The New York herald., 1868-05-17

twenty eight officers which was gradually Increased
to about forty with the following average cost per
Salaries and expenses OF inspectors. s4O4O
Four clerks ut 500 per month. 400
One clerk at $3.50. 100
Total. ACKNOWLEDGEMENTS. $4,5eO
In this schedule account Ia taken OF the ex-
penses for stationery and ncidenals while the Board
was In session, nor of the services OF the five men,
bers who constituted II. The trivial ty OF the cases
in which condemnation was actually secured may
he best exhibited In schedule, and stand as sub
joined
Gases under 10 barrels 40
Cases under 20 and over 1J.................... 20
Cases under 60 and over 20...................1 90. IA
Gases under 100 and over SO. ACKNOWLEDGEMENTS.
Commencing with June 20, 1857 and continuing
until the abolition OF the Board there were COM
menced in the District Court by collectors one hum
dred and nnety-siX suits, of which twent y-twO were
released by order OF the Commissioner or one of his
deputies, leaving one hundred and seventyfour to
be held for proceedings Thiry-seven OF these suits
ut latest information still pending and In seven
cases the property has been released on bOnd while
there has been actually paid into the registry OF the
proceeds of these condemnations, and the pro-
perty yet unsOld Is estimated at $4,000 ad-
% %Gitlona', making an aggregate OF 1892 1o;.
the number released by order of the Commissioner
being only 1900 The schedule of seizures and con-
demnatOns secured by the several collectors during
the period in which the Board was in operation, as
compared with the above table of the operations of
the Board exhibits the fact that the greater proper
the period specified (elght months) were secured at
the instance of the collectors Of the several districts
The table il as subjOined:-
Concentrations under ten barrels. .............. 25
COndemnations under twenty and over ten. ..... 10
COMBINATIONS under sixty and over twenty...... o
COndemnatiOns 100 barrels. s................ 10
This schedule exhibits percentage OF large SELF
ures in favor Of the several collectors.
The operations OF the department since the aboi-
tion OF the Metropolitan Revenue Board have been
extensive, though by no means commensurate with
the frauds perpetrated. or rectying houses in the
N,rl
and turned over for forfeiture during the last
months some twenty-six, Of which eighteen have
esod nsH o Hs pn %
registry OF the Court while over $40, 900 worth of
property rests under condemnation During the last
five months, twenty Eight licensed diserfes eight
of them OF the largest capacity have been seized
and turned over for forfeiture. OF this number
twenty-five have been forfeited by decree Of
court, and the remaining SIX win proba-
bly, be condemned. Four other cases Of seizure
cluded the cursOry review intended in this article OF
the operations of the revenue department in the
several districts OF this city for the past five six
months, and so far as the collection OF the tax ON
whiskey Is concerned-though 1t may be added that
twenty dstilerieS have been seized In the Eighth
and Ninth districts alone.
OWNERS AND THEIR PROXIES.
II has been and Is the policy Of the government to
concentrate the business OF dstlng in the hands Of
capitalists, by this means lessening the number Of
dstilleries and increasing their individual RESPONSE
blty and Importance. This, could II he effected
would necessarily simplify the problem by diminish
ing the number Of points at which executive vlgi-
lance is required besides throwing the business into
the hands Of q more responsible class. IL Is q fact
not to be evaded or gansad that at the present
time nearly all the licensed disteres IN
ns ns city arc by who mt keep 2
ward proxy owners or agents. These per-
generally Of the class who can be held to
remunerative accountability for fraud and whom TO
punish would subserve no valuable purpose, even
could their conviction be secured. The utmost that
can be done is to make an example occasionally az
srnxa a. n
Brooklyn, also, many distieres nave been built.
These are operated with no regularity, and only
kept going for 20 long time as by cunning and Ofi
cial connvance they can be run without the incur
ring of any legal penalty. When detected and for
eed by decree OF court they are again bought up by
the real parties In interest for average of i've per
cent OF their original cost and again put in ope
ration with 0stensbe owners and for the same pur-
pose as before. Thus the greater proportion Of all
the ,isteries in the city districts have been
forfeited and sold at least once or twice,
and many OF them have we been through the
great number OF these distileries cornpes
the government to employ too large a number
stration and thus large percentage Of the revenue
actually collected Is consumed in the salaries; while,
furthermore, II is impossible to secure fathfuness
to duty IN so large BODY and connivancc at fraud
on the part of the officials Is the consequence. There
are numerous inspectors In the several New York
districts who regularly saaried by the dlsIcrs
as are the ostens bic employees Of the disery ITSELF
The present posture OF therefore, inures neither
to the benefit of the pubic who consume nor the
people have to bear all the evils OF taxation without
any compensating benefits. The price paid for
whiskey in Of the cost OF production, the
case stands simply accrues large class Of knaves
who buid up colossal fortunes by defrauding the
government.
The fact IL, the theory Of the law is at fault and
invites fraud Under Its system Of administration,
the government assumes the task of q continual and
minute supervision not only OF several thousand dis.
wholesale dealers and the consequence Is the crea-
tIon Of immense army OF officials and detectives,
visions of the law and a thorough Generalization OH
the part OF both the officials who supervise aud the
dstillers who operate under their supervision.
The whole business might be easily concentrated,
however by collection Of the tax nj the distiery,
a concentration which would secure aarge percent
age OF the revenue 10 the government. system OF
ths sort would relieve dealers and producers Of SUI
pervision and enable the government to dispense
with the services Of at least fty per cent Of the ON
cials at present employed In the fruess attempt TO
restrain frauds which are invited by the very loose
ness and complication Of the system which at pres
THE BONDED WAREHOUSE ACT
OF January H. 1858, has proved to be no remedy,
though 1t was step In the right direction. Under
ts provisions no spirits can be removed from ware
house except In payment Of the tax, and thus stop
was put to removals for rectincation and to trans
portation from one warehouse TO another while In
boni BY these two privileges most extensive
frauds had been covered. Under pretence OF re.
moyal for purposes Of rectiacatton, whiskey and
New York warehouses were systematically taken out
and replaced. In some cases the commodity taken
out was repiaCcu Dy Irauuulcnb pTOlucts IrOIu new
York distileres, but more generally by fraudulent
western products sent TO New York falsely branded
AMI under cover of permits issued for whiskey COM
ing regularly In bond. On its arrival at the East,
this fraudulent product was passed into the ware
house either TO replace spirits ostensbly re.
without the formaity OF deposit In ware
houses. In other cases alcohol, which had
been shipped to the East for export, was taken
into warehouses and after part of the contents had
been abstractcd the balance was shipped aboard,
the shipper getting credit through the connivaDce Of
into the warehouse. In all the variety OF details
with which these frauds were conducted there was
but one general result, vz.:That bonded warehouses
were made the receptaces and safe asyums for pro-
ducts Of fraudulent dstillatlon, whether carried on