New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-03-13

With view to TetTcnChment Of the expenses
of the Government in the reduction Of tho number ot
offices and intimately connected herewith increase
of the revenues much time spent in examining the
nature and extent OF the frauds In the nonpayDsnt of
taxes on whisky and tobacco how far Government OH,
Gals were concerned and what remedy should be recon-
mended.
Testimony taken before committee OF the AAAlAm
Congress, OF which the Hon. William "A. Daring wax
chairman was great yalne IN this examination il"
object OF This inquiry was not much to demonstrate
that frauds exist for every in the country knew
that fact-not much expose the guilt OF OFFICIALS,
that they might DC subject to the penalty OF pnpnc eS-
posture and the disgrace OF removal. Many had bOrno
with becoming meekncss and resignation the former,
when they knew there not the remoest danger they
would suffer the unpleasant consequences OF the latter
The President had abundant evidence in numerous caso,
| showing cOnciusively the unfaithfulness OF many
officers get they undisurbednot to detect fragrant
violations where individuals had amassed prncey for
| tunes by cuningly devised schemes! Cases or
that kind had been reported, yet not q single
criminal has been compelled TO disgorge tho
fruits Of his crime; not icn 10 suffer the pans ana
penalties OF the violated law Persons engaged IN Other
branches Of business aud all departments OF industy
paying honestly their taxes have been bewfldered In tho
contemplation OF the magnitude OF these frauds Inc
whole people know that great crimes were committed,
with the eonuysnce II not assistance, Of Goyernmcne
officers An honest payment Of the tax ON whisky would
realize t200O0OOOO, whereas but little over s2oOco ~
received that every sceand feel the enormity
Of these WRONGS With honest and efficient officers, this
tax could be collected They certainly know where every
dlslery is located, ana can know with reasonable cer@
tainy tho amount OF production Of EACH Willie, nom
defects In the system, frauds can be perpetrafed
without tho knowledge OF tho officer, great majority
are committed through such knowledge.
To say that all revenue officers dishonest would ba
unjust To say that the Secretary OF the Treasury ana
Commissioner of internal Revenue are at fault would be-
equally so for the President stands like adamant to
tect his friends IN Office and the Commissioner ana Sec
rotary are p0worless for their removal.
In districts blessed with officials whisky distii!
aton has almost ceased while in all the large cities 10
wonderfully increased Why is It that in the City Of New
York from 10 to ~ (which the number before 1901
di,tIeries have increased several hundred, when
whisky can be manufactured much more cheapy Nbera
the grain is grown!
Neither are all the officials The city districts dlshor
est but they stunned by the ring and nstiees aie
concentrated districts where honesty is an easy
virtue When whisky Is sold for 81 in the market docs
not every man know THAT person is engaged In tIo
manufacture intending to pay honestly the tax OF ~ OR
every galoni Does every collector know that lac or
his officials aIe guilty Aud do not tie authorizes an
washington know that all such officers are in completely
1 with dstillcrs
! Many frauds ere cOnsmpated through bonded ware
houses and the last suggestion holds good in that class
Of cases Few warehouses are located IN ls,eas @
they can store their whisky operate Their schemes '"'
A Collector must know that where millions Of gallons
nre stored in his district and It's value the market
less than " 90 per gh sc r every esdn and %
President must know that such districts aTe plaetrs
ed NO proci where heavy dstation Is carried on. and
large quantities bonded there the rogles harvest, sd
The conclusion irresistible that the present aw rom
inherent defects and Fraudulent execution - failure:
An the earnest and faithful eudcaYors " the secretary
and Comms have been without success, ami ait
( the wcll-inendcd zeal OF Congress has been equally
For three years efforts have made 10 collect this
tax each year the frauds increased the rev.
enue operators throughout have possessed moro
ability than Congress more slewdness lhan tne .ene
me Department. M sooner would reg9iailen ., tns
department act OF Congress be passed IMAM means
The human intellect seems far more inventive, aud
! skill far more effective. when 10 incentive Ia gain ~
added the chance Of providing security against "et'e'oa
Congress committed the as; great error when the tax
was raised s. per gallon 10y eNcmptng nom the opera
ton OF that law whisky then made In anticipation 9c
such legislation large quantities were mannia.tnIst,,
has since been defeated. That law, without aiding
te revenue neted 10 the operators from y to seventy
five million dollars Can wonder. when the necessary
effect OF an of Congress 10 organize and enneh
such men that they should continue 10 carry out wao
Congress inauguratod, That act Of Congress was or
sher benefit rather than the country. and they have
made act OF Congress from that day lnure 10 thr
benefit Congress can, therefore Wen be modest IN up
badine Others, when itself created and furnished mo
capital Tor those VINO now eio ~ Nsi,auee a SCI 30
defiance lis enacments From that one law the ring m
few months realized in profits more than the Government
Tho dealers OF course kept up the price OF whisy until
10 cheat the Government OF the tax on new whisky amt
that time has not sold In he market Tor 81 rang
! During al this time the people have been vainlY
hoping Congress has been vigorously legislang. the
Department actively framing rules Yet an has been -
ropes OF sand. Congress enacted thnti whisky sold Ter
less than y The purchaser must show that te tax ht
been paid. The price OF whisky immediately went down.
The best rectfyng houses, alcohol di.tilers and drug.
glsts everywhere honest dealesthat - honest as tho
law and its administration would allow them to becon-
menced it violation. What could honest reetiher ds
IN business paying -, when his reckless neghbor woult
pay only 81 Thus the Government actually fOlcoI
honest men into bankruptcy by driving them from mo
business into combination against the law, aud to do
I what they would otherwise scOrn 20 do
Many OF the best rectihers in the City Of NewYorR
frankly testified they were compelled TO eyade The law or
ng out fictitious bills the legal valuation, others SELL
ing at the fixed price and then making To te purchaser
present Of whisky sufficient TO reduce the cost 10 tia
market price. Officers contribute TO It's violation Tho
statute prohibits the sale OF conlscated WHISKY az less
Than So ii sOld for that II must be destroyd yet at
different sales by United states Marshals was Dhi on nc
81 purchaser charged with less than the actual
number OF gallons to reduce ts cost TO the market price
gent order that Iecelpt Tor me TAX sha1 accompany ar
sales. The ring. prompt aud fruitful IN resources, are
disconnected, the price OF whisky not advanced,
receipts become abundant and are sold III tho
market Is freely as whisky.
door large class OF frauds by enacting that NJ whisky
should be taken from Warehouses except on OF
the That Ike other expcdienfs was OF no avail ms
price OF whisky declined, and there was no increase IN
The revenues. New-York operator IN Washington ae
tell him how the law could be eyaded Ihe expert tod
him. received check for s ana ,ne 1sasr wes
Thus three years law has been Systematically
Al ieyi Satjon which defeats The purpose for which
designed drives honest from business, forces into
the Control OF The INSCRIPTIONS and deprayed furnishes
than, Immunity BY withholding punishment, 10 jns-
toe to the citizen and rcpioseh To me nation
ne.scs will illustrate I. iGreHo,ns propositions
Much . G%s sd ss % with gs lsU en-
Adjustments apart from ths distilcry. BY forging
inc but stencil plates aud the forgery cannot be detected
Remoys IN barrels by OF assessors aud store