The New York herald., 1868-06-25
WASHINGTON.
CONTINUED yRoM THIRD PAGE.

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st tne distilery and then to allow drawbacks on the
spirits exported. = -ffrr.
Mr.. scHENcK Opposed the substitute arguing that
tne system OF Drawbacks itself fruitful source
Of fraud. he explained the working OF the system
ana ahe iae9tty with which frauds were committed
transportation In bond then the amendment offered
BY the gentleman from Illinois (hr Logan wo1ld ac-
Of the House to regulate the transportation OF spirits
N bond he believed that the provisions OF the bin
wonld provide efficient guards for It, He contended
that II the transportation in bond system were de-.
rOyed the trade OF dstillation would pass from the
West 10 the East and Western interests would soon
be camoring for return to the system Of transport
tataon in bond. The Western distiliers could not
AFFORD to advance in taxes twice and q half the
thus they vSu1a SsasI fs sS sia into the ss
power OF Eastern capitalists ana SPECTATORS Gen.
The Of IN bond az snss IN
she eil, was anything like that under the present
law On the contrary, he believed that 1t was sur
rounded with such guards and restrictions as to
make frauds under it practically Impossible.
MI LOGAN replied to the argument OF Mr. Schenck,
and showed that the amendment offered by him
could not iniure Western interests but would bene-
nt them by preventing frauds under the system OF
70 alcohol and rum, as those were the only forms
N which spirituous liquors were exported
,.ro rom Inns country. u would be better for
lions year, which exported liquors amount to, and
nave no more exported, rather than leave this door
ment had suffered so much. He modified his amend
ment by allowing also drawbacks on the alcohol
used 10 the preparation OF cosmetics and chemical
c0mpOunds-the drawback to be the whole amount
Of the TAX paid.
Mr.. ALLISON opposed the allowance of more than
nifty cents drawback, and he expressed his belief
that the whole drawback system was one that would
open wide the door to frauds spirits could not be
transferred In bond from Chicago or Peoria to New
York without exposing the government to frauds,
then he would insist on the payment Of the tax at
the distillery and let the whole export trade in
liquors 90 to the dogs
Mr.. LOGAN modified his amendment so that the
amount OF drawback shall not exceed fifty cents a
The question was taken on Mr.. Logan's amend
ment ana it was agreed to-yeas %, nays 46.
Inc question required on Mr.. BOutwell's amend
ment az amended by the substitute offered by Mr..
Logan; ~,
tne drawback allowance shall not exceed the actual
tax paid. He was afraid that drawback might be al
lowed when there was no tax paid.
Mr.. BroOmal's amendment was rejected.
Mr. NGERsoLL moved to amend by adding to the
allowance OF drawback the interest on the amount Of
try could not, under this law export alcohol In COM
petition with England or Germany.
Mr. SCHENCK opposed the amendment because il
related to an extension of the drawback system and
ne was opposed to the whole drawback system-a
mistake. He preferred the provisions OF the bill
which he thought more perfect and well devised
system TO prevent frauds. The drawback system
oaths and otherwise more taxes had been got back
IN the shape OF drawback than had ever been paid
The criticism OF Mr. Logan on the committee because
terms 'rum and alcohol, reminded him OF the
Dntchman who asked his neighbor "Do you know
why call my little boy Hans?" MOI why the
reason why call him Hans is that that Is his nane
Nanghter.) So the committee had used the term
'dstilied spirits" because that was the generic
name, embracing whiskey, rum and alcohol.
Mr.. EGGLEsToN opposed the system Of transporta-
lion ID bono @ as liable to the greatest frauds He
portation In bond but payment Of the tax at the dis
hlery..
Mr.. INGERsOLL contended that such restrictions
on the trade would kill it entirely IN the West
Mr. JUDD advocated the drawback system and the
collection Of the the dstillery Under the bill
as reported by the Committee on Ways and Means
every gallon Of whiskey distilled could be sent to
port OF entry on the pretence of being intended for
Mr.. sCHENcK denied that that was SO.
Mr. JUDD repeated his assertion and insisted on its
Mr.. GARFIELD rep.) OF Ohio, mentioned some OBJ 4
jecons thai existed to the drawback system, among
lot Of whiskey and over again, and getting
drawback on 1t half a dozen times or more, even |
when the tax had not been paid on 1t In the first
Mr.. CovoDE, (rep.) OF Pa, mentioned as another
objection TO transportation In bond the instance Of
pretended shipment OF forty thousand gallons OF
whiskey 10 Australia, OF which only fourteen per
cent was whiskey; so that in Australia the contents
barrels sold.
Mr.. BUTLER trepl of Mass, asserted that all these
back system were myths as there had been no draw
back allowed here for five years. He thought all the
visions as to exports specifically to alcohol and rum
The discussion was continued by Messrs. Schenck, |
Judd and O'Neill and finally the committee rose IN |
Mr.. SCHENCK moved to close the debate on the |
section and amendment and on all the sections down |
to and including section sixtyfour, on page eighty
' Mr.. HOLMAN, tdem.l Of Ind, made the point Of
order that debate could only be closed on the ques
tion under consideration. /
The SPEAKER pro tenn. (Mr. Pomeroy in the chair |
sustained the point OF order.
Mr.. SCHENCK then limited his motion as to close
ueDate on the pending section.
The motion was agreed TO, and the House again |
went into committee.
Mr.. BARNES (dem.) OF n. Y, expressed the idea |
that the action OF the committee would render 1t |
impossible collect any larger percentage of tax
under this bill than was collected under the present
law. He Thought II az well to let the hoofs and horns
go with the hide and abandon all idea OF collecting
The question was taken Mr.. Ingersoll's amend
ment TO allow interest on the drawback, and it was
Mr. HOOPER, (rep.) Of Mass, moved TO amend by
vroviding that no drawback shall be allowed when
the amount OF drawbacks paid in the year exceed
Mr. PAINE suggested TO add the words 'unless
claimed by the citizens OF Massachusetts" laugh
Mr.. HOOPER remarked that he would not ask any
privilege fer his own people.
was taken on Mr.. Boutwell's amendment, as amend
ed by the substitute allowing drawback OF fifty
cents per gallon an alcohol and rum actually ex-
ported and it was rejected Mr. Logan not insisting
on q vote by tellers.
Mr. LOGAN moved to strike out the forty ninth Sec
ton regulating the expectation Of distilled spirits.
Mr.. SCHENck said he had no objection TO that.
The section was accordingly struck out.
The nftieth section having been read, which au-
thorzes bonded warehouses at ports OF entry, Mr..
PRICE moved an amendment providing that no whis-
Key shall be removed from the place Of distilaton
unul the tax shall have been paid, anything In the
law 10 the contrary notwithstanding.
Mr.. ScHENcK opposed the amendment as being the |
proposition just voted down. with the drawback LEFT
out. -. 1
Without voting on the amendment the committee
rose. :
The SPEAKER presented several executive docu.
ments.
THE PAY OF ARKANSAS MEMBERS.
The SPEAKER said that IN reference TO the pay OF
the Arkansas members he had decided that their per
diem should commence from the 18th OF March, the
date OF their election but that as they claimed pay
from the beginning OF the Congress he would refer
The matter 10 the judiciary Committee. II
THE FrsHERIEs
Mr.. BUTLER introduced joint resolution relating