Dodgeville chronicle. [volume] (Dodgeville, Wis.) 1862-current, 1875-11-19
The net amounts received from all sources
of internal revenue during the last fiscal year
in the several States is given as follows:
DISTILLERIEs,


The number of distilleries registered dur
ing the year was 4,736, and the number
operated, 4,608. Of the number operated CSC
were grain distilleries, seven molasses distill-
cries and 3 ,945 fruit distilleries.
The Commissioner says public attention
has been often called within the past few
months to the extensive frauds committed in
certain localities upon the revenue by distill-
ers and rectifiers of distilled spirits. He
gives an account, first of the checks, guards
and projections against frauds established by
law; second, of the manner in which the
whisky frauds, so-called, lately exposed were
perpetrated upon the Government; third, the
extent of these frauds; fourth, the checks re-
Gently established to prevent recurrence of
the same, and, fifth, suggests legislation
which, in his opinion, is necessary to insure
al fuller collection in future of the taxes up
on distilled spirits.
The Commissioner gives it as his opinion
that the only law necessary is one that shall
make the requirements as stringent and the
penalties for defrauding the Government as
severe in the case of the rectifier as they
now are in the case of the distiller. The
rectifier should be required to give bond
in an amount equal to the tax represented by
all the spirits he can possibly rectify each
month. The house and tract of land upon
which the establishment is located should be
forfeited to the United States in case of fraud.
spirits at his rectifying- house except those
he purchases for rectification and sells
under rectifers' stamps. Under the present
system of detecting frauds at least thirty
days must elapse before discovery could be
made and guilt fixed. AS the apparatus in a
rectifying- house capable OF refining the
quantity of spirits upon which the tax would
amount to 100000 month may not he worth
more than $4,000, it will readily be seen that
under the present law which only forfeits
the apparatus and spirits owned by him at
the time of seizure, rectifier may aid In de-
frauding the Government of 100000 and
forfeit only $4,000. By absconding to a for
eign country he also escapes criminal punish
ment.
The Commissioner is firmly of the opinion
that the present large tax upon distilled spir
its can be collected with but small loss. This
opinion is based upon the fact that every
Storekeeper, Gauger and employe who is con-
nected with distillery where fraud is perpe-
trated becomes a pensioner upon the distiller.
If, therefore, distillers be kept under such
strict surveillance that the amount of money
gained by fraud is not sufficient to pay a large
corps of officers and workmen in necessary
collision with them to consummate fraud,
they will, as matter of policy, be honest.
AS an indication of the extent of the frauds
above described the Commissioner reports
that documentary evidence is in possession
of his Office which has warranted the seizure
of "a distilleries and 81 rectifying- houses, and
implicated over 80 United States Gaugers and
StOrekeepers. This evidence also shows the
issue between July 1, 1874, and May l, 1875,
of fraudulent spirits, by duplication, of 10000
packages, containing probably loo, 600 proof
gallons, and by aid of false gauging to the
additional amount of 100000 proof gallons.
This, he says, is but portion of the fraud
actually committed, but in itself indicates
the loss of tax to Government in ten months
of an amount not less than s. $50, 900.
FERMENTED LIQUORS.
The receipts from all sources relating to
fermented liquors for the fiscal year were
S9,144O04, decrease of $160.675 as compared
with 1874. The number of brewers manu-
featuring fermented liquors is 2,784
The Commissioner expresses full conf
denee in the stamp system for the collection
of revenue.
The number of cases compromised during
the year is 744, and the amount received by
compromise $156,576.
TOBACCO.
The total receipts from tobacco were $751;
303, 461, an increase over 1874 of 81, 060, $50,
and an increase over any previous fiscal year
of S2,917 ,15S. The total amount of tax col
lected on tobacco and snuff from Sept. l.,
1862, to June 80, 1875, is $225, 1856, 2l9. The
total collections on cigars, cheroots and Gig
arettes the same time is SOS, 233. FOG. 1t is ex-
pected that during the current year the as
sessments OF tax on tobacco will be largely