The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-03-07
FRAUDS ON TEE INTERNAL REVENUE.

Considerable excitement has for several DAYS
prevailed among the lager beer manufacturers
for the thirsty souls Of New York and Brooklyn,
in consequence of rumors which have been cir
culated that the returns of sales upon which
the taxes are collected, have been suspected by
the assessors OF inaccuracy. 1t is now un
doubted, from recent discoveries, that extensive
frauds have been committed upon the Govern
ment, and the authorities are preparing to in
stitute most searching and rigid inquiry. In
the First and Second Districts Investigations are
being vigorously prosecuted, and in the latter
several have been concluded, the facts establish
ing, beyond all possibility of mistake, that the
returns have been hagrantly incorrect.
The Second District embraces nearly all the
Brooklyn manufacturers, twenty.four out OF the
thirty lager beer brewers being included under
its supervision. Some of these brewers have
large ESTABLISHMENTS, selling in the summer ten
or twelve hundred barrels month"; but the
sales OF the greater number average only hun
p dred, but sometimes descend as low as thirty
barrels month. Every month, before the 10th,
they have to furnish a return to the authorities!
making an oath that it Is true one, of their
business for the preceding month, giving the
number OF barrels manufactured, the number
sold, and the quantity OF malt which they
have put into their mash-tubs. The tax, .
dollar a barrel, is then assessed on the
quantity sold. For some time the assessor OF
the Second District has suspected that the rer
turns were considerably below the proper
amount. Some of the manufacturers made
returns, which, il correct, were so small as to
leave MIN DO JeaSODbOle CbdHCe VI b0CuTlnR
profit, or even defraying expenses and the cost OF
labor In place, however OF their eXh biting
any signs Of pecuniary embarrassment, or dis
continuing their business, they have lived IN
good STYLE and made investments in seVen-thir-
ties and railroad stock besides The assessor
after a careful consideration of such a singular
mystery formed an opinion that closer eXami.
nation of it would be both entertaining and
instructive. Two or three of the most marked
cases were investigated, and the result has been
such as to induce the authorities to inquire care
fully into the returns OF every manufacturer in
Brooklyn. ar
There is scarcely room for doubt but that for
the last three or four years the returns given in
have been little more than half the proper
amount. OF course this involves the ugly cir
cumstance that a large number of reputable
citizens have perjured themselves to eyade their
| Just share of the national burdens. The pains
| and penalties to be inflicted are in a great
measure left to the discretion of the Assessor
| but they nominally amount to the absolute for
| feiture Of the premises and business effects OF
| the offending party. The extreme punishment
is however, but seldom eXacted, and the Asses
sor generally recommends to the Commissioned
| OF Internal Revenue such mitigation OF the pen
! atty as may seem to equitably settle the matter.
! Shonld the mulcted person DISPUTE the Justice OF
the Assessors Judgment, they can carry the case
| to the United States Court.
In the Second District information has been
! collected which will lead to the detection OF
several frauds. One investigation takes place
tomorrow at NeWtown, Orleans county, Long
Island. In another case the cartman's delivery
book has fallen INTO the hands OF the Assessor,
and this satisfactorily proves that the sales we're
very greatly in excess of the certified amount on
which the taxes have been colleccted.-M Y.
World,