The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-11-29
INTERNAL REVENUE.
Operations OF the Last Fiscal
Year.
How the Taxes Have Been Collected-lnorease
Of Receipts-The Whiskey Tax sstisfactOry-
The Tobacco Tax-The Warehouse
System-Compara.iv Receipts
MIR. DELANo's REPORT.

year ending Both OF June, 1870.
THE RECEIPTs EXCEED THE ESTIMATES BY TEN
MILLIONS.
The Commissioner says:-
The estimate submitted In my annual report for
1859, OF the probable receipts from internal revenue
sources, exclusive Of the direct tax upon lands and
tional banks FOR the fiscal year 1870 has been more
than realized That estimate was $4,000, 900, and
SO, 2s5,so7 Beyond the estimate this aagre.
Ssss ans coscIed amounting to Is
well as the amount OF commissions OF collectors.
u nss M 81 On
limited BY the act Of March 81 1888 70 ALE and pa.
tent medicines, amounting 70 30 10Y. me amcn 1
| drawback on rum and alcohol Is not considered In
this bureau. The total receipts for the nsca year
1870 $685. Se Tho total rcceps for the fiscal
year 1889 were sleo oss, s44-showing net gain Of
SOURCES OF REVENUE.
The following s comparative statement OF the
$40 SSS 1917; tobacco, s7s2oo0o; iermented liquors.
ceipts, s6ss sol sales $osO'sss speca! taxes tn.t
sSsss sarss sGees sf "a Schedule ss
s24.6st; passports, decrease, $e6o7 gas increase,
$197, All; sources not elsewhere enumerated, de:
stamps. Increase $l2s total increase ss 27s;
decrease, sel2, 764 From one Of the tables it APP
the receipts from excise tax rom June 49, 1859, to
June 80 $50 agslsgssans sa5,iss o2a and averaging
~ TS here no ns1rnoanabie dcuity in enforcing
cations Of revenue officers fer ability and integrity
so %:s y s e spo
ment Of spies and informers ana the policy Of pay
ns % nS aey ever ,ha IN my
| service would be improved by disseminating such
aids The officers now termed detectives should be
continued In the service under the designation OF
assistant supervisors
DIsrILIERIEs.
The number OF diStleres, other than fruit regis
tered during the last year is no; number or irult
dstilleries registered, 2.120; total 1890. The
apaS Of the e a
by surveys, is follows:-From grain. gal.
lons from msasses 24,eo3 from fruit l2o 271 total
daily sptritproducing capacity, ol05 IL Will be
seen that II the dislilelies other than fruit were
operated to the full extent OF their capacity for a
! son in each year they are capable Of producing
| 2O3, Oh, 500 gallons This quantity, however, Is
mated at from Is, 100000 to so,oooooo Of gallons
The best information which this office has been able
On thus suoec. e eeet s a
not run to tho iull extent Of their producing capa;
city. Tie returns to this Office for the last fiscal
from material other than fruit Of 1881, ooS from
gallons. the quantity q spirits in bond July ],
june june 80, 1870, mSss AS gan ons gng rom
the information in possession Of thi. oa lce
no s'era fo6 Da WI in na5 ~. mere
duction OF spirits during the current fiscal year.
The plan Of surveying dstillerIes on the basis Of
to which attention was called In my last annual re-
port has been fully carried ont and the results are
ment. The tests Instituted regarding sprit-meters
have not yet been completed, and will be made the
subject or special communication TO congress
THE wHrsKEY TAX SHOULD NOT Be r.. altered TERED
strengthen my previous opinion as to the lmpocy
changing the law taxing spirits and nance me
the rate Of tax the manner Of its collection be
left as they are now provided Tor. ~. the receipts
within $4,5oO,ooO of my estimate. Time and ex-
perlence seem to declare 1t to be unwise and mex
pedient to change the law In any essential feature.
INCREAsED RECEIPTS FROM TOBACCO.
The receipts for the last fiscal year from tobacco
ES ne e yss tnsy
increase OF nearly 900 600 has not been spasmodc
but regular monthly d increase, averaging over
WIN '"A - THE WAREHOUSE SYSTEM
Mr. Delano details some OF the evils arising from
the tobacco warehouse system, and recommends
that the law be 80 amended az to allow no goods
entered for export In bonded warehouses be with
drawn therefrom for consumption, upon payment
Of tax, until twelve enmaeo months from, nom the
time ay ne goods wond be
| entered except such as were actually in.
tended for export, and the privilege Of Withdraw
ing for consumption after twelve months would re-
iieve parties who having entered goods for export,
failed afterward to export the same. Should it be
permits for the withdrawal Of goods the payment
| OF tax are not to be issued by the Col
oa to soosS
warehouses at other places than at ports OF entry,
giving such facilities for bonding ana equal time be:
Cities as are now enjoye1 by those doing business In
the cities mentioned, where export bonded ware
| hOuseS are located.
ANTIQUITIES IN LEorsLArroS
Mr.. Delano calls attention to defects, antiquities
and contradictions In the act OF f4t July 1870. He
says:-lt is believed to have been the Intention to
retain all the taxes imposed upon sales OF distilled
1858, and acts amendatory thereof. SecIlon OF
the act OF July II, 1870, nevertheless repeats the
Sx upon o sales nrn Of % M sec9qu It
collectors to remit at any time prior TO
August 1921 al penalties s5s for Issuing nstra
with fraudulent intent; but, owing to a change
made in the bill as reported BY the Senate Finance
Committee. the letter OF the law is such as to post
pone until August. 1871, the relief which was de-
signed to be immediate. Section II PROVIDES "that
sections l2o III and l22 OF the OF june So 1854
therein mentioned TO August /. 1870 and no longern
Section 10 provides "that there shall be levied
and collected for and during the year 1871 tax OF
two and half per cent on the amount OF all in.
terest on conpons paid or bonds or other evidences
after date by any of the corporations IN this section
hereinafter mentioned, and the amount OF all divi.
uendS OF earnings, income or gains hereinafter de-
clared by any bank, trust company, savings ns,itu.
| ton, insurance company, railroad company canal
| company, turnpike company, canal navigation
| company and sackwater company whenever
and wherever the same shall be paya-
| ble and to whatsoever person the same
may be due, including nOnresldents, whether citi-
zens or aliens" IT is believed to have been the In
tention to continue the five per cent tax until
August !, 1870 and to substitute tax OF two and
half per cent therefor on and after that date; but
owing 10 The peculiar language OF the statute tax
| can be withheld from coupons falling due during
fhQ nf lnV
| to recent decision OF the Circuit Court,
In the state OF Pennsylvania, no tax can be
withheld from dividends, coupons or interest
payable during the first seven months OF
1870, and corporations cannot be required to
| pay any taxes upon the dividends payable
/ during the remaining five months. The right to
/ withhold a tax from the salaries Of persons In the
CIVIL military or naval service of United states
during the first seven months OF 1870 turns als0
/ nOinfa I'm