were culpable. [36]
Rehm resigned as general superintendent of police on October 4, 1875, [4] embroiled in scandal. [4] Rehm would ultimately serve six months of prison time and pay a $10,000 fine for his role in the Whiskey Ring. [7] His sentencing came on July 7, 1876. [11]
In 1875, McDonald was indicted and prosecuted November 1875. Found guilty, McDonald was fined $5,000 and sentenced to serve 18 months in federal prison. McDonald's Washington associate and President Grant's private secretary Orville E. Babcock, was also indicted and prosecuted for involvement in the Whiskey Ring, but Babcock was found not ...