New-York tribune., 1867-01-04
PRICE FOUR CENTS.
INTERNAL REVENUE.
COMMISSIONER wELISs REPORT TO THE SECRETARY Of
THE TREASURY
TREASURY DEPARTMENT, }

|
SIR In accordance with the Act of July 10, sct, cre3
ting the office Of Special Commissioner Of the Revenues
frn fine TO time report through the secretary Of tba
Treasury 10 Congress either In the form OF pl op
OF the methods Of collecting the Revenues and such ohe4
facts pertaining TO the trade industry commerce or tax
alton of the country he may find, by actual observ@
ton the operation Of the law TO be conducive to te
public interest the undersigned has the non honor 20
| approved, be submitted to Congress:
| INTERNAL REVENUE. =.
Tar on BrOera Sdes-One OF the most suectsslul mof
ficatons effected by the Act Of July 49, 1866 has been tba
which substituted In place Of general tax on the sales ca
monthly tax Of one hnndTeth per ntpayabs
by of stamps affixed TO the bill or ornenorndm oi
each sae heavy penalty being provided Tor the det
livery or reception Of any bill memorandum of SUCH
sioner happy to report that the operation Of te
present law is most satisfactory; tlal M PROVISIONS arg
all but universally complied with; yhue the dchtIOn9
are that although the has been reduced from 0ney
twentieth to Onehundredth OF Que pcr cent the IV
from this source is likely 10 DO considerably nt
| creased .... 4
stamp Tar on he Sale Of Fernaegted Le1,ors snThS
report OF Commission, submitted February
1866, established, almost beyond doubt tue tae that
the Government was defrauded In the collection oi ~
OF about 40 per cent involving an absolute annual iost
TO remedy this the act of July 10 provided, that id
addition obligation imposed on the brewer " make
monthly return OF the products OF ms manuaci's tue
tax itsefsh0uld be paid by the affng Of an adhesive
paper stamp each barrel sold and removed from te
place Of manufacture, with an additional requJcDohts
that the stamp should be Cancelled by the retailer or eo-
The Commissioner is able to report that the plan, s
as has yet been tested is substantially, success ana
needs ony the general adoo on the part tho bFe-
ers Of roper adhesive material for axing the sisps
the barrel and selection OF Inspectors more capable
and honest than many now holding office, To make IL e
So FAR s can be Judged from the return of stamps
printed delivered TO the department from AususSo
To November 15viz 5l9520 h0gshead barrel and trao+
stamps, Of total value OF sls6sSJ-tRe revenue
from this source for the present hseal year. II bhey y"
distilled SoiiisA careful revision Of the law reenaI
ing the Manufacture and sale OF distilled sPlnts ana ue
collection Of the tax thereon, was made by COnghh atS
last sessOn-the system recommended by the beVenue
! Commission being substantially adopted -
leading feature ~ this SYSTEM was the placing oe
Inspector Il wSs however fofseen by the Reyene
Commission, that the establishment Of some check upon
form u supplementary bill was se.ori bgiy re-
ported authorizing the appohtln Ol ns,iSt & o'"1
coupled with that Of general superV s OF al revenue
officers particularly TO that inspectors o ~
eries and tobacco manufacturers, wei aa
local wegherS and gaugers, transferred or "lot
tated" from time to ume nom one establishment OF one
district to another The consideration Of this bill was
very generally protested against by revenue otlceIf
and more especially by those from the southern districts
OF Yorkand no action was taken IN reerel.e 10 10
by Congress The experience of the last four months IN
ever, demonstrated the necessity and importance OF re
bill i'm question and the Special Commissioner unes With
Commissioner OF Internal Revenue, IA earnestly Iet
sGfanains s9si@St 10 '0HS'e'' d" ''''' "
With this omission supplied the existing law regulating
the manufacture and sale Of distilled spirits, viii prob
found complete in its essential features ~ u "a
practicable 10 make IL; but, es DatteJE now stand,
neither any other law for the collection OF tls
revenue spirits can be other than comparative
proof Of this, the following statements subml
ted: The consumption Of distilled spirits ~ the OnH.d
states by the Investigations Of the kev.uns
Commission in 1865, 10 be about forty millions " gai0ns
per annum; from which, with tax Of two dollars pef
gaonce should accrue an ahnualleNcnhc meSbly mn,
lions OF dollars The result, however, OF the last hs'a}
year shows that the entire revenue which tho GoVerns
nent actually received from this less than
thirty millions of dollars s29l9s5s; or, in other words,
payment. A. the ruling price OF spirits Ia fle
market during the year was moreover not much short Il
tta Of laN I SalSn
evident that almost the entire tax imposed by law sas
paid by the people although the Government failed 10
This circumstance should he noted uamely, tbaty
notwithstanding the more perfect organization and work.
ing of the Internal Revenue system, the Government re4
eeived for the fiscal ending June 80 1866 Win tas
of s. per proof gallon on distilled spirits only s7t6 6Omors
than did for the fiscal year ending June 80 1875.
the from 20 10 60 cents gallo-the aggregate
for 1865 being >29l9s,55S, and for 1864 s2si3l,'9S
The failure, thus demonstrated Is due mainly 10 Two
causes first the extremely high rate Of the tax sndl
mnistrston of the law. All experience shows that every
excessively high tax contains within itself the elements Il
It's own annument The Commissioners, thereioe, ,aq
but rc6Nprcss the opinion 0l the late Revenue COpmI
sOn that speedy reduction by Congress of the tar ~
Distilled spirits To 81 per sau"n as maximum s"uid
result In benet not only TO the ievenue Dut aso 10 the
morals O1 the country. .s..
Bnt the evil which initiates seriously against tha
productiyencss Of the tax distilled spirits, IL tlat
which arises from the adoption many year since. iha
part OF me Government Oh Eatlonal pohY Whth Whhta
the appointment and retention Of revenue o'fcerE dc+
tency and faithful Gschargc of duty. The iossss which
have accrued, and are now accrlne. 10 the revenue
t0hacco, and few other articles, are Of amount a-
Ia exceed bcief-the losses on tobacco aoue,
single section Of the country, heng reported o the Cons
missioner 10y most competent authority as In probable
OF $4,000 daily That very large percentage Il
these due the incompetency, neglect couN
pcy Of officials. no one who has had any experience IN
the supervision of revenue system can for momct
doubt and the whole subject OF devsiug rcIn.siiat
measures requires and deserves the immediate and bari
moeous action of both the Legislative and Executive D
parments Of the Government.
Spirit Nc'ers-The attention Of American inventors
during the past year having been directed 10 this s9ccp
number Of new meters have been brought To the atte
tiOn 81 the commissioner; and ut his request their eXam
nation and testing have been referred by the Secretary
of the Treasury To Committee of three gentlemen If
eminent Scen fc qualifications viz: Prof Joseph Henry
superintendent OF the Coast survey. and hIaor-Gen.
Megs, L. :. A Although the examinations of this Com.
mtce have not yet been concluded the indications are
that practical and effective has ast ni
vented; and the Commissioner recommends that aud
thorlty given Secretary OF the Treasury to rel
quire its adoption adjunct OF every dist.Iy 10
ease he may deem it expedent.
HyctrOmetes.-In the Report OF the Revenue COmmist
sion, made I'm February, 1866 attention called tla
fact that al that time no standard hydrometr hf been
adopted and prescribed for use under the Internal
Revenue for aScortaning the strength OF liquors prpar
tory To SSng the tax on the same, and that IN
qucnce of this omission "a very large annual loss "a
revenue was inevitable. The matter having been
brought to the attention OF the Secretary OF the Treasury
II referred by him o the scientific committee aboNS
named, whose recommendation modification of the
TRlles hy,ironeer has been adopted by the DepaIR
ment, and prescribed as the standard ns'neet for ths
Use If all Officers Of the Internal Revenue.
These instruments now In the course Of dsnibntoni
with new book of tables prepared IN The Office and
under the direction OF the superintendent Of III. Coast
survey The hydfometer IN question rs graduated 10
show true per cent OF PROOF spirits az standard ems
porture according 10 exact experimental data and Il
very convenient patern while the table give the ul's
values when the spirit is proved at any other ihan tha
standard temperature and also the allowances neessg
t. bee made for changes In volume
Tar on RaU CouOH.-m the report upOn this oneSfiout
submitted at the last session Of Congress rX at the raid
OF five cents per pound was recommended, but when
became evident that such tax could NOT be iIulsscd R
season 10 reach any considerable quantity Of the old ro
,o ON nd at The end Of the war and that whatever "f
W. imposed Would apply only To new crops tha inIo>t
u.. M oi lhN NOT exceeding three cents was advocated