New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-12-06

duction and consumption OF distilled spirits hn 70 &
bt the fact that prior to the law Of July 90 1905 INC
did not collect tenth part Of its tax on us
s. JAW 20 1883 and prior June &c. 1859 period Of
eleven months the nancer Of ga'os OF Splits 'o"~S 10y
tax gi from fruit during he sane period Si7H
Total IN which the tax was collected ........... S75757s1
during period sni remaining in bond July o.,
Sh 8ng !. PPhe yesTy rate Of So To S gallon.
The folIoWing table shows the receipts for distilled
spirits aud fruit brandy for the four years ending June %
se Brand, Yea, H 81, sT 5ts "a sa RTISsT 2.
These figures show simply the gallon tax. They do not
include the capacity tax the special taxes Of dst
lers recters liquor dealers &c S e o. sfs When i
was reduced to so cents. IL Is not DeleNeu however,
that for the year ending June 49, 1902 tnG YAK mas 0ee
collected all the spirits winch have gone mo eonsup
tOn that all manufactured, on wlch the YAK was 9n
collected have been placed N oosdea anu
verify the accuracy Of tins opinion
REsURVEYs AND CAPACITIES OF DIsTILLERlES
According to the plan OF surveying dstilleres orgi-
nally adopted by this bureau the average fernenng
Grated under the law Of July 90 1865 by TINS plan so
dsteries These dlstleries have total lDashlng ana
fermentng capacity of 16O155 bushels of grain ~ "a
hours and spirit producing capacity OF 473666 gallons
for the period The number OF these, olsul'
leres now in operation is 444, with producing ca
pacty of 24S4iO gallons each "a hours when op.
Grating 10 their full extent. The number now un9er
temporary suspension is 42O. with producing capacity
of 25O252 gallons each "a hours OF these 1t Is est
mated that at least so per cent viii renew operatohs
nave resumed with the approval of the Government
since the 1st OF September last Having become con
WINGED that the average fermentng period heretofore
established was much too great. and was means OF
fraud upon the have ordered resnrVey Oh al
crossing upon the foryeght hours for the aver
age fernenng period, which 1t j. believed Is sun @
time though, under necessary circumstances ana CON
ditions longer time may be given by TINS resuNey .no
following result is obtained Inc present 0
s6i distileres at 70 hours fermentation Is 45I6o gar
Ions for every "a hours. BY the resurvey AT 4o noul
fermentation the capacity for each - hours Is es'p"e"
The present capacity Of the 444 dstleres now opera
ting, at 70 hours fermentation Is SSH gaCns os'g
as hours fermentation 3So6 gallons or an increase VI
lO 6G6 gallons for each "a hours inc per cet oi WILL
i'm capacity by the ystem Of survey, is 43OO Nhe
this action believed TO be just TO the manuactuer
expected to work large increase OF tne revenue ny
preventing evasiOns OF the tax aud III many INSTANCES
positive frauds
The practice OF allowing Spirits when taken out OF
bond to be regauged order deduct the difference,
under the title leakage, between tne qnahy sauEea
out fruitful source OF fraud Ihs once Is IN
possesson of showing that the Government mas
heen generally and almost Systematically cheated by this
practice Measures have been taken which IL Is hoped
y result i'm recovering some OF the losses thus sustained.
In view of these facts and with clear conviction that
the act of July 90 1863 abolished all PROVISIONS IOr lek
the proper construction spirits previously made and
placed bond longer subject 10 deductions IOT
LEAKAGE this office issued an order the llh Of April
last disallONing leakage in cases IL is believed that
this regulation works no injustice 10 the dealer "he ~
saves the revenues from fraudulent depletion
consumption of distilled spirits we are LEFT TO the neccs
sy OF conjecture Were to express an OPINION on ms
subject should place the amount at not less IMAM eghty
millions of gallons This quantity II the TAX were COZ.
lected would yield revenue OF not less IMAM ntttwO
millions OF dollars. basng the estimate ON the HYPOTHESIS
that the entire tax spirits equals sXtyve cents per
gallon The best consideration nave Ieeu dpo 10 Eve
This subject has brought to the conclusion tha after
tue present law taxing spirits mas been Drought INTO
COMPLETE execution and such amendments have been
made as time and experience may demonstrate to be
necessary 10 perfect the system WIN yicn h %nSma
of these probabilities. 1t is submitted whether 1t VIII he
wise or expedent for Congress to change It's legislation IN
any essential particular as 70 lle ~ ~ ~, ,o
collection OF the distilled spirits unt iurhef Tune
shall be given 10 test the merits OF the present law III all
OF its important provisions.
TOBACCO.
Referring TO the comparative statements OF receipts for
different periods so far as the same relate to tobacco
have say that during the first six months Of the fiscal
nerod for the year ftysN per The loss
on chewing and smoking tobacco for the same period
articles under law Of July 20 1863 not being realized
until after January 1902 while on cigars the appreca-
law The number OF cigars returned for taxation during
the last seven years Is as follows; ,,o,.,,
1855 at an average tax Of ; 10 per OO....... C5zOsg
100 at uniform tax Of Per VG 3 S't5 so
CO., e, a, an a', - ~ = 49, IN, go gfs 0sI
68 at uniform aI 81 = Rs, 3 '''''''''.'' S IS i
vii h. Seen mat dUng 1850 when the tax was ut
uniform rate OF $40 per lOO only 37443oi cigars were
returned for taxation While under the present law there
returned for the 1859 nearly three times The
be Amount Of fax collected on cigars for the fiscal year
ie9 was a. OK cTa i'm IsC IN was 81 48s showing an in.
crease Of revenue article 1869 1885, half
the rate OF taxation OF l,4s32n.
since assuming the duties OF this Office much time,
labor and expense have been bestowed the prep
araOn OF suitable stamps FOR the collection OF the tax on
tobacco. An entirely set " stamps has been pro-
vided greatly superior 1t Is believed. to any Internal
Revenue stamps for tobacco previously issued by the
Government. A stamp in serial numbers has been
adopted for plug tobacco adapted for all packages OF ten
pounds and upward This stamp Is prepared with STUB,
and the regulations require Ia ITS use, the name OF the
collector who sells IT, and tla OF the manufacturer who
uses it, be written thereon, and consists Of seven de-
nominations follows: ten pounds. fifteen pounds with
nine coupons twenty t~eny-ole TWENTY-FIVE, tNehly,
three, forty aud sixty pounds These stamps nave been
prepared with much skill possible by the engrayer.
with the view Of protecting the Government from imta
tOns The former stamp for plug tobacco OF ten pounds
and upward, is known 10 have been extensively cOun-
teIfeod greatly ohe loss OF revenue The stamps for
smaller packdg or TOBACCO nave also Dee chahHsd 10
prevent far possible, fraudulent limitations These
improvements found TO be necessary ana have thus
lar aided I'm protecting the Government large extent
though it has not been possible to wholly defeat the prac
am Of the opinion that it will be unwse to make any
material change in the present classification of tobacco
classes Manufacturers aud dealers rapidly becoming
accustomed to the terms and requirements of the law,
law as 1t stands than 70 change to any system
OF taxation collecting the necessary amount of revenue
amendments improve the efficiency OF the law, which
been prepared IN this Office may be deemed neces-
you, 10 Congress when required
REVENUE STAMPS.
The following table is submitted, showing the net
ceips from revenue stamps from March to October liz
clusive' for the years 1868 AND sd 1909; ,seo
Marcb....................Si2 5OUgD % SiGo2Gi8 20
Awii............,....... l463 33 % l,4BgGt
Observation-Disclosures. l2JOEB u l,f65J33 %
Juue..................... lll5G0 So lJF0g7 -
NEUTRALITY-SUSPICIOUS.. 1890 sy - 12B.N7
................. lIJ37bg % l.2l6, l56 %
Srptsnber................ ll6J5J A L25O5fJ u
October Accommodation. lJ61OJJ 80 l27l,Nf 80
Total. go. $50. l5l 81 Sl0.7Jg89G IS
This shows an increase IN revenue from stamps during
this six months. of nearly million dollars This in
crease though considerable is by reckOncd
satisfactory. IL has resulted mainly from the policy
this Office IN April last, requiring all stamps 10 be
placed OH the instrument Of writing IA to exhibit the
tire Of the stamp and prohibiting the practice which
had obtained extensively Of covering the supposed half
OF stamp by the attachment Of another when in fact
the stamp was cut in and onehaf used to represent