The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1866-03-12
The Revenne-Discovery of Great Frauds.

| The operations of the Revenue Agency of
the Internal Revenue Department in New
! York have greatly contributed 10 swell the cur.
rent of finance. The New York Times says 1t
is shown by experience that In every branch
of business and every interest liable 10 taxa.
ton under the laws Of the United States, enor-
nous frauds have been continually perpetra-
ted to such an extent that up to the period
when the Revenue Agency was established III
October, 1854, not one third Of the revenue due
the Government had been either assessed or
collected In the cite. of New York and
Brooklyn the returns for the fiscal year end.
ing June 80 1854, were SIS, ,7S4, ,202 "a; for the
wear ending June 3o lsci. S3l 500, ,ja3. 1T diff
ference of III, ,to5, 500 q Which enormous in
crease is attributed TO tho energy OF the
iuspcctors III tTacingand COuvicting those who
were Withholding money duo the Government,
informing lax PAYERS of their duties under the
law and urging strict compliance Herewith.
The .rauds which have produced the amazing
disproportions III the returns of the two years
are OF a startling character. The Times says
ill., from the wealthy merchant TO tho mean.
est ehopkeepeT, from the brokers of millions
TO the dealers in ofral and from all sorts and
conditions of men, the Government receives
fraudulent tenders, and finds itself cheated
by the men who made tho loudest pre-
tensions TO loyalty aud devotion, as well
As by those whose anteccdents warrant suspi-
ciun Brokers' manufacturers OF every name,
and income payers, are among the most promi-
neut OF the classes who are placed In Il most
disagreeable position by the official revela-
tons. The results of an inyes tisation into the
monthly returns of Il single large house
,,,nEi in = hp or nl hrHkpr1 hi 81
ness, for the last three months of 4SG4, and the
first three Of 1865, show deficiency between
the actual sales and the amount returned Of
over siA.eeo, 600. This Is only one instance
among many hundreds Of smaller and similar
ones Combinations are frequently found in
certain classes Of manufacturers by which
they make fraudulent returns in unison, and
when brought before the courts, are prepared,
bv counsel, to Stave off and delay proceedings,
with the sole intent of embarrassing the
Government Some great corporations have
never vet paid a dollar of their taxes, some
times refusing 10 produce their books on the
ground that they are not obliged 10 testify
against and criminate themselves by the evil
dence of their own books. One reason assigned
for much OF the fraud is the fact that large
number OF the officials have other business,
including politics, 10 distract their attention.
Under the present thorough system Of inspec-
tion by the Revenue Agency, il is believed
that for the year ending June 80, 1866, New
York and Brooklyn will produce at least
$50 Ooa, 900 or one eighth of the entire estima'
ted revenue.
| \ case Is now before the Supreme Bench,
whose decision is looked for with great interest
The revenue agents claim that sale Is Il sale,
. for whose benefit IL is the business alone OF
J those interested, while the Government tax
! should be laid Oh the transaction independent
OF the individual The brokers see the matter
| IN different light claiming that the tax can
be imposed only on such sales as are made foI
a commission. If the Supreme Court decides
in favor Of the Government, there will be q
/ terrible scattering among some OF the large
dealers OF New York.
/ Its the interest of the great bulk Of the tax
+ payers that the enormous frauds practiceo
upon the Government should be effectuallI
stopped, and the dishonest perpetrators o
them be made 10 sustain their just share oil tn
+ puhIic buripu.