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

RSn9ne N marx nai Sc as o y ne mp wa
and the other via New York Central Railroad. The four
S ~ ' Of s @ az Of tie sss
eass
key been placed bosa may be withdrawn
and der es e os
sands OF barrels are covered up and lost sight Of.
Similar practices spring up under permits for exporta
ton. From information derived from The Treasury De-
parmen it appears that Of the fourteen millions forty
Tour thousand and ninety gallons Of spirits ION hand and
remos Cd b0ndn there The 3lst Of December
1885, five millions two hundred and ninety four gallons
unaccounted for, which should pay into the Treasury
over millions i've hundred Thousand dollars. Il is
not alleged that the entire amount for has
been frauduenty disposed or; bat It is far TO presume
that considerable portion OF has been on the market
and has contributed small degree 10 the reduction
OF the price OF whskey 70 the rate OF one dollar ana ny
cents per gallon
Were adopt the suggestion heretofore made, viz:
TO assess the tax upon the capacity Inc sun OF course
should be relieved Of all the questions and dcules
swarms OF officers made necessary oy that system out
il that system Is 70 oe continued ought y NOT 70
be so modified as 10 dispense with all warehouses
Connected with dsiileries, ana 10 retain only
general bonded warehouses, 10 be placed under
the immediate control Of the Collector? II has
occurred your committee that perhaps no whiskey
should he taken the distllery from bond for
distia.ion rcctincaton, without prepay nent OF the
tax and it way wei be doubted whether any it
should be removed from tho dstilcry before the gov
eminent has received rts revenue.
reference statistics Will show that the policy Of
encouraging the manufacture Of tho article under
sidcraton for expectation is entitled to small consera
ton We have not The means OF knowing precisely tho
extent Of the manufacture Of liquor last year. In 1860
the quantity manufactured estimated at about
90 0O0 600 gallons During the fiscal year ending June
made fr,m grain molasses and All other materials Was
2606079 gallons less than two and half cent Of the
entire production assuming the amount to DC the same
that produced in 1860 This statement OF course
gives the apparent amount Of exploration, but how
many OF the barrels purporng TO contain whiskey had
been relieved OF their contents and repleuisnec with
appear
Your committee cannot too forcbly condemn that part
OF the which authorizes the appoint men Of Dspec
tors of dseries be paid by the distiler II prac
tcally max es the inspector the servant OF the dser
II would be safer for the TO rely entirely
upon the conscience OF the manufacturer for return OF
the amount of his production. In that he might
that his honor was involved. But when the govern
ment appoints agent To look after its interests,
though the agent is In the pay OF the dser, the manu-
facturer naturally comes to the conclusion that the gov
eminent relies upon its servant and tat each party
must look after his own interest From the evidence
touching this feature Of the revenue system, from per-
sonal observation by coming in contact with many
such inspectors your committee have come to the con-
clusion that IL Is not extravagant express
sion to say that the plan OF appointing in
specors of dsseries 10 be paid by distlles is simply
the institution OF a farce. In many Instances the
entire value Of the whskey returned exclusive or the
tax does not equal the pay Of the INSPECTOR and in some
cases the whiskey so retained with the tax paid IS not
sufficient TO discharge the claim OF the inspector tor his
services Inspectors not generally superior class
Of men, nor they always distinguished for ,ntei-
them, appointed At the instance Of the dser and
unfequently they regard themselves employees OF the
be slated INDICATING must have been perpc
trated 10 large extent with the connvance Of inspec
tors The capacity Of one hundred and seventy-one dis
tleries licensed since September l. 1866, In tho First
Second Third Foul.h, Filth. Sixth. Seventh, Eighth,
Ninth and Thirty second districts Of the state of New
the several dstrlcts amounts 70 4ssG5 e&!.oIf BY
capacity is understood the quantity with which the still
may be charged At single time Sixteen charges may
M IN tQou fnup hnuru Wor fhasa ctil
KEEP. constantly running for three months, estimating
twenty four days to the month"; they would produce
Sit SEQ Il win Be- Observed thai this sta.cmeS.
includes no part Of The manufactures Of the Gus
Operating 10 The same E, districts Without
500, s41 So Now, Il is not pretended that those
though there has been lately considerable activity 10 that
branch Of manufactures Il s known that there
n nd g.
different parts Of the country, have been removed
in boud' and remain unsccouu,ei for These
facts are stated without attempt 70 give approx.
innate Of the spirits manufactured in the dis
trcts referred to- but the above figures sufficient
tured In New York has been accounted for and they
impress with the convection that Of the
ndcd to the keeping and guardianship Of inspectors or
distlleries in the pay OF the manufacturers
Il Is suggesed also ss question worthy Of serious
the nfnrmers 10 conducive TO good morals the public
interest and the due execution OF the law. We are
Of the argument that the hope Of reward stmu
lates watchfulness and the detection OF Illicit
lions. While the force Of this argument Is admitted. It
IS proper subject Of inquiry whether the pract is
not attended by evils sufficient counterva all It's
DeneGG II creates . system OF interested, hostile |
~ s " sss n 0acs
ment 10 perjury. 1t becomes tue means Of ievying
blackmail and 10 numerous cases Of detection OF
his interest settle with the manufacturer than TO take
HIM into court or turn him oyer 70 the department.
And this objection applies "a well to the officer Of the
10 the officer in moro ways than one ihere - an in
ducenent to look his interest rather than to that
quenty better paymaster Than the government aud Il
can hardly be doubted, view Of the testimony, that
S your ~ nave s
70 seizures and moeties Your committee submit that
Nth proper notifications Of the 'sw, with jud,cous
the aid that would b. derived from homes. msnufac-
turerswhsn the law shall have been enforced that
BE- collected without the demorslizug practscs Of
giving moietiee to reckless, worthless and Infamous
Sc.ysS Aa sai oass.ou % Of s aw
lay the tax distilled spirits the capacity Of the dis
ttery. would 30 found q once simple, easy and efee
pensc Of collection; and until some automatic con.
trivance b invented indicate unerngly the
opinion hat the ss should % sd upon the espscty Of
tho distilery, - above suggested. An expert could
readily determine s,. a very nearly The The sSosl p Ely
and Ill the various temptations and oppor.
tuntes for fraud 10 which ausion has already been
made, and which must exist under system SO
complicated the present Some reasonable deduction
might be made from the actual asccraned capacity 70
provide for contingencies, stoppage, &c II It be said
that BY such deduction some spirits might escape tax II
10 answered that would operate only q reduction Of
the tax, confessedy large but would preclude the
Illicit distation, and would operate equally upon all
engaged in tho business.
The evidence taken by the committee touching the
manufacture and sale Of tobacco and cigars not volum
nous; but 10 shows much evasion Of the cigars.
appears that the authorized practice Of stamping cigars
without the actual payment OF the tax Is q means OF
fraud and II s believed that the evil might be remcdied
by requiring stamps representing the actual amount Of
tax TO be procured from the treasury and placed the
cigars before they subject removal or sale.
The near approach Of the dissolution OF the Thirty
ninth Congress does not warrant your committee in at
tempting TO embody their conclusions In the form Of
BILL nor would be OF practical do as II quite
Too late to hope for such radical legislation reference
TO the revenue system a. Is deemed necessary but
hoped that pcrusa Of the testimony herewith reported
may lead TO such changes the laws as will insure 10