The national Republican., 1867-12-07

|
prior to June 80, 1885. The receipts from for.
feitsd spirits are not included In the above.
The frauds connected with the production and
removal Of spirits are Of very alarming extent
and character, and will be considered more fully
In another part Of this report The amount Of
spirits in bonded warehouse on the l,t Of July,
1865, was g. 0Si, 6b1 gallonsi on the LIST Of July,
1867, 1881 gallons. The amount out Of
warehouse under transportation bonds on July
!, 1865, was 3,1S3, 2l1 gallons, and on July l,
1867, was 3,93l, ,44 gallons. The amount Of
spirits received into "class Q warehouse" so
called, for the manufacture Of medicines, Co.'S
metics, oordials, 30, for expectation, was s92,.
4,654, ,8l6 gallons. The amount upon which tar
was paid was H. l4s, 132 gallons. From this IL
will appear that the amount Of distilled spirits
which was reported TO revenue ofhosrs during
the year 1867, and which can be accounted for,
Is 81, ,299, ,629 gallons The difference between
this amount and the actual production meas
ures the product which reached the market
through fraud.
OF the tar on spirits, tho Commissioner says:
"The propriety Of imposing large tar upon
distilled spirits has never been seriously ques-
toned in this country 10 most cases where
tar upon an article greatly exceeds its cost,
harm results TO individuals or tho public; but
In this case, while tho treasury Is certain Of In
creased revenue, II the amount produced Is
checked, the more the social and moral condi.
tion Of the people Is improved.
| "Tho limit Of tar is reached whom Its amount
not only becomes an incentive to fraud on the
part Of the producer, as most high taxes have
proven, but where no uncomfortable portion Of II
may safely be used for the corruption Of ofic.rs
employed In its collection. When such 10 the
case, the revenue Is not only diminished, but
the administration Of the law becomes disrsput-
able, and the law itself rsproaoh. The several
taxes imposed BY any revenao law are paid
cheerfulIy only when every interest affected by
It contributes Its apportioned and equitable
share. There Is reason to believe that mors
dissatisfaction arises from the failure to secure
| the tax upon spirits than from sll other causes
combined, and unless some remedy Is obtained
I apprehend further Generalization, extending
through other sources Of revenue, and corrupt.
ing even the business relations Of individuals
Bad examples are as freely followed as good
onee, and the profits from fraud and collusion In
one class Of cases suggest advantages to be frau
dulently derived from others.
now WHISKY FRAUDS ARE PERPErRATED.
1--WE know the amount Of tar received upon
spirits withdrawn from warehouse for oonsump.
ton, and from this amount the estimated actual
consumption, the worry low price Of spirits in the
frequent detection Of offences. We argue extsn.
sive aud alarming frauds, which undoubtedly
exist.
"Under the law and the regulations Of the
Department all distillers are required to make
daily record and trimonthly report to assessors
Of all materials used, and the number Of gallons
distilled and placed In warehouse and sold from
warehouse, with the name and place Of business
or residence Of purchaser. Nov, as all must
under tho la~, DO warehoused, It Is obvious
that II correct report Of production 10 made no
fraud can be committed without the knowledge
Of responsible revenue officers. Every with
drawal Of spirits, whether for consumption.
transportation, rectihoatioR, rehabilitation or
port, leaves its record and proof behind il. All
production Is charged to the proper collector,
and must be accounted for by him In tar re-
oeived at Withdrawal for consumption or BY
bonds or other evidences Of removal for the sov.
eral purposes above named and authorised by
statute. These bonds have occasionally been
insufficient, and In some instances II 10 believed
they have been oorruptly taken; but they are
still In existence, and the amount Of spirits
cred BY them Is easily asoertsinable. II 10 sun.
eisnt In this connection to say that 1t 10 small
In comparison with the quantity which has
reached the market through other avenues Of
fraud. II Is possible, Of course, for oil evi-
dence Of removal from warehouse to DO de-
stroyed, but such destruction involves the necss-
sity Of such Wholesale and monstrous combina-
tions Of assessors and collectors and their assist.
ants that cannot and do not contemplate II
a. an actual existence. The bonded system has
probably furnishsd opportunity Tor a particular
class offrauds, as every additional genuine coin
increases the variety, while II may not increase
the number Of oountsrfsits Its permits and
brands have been imitatedi but bill. Of iading
have now been substituted for permits, so that
the duplicate and even thplicate shipments,
which may have sometimes been made under
the latter, are avoided, while brands for bonded
packages cannot be more easily stolen, pur.
chased, or initiated than for the free or taIpaid
article.
"Ths occasional discovery Of attempts at sx
portation Of water instead Of alcohol has induost
many to believe that frequent and extsnsiv,
frauds Of this character have been consummated
but while It is quite probable that these attempt
have been sometimes successful, Il Is certain tha
the aggregate Of fraudulent shipments to othe
countries, although absolutely large, Is really o
small magnitude when compared to the full amour
which avoids taxation. As no drawback 10 allowe,
upon the spirits exported, frauds can occur onl,
in alleged shipments In bond, water or other arti
oles of little value being substituted for spirits
which are thrown upon the market for oonsump
tion free oftax. Such fraud involves the briber,
Of custom house officers, whose duty It Is to care
fully inspect all goods exported In bond, as vel
IS the procurement Of false certificates Of th,
landing Of the spirits abroad for the cancellation
Of the bonds against relsnding in this country
which are fled 10 the oustom.house Of the dis
trict from which the expectation Is made. Thers
10, Of course, actual export trade Of very oonsd
cradle importance, but the actual and fraudulent
shipments combined only reach 1854 ,8l6 gal
Ions for tho hscal year 1857. This amount Il
larger than for several years Immediately pro
csding the last, but not aslarge as In 1851 wher
no tar existed, or in either the two years follow
ing. Much Of the increase may we'll be 40
counted for by the low price Of x-paid spirit
here. and the necessity OF seeking other mar
kets without the payment Of two dollars pc
gallons
~ believe most of the Illicit spirits In tn
market is the product Of those establishment
whose prOprietors report for wsrehousing only
portion Of their production. A smaller amour
, Is from hidden and unrecognizod distillenes
i This Illicit whisky 10 conveyed unbranded +,
. neighborng rectifyiug houses, and emptied i'm
mediatsly into watts, where it can never b
identified, or II is shipped in barrels corrupt,
. or falsely branded by the propristors themselve
! or our own officers In collusion with them.
= Is exceedingly difficult for superior officers
/. detect such oollusion on the part Of their sub
, ordinates. Il can rarely be done except upo
the disclosure Of some party privy to the al
rangement, and that can hardly be expeete
o when all are equally guilty and equally liable t
I punishment.
: These extensive frauds have not only robbie
a the national treasury, but have driven froI
n their accustomed business many men OF &C
~ knowledged integrity. Others have taken thei
places for the special and sole purpose Of q
!, quiripg fortune through fraud"
| Mr. Rollina rAcnmmenhs N raVisinn If ha In