Whiskey Ring, in U.S. history, a group of distillers and public officials who defrauded the federal government of liquor taxes. Soon after the Civil War these taxes were raised very high, in some cases to eight times the price of the liquor. Large distillers, chiefly in St. Louis, Milwaukee, and Chicago, bribed government officials in order to retain the tax proceeds. The Whiskey Ring was a public scandal, but it was considered impregnable because of its strong political connections. U.S. Secretary of the Treasury Benjamin H. Bristow Bristow, Benjamin Helm (brĭs`tō), 1832–96, American cabinet officer, b. Elkton, Ky.
..... Click the link for more information. resolved to break the conspiracy. To avoid warning the suspects, he assigned secret investigators from outside the Treasury Dept. to collect evidence. Striking suddenly in May, 1875, he arrested the persons and seized the distilleries involved. Over $3 million in taxes was recovered, and of 238 persons indicted 110 were convicted. Although President Grant's secretary, Orville E. Babcock, was acquitted through the personal intervention of the President, many persons believed that the Whiskey Ring was part of a plot to finance the Republican party by fraud.

Bibliography

See J. MacDonald, Secrets of the Great Whiskey Ring (1880, repr. 1969).

Whiskey Ring

(1875) Group of U.S. whiskey distillers who defrauded the government of taxes. The ring operated mainly in St. Louis, Milwaukee, and Chicago and kept liquor taxes after bribing Internal Revenue officials in Washington, D.C. A secret investigation by the U.S. Treasury Department resulted in 238 indictments and 110 convictions. While not involved, Pres. Ulysses S. Grant was tarnished by the scandal; his private secretary, Orville E. Babcock, was indicted but acquitted on Grant's testimony. The Republican Party allegedly received some of the illegally held tax money.