Ottumwa weekly courier. (Ottumwa, Wapello County, Iowa) 1872-1899, 1875-11-17
fMISCELLANY.
WASHINGTON.
Report 0Y the Comnstssioucr 81 In
tcrnHl Revenue H

tcrnni Revenue.
WASHINGTON, Nov. 1.-THE Cons
missioner of Internal Revciua ha.
completed his report for the year end
ing dune 30, 1875. The Commissioner
says II may lie some consolation 10
Know that, grieyous az are the bur-
dens laid upon such o! our population
OF 42,O00,000 or more who consume
the articles taxed by our Internal Rev
cnue lave, the British public, number
ing one -fourth less than our people.
paid under the excise laws durins the
year ending March 81, taxes measured
in gold, to the United States, SlS3,.
962, 1856 against $ll05I5,l5l paid in
currency by the people of this
country during the fiscal year ending
June 30, 1875. r... -
The report shows the actual amount
OF Treasury receipts from all sources
from June 3Oih, 1861, to June Both.
1874, to DO 1895 ,63S, 34l, 81 $50 S23,-
725 Of which was from Internal REEVE.
nue.. The collections for the year
ending June 30, 1S75,was SllO545.l5i
An increase of $7,900,40S over
the correspt nding time last year -
This increase is owing in part to the
increase of duties by the act of
March 3, 1876. upon distilled spirits
and tobacco, and in part TO the taxes
collected under the laws repealed, ex-
traordinary efforts having been made
to collect delinquent taxes from banks,
railroads and other corporations.
The receipts under the act of March
3, 1875, up to, and inclusive of June
10, 1875, from different articles sub
ject to al increased tax. show total
tax returned of $3,203,S1S. The tax
returned upon distilled spirits was ST.
! 719. 7g9.
Inc Commissioner accounts for the
small increase in the amount realized
from distilled spirits during the time
extending from March 3, 1875, to June
10, 1875, rs follows: Isl.
ii became generally known among
distillcrs that the tax would likely be
increased, and, in order to realize the
benefit OF the increase, withdrew
large amounts Of liquor from bonded
warehouses on payment of taxes at 20
cents gallon. Over five millions OF
gallons were Withdrawn in January,
1874, aud about eleven and a half mil.
lions in February, leaving in the bon
ded warehouses over seven millions
Of gallons OF spirits, on March Bird,
1876, tho day when the increase of the
tax from 10 to so cents per gallon was
made by law. These spirits were
allowed, after bonds being given. to
, remain in the distillery warehouse
one year before withdrawal, aud these
spirits have been and still continue to
to be placcd OH the market subject
only to the former duty of seventy
cents gallon.
The net amount Of receipts from all
sources of Internal Revenue, during
/ the last fiscal year in the follow ing
States, is given IA follows: lllineis,
1922 ,66S; Indiana, "a, $50, 1888 Iowa.
81, 0lO,O64; Minnesota, S22S, 362 Penn
syivaDia, vi, li9,954; Missouri, $4 59l.-
sos; Wisconsin, ~, 720,S6S; Nebraska,
$292,472 New York, Sl5, 200, S9S; Mas
sacllusctts, ~, 67O,i9
The number of distilierics register
ed during the year was 4,736, and the
number operated 4,G0S. OF the num-
Der operated, 656 were grain distiller
les, seven molasscs aud 3 9j5 fruit dis
tillerics. aa5s
( The Commissioner, in reference to
tho extensive frauds committed re-
Gently gives an account first of the
checks, guards and projections against
frauds established second, of the man
ner in which the whisky frauds, so call
ed lately exposed wereperpetrated on
the government third, the extent of
I these frauds; fourth, the checks re-
Gently established to prevent recur.
renee of the same and fifth, suggest
ing legislation which in his opinion, is
necessary to insure q fuller collection
in future of the taxes upon distilled
spirits. s#.
The Commissioner says. with re-
gard 10 the additional legislation re-
/ gnircd to enforce the honest collection
OF the tax on distilled spirits: IL give
it7as my opinion that the only law
necessary is one that shall meet the
requirements, as stringent in the pen.
allies Tor deirauding the government
and as severe in the case of the recti-
fiers as they now are in the case of
distillcrs. "A rectilicr should be re-
CURED to give bond to an amount
equal to the tax represented by all
spirits he can possibly rcctify per
month, and the house and the tract of
land on which an establishment ia To-
Gated should be forfeited to the United
States in case Of fraud. lie should
! not be allowed to handle any spirits
at his rectifyiug house, except those
4 he purchases for notification and sells
under rectitiers' stamps.
JTpdsr tbn nrpsaut ovs.arn of ,j,toct
ing frauds. at least thirty days must
elapse before discovery can be made
and the uilt fixed on guilty parties.
4 A house worth only $4,000 may have
a capacity of rectifying spirits on
which 100000 tax would be due in
ono month, under present law, and
which only forfei,s the apparatus and
spirits owned by him at time of seiz.
I IRE. Thus a rectifier may succeed in
4 defrauding the government of $780,
600 aud forfeit only $1,000, and, by
sbsconding to a foreign country, he
may also escape punishment. The
present law regarding rectifiers' re.
turns is so indefinite that legislation is
necessary to enforce the regulations Of
the Commissioner.
also think it would be better if
rectifiers, distillers and wholesale
liquor dealers were required to make
/ transcripts of their books monthly. in
! stead of this labor being performed
by local officers, az it ia at present.
This would also relieve oflicisls of an
immense amount OF labor, and would
Z accomplish more important results in
. preventing the destruction of books
/ by parties about to be detected in
frauds. There would then be sworn
copy in this Office that would always
be admissible as evidence in the courts
against guilty parties. am firmly of
the opinion that the present. large tax
upon distilled spirits can be collected
with little loss. This opinion is ba-
sed upon the fact that every store
:, keeper, gauger and employee who is
connected with a distillery where
fraud is perpetratod becomes pen
sioner upon the distillery ;if, therefore
distillcrs be kept under such STRIFE.
surveillance the amount of money
4 gained by fraud is not sufficient to pay
for such large corps of otlicers.
Evidence is in possession of this
Office which has warranted the seizure
oftwenty- four disiilerics and thirty
seven rectifying houses, and implicat-
cd over fifty United States Gsugers
aud storekeepers. This evidence also
shows the issue, between July LIST,
1874, aud May lst, 1875, of fraudulent
spirits by the duplication of twenty
Thousand packages, containing likely
one, million proof gallons, and by the
aid Of false ganging, 10 al additional
7 one million proof gallons. This, OF
course, is but a portion OF the fraud
actually committed, but one million
and half Of dollars indicates the
I loss Of tax TO tho Government in ten
month";"
7 The receipts from fermcnted liquors
for the fiscal yesI were S9,lH,O0I,
decrease of $l60,675, compared with
1874 The number of brewers and
manufacturers of fcrmented liquors is