The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-02-26

81 he Agricultural College bill 10 Tennessee, was con
CURED in.
THE PARIS EXPOSITION
The SPEAKER presented message from the President
Of the United staes, transmitting message Of Governor
Farchid, II Wisconsin, with the resolutions the Wis
consin Legislature in reference TO the Paris Exposition
Referred to the Committee on Foreign Affairs
O'Clock tomorrow.
INTERNAL REVENUE FRAUDS.
o~~~-~~~~~~~~~o-.~>--
Report Of the Congressional Investigating
Committee.
WASHINGTON, Feb. rs. 1857.
Representative Darling to-day made the following re-
port
The House OF Representatives, on the 4th Of Decem
Der last, adopted the following resoiution-
Whereas is publicly alleged that great frauds daily
praesed IN the payment and collection Of the Internal
sesy fidelity Of the revenue ocsrs Of the govern
Resolved That select committee OF I'VE be appointed Il
.na report 70 this the fact. IS to an,
duties and to the Of compromise settlement
~no had nS % or obs
wise herewith viii power e send for persons and
The Select Committee raised under the above recited
The committee appointed on the 10th of December
and entered upon their duties Immediately. They pro.
ceeded TO New York city, commenced the examination
Of witnesses the 18th Of December and continued
their investigations In that city and Philadelphia until
mission during the holidays They then returned to
wahngtou and continued the examination OF witnesses
until the LIST Of February, when the testimony was
IN Consequences Of the limited duration Of the present
session OF Congress they have confined their investiQa
In, and in these cities time would not permit them 10
hSe such thorough and careful inquiry ~ the importance
% s :ss s:9 q s Sssss.
sai 81 Sss' &c & ssss
ing witnesses were be examined and whose state
ncnts In instances useful only far they
could aid in directing attention 70 more important
Notwithstanding the Incompetence Of the invesiga-
sion, enough has been elected 70 satisfy your committee
spirits, especially the latter the most stupendous frauds
arc practised against the In tho collection Of
siehths Of the entire amount OF spirits manufactured
under the present law have escaped taxation. Your
commt.ss feel war,utsd 10 the assertion that few u
operation doing legitimate business The conciu-
son, though sweeping and apparently censorious IN ts
spris two dollars per gallon while that article sold
openly In market ct prices ranging from dollar and
NIFTY cents ~ one dollar and eighty cents per gallon Il
= Impossible, therefore, how whiskey. the Grs,
cost Of which from thirty 10 forty cents and the tax
90 Sas
been paid, constituting only about two.thirds Of the
ee!gaI cost These fq' arg appalling and .ns excite
people in regard TO their bearing upon tho public
treasury and n the present condition OF affairs s TO be
continued, that which has been regarded Of the
principal sources Of internal revenue may now be
deemed Substantially exhausted.
The evidence herewith reported, containing voumI.
she opinions and suggestions Of experts detectives and
other officers Of internal revenue, will show the pract
S Sod sp and w
supercedc the necessity Of elaborate report In DETAIL
but some conclusions have been arrived al IN the minds
OF your committee, resulting from their examinations
which they desire 70 suggest Tor the consideration Of the
House.
me tax itself very onerous and Offers great temp
lions for the evasion Of payment The impos 10 now
- least i've hundred per cent I'd vaorem. Too many
e 90 not + a., ,0d
sstibe. Whatever view may take Of thewisdom Of
= Re present. .ns. one q which : sS sas are spss
Ss ssss s asssa . ny ess - .pss,ss sSsS r
canps b sv6eut thot isz1e porsion o. has virtually
sd Ne TAX end he heldsss would suffer but nss b.
The laws have been brought into contempt because
have 10: been .d enforced i. n n.
prosecutions il the cities Of Nev York. Philadelphia and
Breoklyn, and they have been numerous. your COM
sued 10 the extreme limit provided by law Il s true
that property has been connscatsd and penalties have
ssor Of The law That pa q your statute which makes
Infamous 70 cheat the Government and awards mpFi-
scrsu,s "a ~ q properly b. order Of the eou for
Illegal pracscss the same has in mauy instances been
appraised - much e Than ~ SEXUAL value, bid in by
The volator Of the aw, and again used for dcraudng
Your csmmissss also suggest for the consideration Of
treasury Department he power 70 co@promiss and md
ugtle Of for violations Of the Law. Il ID
y o s q ri
Revenue acquire sufficient knowledge Of real facts In
any gwen case 70 make proper determination and anal
disposition OF L. In most instances he must rely
pnyfs statements, and depending very much for his
Information upon the opinions and recommendations Of
snsusnco created y he IS q the cup1 and
his personal ana political friends; he . liable to Be
Sscsiyed BY the statement q i1ssrsssd 80 why
rules that applicable other VIOLATIONS Of tho laws
OF the land The courts open to the observation Of the
and ovdencs received according TO the rules OF law,
subject to the test OF and liable 70
stantia justice, would secure greater degree Of public
confidence and would be far more effective In holding
rod q terror over the heads Q, evil doors unde. the
ont deliberate calculation. He looks over the whole
ground and weighs the probabilities the chances arc
out OF ten perhaps nineteen out Of twenty that
4 not disturbed called 70 an account at ALI f I'M.
fortunately, he detected and seized what s the con-
70 impsiso.msni, no very rigorous PROSECUTION before
him. He has manufactured and disposed Of say Ave
ssssd Vim nv barrels on hand The case sA goes
washington end 10 compromised by the payment Of the
taxes on the fty barrels with or without the penalty
The case may be- In the supposed, estimating the
srtce 4 one dollar and nf cents though he has lost
sne any barrels he has put into hts pocket hundred
and nfty thousand dollars
Your committee also suggest tbat the present bonded
warehouse system needs careful revision and radical
alteration Il would appear from the evidence that to
20 this system very large portion Of the fraud by
Of corruption 70 both ofcer and manufscturer Spirits
are taken out Of the bonded warehouse aud
Others made 70 supply their place spin's
are transported from one district 70 another until
plant occr il found Barrels frandulenty branded
tax pad by the connivance Of tho oicer; and some
iieved al Sheu contsnts and then rsplenished with
water On the subject Of bonded warehouses the fol-
lowing extract from tho suggestion Of Mr. j. o. HORTON
viii be found pertinent and instructivs:-
Jnsfolswtns yin illustrate how readily fraud can -