The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-08-09
The Whisky Frauds.
From the Tribune.

pTOU Ht6 ATtUUJto
In 1860 the production of distilled spirits in
the United States, according to the census re-
turn, was 90,000,000 gallons. Since 1862
from various causes, this product has been
much reduced. The manufacture of burning
fluid, in which 24,OO0,O0O proof gallons of
spirits were used, has stopped altogether. The
use of alcohol for manufacturing and mechani-
cal purposes, in patent medicines, and in
pharmacy, has either ceased or greatly fallen
Off The present yearly production and con-
sumption is estimated at about 80, 600, 900 gal
Ions. The first tax on distilled spirits was laid
July J., 1862, at the rate of 20 cents the proof
gallon. In March, 1854 it was raised to 60
cents; in July of the same year it was carried
to $3.50; and the following January to 50 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 20 cents, little over SO, 000 900, repre-
senting 100000 gallons in 1854 under the
rates of 20 cents and 60 cents, $2S, 900, 900,
on production, probably, of 40, 600, 900 gal
Ions; in 1865, under the rates of $3.50 and 50,
!$S,0O0,000, representing production of about
100000 gallons; in 1865, under 50 tax,
$29, O0O, 600, representing production of
IA, 800, 600 gallons.
The returns for the year ending June, 1867,
are not yet complete, but they will pro-
badly show collection of not more than
$l5, 100000 representing production of
10000 gallons. From these figures it will
be seen that at no time since the tax was laid
on distilled spirits has it been to any considera-
BILE extent collected. With an estimated ave-
rage annual production and consumption of
100000 gallons per annum, there has been
an average annual collection of tax ON only
100000 gallOns-about one-third of the
actual consumption. These are no newly dis
covered facts. They have been constantly be-
fore the people, but while we had a surplus
revenue of 100000, 900 from other sources
they attracted little attention. The large de-
fcit in our financial budget now threatened
has drawn public attention to this enormous
waste of nearly $780, 900 900 of revenue
good deal of indignation is naturally
enough excited, and one of our contempora-
ries proposes to remedy it by grand holo-
caust, in which Secretary McCulloch Com
missioner Rollins, and an indefinite number 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 wider scope and theatre than
that heretofore pointed out, and the remedies
required are more radical and searching
than denunciation or even sacrifice of indi-
viduals.
The capital invested in distilleries in 1860
was little short of $4,000 900; of which
amount about $l,000,000 was in the New
England and Southern States, about $4 900, 900
in the Middle States, and upwards of Sc, 900, 900
in the Western. 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, afford
ing 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 elsewhere, owing to the greater
extent of country and its scattered population
1t is in these sections that the frauds in distil-
lation have thus far been mainly committed.
In the East illicit distillation has been CON
stantly harassed and impeded, but in the West
and South, favored by the circumstances Just
referred to, it has met little check.
The report Of the Special Revenue Commits
ioner, Mr.. Wells, made last winter, states