The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-06-24

NEW YORK HERALD, /
nsat Cooperating with Revenue De-
Haulters.
The Senate ct Warrington is making consid-
cradle headwN In the consideration Of the
Revenue Tax bin. Several important amend
ments are being inserted in the bill as 1t passed
the House. Some Of these notifications are
just, while others have not improved the meas
ure. A radical change IL being made in
the law in regard to distillers, Increasing
the penalties for ito violation, and making 1t
more imperative upon that class Of business
There was great need Of legislation on that
point for the working Of the present law
has been far from just to all concerned.
A few men have come forward and paid
their tax, only to ind themselves placed
at the mercy OF scores Of distillers who
manage to evade the tax. In no portion Of
the revenue law, unless 1t may be that of
the bankers and brokers of Wall street, has
there been 80 much evasion rs among the dis
tillers; and what Is more. they seem to be pro-
tscted In 1t by the department A system Of
compromising with Ill those who are detected
in frauds has been carried on to such an ex-
tent that they are encouraged to continue evad-
ing the payment Of the tax in the future. Con-
gress should not only legislate upon the law,
but investigate the manner Of executing it.
1t owes that much in justice to the distiller who
comes forward and honestly pays his tax.
There is great deal Of very just indignation
among the old established distillers Of liquors
in regard to the system practised by the gov
eminent in compromising its claims with
those establishments caught in evad-
ing the tax. This practice has now become
so extensive that distiller who comes forward
and honestly pays his tax is unable to COM
pete with those engaged in evading the law
without being certain OF ruin in his business. In
other words the Internal Revenue Department
has made dishonesty the only road to success in
this line of business. The effect has Been that
distilleries are springing up in all sections of
this city and Brooklyn, where the liquor is manu-
featured during the night and sent of at an
early hour in the morning, before it is inspected
engaged in this Illicit mode Of conducting the
business are able to sell it at less price per
gallon than the amount Of government tax and
still make handsome profit. When the dis
tiller who pays his tax of two dollars per
gallon comes into market he finds himself un-
able to compete with his neighbor who is thus
evading his tax.
Several parties engaged in evading the tax
have been caught by the revenue officers and
the full tax assessed against them; but all
these cases have been in some way COM
promised by the payment Of . small sum. In
stead, therefore. of breaking up the business, it
only encourages 1t; for the distillers find 1t
so easy to compromise their crimes with
the government that they are able to
make more money in that way than by
paying their tax honestly. Formerly there
were only two or three concerns In this
city which tried this mode Of evading the tax.
These parties have been so successful that now
they are numbered by the score, and the honest
distiller is plaood st their morcy, with ruin
staring him in the face. II Is also reported
that several parties connected with the govern
exceedingly profitable to evade the tax. The
question IL, under what influences do those
officials who have the final adjustment of these
cases Of fraud settle with the partiesi There
are very strong suspicious that there has been
o division Of spoils and large fees pocketed for
rendering decisions to suit these cases. A few
months since we published accounts Of raid
khoJ IA fQcs0
from Washington but from all accounts those
cases were all compromised, and instead Of
putting a stop to the business II has increased
at an alarming rate, as the result of the action
of the government in those cases. It is now
assuming proportions Of no trifing character
for the honest distller will be obliged to 20
out Of the business, and the government will
then receive only the amount of tax which the
agent who settles with the fraudulent parties
finds ii to his interest to require of them.
Taking the results in these cases and the con-
niving with the brokers in Wall street, the gov
eminent is In a fair way Of losing q great pro-
portion Of its revenue and also severely punish
ing all those who pay their revenue tax honestly.
This may be the object and intention OF the Inter-
nal Revenue law but such is not the public in
depreciation Of the measure. We therefore call
upon Congress to investigate this business Of
compromising with the Illicit distillers and let
the public know the inside workings Of the
law and who is responsible for this singular
procedure
The FIFTH AVENUE JoB-It is stated that q
committee Of wealthy residents Of Fifth ave-
nue. have agreed to pay over certain sum
upon condition that the Common Council will
take no action In regard 10 ramnrinr the