The Plymouth Democrat. (Plymouth, Ind.) 1869-1941, 1870-12-08
Internal Revenue Report.

The following comprises the most i'm
pertant features of the annual report Of
Commissioner Delano:
The estimate submitted in my annual
report for 1869 of the probable receipts
from internal revenue sources exclusive of
the direct tax upon land and the duty up
on the circulation and deposits of national
banks, for the fiscal year 1870, has been
more than realized That estimate was
S175000,000, and the aggregate receipts
under the then existing laws are shown to
be $1S5, 235, S6197, an excess of S1O,235,-
367.97, beyond the estimate. The aggre-
gate includes the sums refunded for taxes
illegally assessed and collected, amounting
to $196,S09e1, as well as the amount of
commissionssof collectors. Drawbacks
have only been allowed on general mer-
chandise, under section III, act of June
so, 1854, limited by the act of March 81,
1868, to ale and patent medicines, amount
ing to 81, 1885. The amount allowed for
the sSne for 1860 was $377, abb. The
drawback on rum and alcohol is not con-
sidered In this bureau The total receipts
for the fiscal year 1870 are S1S5,235.97.
The total receipts for the fiscal year 1869
$3.50, O39 "a f20-showinga net gain of 49,
196,52S6S.
Comparative statements OF the sources
of revenues Spirits, increase, s1O,555, 1877
Al; tobacco, s7,92000031; fermented
liquors. S219,247, IS; banks and bankers
$1,G94, 194.61; gross receipts, 1898, S01.17
sales, $500. 555.94; special taxes not else
where enumerated, $S19,505.59; income
including salaries, $2,9S4,0 17.SS: legacies,
1927 1852; SUGGESTIONS, 1929, 1865; ar
ticles in schedule A, $24 SCI 3d. passports
decrease, $6,697; gas, increase, S197, 411.55
sources not elsewhere enumerated, de-
crease, $556,S73.6S; penalties, $40, 1S4.07
adhesive stamps, increase, f123,33oO9
total increase, $25,SO9,27S43; decrease,
$612, 1896.
From one of the tables it appears that
there has been continuous increase in the
receipts from the excise tax from June 80
1869, to June 80, 1870, aggregating the
sjm of S25, 100, 523.6S, and averaging for
each month, S2.099,710.30 There is no
insurmoutable difficulty in enforcing our
excise laws, and a proper regard to the
qualifications of revenue officers for ability
and integrity is what is most essential to
secure the prompt and certain collection
of internal taxes.
fruit, registered during the last fiscal year,
is 10; number of fruit distillers regis
tered, 2,120: total, 1850 The spirit pro-
ducing capacity of the registered distil-
leries for each twenty-four hours, as ascer-
tanned by surveys, is as follows: From
grain, 159,371 gallons; from molasses, "a
SOB gallons; from fruit, 1921 gallons.
Total daily spirit producing capacity, 9l0,-
5J1 gallons. 1t will be seen that if the dis
tillerics other than fruit, were operated
to the full extent of their capacity for a
period of ten months throughout the dis
tilling season in each year, they are capa-
Bile of producing 203, 912 800 gallons. This
quantity, however, is largely in ex-
cess of our consumption, which is
estimated at from seventy-five to
eighty millions of dollars. The best
information which this Office has been
able to procure on this subject induces the
belief that the whole number of distil-
leries, other than fruit, is operated fol-
about the period of six months only, and
for that period they are not run to the full
extent of their producing capacity. The
returns to this office for the last fiscal year
show a total production in taxable gal
Ions, from material other than fruit, of II,
30. ,009; from fruit, 93S,2 54; and from
fruit not yet returned, but estimated al
10000; total yearly production, ~, 425 ,353
This quantity of spirits in bond, July 1
1859, was $685., 1855 gallons. The quantity
remaining in bond June 30, 1870, was II :
GS2,453 gallons. Judging from the infor.
nation in possession Of this Office, there is
no reason for believing that there will be
any material falling oil in the production
of spirits during the current fiscal year.
In reference to the spirit meters, the
Commissioner says that the tests instituted
have not yet been completed, and that he
will make the meter question the subject
of special communication to Congress
hereafter.
Notwithstanding the favorable exhibit
in the receipts from tobacco, the Commits
sioner directs attention particularly &c
some defects in the provisions and opera
tons of the law taxing tobacco. The
present law imposes two rates OF tax on
al manufactured tobacco, one of IS cents
and the other of 81 cents per pound. Ii
seems to have been the intention to apply
the former rate only IN exceptional cases
while the general rate was to be double the
amount. But in practice it is found that
what was to have been but occasional and
only exceptional has come to be too nearly
the general and prevailing rate on all to-
bacco manufactured and sold as smoking
tobacco, while much that is intended and
used for chewing is sold also under the
lesser rate. The Commissioner is satisfied
that there is but one remedy for the frauds
perpctrated under this head, and that is to
make the tax on all descriptions of tobacco
uniform. Less of inequality would then
exist under tax of 80 cents per pound
than under the present rates.
j deem it my duty to call the attention
of Congress, through YOU, to certain de-
fects, antiquities, and contradictions
which, in the hurry of legislation incident
to the closing labOrs of session, appear in
the act OF July Il, 1870. In some instances
also where the language is clear the legal
effect is held to be entirely different from
what is understood to have been designed
by Congress. 1t is believed TO have been
the intention to retain all the taxes i'm
posed upon sales of distilled spirits, wines
and malt liquors, by the act of July 20
1863, and acts amendatory thereof Section
2 Of the act of July II, 1870, nevertheless
repeats the tax upon sales of malt liquors.
1t was evidently the purpose of Section 5
to empower collectors to remit at any time
prior TO August |, 1872, all penalties for Is
suing instruments unstamped unless the
omission of stamps was 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 postpone until August, 1871, the relief
which was designed to be immediate Sec
ton II provides that sections 1870, 121 and
122 of the act of June 30 1864 as amend
ed, shall be construed to impose the taxes
therein mentioned to August /, 1910, and
no longer. Section ID provides that there
shall be levied and collected for, and dur
ing the year 1871 a tax of two and halt
per ccntum on the amount of all interest
or coupons paid, or bonds or other evil
dcnces of debt, issued and payable in one
or more years after date by any of the cor
poraiions in this section hereafter men
toned, and the amount of all dividends OF
earnings i'm or rains hereinafter do