American citizen. [volume] (Butler, Butler County, Pa.) 1863-1872, 1867-08-28
The Whiskey Frauds.

es, this product has been much reduced.
The manufacture of burning fluid, in
which "a, 100000 proof gallons of spirits
we're used, has stopped altogether The
use of alcohol for manufacturing and
mechanical purposes, in patent medicines
and in pharmacy, has ceased or greatly
fallen off. The present yearly produc-
tion and consumption is estimated at
about 50 ,000,00 gallons. The first tax
on distilled spirits was laid July l, 1862
at the rate of 20 cents the proof gallon
In March, 1864 it was raised to 60 cent;
in July of the same year it was carried
to 81 so, and the following January to
50 per gallon The amount of revenue
realized under the several rates Of tax,
and the production represented by it are,
as follows Under the tax, of 20 cents, a
little over S3,000,000, representating
100000 gallons in 1864, under the
rates of 20 cents and go cents, s2S,000,-
900, on production, probably, of 40,S
100000 gallons in 1865 under the rates
of 81 so and 81, sS,00u,000, represen
ting a production Of about 100000
gallons in 1866 under 50 tax, $780,
100000, representing production of
Ia, sou, 900 gallons The returns for the
year ending June, 1867, are not yet com-
pete, but they will probably show a
collection of not more than $4,000 900
representing production Of 1900, 900
gallons. From these figures it will be
seen that at no time since the tax was
laid on distilled spirits has it been to
any considerable extent collected.
With an estimated average annual pro,
duction and consumption of $4,000, 600
gallOus per aunum, there has been an
average annual collection of tax ON only
100000 gallons = about one-third
of the actual consumption. These are
no newly discovered facts. They have
been constantly before the people, but
while we had surplus revenue of
500, 900, 900 from other sour ,es, they
a/ractcd little attention. The large de-
nett in our financial budget now threat
ened has drawn public attention to this
enormous waste Of nearly 100000 of
revenue. A good deal of indignation is
naturally enough excited, and one of our
cotemporaries proposes to remedy it by a
grand holocaust, in which Secretary
Met Culloch, Commissioner Rollins, and
an indefinite number of revenue officers
are to be the victims An impression
has gained currency, too, that in some
way or other nearly all the truds through
which the revenue from spirits is kept
from the Treasury originate 10 New
York City, and that the remedies and
correctives are mainly to be applied
here. But the wholesale corruption has
wider scope and theater than that
heretofore pointed out, and thcremidies
required are more radical and searching
than denunciation or even sacrifice Of
individuals. Esd ... a.s..... 4.
The capital invested in distilleries in
1860 was a little short of $4,000, 900; !;
of which amount about 81 100000 was
in the New England and Southern States
about S4 coo 900 in the Middle States,
and upward of Sc 100000 in the West>
ern. The enhancement of the price of
whiskey since the imposition of tax has
stimulated its production, especially in
the grain growing regions of the country,
aforaing as it does a near and profitable
market for this great staple. The facil'
tiles for illicit distil.ation are much
greater in tie West and South than else.
where, owing to the greater extent of
country and its scattered population.
1t is IN these sections that the frauds in
distilation have thus far been mainly
committed La the East illicit distllla.
tion has been constantly harrassed and
impeded, but in the West and South,
faSored by the circumstances just refer.
red to it has met little cheek. ssf
The Report of the Special Revenue
Commissioner, Mr.. Wells, made last
Winter States that the copper smiths of
St Louis, Chicago, Cincinnati, aud 9th.
er Western cities bad been SO busy in
demand for small stills, that it
was almost impossible to procure any
other work from them. But the bulk of
Illicit distillation has not been done in
this small way. 1t has been until quite
lately carried on openly, and without at
tempt at concealment by the largest dis.
throughout the West. In tes>
timony given before Mr.. Wells, it was
shown, that from a single distillery in
Illinois 10000 gallons of uninspective
spirits were shipped, against 81 900 gall
Ions tlat were inspected from another
800 barrels were shiPped uninspected
from others still 1000 barrels, 1000
barrels, and 1000 barrels, respectively
Many of these distilleries were situated
forty or fifty miles from any principal
revenue Office, and were visited only oc,
easionally by an inspectors sometimes
oply when requested by the distiller hmi-
self Not un:requentiy the inspector
was workman or a partner in the dis.
tillery inspected. This neglect has been
partially corrected in the last few
months in the West, but in the South
recent report Of a special agent in regard
to the States Of North Carolina aud Vir-
ginia indicates that there is no effectiye
supervision PROBABLY there will be DO
great improEemnt, and not much is feaS>
ible until civil government and society
have become more settled.
The consideration of these facts ma,es
it clear that the "whisey frauds" are not
local. They are involved in the whole
.I1 o-o.,..o.. - -