New-York tribune., 1868-06-24
PRICE FOUR CENTS.

that demand Some weeks ago, when | submitted re-
port exposing the Vaccinations aud power q the WHISKY
made since then show its powers IN still more incfeape
manner % & ~ tb mas s5siGed through te S o5
controleds the a. avenues TO the Executive Mansion,
| OF the Government. / then believed that the
only way 70 destroy this ring and check tho
that branch the service reduce fax fifty
cents per gallon TO take away its wealth by deprvng 70
OF the of its gotten gains. that the tax be col
ected ut the of the still, thereby dispensing with
that great means OF fraud, "bonded warehouses
Everything stated then has been more than ymdcated,
and conclusions then formed have been fully Justified by
subsequent facts The whisky ring then opened lis bat
every channel it could reach AT that time it was an
nOunced that the Ways ana Means Committee would OPP
pose any reduction that the temperance sentiment
OF the country would insist upon the high tax feeng
therefore, confident OF the retention Of power The ring
became more ins0ent stole larger sums IRON P
the revenue, commanded thousands unbiusmngly
so bold and arrogant had 1t become IN TINS
last act, that the people everywhere demanded
that power should be destroyed and % IL could only
therefore be reduced. Such position when made
ment and such is my position to-day Mr. Van Wyck
urged the necessity Of reducing tie tax rs so cents so as
lasscs However. he entirely content that II should
remain at 80 cents II the COMMITTEE We're satsneG ,h
it should be below than above % cents.
at cents, and argued that at higher figure than
that It would be impossible TO suppress Illicit dsaton
He said that the dstleues of Peoria Illinois, which had
paid SIG or S7OOOOO0O revenue whisky since
the taxation commenced had been compelled 10 suspend
operations and had not made gallon OF whisky icr me
last four mcnhs There was but one way whereby the
honest legitimate manufacturer in the West could carry
on his business and that by putting the tax az such
figure not to offer an enormous premium to fraud
Mr. BUTLER rep Mass proposed @ to rGdes tG hrnS TAX
the tax whisky to about 40 or 5 cents This be sdla no
Mr. ALLISON dSep, Iowa. favored So cents.
Mr. GAkEtELR ,a eP 0S ISgoTed 1 d 90 cents
Mr. pr PRUGN S pe5 Dem NY n ~ th9usht that his colleague
Mr.. JUDD Gep, M favored the proposition Of his
colleague 0ngersol to fix the tax at Is cents 1t was
perfectly evident that the s. tax had not given the Gov
ernment more than fifteen cents.
Mr. SCHENCK rep, Ohio said that the Committcc on
Ways and Means would be perfectly satisfied with any
MessTs Harding d2ep.. ND, Logan rep, IN, Miller
Rep, PENN, Farnsworth CRep, NJ, Pile Rep, MOI.
Highly Rep, Cali and Eggeston tRcp, Ohio urged re-
ductiOn of the tax, and
Mr BOUTWELL, tRep;, Massl opposed reduction be-
that Illicit distlaon could be suppressed cycnf the tax
in reducing the tax below the revenue necessities
country until at least another effort has been made 20 col
the next administration. lie recommended the scpara
ton of disation for ordinary consumption from the
business of diStling for export.
Mr. sCHENCK warned the gentlemen to take care lest
in underbidding each other the tax should be pnt at
He believed that with the tax Fixed at so cents could be
collected
Mr.. CovODE rep, PENN favored 40 cents
Mr. ARcHERtDemy Md thousht that Il nc energy
been displayed IN whisky Investigations the tax OF 81
could have been collected Instead OF reducing the tax
whisky Congress should take measures to enforce tho
Mr. WOODBRIDGE Dem. VI moved to make the
81 the ground that whisky article OF Injury,
and should bear the principal burden OF taxation.
Mr.. ORTIZ tRep, Ind favored areductiOn.
Mr.. STEVENS rep, PENN thought II a matter OF very
little consequence whether the fixed cents
g. because in the former case not uefourth Of tho
would be collected aud in the latter than
one-haf He believed the true way OF collecting the
whisky by estimating the capacity Of the
dstilery ard he recommended the Committee Ways
and Means 20 devise SOME plan for that purpose between
now and next session.
The debate having been closed, the Committee voted
S5 cents. Mr.. HOLMAN proposed 20 cents Mr. BROOM
ALL, 81; Mr.. BUTLER. AZ cents; Mr.. HARDING, As
feeeea rsRs Dr. MULLINS 10 cents ana e"'H proposition was
Then the vote was taken on Mr.. Van wyck's amend
ment to x the tax at so cents gallon and was agreed
MT. sCHENCK moved to amend the first section by
adding the words before removal from the distIllery
warehouse except otherwise provided by this act"
fore removal from The warehouse
Mr.. JUDD tRep, ILL., opposed all exceptions on the
lowed to be withdrawn for expectation without paying
the tax. enormous frauds would continue TN 10 be pespe.
trated The tax should be paid on al whisky, ana
drawback should be allowed on that exported
Mr. SCHENCK defended his amendment.
Mr. BUTLER contended that the TAX had 70 be paid
at the dlslery the export trade would be destroyed.
Rum absolute necessity for the trade with Africa
After debate the question was allowed to stand over
until the warehouse sections are reached
Mr. ROBINSON Dem. n. " moved 10 amend the first
section by striking that part Of tine penalty for Illicit
dstlat0n which makes the tax lien on the laud where
the distillsry Is situated
Mr.. sCHENCK opposed
The amendment rejected.
Nj. JOHNSON Reu.. CALI moved to make the
grape brandy Is cents gallon Under the present law
grape brandy pays & onea d1 tnS tax Pa
wears enable California 10 compete with Europe IN the
sale Of wine and brandy aud thus keep IN the country
the siOOOOOOO 100000 annually paid to Europe for
Mr. sCHENCK said II WAS not through any oversight
on the part of the Committee that the discriminaon IN
OF grape brandy had been omitted There wasn
reason why IL should be made There was now tarhcf
g. so gold foreign brandles and that certainly
affords protection enough TO the domestic article.
The amendment was rejected.
Mr. HIGBY moved 10 make the tax on grape brandy 80
cents gallon and 10 provide penalties for initiating IT,
Mr. ALLISON moved to exempt vinegar.
LOCAL TAXATION OF UNITED STATES BONDS
Without taking vote on the amendment by special
pcech on the subject OF the local taxation Of United
States bonds arguing that If the power were fully and
tie bonds secarcely any would be derived hererom
Counting out the ye Per cent o0nds about whose taxa
bearing bonds is 100000 but OF this aggregate IL is
known that least are held IN Europe, eav
ing bur 81 100000 in this country to which taxation
could in any event apply out OF TINS II more
Banks and no form Of property pays large local aud
general these banks. Beside paying full local
tax the highest rate. they pay tax to the General
Government amounting to three per cent annually. De
ducting tins S42OOOOO OF bonds we mud Dn sS2SOO0O
not taxed; but of this vast sum The savings
banks hold investment for their deposits,
and these deposits receive no exemption from taxation
by reason of being in United states bonds This
then reduces the total Of the untaxed bonds to
jOOO0O0O; but this sum is to be further reduced by
$50 900 held by the life insurance companies and still
further by SIPS 100000 held by the fire and marine
anCe companies. the annuity aud trust companies and
these investments IN bonds by Institutions aud corpora
tons give exemption from taxation aud the sum total
Of the per cents are IN the various channels
OF investment lie had named, aud 1t followed that
cents IN this country go untaxed to-day.
Mr. Blaine reviewed st some length the prOppsi.on g
contended that such step would undermine our credit