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 quantity 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 illustrates 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.