Virginia free press. (Charlestown, Va. [W. Va.]) 1832-1916, 1867-05-02
Brands ON the Revenue.


The heavy tax 0 WhiSkey, Of two dol
lars a gallon. has stimulated the owners Of dis
tineries to commit stupendous frauds. II was
unwise legislation % increase the tax 50 much
ne was done in 1854. When the act passed,
which taxed. not the stock on hand, but that
distilled thereafter, millions were voted into
the pockets Of dealers who had large amounts
in store. lfor they added the 3 TO the price,
without producing any1evenue 70 the govern
ment: ana now not one half tho tax on whis-
key distilled is received by the government
The temptation to fraud is too strong for human
virtue 10 withstand
A committee Of five members Of the House
Of Representatives was appointed, Of which M
Darling Of the Brooklyn district was chairman
and they proceeded to Philadelphia. Ne" YORK
and Brooklyn, where they took testimony
showing an astonishing depravity on the part
Of distillers and government officials.
They declare their belief % that at least seven
sigbtbs Of the entire amount Of spirits manu-
hctursd under the present law have escaped
taxation and that few, if any, Of the distille-
ries in the large cities Of the United States now
in operation, are doing a legitimate business.
The tax on distilled spirits is two dollars per
gallon. while that article is soliopenly in mar
kot at prices ranging from one dollar and fifty
cents to one dollar and eighty cents per gallon.
L is impossible therefore. 70 see how whiskey,
the first cost Of which is from thirty 70 forty
cents. and the tax upon which is two dollars,
can be manufactured and sold for the prices
above named this, providing the tax has been
paid, constituting only about two-thirds Of the
actual cost
The committee truly say These factsare
appalling; and they excite apprehension, as
well in reference to the morals Of the people,
as in regard to their bearing upon the public
treasury; and if the present condition Of affairs
is % be continued, that which has been regard
81 as one Of the principal sources Of internal
revenue may now be deemed substantially eI-
hausted'
It appears that Of the l4O54O9O gallons Of
spirits on hand and removed in bond, there
were. on the S1st Dec. 1866, 5000, 294 gallons
unaccourted for, which should pay into the
treasury orer ten millions ice hundred thou
sand doll1rI
The committee show how easily the law is
ovaded, and urge the inpohcy of allowing any
compromise with the violators Of the law:
Under the present system the illicit distil-
Ter goes to work, not without deliberate calcu-
lation. He looks over the whole ground, and
weighs the probabilities. The chances are nine
out Of ten, perhaps nineteen ont Of twenty, that
he ia not disturbed nor called to an account at
al. IT, unfortunately, he is detected and seized,
what IS the consequence Certainly nothing
very alarming. He secs no imprisonment, no
very rigorous prosecution before him. He has
manufactured aud disposaiof say FIVE thousand
barrels upon which he has paid no tax. He is
seized with fifty barrels on hand. The case
goes % Washington, and IS compromised b.
the payment of the taxes on the fifty barrels,
with or without the penalty, as the case may
be. In the case supposed. estimating the arti-
Gle q, one dollar aud fifty cents per gallon,
though he has lost the fifty barrels, he has PIT
'H;o hts pocket one S'a,lrei m'd ffty thousand
dYHvs.'
The committee suggest that the tax be laid
on the capacity Of the still, instead Of taxing
the quantity Of liquor made, and this certainly
would bring more revenue.
It would be a curious, though difficult sub
iect Of Investigation, to ascertain how many
bottles OF barrels Of whlskey were sent to the
Washington lobby, during the tendency Of the
tax bill 70 secure exemption 70 the stock on
hand. 10 was worth millions % the holders