Evening star. [volume] (Washington, D.C.) 1854-1972, 1871-12-04
REPORT OF THE COMMISSIO NER
OF INTERNAL REVENUE.

The annual report of Commissioner Douglass
on the operations of the internal revenue sys-
tom for the fiscal year ended June 80, 1871,
shows that the aggregate receipts from all
sources, exclusive of the direct tax upon lands,
and the duty upon the circulation and deposits
OF national banks, were, for the fiscal year le7
S144 oil ,11624 Estimate OF receipts for current
fiscal year under the present law, s12j,OOO, 900.
The number OF fruit distilIeries registered
during the last fiscal year was Z .149; in opera
ton ,OO1; other distiileries registered. 1043; in
operation, 81. The total yearly production
from other material than fruit was 54.5J6, 446
gallons; from fruit, 2, 49, 133 gallons. The re.
ceipts from spirits for the fiscal year ended June
80 1911, amounted to $40 PSI 10. The amount
of tax received on fermented liquors at 81 per
barrel has increased from s. 1903 in 1866 to
81 ,1J9, 1920 ia 1871.
The to6al receipts from tobacco for the fsca!
year ended June 80, 1871, were S3, 80 800 1S-an
increase of 81 DDS, 80 over the preceding fiscal
year. The total amount of manufactured to-
bacco, represented by the amount of collections
for the fical year, was l05 1923 1868 pounds. The
total number of cigars, cheroots, &c, on which
taxes were collected, was 49,, Si4 $50. The
Commissioner is of the opinion that, during the
last fiscal year, much tobacco has escaped taxa
ton through the reflling of empty stamped
packages, the second use of stamps, the use of
counterfeit stamps, the removal of small guam
titles from the place of manufacture without
stamps, and stamping as class 1G-cents tobacco
which, under the law, should have been
stamped at the rate of 80 cents per
pound; and he recommends a uniform rate of
preparation OF fraud or the evasion of taxes by
their improper classi6catOns." He is of the
opinion that with the tax at 81 cents 1--WE shall
be able TO keep the collections on tobacco up to
those under the present rates" If it is Intended
to compensate in part to the revenue the ex-
pected large loss from the expiration of the in
come tax during the current fiscal year, and the
further material loss from " articles and
occupations formerly taxed but now ex-
empt,' he would advise a consolidation OF
the tobacco tax at thirty-twO cents per pound
commissioner uph Ot
fraud referred to is effected by pedders, and he
recommends that every person who sells or Of
fers to sell manufactured tobacco, snuff, or CT
gars from wagons in the manner of pedders
travelling from place to place, be required to pay
a special tax of fifteen, twenty-five or fifty dol
lars, according as they travel with one, two or
more horses or mules. He also recommends a
special tax OF five hundred dollars on every per-
son who shall make a business OF selling raw or
leaf tobacco to persons other than those who
have paid special tax as leaf-dealers, or as man
ufacturers of tobacco, snuff or cigars, or who
shall sell leaf tobacco in quantities less than
twenty-five pounds, or who shall sell such to-
bacco directly TO consumers, or for consump-
ton without its bein,, manufactured.
-On the subject OF export bonded warehouses,
the Commissioner says -" 1t is my opinion,
and, 50 far as have been able to ascertain, 1t
is the opinion OF manufacturers of tobacco gen.
orally, that the present system OF export bonded
warehouses can be entirely abolished to the
interest both OF the government and OF the man
ufacturers."
Important changes have been made in the
materials and manner of preparing stamps in
order to prevent fraudulent issues, counterfeit
ing, and reissue. BY the changes referred to,
cOunterfeiting, which has been largely prac-
ticedy by photography, becomes impossible.
Another feature in the present issue is, that
with the exception Of the documentary and pro-
pretary stamps, none are allowed to be entirely
prepared by any single establishment. The
average cost of the present series of stamps is
considerably less per thousand than that of the
previous issue.
The Commissioner renews the recommends
ton OF Commissioner Delano to exempt prepared
mustard. sauces. sirups, jams, and jellies from
the stamp tax. He recommends that Congress
authorize the Commissioner, upon the reqlfisi-
ton OF the officers having the custody and con-
troll of condemned, forfeited, and abandoned to-
bacco, SO deprecated in value that it cannot be
sold for enough TO pay charges and for the neces-
sary stamps, to furnish suitable revenue starlps
to be attached and cancelled before the sane is
offered for sale. 1t frequently happens that Uax-
paid stamps are lost from packages of spin; bv
unavoidable accident, without fault on the part
OF the persons interested, the spirits being thus
exposed 70 seizure and detention. Inasmuch as
of the government and the taxpayer, it is con-
sidered that authority should be given to COM
plete that protection by restamping
The Commissioner also recommends that him
self and successors be prohibited from consider
ing or allowing any claim not presented within
two years from the time the tax was paid and
that all claims be barred in the courts alter six
years from the date OF payment of the tax. He
says that, "secdon A of the act of July 20, 1868,
should be amended by making the minimum
penalty smaller, such penalty being now a fine
Of not less than 81 900, with not less than six
months imprisonment The undue severity of
this punishment would seem to be obvious as APP
piled to the offences of carrying on the business
of a retail or wholesale liquor dealer, rcctifier
or manufacturer of stills, without having paid
the special tax in cases wherein no intent to
defraud exists"
He also renews the Recommendation of early
legislation for the final disposition of all lands
which have been acquired and are now owned by
the United States under the direct-tax laws.