The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-11-08
INTERNAL REVENUE MATTERS.

Complete Suspension of the RectifyinG
Busincss-Statement of the Grievances
of the Trnde-The New Warehouse Regn.
lntious-Receipts for Whiskey Tax in Oc-
tOber.
The extensive and ndiscrlminac seizures OF the es-
adjustments OF the principal recaers and wholesale
spirits in this city have consulta-
ton among the leading members OF the trade within the
past few DAYS. tho result OF which Is that although no
organization society was deemed expedent 1t was
nevertheless determined to depute committee to pre-
sent. through tho press statement Of tho rights aud
the grievances Of the trade and correct the prevailing
Misrepresentation with regard to the conduct OF their
business under the Internal Revenue law. The COM
mi appointed for this purpose have made such
ment, which is to the following effect
The rectiner deals altogether with tho general
ke where spirits offered at regular market price
The rectinsr have practical responsibility for the
original production Of the commodity for its taxa
ton The Law places this the disters and the gov
ornment officers. The rectaer. in buying or holding
spirits which he has found in the open market properly
branded, cannot be held responsible for the tax any
more than can buys for private
use The rectIfer Is not the dtstlller producer He
Is distinct from these Is the baker from the miller
tho farmer The great bulk Of the spirits produced
from the dstieries located in the midst of the
great grain growing districts oil The INTERIOR while the
rectfyipg establishments are mainly in the seaboard
cites
The operation OF the law and the liability under it
should be fully consummated before product reaches
the rectiher Indeed, H Is safe spirits
are offered to him without bearing ostensble bran
10 show that tho dister and the officials have DIS
charged their duty to the government. Now after a
conceded failure the effort to collect the TAI, IL s
sought make tho rectfyiug interest responsible The
consequence Of this must be 10 stop all legitimate
merce in this product and force 1t into absolute stag
nation or exclusively fraudulent channels. II the
recti0er be forced TO pay the tax, then every
package must bear a stamp or be accompanied BY
. separate certificate TO mako merchantable. and
all the processes and stage, Of tho product
until IL uttered as recthed must be conduct without
tax This obvious cannot be done until the statute
Is changed The tax now attaches TO the spirits
The provisions Of the statute and the for the coll
lection and enforcement OF the tar so inadequate
that under existing circumstances there must always
large bulk of Illicit spirits in the market Hence, tho
price market value must huctuate deprecate in
evtably The government itself enters the market with
extensive seizures OF Illicit spiris, and sells
original product Thus the law practically pro-
vides for deprecated market When the
fraudulent aud Illicit product are all presented with
equally plrusibe and regular brands, Is II beyond
all reason and right TO seize the rsctnsr who buys in
good faith investigate his and his stock by
standard OF price when impossblei when the gov
ernment has failed to collect the from the producer
and the spirits have reached open market With all
the brands Of the officials how 10 the recter to remedy
what the government with all s resources has failed
70 accomplish That the OF responsibility rests
In other countries the proportion OF fraud upon the
lection Of similar revenues quoted al about two TO
probably seventy I've per cent on the entire product
OF splrita In Great Britain and Canada the
market price Of spirits y the same In bond
a. in open market 'free" with the exact amount Of
tax added The reciner merchant who goes into the
market In this country finds "free whiskey" ranging
always below tho amount Of the tax The law ITSELF IN
~ operation. undertakes substantially to discount the
market BY reduction Of the price equal to the
amount OF the whole cost Of the manufactured COM
modify thus in effect providing that spirits shall DO Of
fered a. rate which implies fraud while the Same
tune the buyer held responsible. II 10 clearly un-
Just TO make such exaction Of the recer or whole
sale merchant as would be TO proceed against the dry
goods trade Tor tax cotton aud 10 may be safely
serted shat the great bulk Of officials the Revenue De-
partment are proceeding on practical conviction Of
these facs and most OF the officers Of the government
recognize the impossby Of collecting impoet under
existing circumstances
The attempt TO enforce the Law in New York and
leave every other locality comparatively exempt 10
simply al Injustice The result to-day 10 that the en-
tire business Is suspended and the governments ints
rests IN no way advanced The damage and disturbances
accustomed by shutting up the great metropolitan mar.
ke can only deprecas and destroy the entire trade
until the obstruction is abated removed In this
statement Of the case OF the New YORK rectinen ~ y
mtenoed simply TO claim that the government she law
ana the producers or dIstlles Of spirits control not
only the payment OF the tax but also the market price
Inc rectner or merchant deas with The later ana
inevitably governed By the condition 81 tne Market
IL such q pledge we're Of any avah "
could % absolutely promised that the recsiner Wouiu
pay any given rate ~ the market price fsr spris but