Part 35 (1/2)
He found Hunt a shrewd and capable man of the world, as well as a pleasant and INTERESTING companion.
They had engaged a private sitting-room at their hotel, and after dinner they retired thither to discuss their plan of campaign.
”I wish,” said Willis, when they had talked for some moments, ”that you would tell me something about how this liquor distribution business is worked. It's outside my job, and I'm not clear on the details. If I understood I could perhaps help you better.”
Hunt nodded and drew slowly at his pipe.
”The principle of the thing,” he answered, ”is simple enough, though in detail it becomes a bit complicated. The first thing we have to remember is that in this case we're dealing, not with distillers, but with rectifiers. Though in loose popular phraseology both businesses are cla.s.sed under the term 'distilling,' in reality there is a considerable difference between them. Distillers actually produce the spirit in their buildings, rectifiers do not. Rectifiers import the spirit produced by distillers, and refine or prepare it for various specified purposes. The check required by the Excise authorities is therefore different in each case. With rectifiers it is only necessary to measure the stuff that goes into and comes out of the works. Making due allowance for variation during treatment, these two figures will balance if all is right.”
Willis nodded, and Hunt resumed.
”Now, the essence of all fraud is that more stuff goes out of the works than is shown on the returns. That is, of course, another way of saying that stuff is sold upon which duty has not been paid. In the case of a rectifying house, where there is no illicit still, more also comes in than is shown. In the present instance you yourself have shown how the extra brandy enters. Our job is to find out how it leaves.”
”That part of it is clear enough anyway,” Willis said with a smile. ”But brandy smuggling is not new. There must surely be recognized ways of evading the law?”
”Quite. There are. But to follow them you must understand how the output is measured. For every consignment of stuff that leaves the works a permit or certificate is issued and handed to the carrier who removes it. This is a kind of way-bill, and of course a block is kept for the inspection of the surveying officer. It contains a note of the quant.i.ty of stuff, date and hour of starting, consignee's name and other information, and it is the authority for the carrier to have the liquor in his possession. An Excise officer may stop and examine any dray or lorry carrying liquor, or railway wagon, and the driver or other official must produce his certificate so that his load may be checked by it. All such what I may call surprise examinations, together with the signature of the officer making them, are recorded on the back of the certificate. When the stuff is delivered, the certificate is handed over with it to the consignee. He signs it on receipt. It then becomes his authority for having the stuff on his premises, and he must keep it for the Excise officer's inspection. Do you follow me so far?”
”Perfectly.”
”The fraud, then, consists in getting more liquor away from the works than is shown on the certificates, and I must confess it is not easy.
The commonest method, I should think, is to fill the kegs or receptacles slightly fuller than the certificate shows. This is sometimes done simply by putting extra stuff in the ordinary kegs. It is argued that an Excise officer cannot by his eye tell a difference of five or six per cent; that, for example, twenty-six gallons might be supplied on a twenty-five gallon certificate without anyone being much the wiser.
Variants of this method are to use slightly larger kegs, or, more subtly, to use the normal sized kegs of which the wood at the ends has been thinned down, and which therefore when filled to the same level hold more, while showing the same measure with a dipping rod. But all these methods are risky. On the suspicion the contents of the kegs are measured and the fraud becomes revealed.”
Willis, much interested, bent forward eagerly as the other, after a pause to relight his pipe, continued:
”Another common method is to send out liquor secretly, without a permit at all. This may be done at night, or the stuff may go through an underground pipe, or be hidden in innocent looking articles such as suitcases or petrol tins. The pipe is the best scheme from the operator's point of view, and one may remain undiscovered for months, but the difficulty usually is to lay it in the first instance.
”A third method can be used only in the case of rectifiers and it ill.u.s.trates one of the differences between rectifiers and distillers.
Every permit for the removal of liquor from a distillery must be issued by the excise surveyor of the district, whereas rectifiers can issue their own certificates. Therefore in the case of rectifiers there is the possibility of the issuing of forged or fraudulent certificates. Of course this is not so easy as it sounds. The certificates are supplied in books of two hundred by the Excise authorities, and the blocks must be kept available for the supervisor's scrutiny. Any certificates can be obtained from the receivers of the spirit and compared with the blocks.
Forged permits are very risky things to work with, as all genuine ones bear the government watermark, which is not easy to reproduce. In fact, I may say about this whole question of liquor distribution generally, that fraud has been made so difficult that the only hope of those committing it is to avoid arousing suspicion. Once suspicion is aroused, discovery follows almost as a matter of course.”
”That's hopeful for us,” Willis smiled.
”Yes,” the other answered, ”though I fancy this case will be more difficult than most. There is another point to be taken into consideration which I have not mentioned, and that is, how the perpetrators of the frauds are going to get their money. In the last resort it can only come in from the public over the counters of the licensed premises which sell the smuggled spirits. But just as the smuggled liquor cannot be put through the books of the house selling it, so the money received for it cannot be entered either. This means that someone in authority in each licensed house must be involved. It also carries with it a SUGGESTION, though only a SUGGESTION, the houses in question are tied houses. The director of a distillery company would have more hold on the manager of their own tied houses than over an outsider.”
Again Willis nodded without replying, and Hunt went on:
”Now it happens that these Ackroyd & Holt people own some very large licensed houses in Hull, and it is to them I imagine, that we should first direct our attention.”
”How do you propose to begin?”
”I think we must first find out how the Ferriby liquor is sent to these houses. By the way, you probably know that already. You watched the distillery during working hours, didn't you?”
The inspector admitted it.
”Did you see any lorries?”
”Any number; large blue machines. I noticed them going and coming in the Hull direction loaded up with barrels.”
Hunt seemed pleased.