, 1866-12-27
THURSDAY, DECEMBER -, 1866.


tied New York to investigate reported frauds
upon the revenue, after partial and super
feial examination hare already discovered
fraEds that almost exceed belief. The cheat
Ing in the manufacture Of whiskey is per-
fcctly astounding. Our reporter felegraphed
the TRIBUNE the following synopsis Of what
was discovered:
"Whiskey regularly handed, but which has
rcvef rsil cent Of tax, IL regularly sold
on Change End In the street, 1t from one dol.
lar and qu1rtes 10 oce dollar and scyenty-nye |
cents per gallon. Distll,cries Of small capacity
have been secretly stared Ia great numbers In I'LL
parts Of the citT-in cci1ars ard Cas1e,s-where
troEa one 10 two barrels day arc made. So crest
is the demand for these small sf.s'e that The rnn.
pcrsnsths arc orcfrnn With orders, and soue
OF them bad f:onn my to une hundred oFdcss
ahcad Men ct high busfcess standing esa en-
.:a:.. f buying this Illicit uniskcy with perfect
rn,runtty. the inspectors of whiskcJ xnd tic In
spec.ors OF dtsufcdcs being naany Of them d.
rcciI5 IrFafcstrd. aud many Of them haro made
fonun.e In the few naonfbs Flnne their appo1nt-
sncnt. Thrtc rncE we1c ali recently appointed
ucder The auspices Of the Johnson GLIB here, and
many Of tbero feetn To hare bean se1eaed with
Special reference to JnisfnE funds for pol1iicaI
mreh Of the Gorernrnnt p.tzotaSe, made
fS1,opn 1u two months by dealing Ia Illicit
ahi-Ley. Rcvenre sscnt. and Collectors
recently appointed and deeply implicated, had
their elkecs bencht for them py dealers Ia
" "ai-Lcy o1the johnson C1ub, ,ard generally speak,
ing enormous Eums have becr paid on one hand
10 sccurr The appotntnent Of men WAC xoaId
either participate directly e1n!s 1t struds, nad
on TIC ottc7 10 sntsc money for these c1nbs. 1t IL
stscv Cd !: at half the wat.key bond III the city
OF New York, haa been entered by hrsl securing
pciE:'st1ou TO withdraw It for rc-d!.liltlng, and
teel 1lacr sae casks with water instead 1t - !
understood that hc committee arc zatiSned TINT |
INA L. tx<-
Contemplate recommending reduction OF tho 1.1
to any cent. gallon. O. the imposition Of L.
cecEe to r7tet - 10 bIcaS mp I'll e1nall establish.
11crts, Or ltoth.F'
Wh.n Congress increased the tag from
sixty cents to ono dollar and hall, the
TnNlNE asserted that it was financial
blundrr, aud opposed tho bill and when the
ono dollar and q half excise was further in-
creased 10 two dollars, it warned Congress
TINT two dollar tax on gallon Of wliskcy
could net be collected III this country By any
revenue machinery which the wisdom OF
Congress n'lcht deFise. The Revenue Com
n,issioh, consisting Of Mcssrs. Wells. Col
well and Hayes, devoted months to the
question q distilled spirits us source OF
F.drral. revenue. They made thorough
srarell into tho whole subject, apl carcfully
cAaninrd the excise laws of other
countriet, aud nla1c report to Con-
gress covering seventy pages, giving
the result Of all their Investigations aud tue
conclusions draws thcrefrom. II is an ex-
cccding!y able and interesting document,
and We we're kstonished then, and hare been
ever since, that the array OF facts and arEu-
neDts presented in that report did not fu-
1;scnce Congress to reduce the excise ut
least oue-half, for the necessity for 80 doing
was clearly demonstrated. The Commts-
sion proved to Congress that ! two dollar
tar could never BE- collected on d third, or
even iourth of the distilled spirit. con-
consnmed in this country, and that s1,ug-
Cling and Illicit list!llation would be car
ried On to an extent at oucc frigltful aud
desnuralizinS. The Commission recommend
I'd that tic excise be reduced to o.e dollar
I~r 9clh.u, believing that to he the highest
revenue point. They favored lower tax,
but y ere willing to compromise OF that rate
aud submit II to the test OF experience Tue
.taeors Which induced this recommendation
wcrt IN 1s:t Ms follows:
~ lst- A ts1 Of two dollars per proc
gallon q. C.. 50 per cent alcohoD Is {
higher rate of~1a1 than amy foreign natio,
Guds il cxredicut 10 levy. Great Bri.ai.
lc,irs s,lo OH the imperial gallon, contain
- f.
c,r,,,,,.r IN, cSl iurt,, an, th,. Fr;,;s,, nro,,
Il tyr cent ,,fo,ceb,,t NIL, ,,,rs :. H., :.
~, cor, Thorost ~ ,n,n,t,c,, ,r;,x, r-r,o
c.,,on In ms cnuntr,, ;s IN N ~ .on1s Mi,
: E, l.ncl,,d ), ix 10 ~ "a o,,,ts T,,a .,,,or;
,r ia, ,s ~, r,,,;,rn IA mr. ..,.
1s.bor than a. n.;,;,I ~, 49,,
-, o,,r,;,,. oe ...a.., ~ If
r,,. +i,a ->,;e ~ .-,,.,nso - .zx<.,,u.,,a,, !.
w. -, n,.l .,st .,." , - 10 !.
>;o,n, ,.,t ~, a. ...,,.. x. I'll. ~
rr;,;s,, a., =, .,,, soo -, -. .t'.,, tn,e !.
n.,,,,, ,v,., ~ a,a s,,,.. ,.a wi.
,.,,n, ,,,. A,,,..ra,, a;st7,,cr ca,. ,n,re =
s..t, 49,. .,,,,t - ,,,,a. H.. ;,,;.tt a;.,;,l.
,;'+n 10 p~;.;s,, 1;.t,,1.r ss;,,, ii. .sx :.
.:n,.,,r ;,,,, ,,i,, ,,,,r.,
~ rio Erenc,, e~risr ,s es,< co,ts =,
all, ~, rr..;on =, n,,,t; nv ro,io,
H., C.r. d;.n ~ r;sc fs on,r ", rents r. D.,
s;., thc c.ci,c ia II, ccn,s and in Anstz;a a,,or
- c,-,,,e wv tr,11,r TINS ,,,c 1jn;iel St.,
,nr On whiskex :, thc hsehcst :"
lie vor,d. II is txice and a half M ,,1oh
,h,, or 1,,ss;o ,h,c, +,n,s -. 1,t,h nc thnt
Era,c,,. seren tf,n,, ,s hiv,, 49, f3,e r.r,a:.
oxc;s. ,,,,-tnr .;,ncu ,.;ghcr th,n liz A,
tt;.n ard t1.ortr ,I,..s 1;,hn, ~, =
n..,A',.. -. ~ 49,, sa,, *asn
.'s -, ..-...-..ss I~a',.. -"
Au p'1,ut sos'' o'' eAesS' - "oo''c i''s'e
~. nsNa4'.
ou. II hat W 1u'o oo".i ~ ah a1luat W
ee"hoa's oi ta1assoA tnaA whenever INK
ceed'nR ~ 10 Nv per cenl OF the COST OF
httr1c Is ln!Posco. q nha1t has oecn oplaE'
wte', tue ordinary provisions OF the las i
iusuacicnt toF tAc prevention OF fr'acds. \
i:cfe will be ivur times the ifa:.d under l
oi so per crnt On cost; fhau nndcs tax
1o Ecr ccat; aud iouF tint the fraud uns
4u1 PER ce1t tax than under 2o1 per &C
aS'"Ed the sumo ratio ho.1s good "n
cHe'*s u oou Fer cent. lhe nccc.esattns
tie el taniog bodies applies. The temp
tsnn 10 cen'mli frauds, On The part Of tbs
originally engaged In business is in prop
tion 10 The tax, but when II Is made en-
L,eusly nigh, outsiders rush into
business for the express n
pose ID sslpd'ine tie Government Thus
1Ind tn:;t hunaFeds, atd perhaps thousas
o1rasca!s are noT making whiskey Id n
1".k, n Il" never thon-ht o1 "htskey- maxi
nhtn sEc tax was twenty cents per gale
OF exc" sixty ccuts. But Two dollar
prer1 the road TO sudden wealth to tl
who can successfully eEsde its PAYNE
aee Ne immense pfoae 1aathes
th".i l'aA "a actee1lon' Inc mar
sen " ena"'e tn
.,,n :, -. .':,. ,u o4ss' ouo ciosc
c,esr t,,rn. ~ t,.- ,."n,ll. a,. I.'s aaa
p.:u, o1 t.1..i,, H. 49, - - r. e,a.S esas
;capc.nr,t .o ,v. l.. ~. ,'H
cc,acs roo powerful 10 sd,n;. ~ ,cstra
..Al1 cxtericuce sh,ws t,.+ ar.-t: rn,.,,
cblc tar contains within ,txe,f the c1,.n,
OF lis OWE cef1ain annu1ment,'
4,h, The In,potft!on OF dut1ea 1oes mt
sco the rppe,i;c Tor spirits; aud us no a.t
atle vigilance OF the -of1Icers ar sercri.
Tic lrws. has been found sufficient ID se1