The New York herald., 1868-01-08

names Of Deputy Coscto and Assistant Assessors who
in response 70 resolution ossrsS q Sy n. Hopkins. Re.
fsrred % the COMMITTEE on Appropyasisna
Also oomnSnicasi0n. nom che Secretary Of wss ID
iNter{@ - folows:-With Communication from Judge
ksssss s.s. Ssls vs.s;s s .e sss se%pss:
ssson Tor hasasdcgs services during the war Rsfsrsd
With draft Of joint resolution for The sale Of Chat
tsnoosa rolling mill property at Chattanooga. Tenn.
WITH pOs. q sSs cssf Engineer rssS. % bill
for the relief Of the Terminal Central Pacdc Railroad
with report Of the ONCE Of the ousrtsrmassrs De
parsmens relative 70 Southern railroads. Referred to
select committee on Southern Raroads
REGENTS OF THE SMITHSONIAN nHrrUrn.
Tne SPEAKER announced that he had appointed heses
Garneld Of Ohio Poland, Of Vermont and Pruyn, Of
New York Regents Of tho Smithsonian Institute for the
The Senate joint resolution for the appointment Of
D. wolssy, OF Cincinnati; W. b Astor, Of New York
Mr.. Mclean, Of New Jersey, and Peter Parker, Of
Washington, was taken from the Speakers table and
passed.
MR VAN WICK on TEE cExsUR or THE PRESIDENT
Mr. VAN Wick, (rep) Of N. Y, rising TO question Of
and in tS. co. as voting yssterdax assns. the rssou
ton 10 censure the President He had not been present
when the vote was taken II hs had been he would
have voted In the Affirmative.
BILL FOE PREVENTION OF FRAUDS IN THE COLLECTION OF
THE wHsKEY TAX.
WAYS and Means REPORTED ! bi to prevent frauds in
the collection OF taxes on distilled spirits: He said
that in advance Of the general action Of the
mittes the subject Of the revenue laws and was re-
ported Of the conviction that this was point
on which immediate action was required for the best
The bill provides that from and after s passage NO
distilled spirits in bond shall be withdrawn removed
from any warehouse for the purpose Of transportation,
redisation rectincaton change OF package sxporta-
ton or for any other purpose Whatever until the full
tax such spirits shall be duly paid 70 the collector
Of the proper District and repeas all acts and parts
OF acts inconsistent with IL.
Mr. ScHEscK addressed the House in explanation and
advocacy Of the bill. He said the bill virtually does
with the bonded warehouse system Tho effect or
will be- In the first place. to release egmaely II ever
all the distilled spirits now in the bonded warehouses
OF the United States We have ascertaned that there
are about four hundred thousand barrels amounting TO
twenty million gallons thus locked up On this twenty
million gallons the legitimate tar would be 000
There therefore, $40 900 in waiting to be
paid which may may not ever be paid, depending on
houses The effect Of the b will be that the bonded
warehouse system will run itself ou or, 70 a use O
familiar illustration go dry" on the removal OF these
successive lots OF whiskey and the payment OF the
taxes them. Then there Is another class OF ware
houses-warehouse A--at the distery, from which
whiskey hereafter made and subject to taxation be
removed until the is paid, that virtually there
will remain warehouses at the distlery and those
Sniy containing LIQUOR on which the @n wii 90 PAID
causes which have led the committee TO propose these
reforms in the law at this particular time, and in ad
vance OF the general action aud report on the Internal
Revenue law will state this: We found that very
large proportion Of the revenues OF the country ought
to be paid from dstiled spirits. We found that the
quantity OF distilled splits produced in tho United
States Is variously estimated Dstilers who want TO
reduce the Tax to wsnty-hyS cents say sna there are
Others supposed reasoning from data and information
which seems to be reliable, that perhaps eighty ono
hundred millions would be the whole amount OF the
production. The Special Commissioner of Revenue is
satisfied that thore are ut this time no more than fifty
million gallons produced subject TO taxation. Prior
the war it is known that about ono hundred million
gallons wero produced but very large proportion OF
that was used in The arts and especially In the manu-.
facture Of various burning fluids Petroleum furnishes
the basis which these articles made and 10
great extent has done away with the production OF
distilled spirits for that purpose: and, the other
hand, satisfied that the production Of whiskey
for consumption by drinking has increased since the
increase the tax. However shat may be- put It q.
tho lowest amount and suppose tnat only ny million
gallons are produced properly subject to ax that guam
tity should produce revenue OF one hundred million
dollars. During the years 1865 and 1867 received
little short OF thirty millions each year. We received
about twenty millions last year. and the receipts
have been running down sinoe that time until now,
whom perhaps fair estimate that do
snan oneenth part or the tax which ought TO
country. Tho occasion Of this is that under tn ,
present law such enormous frauds have boen
committed that the lay a. present sought to 6s en-
The first reason tof which wo have abundant proof
in our committee is want Of integrity, Of character
and Of honesty In the subordinate agents Of the
government scattered through the country who
CHARGED with the collection Of the / have
become perfectly satisfied, from long investigation
fraud Committed no evasion OF the pay ment or the
revenue distilled spirits that would materially affect
the revenue in any instance except 10 be done with the
connivance OF some ofciaexcept be done by cou-
between him and the party interested in the fraud
The is that instead OF men being selected be-
Of their integrity their capacity their fitness from
intelligence and knowledge for the places which they
selected from other motives and their Recommendation
springs from other canses or course there many
honest exceptions but speak OF these agents OF the
in the gross. But how the frauds be committed
with the aid Of dishonest officers 7 We found
Investigation thar most of the fraudulent practices,
although they multfarious in their character may
bo summed VI claggas .--Da0 OF these
practised to remove candestinely distilled spirits
between the time they pass through the worm OF the
dstler and the time when they should be deposited in
what known as warehouse A. being the warehouse at
the dsey where they are to DO accounted for for the
purpose OF taxation. Fraud 10 committed here In the
night by having duplicate keys the receiving
containing the cisterD, by hiring tho inspector 10 be
things carried by those Interested in doing the
wrong But there Is another very large class Of frauds
committed under opportunities afforded BY this bonded
warehouse system, and they excessive gone
raj affecting materially the of the country
became satisfied that in this particular
the law ought TO be amended, and at amended.
vas Instructed by tho comm4ites TO report
upon that point immediately bill to correct
The The evil that o., Tar. even IN snticipanon Of
general report with bill covering all these matters
nected with the internal revenue system Those frauds
have extended far tnat they have practically resulted
In preventing any legitimate disaton. rather any
di5tillaton by honest men, We make distinction be-
tween what In called legitimate distillaon and Illicit
distillaton There arc Illicit establishments on sm all
scattered through the country In the cities OF tho
South and elsewhere producing whskey the product OF
which is intended 70 be 10 the officers
OF the law. But even the whole aggregate production
from this quarter has not think, very material
effect the revenue OF the country. II Is the disa-
ton apparently legitimate under license At known
establishments, whore The officers Of the law which
produce whiskey which the paid 10 the govern
msn that has caused whskcy to be brought down below
tho possibility OF anybody competing in ts production
who pays his taxes regularly, ~ he ought to do
One OF the by which this Is done
by taking advantage Of this bonded warehouse system
When tho whskey Is removed from bondcd warehouses;
Mt the dstifery IL 10 removed under transportation
bond from that point TO DO reported to collector
some district at distance and there accounted for
Does u always get there2 Very frequently not Mr.
Schcnck went to give illustrations OF tho mode In
which frauds committed by transportation In bond.
Mr. HUNTER. trepl OF Ind, addressed the House for
time In favor OF measure which he had already
introduced, and which he explained to the House.
Mr. ScHEscK moved the previous question, and under
Its operation the bill passed.
THE KENTUCKY CONTESTED ELECTION.
Mr.. UrsoS, trep) OF Mich, from the Committee on
Elections. made report the contested election
from the First Congressional District of Kentucky clos
ing with resolution that Mr. symes, the contestant
ol nj ba md fhaf Mr. NJ ho