The New York herald., 1871-12-03
The Commissioners. Annual
Report.
Total Income for the Fiscal
Year from All Sources.
Recommendations to Punish Fraudulent
Tobacco Dealers.

bOui Cco cACluSiVe Vi Tie uTeCJ upOH iduuS anu
the duty upon the circulation and deposits o.
national banks. were Tor the fiscal year, 1871,
$l44,0lL17s "a This sum includes the amounts
refunded and allowed on drawbacks. Drawbacks
have been allowed on general merchandise under
section III, act June 80, 1854 limited by the act o.
March 81, 1868, amounting to $22,ss7 81. This
amount Is larger than that allowed for the fiscal
year 1870, on account or the adjudication
OF old claims for drawbacks on cotton
goods rendered admissible by Joint resolution
No. "a, approved July A. 1870. There was refunded
during the past fiscal year for taxes illegally as
sessed and collected the sum OF $6l7 ,5S1. Tnis
large increase over the year preceding was due tG
the adjustment OF claims that had been suspended
during former years for more complete considers
tiOn-for instance the claim OF one OF the States
which was embraced In the above aggregate and
amounting TO s45, 500 Tor taxes collected divi
dends declared upon stock owned by the state
This was she largest claim ever allowed by the
bureau and was referred TO the Attorney Genera
for his advice.
The Commissioners estimate Of receipts for the
current fiscal year under the present law Il
$125,OOo,ooo.
DIsTILLERIES.
The number Of dstileries (oiher than fruit) regis
tered during the last year was l,O43 The number
OF fruit distlerles registered was 7,149. The total
uuliDcT vi registered was 3, l3Z. vi
disleres other than fruit 5l7 were operated during
the year. and OF the fruit dstilleries 40O7. The re-
turns TO this office for the last fiscal year show to
production in taxable gallons from material other
than fruit Of 54,576, 4i6 and from fruit ls9 73s-
Total yearly production, 56776,109 The total
quantity OF spirits In the United States not In ln-
terna revenue warehouses the 1st OF May, 1871 was
l,lS5,71 proof gallons, showing decrease in guam
tity on market since November TO- 1870 OF 4452 $50
gaons The receipts from spirits for the fiscal year
ended June 30. 1S71 were $46 2Sl, S4s The amount
Of tax received on ermented liquors. at 81 BARREL
was, in 1871, $7159 74O. The increase over former
Greater attention given to that subject by internal
revenue officers during that year. This attention
mas revealed some detects III the law which coll FOR
eariy remedial legsl alton.
TOBACCO AND CIGARS.
Ine total receipts from tobacco for the fiscal year
pared with the receipts from the same source for
the preceding fiscal year the increase s. 22S $780,
Inc totai amount OF manufactured tobacco repre-
sented Dy the amount OF collections for the fiscal
year ended June 80, 1s7l, was as follows:-Chewing
tobacco snu &C., class thrtytwo cents "a, 4,6l7 SGS
bixteen cents 80, 5l7,636 pounds. Add to this The
quantity exported, ,620S2 pounds and the excess
&c. 1870 Is BIT, givlng total product for the year
Of Ion, S2s. 983 pounds.
The total number. of cigars, cheroots. &C., on
Wnicn taxes were collected was ], 1872, ,Si4, 357.
The steady and uniform increase from month to
month III the revenues derived from manufactured
tobacco cgars, &C., since the present law went into
operation. by which the mode OF collecting taxes on
these articles was changed from an assessment
prepayment by means Of suitable stamps before the
goods are removed from the place OF manufac-
Fewer frauds are possible where the taxes are re-
CURED to be paid at the manuiactory, and before
the goods are allowed to go upon the market and
where every package is required to bear on 1t the
evidence that The tax has been paid. Bu, notwith-
anC nrO hac nm
made toward thorough and complete collection
Of the revenues from THIS source, the Commissioner
b forced to the conclusion tnat during the last fiscal
year much tobacco has escaped taxation through
the rehl.ing or empty stamped packages, the sec
ihe removal or small quantities from The
place OF manufacture without stamps, and
1ss as snouS cents have
stamped at the rate OF thrty-two cents per
pound. He says uniform rate OF tax, while i.
products IN his own way without restriction being
placed upon his modes OF manufacturing. would
enectuay close the door 10 the perpetraton OF
fraud or the evasion Of taxes ny their improper
classification. Ills own opinion Is that with q tax
csn taking se into
ing years, and with the advantage Of some
Rle to keep the collections on tobacco mp to those
under the present rates. This recommendation,
future total revenue results. II it should be the
opinion OF Congress that the yield OF revenue from
internal taxes should not be materially decreased
then, 10 accomplish the desirable results expected
rOm consolidation OF tax on tobacco and To CON-
pcnsate in part to the revenue the. expected
large loss from the expiration OF the In
come tax during the current fiscal year,
md the further national loss from clcs anu oc.
cupations formerly taxed Dut now exempt rap
Idiy decreasing Item, Of course ne would advise
consolidation or the tobacco tax at tnirty-tw0
cents per pound.
The Commissioner Is satisfied, from the evt-
aence which has accumulated, that much OF the
tie instrumentality or pedlers. ln order to put
IN end to this Illicit uafic some additional leg
every person VINO sells or offers to sell manufactured
tobacco, snuff or cigars from wagons In the
Of pediers travelling from place to place be re-
Quired 10 pay special tax OF $15 $25 or $50, ac-
cording as they travel with one, two more horses
or mules, and To comply with sucn regulations rs
may be prescribed ny the commissioner Of Inter-
nal Revenue. The Commissioner says for the last
three years this Office hos been IN possession OF IN
formation that large ana increasing amount OF raw
or leal tobacco In portions or the country was
being sold at retail directly TO consumers with
out the payment OF tax. Evidences OF this
rafilc have from time TO time been FURNISHED by
assessors and collectors, and more especially by
supervisors, who in taking transcripts from the
have reported that they ind OF pages OF the s
books where entries were maze oi sales from one
half pound ~ 900 pounds each, and am constantly
IN receipt OF letters from manufacturers OF tobacco
complaining OF the injury TO their business arising
ocaiiies where they iormerIy received rrco"ens sS
aud large orders Tor manufactured tobacco they
now make no sales Tie same parties who USED TO
make these orders are now ordering instead sup
pies OF natural leaf from the Wholesale leaf
dealers Against this tiatc, grown to such large
propOruons SO injurious 10 their business as manu-
facturers and preJudlcal TO the Interests o the
ernment revenue, they ask 10 be protected. To this
end would recommend that section nifty. nine OF the
act Of july %, 1868, be so amended as to Impose
special tax Of $500 on every person who snail make
business OF selling raw or leaf tobacco to persons
other than those who have paid special tax as leaf
dealers manufacturers OF tobacco, snu or cigars,
VINO snail sell leai tobacco In quantities less than
twenty-five pounds or VINO shall sell such tobacco
directly 10 consumers or for consumption
without its being manufactured; and n this
Is not deemed sufficient | would further
recommend such q tax on the sales Of
such dealers In excess OF $1,000 annually as
would be equivalent To the tax the same amount
and value Uf manufactured tobacco. such pro-
vision Of law will not only give the required prOec-
tlOn to the man nuaCturcr, VINO now pays special
tax for carrying on his business In addition to
specific tax on all hts products, but II VIII also, l
mn persuaded, tend largely TO increase government
revenue from this source. There are now M opera.
tlon sixteen export bonded warehouses. The total
in hn Aurfn