The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-07-22
IMMENSE WHISKEY FRAUDS.
San cycling and Illicit DistiIlation-Ths
Production OF Liquors, sc.

From the Chicago Tribune, July 10
No part of the Internal Revenue bill excited 20 much
discussion the taxation of whskcy and from
did Congress expect TO derive much Income to the
national Treasury and we regret to add that from no
other has little been derived In proportion
anticipaons not because the amount consumed has
fallen or or s less than the original cstimatos-not
because production has ceased for the quantity manu-
featured has outstrppcd consumption-but simply
and only because the govcrnm mt has failed To collect
any considerable part of the mpos levied on whiskey.
II Is estimated that the annual consumption OF higk
wines In the United States amounts 10 ninety millions of
gallons The tax is two dollars per gallon and IL the
else collected on each gallon consumed the revenue
derived thercfrom would be one hundred and eighty
millions per snnum; whereas not tenth, perhaps not a
fifteenth OF that is hudng way into the Treasury
OF the nation Numberess fortunes have been made by
dsers and dealers by the rise In the price of whiskcy
since the tax was aidthe aggregate profits amounting
10 between two aud three hundred millions OF
dollars. The sum that bas found its way into
the Treasury bears very Insignificant proportion
10 these immense profits fhe government has derived
aud is receiving more revenue from the income tax ON
the PROFITS whsey than II derives from the direct
The article itself noy outstanding the income tax will
not average than FIVE six per cent on tho
realized by the distillers and dealers.
The rate Of taxation raised from 81 80 per gallon
to ~ on the first OF January siN months and half
have since then ntervened tho consumption OF whs-
Key meanwhile cannot have been less with.
the law than thirty millions of gallons But the
cepts into the Treasury from this source, instead OF
being sixty millions, have not we are Informed
amounted TO four millions from the beginning OF the
year 1885 10 this time II Is In proof before tho Tax
Revision Commission, now in session In New York, that
tne IN the country On the July
was but little u any less than on the lst OF January
last aud the price rules about the government tax
sometimes few cents higher and at others few cents
lower.
There Is but conclusion be deduced from those
facts, viz. That Illicit dislstion in the United States
and smuggling from the British provinces very nearly
equal the whole consumption This IL equivalent 10
ing that the government IL being defauded OF moro than
two millions OF dollars per week, or more than ono hun
dred millions per year, from this OF revenue
Here In money enough lost which, placed IN Q sinking
fund would pay on tho whole national debt Inside OF
twenty years or would pay twothrds OF the interest
thereon. And the consumers Of whIskey gain nothing
by these monstrous frauds, they obliged 10 pay
Just much for the liquor as " II had honestly paid the
full excise II Is toloraby we'll known by the
bureau that In the single State OF New York two hun
dred aud nifty Illicit stills in operation In May aud
June Most Of them were small ones, is true yet In
tho aggregate producing many thousand gallons per day
Add these tbs stills in twenty other States, surrepi-
tiously In operation and then calculate how much they
can fraudulently throw on the market Remember that
this very large country; that there many places
assessors are not faithful and vigilant by any
means that the temptations 10 fraud great and tho
profits Of untaxed wbiskey enormous equalng those OF
the African slavers suppose little concealed still
should make barrel OF high wines day the profits
IL are hundred dolar or at the rate Of thirty
thousand five hundred dollars per year Oaths 70 but
short way against such prohs Indeed II IA reported
that several respectable witnesses have testified before
the commission that many persons importers and
whiskey dealers do not regard taking false custom
fine distinction between legal and moral PERJURY The
former they consider question affecting only the
pos kct and not the conscience
The quantity OF whiskey smuggled from Canada is be.
leved TO be enormous The British smupgler feels no
moral patriotic restraint whatever All no
unknown 10 the Custom House officers is looked as
legitimate gain II Is said that considerable finds
rs waS across the iass W eans VI bribery Of the ~