The New York herald., 1871-12-03


made directly from the factories. the goods
being carried oy the warehouses and only construct
lively entered anSggs me owners s
operation OF this system OF bonded warehouses;
hitherto has been to give to few individuals and
firms and more pai aiticularly to the proprictors OF
the warehouses the same facilities for storing to-
bacco without the prepayment OF the tax as were
given by the former system OF Glass bonded ware
houses, abolished by act of July 10 1868.
THE PRESENT INEFFECTUAL SYSTEM.
II IS my opinion, and SO lar as have been able
TO ascertain it Is the opinion OF manufacturers of
tobacco generally, that the present system OF ex-
n me interest both OF government and or maniac
turers.
at the warehouses In Richmond, Va Is exported
without even entering the warehouse and the same
is Of much OF the tobacco bonded in New York.
by abOshing the present system OF export bonded
warehouses and providing for the expOrtatiOn OF
manufactured to 'acc0. snur and cigars as other
merchandise Is exported, allowing a awback OF
the tax paid upon proof OF landing abroad requir-
ing tobacco to be loaded under the supervision OF
sti Dyed by said officer to prevent reloading, it is
/ believed large portion Of the expenses now In
CURED by the manuiaclurers III exporting their
Government would receive the taxes on all goods
wnen removed from place OF manufacture all job
bers and dealers In manufactured tobacco would be
placed the same footing with regard to the tranic
on tax paid goods, ana the special privileges and
would be removed. would recommend that Con-
gress provide nat evidence Of loss at sea satlsfac
tory to the Commissioner Of Internal Revenue
for the purposes OF drawbacks Other systems
OF exploration designed to remedy the evils OF the
gested, but they involve the multiplying OF bonds to
be taken IN lieu Of tax. A multiplication OF such
bonds would result IN an increase OF losses to the
! government. The records OF United States Courts
In many sections OF the country largely occupied
rr0leum under similar systems to those proposed.
In large majority OIL the cases, the principals being
suretles have not been found on original pro-
cess or II found . return Of no goods on the inal
OF It's supposed security
REVENUE STAMPS
Important changes have been made in the ma.
terlals and manner OF preparing stamps IN order to
prevent fraudulent issues c0untereius ana reuse.
heretofore nearly all the issues OF revenue stamps
have been printed In single color upon ordinary
commercial paper, furnished by the parties dong
the printing. by the change referred the govern.
ment provides distinctive paper and permits the
printing OF stamps upon no other, and requires
tnat all stamps shall be printed In two or more
o we has sa e derived
fraudulent reuse OF stsmps. 1t has been found no
difficult matter on the part OF evi-dlsposed
persona BY tile use OF chemicals carefully manlpu-
lated, to remove the cancellation marks entirely
without injuring the appearance OF the stamps.
sell the same for reuse anddefraud the governm
that extent. 1t 10 believed the stamps now being
furnished under contract cannot be tampe.ed with.
Especially Is this thought to be the case with the ad
hesive and tobacco, sndn and cigar stamps, printed
upon cnameeon 3o paper. IT. rms paper SO e enectuay
agents employed tor the restoration OF stamps for
reuse as 70 render restoration to its original
tecuon arorded by this paper a soluble INK
Is used in the preparation OF adhesive stamps This
ink contains the ingredients OF ordinary writing
INK. Any acid or alka Of sufficient strength TO re,
move the cancellation made would destroy also that
bic Ink. by printing the stamp in two or more
colors counterfeiting which has been largely prac-
hced by photographers becomes impossible. An
other feature In the present issue that with the
exception OF documentary and proprietary stamps
none are allowed to be entirely prepared by
nvu fpn1n OH fCh nhn Uh hnIn
OF cases compromised. as pr0vlued under section
l02, Act July 20 1865, during the fiscal year ended
$349, 79s ~; assessed penalty liked by law,
$2oo7o 80; specific penalty IN lieu OF fines penalties
sy compromises, sSis, ,4S7 es. Whole NUMBER Of
suits decided IN favor Of the United States, 1882,
against 456; amount collected and paid into Court
count Of judgments, tines. &C., $594, ,3S9; amount
collected and paid into Court as proceeds Of for
feiture, $l45 2s; total value OF seizures, $9l524
EXEMPTIONS RECOAMENDED.
The Commissioner says, in conclusion:-I fully
approve and would here renew the following recon-
nue. Commissioner, Mr.. Deano:-Tbe act OF July
a. G.
5sss Dsss sss % ssups s%s sDa
These These articles being either condiments or con.
serves and generally OF home or culinary
revenue, the collection OF the tax thereon always
attended with no inconsldera0Ie amount OF trouble
ns from e act ns5 %
posed on them under the clause in schedule Z re-
1aling 10 "canned meatH,' &C.
CONDEMNED AND FORFEITED GOODS.
There are now IN the hands OF collectors
and and - United states ma marshals stored IN
feiIed ard abandoned tobacco, SO depreciated
charges and for the necessary stamps This tobacco
was manufactured under the old iaw, consequently
be sold or onered ior sale Without first being
properly stamped, and there Is no provision Of law
can furnish stamps for It. The want OF authority to
furnish stamps for such tobacco. which Is constantly
N the aanas o. osers
earnestly recommend that Congress authorize the
Commissioner, upon the requlsittOn OF the officers
having custody Of and control OF such tobacco, TO
furnish suitable revenue stamps TO be attached and
cancelled before the same " offered for sale. It
from packages OF spirits by unavoidable accident
without fault on the part OF the persons interested
the spirits being thus exposed to seizure and deten
tlon. Tne present law makes no provision for re.
stamping such packages, except on the repayment
taxpayer. II IS considered that authority should
be given 10 complete that protection by restamping.
TAX ON sHIPBUILDING.
It recommended last year by Mr.. Commits
sioncr Delano tnat Congress provide BY resou-
assessed shipbuders under the fourth section Of
the oct OF March 81, 1863 as had not been c0ecled
not feeling at liberty to allow furtner delay have
ordered their collection. Section A or the act
OF June IL, 1864. gives TO the Commissioners.
subject to regulations prescribed Dy the
Secretary OF the Treasury, authority to abate and
rennu taxes and penalties IN certain classes OF
cases: ono OF these regulations, circular 70,
provides IN effect that no claim or application for
the refunding OF taxes will be entitled to considera-
t0n by the Commissioner unless 1t shall be filed
with him either prior TO August 4, 1871 tcircular
70 having been issued August g. 1892 or within
two years from the date Of the payment Of the tax.
1t Will be observed that this simply Affects the ques-
tlon OF the consideration by the Commissioner OF
claims thus barred but does not, 1t Is claimed, limit
any right OF action upon them.
one OF my predecessors, Mr. Rollins in his report
for 1885, remarks upon this subject as follows:--
s'The authority vested In the Commissioner OF
Internal Revenue to refund taxes erroneously col
lected has been the means OF preventing
much expensive litigation and has Afforded
speedy and inexpensive relief to many persons VINO
have been compelled TO pay more than was legally