The New York herald., 1868-06-23

Whole for 1t Is said that the House was surprised at
the order given to the Committee Of Ways and Means
that be claimed there will be still loss by our not
adopting the other portions OF the bill of about
Is the principal item OF the bill that had been thrown
aside and which Is not included in the present bilD,
ary wholesale des,ers tha anu resa a.
manufacturers, and required them to pay not one
one ner OF 9ne as at but Of
year. That tax would make q difference
OF about eight millions Of dollars. When you
add what is lost by not adopting the increased tax
on lotteries, brokers, insurance agents. lawyers the
special tax on carriages, pianos firearms fancy con-
iectlonery billiard tables and public amusemens,
the whole together amounts to about si2 200, 900.
M we regret on that account that We should be con-
nned TO this tax on distilled spirits and tobacco even
| II we shall include banks with them.
Mr. boutwell, gep.l of Mass.-ls 1t TO be under
porting this bl is opposed to IL. or beewes that the
machinery provided for in the bill is insufficient for
the purpose OF collecting the revenuesG If 80 shall
De IN favor OF recOninittlng the bill with instruction.
Mr.. ScHENcK-No, sir. The Committee of Ways
and Means s by no means opposed to the bin; but IL
gentlemen will not think II vain ASSUMPTION the
committee believes that it has reported q good bill;
but thinks 1t could be made more efiective by
subjects OF which have spoken. We win, perhaps
propose an amendment to sweep away all the sixteen
or fifteen hundred supervising Officers with rowing
commissions, ana to adopt more stringent system
ofsuperyision than they ever afforded. y Ld
Mr. BOUTWELL,. said he could not but think, on that
statement, that II was for the House to go
to perfect bill which was only fragmentary or in
complete system. He was rather in favor OF recon-
mtting the bill and having the opinions OF the Com
mttee of Ways and Means both on the tax on dis
titled spirits and tobacco and also as perfect system
for the collection OF those taxes as the committee
could devise He should be sorry to go ON with this
bl and before adjourning be compelled to complete
another bill containing system for the collection OF
Mr. SCHENCK did not wish to be misunderstood.
He thought the committee had presented bill
which to very great extent remedied the abuses
and provided against the evils OF the present sys-
TEN, while it at the same time regulated the tax on
those articles specially treated Of In the bill. The
committee, however. proposed to submit some
amendments, which IT did not feel authorized to re-
Of taxes. The Committee OF ways and Means did
not wish to be held responsible for this BILL IL was
not the bill Of the Committee Of Ways and Means,
the instructions Of the House. What have we done,
he continued, with those subjects TO which we
have been directed to cOnfne our attentionY The
first subject-distllled splrits-we have treated
Of by introducing, with some revision, al
Of the large number of minute details
that were found in the original bill. On the subject
Of the tax Itself We have agreed after repeated dis
cussions, to settle down on a Recommendation Of a
direct tax Of sixty cents gallon. In connection
with that we have provided for the payment OF the
TAX at the dlstiilery warenouse we nave provided
tlery without payment OF the tax, except In fonr
specific cases; that is 1t may be removed for direct
expectation; 1t may be removed to be redistied into
alcohol, that alcohol being for exportatiOn; it may
be removed for manufacture into medicinal prepara-
tOns and compositions, as provided for in the pres
ent law and 1t may be taken out OF bond to be used
In this country for preserving scientific specimens
used t for that that PURPOSE last YEAR It may be laid
down, therefore, as general proposition, that the
tllery. -......t,
Mr.. GARFIELD asked his colleague to explain what
particular reason there was for liking the tax at sixty
cents rather than at fifty cents whether there was
some special reason Tor It, or whether It was an ar
bitrary choiceY ~ Eu..rl
he had satisfied himself that by putting the tax as
low seventy-fve cents the Illicit dstillaion from
mOlasses would be crowded out and he felt that If
the tax was not low enough for that purpose fur-
ther reduction Of ten or fifteen cents gallon would
be- and he was therefore willing to 20 as low as, as
House OF the opinion that the tax should have been
fixed at dly cents or at TWENTY-FIVE cents so as TO
ing ali IL the sua authoTiiles 1 g % the snSlset
| from traders, from revenue officers. IRON persons
| disconnected with either OF them, but having some
| former law, and putting together the opinions Of
| many hundreds OF them, with all the communica-
script, the committee had come to this general con:
cuson-it was not arbitrary, 1t was not piece OF
guesswork. The committee had agreed to put 1t at
sixty cents, thereby lessening the temptation to
fraud, and II thought IL should not conEne the temp
aton to fraud to one per cent but that It would be
ing made smaller at one point and at another
point the aggregate taxation might make
up for the reduction and approach TO some
thing like the amount which whiskey ought to
pay. Mr.. Schenck went on to explain that the CON-
inittee had provided what 1t called special taxesn
each distiler OF fifty barrels les- paying $500
year as special tax. and 81 as further special tax
upon each barrel the fifty. II was the same
system that had been introduced into the general
bill, but modified SO that instead Of making the tax
$1,000 upon each distilier VINO made two hundred
barrels less, Ii only imposed 500 upon each stll-
Ter who made fifty barrels. This was done not
to crush out altogether the small dstillcrs in Ken
lucky, Tennessee and elsewhere. The principle,
however, the same, only that the starting point
was fixed little lower down. He went on to ex-
plain this at some length, and also similar prOvi-
sions to rectiners and to increasing the tax
retail dealers, qualifying them SO that some should
pay s25, $50 500 and $1,000. according to the
Mr. ISGERsoLL inquired whether 1t proposed
to levy this special tax on wholesale dealers for
whiskey which was TO be exported?
Mr. SCHENCK replied that of course the Wholesale
dealer would pay upon his sales. II the liquor was
taken directly from the distiiiing warehouse that
special taxation would be escaped; but If 1t left the
distillery warehouse and became free on the whis-
key market 1t must stand all the chances of every
Mr. INGERsoLL remarked that then no wholesale
dealer could sell whiskey for expectation, would
have to pay special tax, which the dstiller did not
Mr. scHEScK went on to give an explanation as to
what was proposed about taxing the mashing and
fermenting capacity OF disteries. The bill proposed
tax OF So per day on each dstillery capable OF
masling and fermenting hundred bushels of grain
each day, and SO day additional for every hundred
bushels. With due enforcement Of the law he
could not calculate the revenue from distilled spirits
ut less than from sos, 600, 900 to $751; 100000
Mr.. BUTLER inquired Of Mr.. schenck what, taking
the direct and special taxes together he should say
Mr.. scHEscK replied that it was very difHcult to
say The special tax OF 81 barrel would amount TO
about ten cents gallon The tax sales might
amount TO twelve or fifteen cents per gallon. Add
ing all together the tax distilled spirits would
amount to about 81 gallon and should produce
from $65, 900, 900 to s75, ,00O, 900.
Mr.. MYERS, rep.l OF Pa, inquired how 1t
proposed TO ascertain the proper tax and to prevent
fraud by the capacity systemS
Mr.. ScHENCK replied that the gentleman would
find on reading the bill that II cast around the pro-
ducton OF liquor such safeguards had never
before been used TO prevent any liquor escaping
between the receiving cistern and the disilery
warehouse.
Mr.. MYERS asked whether the bill provided for o
system OF meters
Mr.. SCHRNCK replied that it did the meters TO be
provided at the expense Of the government. lie
then went on to explain In minute detail the pro-
posed system Of stamps for whskey barrels exhibit
Ing specimens OF the stamps and showing how they
would be used to prevent fraud
Mr.. STEWART. (dem.l OF N. Y, asked Mr.. Schenck
whether he could state the number OF gall0ns OF
whiskey now In bond on which no tax had been