Judge Blodgett. For the government, attorneys Bangs, Ayer and Bontell. For the defense, J. J. Ingersoll and S. K. Dow.

Jacob Rehm is cross-examined by Ayer.

Jacob Rehm: I have been 35 years in Chicago; was eleven years old when I came; moved with my relatives to a farm in Gage county; later I became a driver. In 1851 I became a policeman. In 1855 I was elected street commissioner for one year. In 1857 I was elected city marshall for 2 years. Then I got a position in the distillery of Lill and Diversey, where I remained until I became deputy superintendent of police. I soon resigned this position to return to Lill and Diversey. In 1862 I was appointed superintendent of police. After six months I resigned and returned once more to Lill. In 1863 I was elected county treasurer and I remained with Lill until 1865. Then I started my own brewery, which I sold after two years. In 1866 I was once more police superintendent and I resigned in 1868. In 1873 I was again elected police superintendent by Mayor Colvin and the city council. I resigned October 1, 1875 and I have held no office since. Since 1865 I have been in the malt business. My business is as prosperous 2as that of any firm in the city.

Ayer: Tell the court and the jury what you know about the fabrication of contraband whisky.

Witness: About the fabrication itself, I know nothing. In 1872 certain distillers complained about contraband work being done by Miller & Reid and requested me to ask Irwin to change the officials there. Irwin did it and transferred Adolph Muller. Hesing asked me why I had done that. He said that he had accepted $30,000 notes for Miller and that he did not know what to do. He said that I should see Irwin. I did so and Irwin said that if people do something illegal, they should pay for it. I told this to Hesing, who answered that Miller and Reid would pay $500 per month. Irwin considered this to be satisfactory and gave Miller & Reid the proper officials. After this payment other distillers also came. George Miller gave Hesing $500 which he turned over to me. Irwin at this time did not wish to shoulder all the risk alone and asked me to bring Bridges and Munn into the conspiracy. They both consented to join it.

Cross-examination by Ingersoll.

3

J. Rehm: I came to Chicago in 1841 or 1842. As a policeman, I received $32 a month, as street commissioner I received from $2500 to $3,000 in commissions. Lill paid me $1,500 a year.

Ingersoll: When did you begin the whisky fraud?

Witness: 1872.

Ingersoll: Have you ever been in partnership with thieves?

Witness: No.

Ingersoll: Tell us how you were drawn into this affair.

Witness: At the exchange I heard complaints about contraband whisky. Was first told about it by Dr. Rush and George Barroughs. I was asked to see Irwin and to tell him that the Blackhawk distillery was cheating. He seized the crooked official.

Ingersoll: And now the tempter approached you under the appearance of A. C. Hesing?

4

Witness: Yes.

Ingersoll: When and how did he perpetrate this attack upon your virtue?

Witness: In 1872, in a saloon.

Ingersoll: What happened when Hesing thus approached you?

Witness: Hesing said that he accepted notes for Miller and that the latter would not be able to pay them, if he should have to stop cheating. I should fix the collector that Miller could keep on cheating. I had much influence with Irwin. I helped elect him; I considered him honest even when I invited him to participate in the fraud (Laughter). When Irwin said that Miller would have to pay, Hesing promised that the latter would pay $500 a month.

Ingersoll: How much are you worth now?

Witness: About $200,000; perhaps a little more. I have no cash. I do not know how much my home is worth. I have received from $110,000 to $120,000 for corrupt purposes. I have spent from $12,000 to $20,000 for politics. I have helped the Republican party with this money. I have never told Hesing that I had 5received so much money, that I had to unload.

My trial has not taken place yet. I have as yet not been sentenced. I have been indicted for conspiracy to evade the payment of taxes. I have pleaded guilty.