The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1870-11-30
prpcpr OF COMMISSIONER pELANo.

The Commissioner recommends NO
change of Tax on spirits. md that
tho Tax an Tobacco be Made Cns-
ror,u-The Use Of Spies or Inform
n,s sner.!e; be n.scontinucd-Thc
y,rcc, r.and Tax-AnoshccaEscs.
w,su,yGroS, Nov. 21,-The las! Off
.j,l act of Mr.. Delano as Commissioner Of
jr,crnal Revenue was the writing of his
.,nrusl report. The following abstract
.oftaius the important features of the re-
port: -> 49,.
OFFICE OF INTERNAL REvESUE,
v ASHISGToN, Get. 81, 1907
Tho total receipts for the fiscal year 1870
are sis, 9&S S6,.9 The total receipts for
lie fiscal wear 1869 were $l60,03, 344.29;
,Gnwing net gain OF SO, l96, 52S6S. Is. ..
The following il q comparative statement
80 The sources OF revenue !: Spirits, in
,.,o1>c. Slo,3n. 1914; tobacco, s.. 920, o0o.-
y ,rrmcntcd liquors, S2l9,%T SO; banks
,r6 laukcr>, 81. 04. 1916 gross receipts.
si0} sol IL: sales. S6&0. 1924 Spccia! taxes
ma, elsewhere cnumcrated), SSl9, 505.a3:
;",rlac including salarieS), sos, 0l..TS;
I,.1,.jt.>, 1927. - 81; SUGGESTIONS, $780,
~; 81: articles in schedule 4, S245S1 Sc
,ss>nlrtS, decrease, S6,697 gas, increase,
80, All 80; sources not elsewhere enumer-
trt, decrease. S556, S73.6S: penalties,
~i1t, G23& o. total increase, So, sos, 2IS. 43
decrease, $Gl2..I.I5. From one of the
lai,ic, it appears that there has been con-
lemons increase in the receipts from eX-
else tax from June so, 1860, TO June 30,
:>-0, #rs.recating SO. ig6. 523.6S, and aver
aclng ior each month s, 099, 1000.
There is no iusurmountable difficulty in
enforcing our excise laws, and a proper re-
lard e. The qualifications Of revenue officers
iar ability and integrity is what is most cs-
.,.ntiaI t. secure the prompt and certain
.a},~ction of internal taxes. The employ
,nyn, of spies and iuiormcrs, and the policy
&! uaync moieticS. if they were ever useful,
are. il NY opinion, no longer necessary. l
fn;uk The revenue service would be im-
proved hy disseminating such aids. The
i,irpv$ now termed detectives should be
continued III the service under the designa-
J.ua Of assistant supervisors.
>pirIiS.--The number Of diStilleries other
lban fruit. registered during the last year,
!. 80: number Of fruit distiIIeries register
I'd. y l2U-t0,al. $3.50. The spirit-producing
csparity uithr registered dislilleries for each
~ hours. rs asccrtaincd by surveys, is as
follows From grain. 159, 3I1 gallons from
maiassc., -, sos from fruit, 126.271 total
,iaiy su:rlt-producin@ capacity. 9lQ, DOL. 1t
ali be seen THAI il the distillerieS other than
f1,i, were operated to the full extent Their
,.#racity for Il period often months through
oil, the di>t!iiu@ season III each year, tney
are capable of producing 203, 9l2. 500 gallons.
G,Its quantity. however. is largely in excess
If orr cunsumutlon. which i estimated at
from 7J.GO0, eco 10 S0.000.0G0 Of gallons.
The best information which this office has
ben able 10 procure on this subject III
fn,r- tie belief that all distillerieS. other
han fruit. are operated for about SIX
months only. and for that period they are
moi run 10 the full extent OF their produc-
jn,rapIcitY. The returns to this office for
the last fiscal Year show total production,
in taxable gallons. from material other than
,lli.t, Of Il .3jjI .039; from fruit, 93S,2 POI !;
iron. fruit not Yet returned, but estimated,
ilD.m~-,otal yearly production, y, 4s3, 33l
.,.Nyas. The quantity of spirits IN bond
inv I 1869. was IG,GSj.tGG gallons; re-
,,.:njr,, ia bond June 80, 1870, IL ,GS2. Abs
,".,IYn,. judging from the information in
T,...r,.;nn al this Office, there is no reason
;,,. believing that there will be any Mate
,.;.,l FILLING oil in the production Of spirits
.s,.rirv The current fiscal year. The plan
d.! surveying di>tiIleries on the basis OF a
!oriy-ri@nt hour lcrlnentlng perloutof sweet
mash, to which attention WAS called i'll my
l.,>t annual report, has been iullv carmel
sl Z, =
ana advantageous to the Government. The
-.~r. instituted regarding spirit-metrcS have
Ipl vet been completed, and will be made
ftc ,ufirrt of = special communication 10
Congress hereafter.
III, Present Lar as 10 Spirti5.-fhc cX-
r,.ri.llcg Of the past year has served 20
strengthen my previous opinion as 10 the
iuuolicY OF changing the law taxing spirits,
and induces Inc TO repeat the recommends
;i,n ~ nv last report that The rate ol TAX
.,nI the. manner OF its collection be !clt as
they are now PROVIDED LOT. / ne ,t co y
EruIu this source for 1870 are SJJ.JSl ,o99.lS.
Time and experience seem to declare 1t to
Ia. rIn,yisc and IncXpedient to change the
law in any essential feature.
yohGcc0.-i he receipts for the last fiscal
veal. from tobacco are S3l .;oO, .Vi.o rO1
line. preceding wear they were 80, i"1, 'oi 10!
showing nm increase OF - ,920, 0J0.31. This
increase Of nearly i, 600 has not been
>,a>Iuo,iir. but regular monthly increase.
.,y.r,,srr over SIT, 900 per month. 1t Is TO
lac observed that the late crop OF tobacco
qa> IN inferior one, owing TO general
,i,outn in MANY OF the toGacco-%roWlnS dis
tfirl>. Notwithstanding this favorable eX-
hihit. | desire 10 direct attention partlcu-
la!iy Ia SOME defects in the provisions anu
r,>eIationS OF the law taxing this crop.
Commissioner Dclauo then makes gem
rr,,l statement of the inequalities OF the
,,rr,cnr law. gives arguments 1t some length
in reference Thereto, and his reasons for the
result lis Investigations have reached, ana
SAWS: ana satisfied that there is but one
t,In,t,y Tor the frauds pcrpetrated under
This head, and that is to make the tax on all
descriptions of tobacco UNIFORM. Less IN
,uqi:tv would then exist under L tax OF ~
., ncr pound than under the present
,.,t.s There seems 10 be no good reason
wt,. rfnr6 should be two different rates Of
taxation on articles oi equai pEice anu
,,,I,,c S,mDly because one Is USED Tor
,,m"lint and the other for chewing. Why
met reverse The rule, and place the larger
tax rnon smoking tobacco and the lesser
uunn chewing: The Commissioner seems
- ice in doubt regarding he Intention OF
the. law III reference to the 32-cents-per-
r,und LAX on tobacco made by hand, lie
saws: III il was the intention 10 TAX all
tobacco even the raw leaf, II sold LOT I'LL
mediate consumption, / would recommend
that the law be made so explicit as 10 re-
move all doubts on the subject; but II, I'M,
der no circumSt LuceS, tax Is TO be assessed!
upon raw or Leaf tobacco, even Wnen solu
directly to consumers, then would recon-
mend that al equivalent for the specific lax
on the product be imposed upon the dealer,
IL special tax, whenever he sells directly
10 consumers"
The law authorizes the Commissioner OF
Internal Revenue TO designate and estab-
h,h, II anv port Of entry in the United
States, bonded warehouses for the storage
d manufactured tobacco and snuff in bond
IN tended for expectation at the same Tune
il Authorizes the collector in charge OF oX-
ports a. such ports to issue permit for the