The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-08
that the laws be successfully INDICATED and the
revenue more iuly collected.


|
revenue more ialy collected
COMPROMISES.
ine power OF compromise has been exercised with
Eted. care, ana only upon the accommodation or
the local revenue officers or district attorneys and
tne approval OF the Secretary OF the Treasury. No
.ueeea VOCATION by distillers has been compromised
exceps upon the opinion OF the government attorney
that the one2ce was technical or could not be proved
The humber Of cases compromised during the year
From these there was received as tax. -. s4lao43
assessed penalties, fixed by law. ........ 142,003
In lieu oi lines, penalties and foneitures. 592,o27
Total. ,l5l,o27
DISTILLED spiRirs-opERATIoNs or THE NEW LAW.
The remodelling OF distilleries conform TO the
law and the regulations and the erection OF dstery
warehouses have been the occasion Of great expense
anu ueiay 10 their proprict0rs while the survey OF
distlleries, the procurement and distribution OF
stamps, the preparation Of forms and regulations
ana the greatly increased correspondence
quent upon the Inauguration OF the new law, has i'm
posed an immense labor upon this Office and upon
the local officers OF the district where disreres
situated,
The number Of disteres registered and thus far
reported to this office including those not intended
1900.
The plans OF 3i6 distlleries, other than OF fruit
have been received anu filed, as IN accordance wilh
turned for correction.
Distiery warehouses have been established to the
number OF $50.
From the reports OF the storekeepers IL appears
that 2of dlstleries are IN operation, With an aggre-
gale daily producing capacity OF 227, 75s gallons.
The number Of class B warehouses existing on the
1st DAY OF July last was 779. Their number was
gradually and rapidly reduced until instant
When inc number vas ~, containing manufactured
tobacco and most or the spirits distilled prior to the
act or July 20 ana still III warehouse.
The statute now In operation contains many I'M
provemenfs upon that VI 1896, is fuller aud more
uennIte IN us eXactlcns, places the dst.ilcries and
their operations more completely in the hands OF the
government and Is more rigorous IN It's punishment
OF Offenders but it's successful operation after all
must depend upon the vigilance and fidelity OF the
local officers. The corruption OF storeaeepers
galgers and assistant assessors even wneu asses.
soIs ana collectors are above suspicion will always
open sources OF ruin honest taxpayers ana loss to
the treasury which neither the wlses legislation nor
the most stringent regulations Of the department
can close.
Since The date OF the present statute, however,
there has been large reduction In the number Of
Illicit StlilS In most parts OF the country. Those
property registered anu authorized have paid, 1t IL
believed greater proportion OF their liability than
In marked and favorable contrast to those OF the cor.
responding time last year.
sfIRlr METERS.
IL Will be remembered that the Joint resolution OF
February D. 1865 providing tor the appointment Of
commission to examine and test spirit meters, fur
Their provided that, until the report OF the commits
mlsion anu additional legislation upon the subject,
all work on the construction Of meters under drec-
ton OF the department. should be suspended.
Although this report was laid before Congress in
March following no action was taken thereon until
the act Of July 90 by which the Commissioner of
Internal Revenue was authorized to adopt ana pre-
scribe FOR use such meters as he should deem neces-
sary.
On the 10Th OF November meters had been placed
in eleven dstcries, and their attachment others
is being prosecuted as rapidly as circumstances, in
GLIDING the opposition OF distilIers win allow. am
advised that several dstleries have been closed by
their proprietors to prevent the application OF
meters.
An meters are attached under the immediate
direction OF u government officer, by whom the ac-
curacy OF each instrument Is tested.
DIRECT TAX.
. Under the authority OF the fourteenth section or
suspended, until January |, 1865, the collection OF
the direct tax In the States heretofore in insurrec
ton, and like extension until January /, 1852
authorized by the joins resolution OF July 3d. 1868.
The loyal States, with the single exception Of Della
ware, assumed the amounts apportioncd thcm and
paid the same from their treasures After several
years OF delay, the State OF Delaware continuing to
refuse such assumption and payment the assess
ment and collection OF the tax was commenced by
the officers OF the internal revenue, and are now
nearly completed. Indeed, the full assessment OF
S,4,6s3, the tax assigned, has been made, and
So, 924 have been collected.
The total amount OF tax apporti0ned TO the eleven
nsurrectionary States So 53 9sl. or this there
have been collected s227o,eos, AT an expense OF
$i3,451, inclusive OF expenses OF sales, ana eXclu-
sive OF salaries OF commissioners
The total amount reported 10 this once as pro-
ceeds Of sales III the States OF Virginia South Caro-
lima Florida Tennessee and Arkansas, Is $3.50, 419
OF this the sum Of SIPS 029 consists Of lands pur-
chased by the commissioners on behan OF the gov.
ernment when the same were sold for taxes.
Purchases Of lands TO the cost value OF $77,56l
were made In South Carolina. A part Of the lands
OF the President, res0ld for educational purposes.
Tho unsold tracts In South Carolina. not under lease,
bureau by force OF the act relating to this subject
passed July 10, 1865.
amounting to nearly $4,000, 0o0 Is lien upon ali the
real estate upon which the same Is assessablc.
LIMITATION OF COMMISSIONERS AUTHORITY TO RE-
FUND TAXES ENORMOUSLY COLLECTED
The authority vested In the Commissioner OF In
ternal Revenue to refund taxes enormously collected
has been the means Of preventing much expensive
relief to many persons who have been compelled to
pay more than was legally due. While withdrawal
Shin Dir in many cases. am satisfied that statutory
Limitation Of the time within which such claims
must be p esented would tend to prevent much
seriously questioned ut the time 1t Is made the EVIL
dence IN ts support is very apt TO disappear with
change q the oicers 81 the district and Il ls not
sons in support Of claim for refunding such as are
hard to be set aside Different persons succeeding
another In the once OF commissioner will natu
rally have different views TO the Interpretation OF
portions or the statutes and he whose claim has
been once rejected may present u anew, after
success. would recommend that no claim be al
lowed unless 1t Is presented within fifteen months
from the time when the tax was paid.
BANKERS AND BROKERS SALES.
have heretofore In my annual reports expressed
the opinion that the attempt to collect taxes by
means OF stamps upon Instruments having no perna-
nent value for purposes OF evidence would prove "a
failnrc. Certainty rather than severity or punish
nent must be relied on to support the sanction OF
penal statutes. When both the maker and receiver
OF an instrument believe that the paper will never
come under the eye OF a revenue offcer II matters
little what penalty s denounced for the omission TO
atiix stamp. IL the writing ~ OF such a character
that it, Invalliiy an instrument OF evidence s OF
slight consequence evasons OF the tax will natu-
rally result. To no ono OF the various stamp taxes
now imposed do these considerations apply with
greater force than to the memoranda required OF
brokers when making sales OF com and
securities. These memoranda are In no sense
evidences Of title. In fact, they are only
passed In obedience TO the statute requirement, and
are thrown aside and destroyed. IL stamps
have been affixed they can easily be removed, and
IT Il hardly necessary to make an attempt to cnace
The cancellation marks before placing them upon
another memoranda. so little scrutiny is bestowed
upon these papers as they Pass from brokers that
specimens have been presented or stamps which had
been issued by gentlemen OF the highest respecta-
bllity while bearing plainly the marks OF two and
even three successive cancellations During the
fiscal year 1863. when the tax upon sales OF this de-
scrlpon was PAID monthly TO the collectors The re-
ceps FROM this source were In excess OF se,50o0D.
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