From the Archives: The Badges Tell the Story By BARBARA OSTEIKA ATF Historian

1863 – 1882 Commissioner of Internal Revenue Department of the Treasury

A fascinating look at the history of ATF through the perspective of badge changes.

In the Beginning The 18th Amendment Splits the Country Congress created the Office of On January 19, 1919, Congress rati- Internal Revenue within the De- fied the 18th Amendment, banning partment of the Treasury (1862) the manufacture, sale and transport of specifically to collect taxes, alcoholic beverages. However, there including highly lucrative tariffs were no provisional funds for any- on imported distilled spirits thing beyond token enforcement. and tobacco products. By 1863, because tax evasion and organized Agents crime activities had become so (aka “Dry Agents”) Emerge widespread, Congress authorized , a leading Re- the hiring of three detectives to publican member of the House of investigate and prosecute (alco- Representatives, authored the hol) tax evaders. This act was the National Prohibition Act, also known first coordinated effort between tax 1920 – 1926 as the . The act, passed collection and law enforcement, Prohibition Unit, over President Woodrow Wilson’s and the three detectives were Bureau of Internal Revenue objections, affirmed and further direct forerunners of today’s ATF Department of the Treasury specified the provisions of the 18th special agent. The “star” badge is Amendment, delineated fines and believed to be the original issue of prison terms for violation of the law, that era. empowered the Bureau of Internal

6 • December 2008 Revenue to administer Prohibition Crime Fighters Emerge created the Bureau of Industrial and classified as alcoholic all bever- In 1927, the Prohibition Unit, Alcohol to carry out the remaining ages containing more than one-half rewarded for its efforts against orga- regulatory activities. of 1 percent alcohol by volume. nized crime and corruption, became st Plans for the enforcement of the a separate and distinct Bureau of The 21 Amendment Act were drawn up and responsibil- the Department of the Treasury. At Ends Prohibition th ity for policing the 18 Amendment its peak, the When Prohibition ended with the was delegated to the Commissioner employed 4,300 people. Because passage of the 21st Amendment 1933, of Internal Revenue. On January 16, Prohibition banned the commercial the Federal Prohibition Bureau and 1920, the country went dry. production of liquor, the regulatory its successor, the Alcoholic Bever- Prohibition had little effect on Amer- and tax collecting functions largely age Unit, were dismantled. President ica’s thirst. Underground distilleries disappeared. The jurisdiction was no Franklin Roosevelt issued an execu- and saloons supplied bootlegged longer revenue protection. As crimi- tive order consolidating all federal liquor to an abundant clientele, nal syndicates gained control over agencies enforcing and regulating while gangsters fought to control the illegal liquor industry through- the liquor industry into one entity. illegal alcohol markets. The mayhem out the country, the new mission of The reduced force of investigative prompted the Department of the the Bureau emerged: crime fighting. agents rejoined their former col- Treasury to strengthen its law en- The Bureau targeted gangsters to leagues in the Department of the forcement capabilities. The Prohibi- suppress illicit trafficking. Treasury under the supervision of a tion Unit was created and became Deputy Commissioner of the Internal the preeminent federal enforcement Revenue Service. This entity became agency as and his cadre the Alcohol Tax Unit (ATU). of “untouchables” gained fame for their struggle against and other bootleggers. The hiring of Pro- hibition agents began an unbroken line of descendants to today’s ATF special agent.

1930 – 1933 Bureau of Prohibition Department of Justice 1934 – 1951 Transfer to Justice Alcohol Tax Unit, By 1930, the crime fighting mission Bureau of Internal Revenue Department of the Treasury began to conflict with the Treasury Department’s philosophy of volun- tary compliance with the laws. The Era of Transition 1927 – 1930 crime-fighting activities of the Bu- Neither Prohibition’s repeal nor Bureau of Prohibition reau of Prohibition were transferred the government’s liquor enforce- Department of the Treasury to the Department of Justice and the ment resolved the country’s illegal Bureau remained there until 1933. liquor problem. Repeal required the The Department of the Treasury government to re-establish the legal

Inside ATF • 7 liquor industry. Registered distill- Gang Warfare Threatens eries that had legally operated prior Public Safety to Prohibition had been dismantled Gangs battled viciously for control or would require extensive repairs. of underground distilleries and Stocks of ready-for-sale whiskey distribution networks. Machine- were small—less than seven million guns continued to be the weapon of gallons. However, bootleggers and choice. Gangsters killed each other moonshiners who had established on street corners, in social clubs and enterprises during Prohibition not in restaurants. The massacres often only had huge stocks of aged whis- resulted in the injury or death of key on hand, but also controlled the innocent bystanders. necessary resources to meet public demand. The public, once enthralled with glamorous gangsters, became disen- “Revenooers”— chanted with the violence. Congress The New Enforcers passed the National Firearms Act of 1952 – 1967 1934 (which obliged all importers, Alcohol & Tobacco Tax Division, Law enforcement was critical, not manufacturers and distributors of only to stamp out illegal alcohol Department of the Treasury “gangster” type weapons to obtain a production, but also to enforce al- license, pay taxes, and report sales of cohol tax collection. The new Alco- such weapons) and the Federal Fire- Bootleggers, Moonshiners hol Tax Unit faced grave problems. arms Act of 1938 (which mandated and Violent Crime Corrupt local authorities could not be the licensing and taxing of dealers In 1952, the Internal Revenue reformed overnight, and the public’s of firearms and ammunition, mark- Service consolidated the internal tolerance of liquor rackets resulted ing the first enforcement responsi- enforcement responsibilities of in lackluster prosecutors, compla- bilities for firearms). The Alcohol alcohol and tobacco under one cent juries and lenient judges. Tax Unit assumed the enforcement unit, which became known as the Crime syndicates continued operat- of the criminal provisions of both Alcohol and Tobacco Tax Division. ing illicit distilleries, but the Alcohol acts, marking the first enforcement Pursuing illegal liquor operations Tax Unit seized many plants in the responsibilities for firearms. proved to be hazardous work. From first few months after its creation. The Alcohol Tax Unit gradually 1934 through the 1960s, 17 inves- With growing support from the pub- acquired additional functions such tigators were killed and hundreds lic, the hard work of the Unit slowly as regulating alcoholic beverages injured in hostile actions ranging began to pay off. The Unit managed for consumer protection through from gunfire, to assault by violators, to dismantle large liquor syndicates labeling requirements, production to high-speed automobile chases. and the attitude of prosecutors, standards, review of advertising juries and courts began to change. materials and oversight of industry Campaign Against Sugar Schemes to meet the demand for trade practices. alcohol included counterfeiting Moonshiners posed their own set of Internal Revenue tax stamps, divert- In 1951, the Bureau of Internal challenges. These small, independent ing denatured alcohol for beverage Revenue reorganized into the In- distillers operated outside syndicate purposes and erecting and operat- ternal Revenue Service. As a result, groups and supplied whiskey to ing redistilling plants for alcohol the Alcohol Tax Unit absorbed the primarily local populations. The production. Criminals became Miscellaneous Tax Unit, which was 1950s Preventative Raw Materi- craftier, but so did agents. When responsible for collecting taxes on als Program allowed agents to faced with new criminal tactics, tobacco and the regulatory provi- arrest moonshiners for possession of agents devised appropriate counter- sions of the National Firearms Act large quantities of sugar. A parallel measures. of 1934. campaign urged merchants to deny bulk sugar supplies to suspicious Editor’s Note: The Office of Liaison has designed and commissioned the production of a “History of the Badge” lapel pin keepsake that will soon be made available to all persons. ATF employees and retirees. Details relative to the pricing and ordering process will be announced via ATF Broadcast, and this newsletter, at a later date.

8 • December 2008 Kills Foundations for the reported directly to the Department Moonshine’s poisonous punch is Modern ATF of the Treasury’s Office of Enforce- reflected in its nicknames: “white The Alcohol and Tobacco Tax Divi- ment, Tariff and Trade Affairs, and lightning,” “head-buster” and “pop- sion acquired new missions through Operations. This reflected important skull.” A Georgia ATF agent observed such legislation as the Gun Control changes within ATF, moving from that “illicit producers sometimes Act of 1968, Title VII of the Omnibus primarily the investigation of illicit add manure to make moonshine Crime Control and Safe Street Act of alcohol to crimes involving firearms, ferment faster, and we’ve found 1968 and Title XI of the Organized explosives and arson. Over the next dead possums, rats, and vermin Crime Control Act of 1970 (imposed 3 decades ATF agents applied the floating in mash vats.” Moonshine- the first federal jurisdiction over de- ingenuity, experience and investiga- related deaths became a nationwide structive devices, including bombs, tive techniques they had used in al- health issue in the 1960s, prompting mines, grenades and other explosive cohol investigations toward pursuit a government-funded public service devices). Investigations of firearms- of violent criminals who violated announcement campaign. and explosives-related crimes and federal firearms, explosives, arson the regulation of related industries and tobacco laws. Assassinations became a higher priority within the and Gun Control Department of the Treasury. Con- The passage of Title IV of the Omni- gress delegated enforcement of the bus Crime Control Act and the Gun laws and regulations to the Alcohol Control Act of 1968 resulted from and Tobacco Tax Division which, the assassinations of President John because of its expanded responsi- Kennedy, Senator (and former Attor- bilities in the firearms arena, became ney General) Robert Kennedy and known as the Alcohol, Tobacco and civil rights leader Dr. Martin Luther Firearms Division (ATF). King. The act imposed stricter licens- ing and regulation on the firearms industry, established new categories of firearms offenses and prohibited the sale of firearms and ammunition to felons and certain other prohib- ited persons. 2003 – Present Bureau of Alcohol, Tobacco, Firearms and Explosives Department of Justice

ATF Returns to Justice The September 11, 2001 terrorist attacks profoundly affected the lives of individual Americans, and trans- 1972 – 2002 Bureau of Alcohol, formed law enforcement across the Tobacco and Firearms nation. In 2003, the Homeland Department of the Treasury Security Act of 2002 transferred the law enforcement duties and respon- Birth of an sibilities of the Bureau of Alcohol, Independent Bureau Tobacco and Firearms (ATF), 1968 – 1971 Under the leadership of Director Department of the Treasury, to the Alcohol, Tobacco and Firearms Rex Davis, ATF became an indepen- Bureau of Alcohol, Tobacco, Firearms Division, Internal Revenue Service dent Bureau on July 1, 1972, and and Explosives (ATF) within the Department of the Treasury Department of Justice. ‡

Inside ATF • 9