The Evansville daily journal. (Evansville, Ind.) 1870-1875, 1870-11-29

The receipts from tobacco continue
to be highly satisfactory. The receipts
for the last fiscal year from this source
were $3l, $50, ,707200. For The pTeoed-
ing year they were $23 430,707 81,
showing an increase of 81, ,920. 600 81.
This increase of nearly eight millions
has not been spasm Odio, but it Is q
regular monthly increase, averaging
over $500, COO per month. The late
crop of tobacco was an inferior one.
owing to a general drought IN many Of
the tobacco growing districts.
The Commissioner calls attention to
what he thinks are defects IN the law,
by which great iniquities exist, and he
claims that there is but one remedy
for the frauds perpetrated, and
that is to make the tax on
all descriptions of tobacco uniform.
Less inequality would then exist un-
der q tax Of thirty two cents per
pound than under the present rates.
With this uniform rate on all manu-
factured tobacco, the revenue can be
collected with much greater facility
than at present. He Is also satisfied
that the honest and larger portion Of
the tobacco trade IS generally IN favor
of uniform rate or tax on all
descriptions and grades of manu-
factured tobacco, and while a
portion of the trade favor tax OF six
teen cents, large majority are indif-
ferent as to the rate, whether sixteen
or thiPty-tWo cents per pound, pro
vided the tax is uniform and
thoroughly collected, and the manu-
faeturer left free to manipulate his
product as he pleases. There are
fifteen export bonded tobacco ware
houses for the storage of manufao-
tured tobacco in bond for expor-
tation; these are all in eastern
cities, except one at New Orleans
and one at San Francisco. Repeated
applications have been made for ad-
ditional warehouses, but believing
that it was the design of Congress
not only to abolish the old system of
class bonded warehouse for tobacco
and snuff, but to limit the facilities
for bonding to such goods as were in
fact intended for expectation, and also
believing that the distinguishing
feature of the present law, and that
which made it radically different from
previous laws on the subject of manu-
factured tobacco, was the pay
ment Of tax by means of
stamps before the removal of
goods from the place of manufacture,
the Commissioners has denied these
for the reason that the
number of bonded warehouses already
established greatly exceeds that actu-
port trade. The whole amount of
81
512,529 pounds; Withdrawn for ex-
portation, 8.268, ,097 pounds; with
1rawn upon payment OF tax, 12,O06,- |
BIZ pounds. Oaly about two tifths |
Of the goods bonded are actually ex-
ported. The balance are intended |
FOR foreign markets. The fact is,
goods are shipped by manufacturers
IN. bond, and being stored, are con-
signed to Wholesale dealers and Job |
beTs, thus securing to the latter the |
advantage of placing the goods upon |
the market without prepayment OF
the taxes the law requires in all cases |
before the removal of the goods from |
the mandatory. By shipping these |
goods In bond, the dealers and job |
oers receive, on an average, from four |
10 five months credit. and as this |
privilege can only be enjoyed by deal |
3rs and jobber5 In the separate towns |
where by law these warehouses
are authorized to be established, |
it creates an inequality in the |
trade, preferring one class of |
dealers over others, and is
the source of much complaint. To |
remedy this inequality, and correct |
the evils of this system, l would re- |
that the law be so amended |
as to allow no goods, entered for ex
port or bonded warehouses, to be |
therefrom for consumption |
upon payment OF the tax, until
twelve months from the time they
were so bonded. By limiting the time
for withdrawal, no goods will be
entered except such as are actually
intended for export, and the privilege
of Withdrawing, for consumption,
after twelve months. will relieve any
parties who, having entered goods
for export, fail afterwards to export
the same. Should it be deemed in
expedient to limit the time before
which permits for the withdrawal of
goods or the payment of the tax are
not to be issued by the Collector.
then l would suggest that further au-
:thority be given TO the Commissioner
of Internal Revenue to establish
bonded warehouses at other places
than ports of entry, giving like facili-
ties for bonding, and equal time be-
fore the payment of taxes to whole
sale dealers and jobbers in manufac-
tured tobacco in other large cities.
The Commissioner calls attention to
defects and contradictions in the act
of July 18th, 1870, incident to closing
the labors of the session. 1t is be-
lieyed to have been the intention to
retain all taxes imposed upon sales
of distilled spirits, wines and malt
liquors by the act of July 20sh,
1868, and acts amendatory thereof.
Section 2, of the act of July 18th,
1870, nevertheless repeals the tax up
on sales of malt liquors. 1t was evi-
IDENTIFY the purpose of Section 5, to
empower Collectors to remit at any
time, prior to August 1st, 1872. all
penalties for issuing instruments, un-
stamped, unless the omission of the
stamp was with fraudulent attempt;
but owing to the change made In the
bill, as reported by the Senate FL
nance Committee, the letter of the
law is such as to postpone until Au-
gust, 1871, the relief which was de-
signed to be immediate It is be.
lieved to have been the intention to
continue the five per cent tax until
August, 1870, and to substitute tax
of two and a half per cent. therefor
on and after that date. But owing to
the peculiar Language of the statute,
no tax can be withheld from coupons
falling due during the last five calen.
dar months Of 1870. According to a
recent decision of the Circuit Court
| in Pennsylvania, in the case of the
Philadelphia & Reading Railroad Co.
VS.. Barnes, Collector, no tax can be
withheld from dividends, coupons or
interest payable during the first seven
months Of 1870, and it is further main
tanned that corporations cannot be
required to pay any taxes upon dlvl-
dends payable during the remaining
five months. The right to withhold
tax from the salaries of persons,
in the civil. military or naval service
of the United States, during the first
seven months of 1870, turns also up
on the point involved in the case.
The amount of tax indirectly involved
in this question is Sc, 100000. 1t is of
such Importance that | have not felt
at liberty to aequiesoe in the decision
of the Circuit Court, until it shall