New-York tribune., 1867-08-08
THE WHISKY Fra UDS.

duced, The manufacture OF burning nulu III
which 24,OOO,O0O proof gallons of spirits were
used. has stopped altogether. The use OF al
cohol for manufacturing and mechanical pur-
noses in patent medicines and in pharmacy,
has either ceased or greatly fallen OIL. Ihe
present yearly production and consumption
is estimated at about 5OOOOOOO gallons.
Tho first tax on distilled spirits was lald
July 1, 1862, at the rate OF 70 cents the PROOF
gallon. In March, 1864 it was raised 10 oV
cents; in July of the same year 1T was carried
to 81 50, and the following January to ~ 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 90 cents, little over $3,OOO,OOO, repre-
senting 100000 gallons; in 1854, under the
rates of 20 cents and 60 cents, $2S,OOO,OOO, on
production, probably, OF 4O,0OOOOo gal
Ions; in 1865, under the rates OF 81 90 and
50, $S0O0,00O, representing production
of about 100000 gallons; in 1856, under
SO tax. S29OO0,OO0, representing production
of 14,50O,OOO gallons. The returns for the year
ending June, 1867, are not yet complete, but
they will probably show collection OF not
more than St5,0O0OO0, representing produc-
ton of 100000 gallons From these figures 1t
will be seen that at no time since the tax was
laid on distilled spirits has it been to any con-
siderable extent collected. With an estimated
average annual production and consumption
of 5OOOO,OOO gallons per annum, there has
been an average annual collection of tax on
only 100000 gallons about onethird OF
the actual consumption. These are no newly
discovered facts They have been constantly
before the people, but while we had surplus
revenue of 800, 5000 from other sources, they
attracted little attention. The large deficit in
our financial budget now threatened has drawn
public attention to this enormous waste OF
nearly S0O,OOO,OOO of revenue. good deal OF
indignation is naturally enough excited, and one
of our cotemporaries proposes to remedy 1t by
grand holocaust, in which Secretary McCullOch,
Commissioner Rollins, and an indefinite num-
Der of revenue officers are to be the victims.
An impression has gained currency, too, that
in some way or other nearly all the frauds
through which the revenue from spirits is kept
from the Treasury originate in New-YOrk
City, and that the remedies and cOrrectives are
mainly to be applied here. But the wholesale
corruption has a wider scope and theater than
that heretofore pointed out, and the remedies re-
quired are more radical and searching than de-
nunciation or even sacrifice of individuals.
The capital invested in distilleries in 1860 was
little short of S12,OO0,OO0; of which amount
about 81 100000 was in the New-England and
Southern States about $4,OOO,OOO in the Middle
States, and upward Of SG,OOO,0OO in the West
ern. The enhancement of the price OF whisky
since the imposition of tax has stimulated its
production, especially in the grain-growing
regions of the country, affording as it does
near and profitable market for this great
staple The facilities for illicit distillation are
much greater in the 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 i'll distlllation have
thus far been mainly committed. In the East
Illicit distillation has been constantly harassed
and impcded, but in the West and South,
favored by the circumstances just referred TO,
il has met little check.
The Report of the Special Revenue Com
missioner. Mr.. Wells, made last Winter, states
that the coppersmiths of st, Louis, Chicago
Cincinnati and other Western cities had been
so busy in supplying the demand for small
stills, that il was almost impossible to procure
any other work from them. But the bulk OF
illicit distillatiOn has not been done Ill this
small way. Ii has been until quite lately
carried on openly and without attempt at
concealment, by the largest distilleries through
ont the West. In testimony given before
Mr.. Wells, it was shown, that from single
dstillery in Illinois $4,000 gallons of unin-
spected splits were shipped, against
/ $1,000 gallons that wero inspected
from another 800 barrels were shipped
| 4. oil. afi hnrTplS
| 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 occasionally 10y an In
! spector; sometimes only when requested 10y
the distiller himself. Not unfreQuently the
! Inspector was n workman or partner III the
! distillery inspected. This neglect has been par
tally corrected in the last few months in the
West, but in the South recent report of d
special agent in Iegarl tQ tle STATES of Nortl y
/ Carolina and Virginia indicates that there Is
no effective supervision. Probably there will
! be 10 great Improvement, and not much is
feasible until civil government and society have
| become more settled.
! The consideration of these facts makes il
| clear that the "whisky frauds" are not local
They are involved in the whole sweep Of the
operation of the law, and the charge of indi
vidual delinQuences alone, whether in tho
! Department mt Washington or among the sub
I ordinate officers, is inadequate to their ex
planation. Especially is this evident when il
! is considered that in every other branch of th,
Internal Revenue system there has been {
steady and marked Improvement in ADMINS
tration.