The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1866-03-15
Tho Rcvenue-Discover of Great
Frauds.

Tho Revenue-Discovery of Great
Frauds.
The operations of the Revenue
Agency of the Internal Revenue De-
partment in New York have greatly
contributed to swell the current of
finance. The New York Times says
it Is shown by experience that in
every branch of business, and every
interest liable to taxation under the
laws of the United States, enormous
frauds have been continually perpe-
trated to such an extent that np to
the period when the Revenue Agency
was established in October, 1854, not
one-third of the revenue due the
Government had been either assessed
or collected. In the cities of New
York and Brooklyn, the returns for
the fiscal year ending June 80, 1864,
We're $13,7S 2O3. 4S; for the year
ending June 80, 1866, $31, ,3O9, 593. II
"a difference of $17, ,525, 800. %;
which enormous increase is attributed
to the energy of the inspectors in
tracing and convicting those who
were Withholding money due the
Government, informing taxpayers of
their duties under the law, and ureino
strict compliance Herewith. The
frauds which have produced the
amazing disproportions in the re-
turns OF the two years are of start
ling character. The Times says that
from the wealthy merchant to the
meanest shop-keeper, from the bro
kers of millions to the dealers in offal,
aud from all sorts and conditions of
men, the Government receives fraud
ulent tenders, and finds itself cheated
by the men who made the loudest
pretensions to loyalty and devotion,
as well as by those whose antedecents
warrant suspicion. Brokers, manu-
facturers of every name, and income
payers, are among the most promi-
nent OF the classes who are placed in
most disagreeable position by the
official revelations. The results of an
investigation into the monthly re-
turns of single large house engaged
in the stock and gold brokerage bust
ness, for the last three months of
1864, and the first three of 1865,
show deficiency between the actual
sales and the amount returned of
over $A,0OO,OOO This is only one
instance among 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, by counsel, to stave off and
delay proceedings, with the sole in
tent of embarrassing the Govern
ment. Some great corporations have
never yet paid dollar of their taxes,
sometimes refusing to produce their
books, on the ground that they are
not obliged to testify against and
criminate themselves by the evidence
of their own books. One reason as
signed for much of the fraud is the
fact that large number of the Off
cials have other business, including
)politics, to distract their attention.
Under the present thorough system
of inspection by the Revenue Agency,
it is believed that for the year ending
June 80, 1866, New York and Brook
lyn will produce at least $50, 600, 900,
or one-eighth Of the entire estimated
revenue.
A case is now before the Supreme
Bench, whose decision is looked for
with great interest. The revenue
agents claim that sale is sale, for
whose benefit it is the business alone
of those interested, while the Govern
ment tax should be laid on the trans
action independent of the Individual.
The brokers see the matter in diff
ferent light, claiming that the tax can
be imposed only on such sales as are
made for commission. If the Su-
preme Court decides in favor of the
Government, there will be terrible
scattering among some of the large
dealers of New York.
It is the interest of the great bulk
of the taxpayers that the enormous
frauds practiced upon the Govern
ment should be effectually stopped,
and the dishonest perpetrators of
them be made to sustain their just
share of the public burden.
Richmond Dispatch.
GOOD News FROM CHARLESTON.
The solicitude of those who are in