Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-11-13
INTERNAL REVENUE.
A Report that will have Especial Inter.
est for Merchants and Business
Men.
The GrieVOus Burden of Taxation Borne
by the People Of the UniOn-HOw
Distributed.
The Internal Revenue Frauds -Sugges-
tiOnS Of the Commissioner
mics that may be Enforced.

4 WASHINGTON, November 18th
\ commissioner Of Internal revenue hs
3 completed his report for toe fiscal yea
ending June 80, 1875. The document
q very voluminous. The commissions
q says that as grievOus as are cur burdens
: laid upon such OF our population
, $4,000 600 or mOTe-as consume the ar
} | ticles taxed by our revenue laws, tn,
English public, nc "a ly three to our one
pay fourth more than our people pay
! Under their excise laws during the
: year ending March 81, 1875, theil
taxes, measured as gold in the
962 1855, against $40 545,154 raid
in currency Iy the people of this coun.
try during the fiscal year ending June
80, 1875. The report sho VS. that the &C
tual amount of receipts into the treasury
from all sources from aud after June 80,
1851 to June 80, 1874, inclusive of bonds
and treasury notes, was as follows
Customs, Sl,973, l03 81; internal reve-
nue., 81, 956, 1913 725; direct taxes, ST 1872
O9S; public lands, $50, Isl, 1853; miscella-
neous, $236. OS4. 982; premiums on leans
and sales OF gold coin, 1892, 557 ,1l7;
total, So, 1896, 63S, 34l. The collections for
the fsca! year ending June 80, 1874,
we're Sl02, 644, 746; for the year ending
June 80, 1875, $110, 545,15
The increase during the last fiscal year
is owing in part to the increase OF duties
laid by the act of March 8, 1875, upon
distilled spirits, manufactured tobacco,
cigars, cigarettes, ETC., and in part to
taxes collected under the laws repealed.
Extraordinary efforts having been put
forth to collect the delinquent taxes due
from banks and bankers, railroad and
other corporations, and taxes due Oh ill.,
comes, legscies, etc. A statement is
| given showing the receipts under the act
OF March 3, 1875, up to and inclusive Of
June 30, 1875, from the different articles
subject to increased tax, showing the to.
tai tax returned to be S. 203 ,818; tax re-
| turned upon distilled spirits, 81, 779, 1898;
and the commissions says, regarding if,
that it will doubtless be matter Of sur
Prise that the increased amount realized
from distilled spirits during that period
March 3, 1875, to June 80, 1879, was so
small. The explanation, however, is
found in the fact that it became general.
ly known though the proceedings in
congress that an increase in the rate Of
tax would probably be made, and dis
tillers, in order to realize the benefit of
the increase, withdrew from the bonded
warehouses. upon payment of the tax at
30 cents per gallon, 543 OBJ gallons in
the month OF January, 1874, and aa
enormous qusntity-l1, 504 1866 gallons
IN February following, leaving still in
the bonded warehouses over million
gallons OF spirits on March 3, 1875, the
day when the increase of the tax from
4O to ~ cents per gallon was made by
congress. By law these spirits were
allowed, after bond was given, to remain |
IN The dlstliIery warehouses one year be- |
fore withdrawal, and these spirits have |
been, and still continue to be placed on |
the market, subject only to the former |
tax of 40 cents per gallon. The net |
amounts received from all sources of in |
ternal revenue during the last fiscal year |
In the several States are given as fol
lows: Alabama. Sill, Sl6; Arizona, $40. |
1853; Arkansas, 1921, S23; California. 81
903, $50; Colorado, $40 53l; Connecticut,
1922 225; Dakota, $1,000; Delaware,
$3.50, 33l; District OF Columbia, Sill, OF:
Florida, SIS, 457; Georgia, $685., I54; Ida.
no, $l9, ll6i Illinois, 81, 727, 1888; Indiana,
81, $50, SS3; Iowa, 81 040, 064; Kansas.
Sl33, 535; Kentucky, So, 022, 636; Louisi-
ana, 1888, Isl; Maine, Sl07, PSI; Mary.
land, 81, 755, 455; Massachusetts, S2, So
49l; Michigan, 81, 1896, sos; Minnesots,
S228 1852; Mississippi, 1855; Missouri,
"a, 59l 856; Montana, S23, 666; Nebras-
ks, 1922. 472; Nevada, $53 I47; New
HAMPSHIRE, $298, S12; New jersey, ST.
So, ATS; New Mexico, $2l, 1855; New
YORK, SID, zoo, S9S; North Carolina, ST..
629 1884, Ohio, 1865, 295; Oregon, $47,-
9o9; Pennsylvauia, SIS, 1895 Rhode
Island, 1921 1857; South: Carolina, $780,
BIB; Tennessee, 1858 go; Texas, S257,-
44S; Utah, $31, 545; Vermont. sos, 25I;
Virginia, 81 ,659 639; Washington Terri
tory, $2l ,l46; West Virginia, S5OS, 6S4:
Wisconsin 81, $40, 686; Wyoming ,SlI $40
The number Of distiller;es regis ere1
during the year was AZ 1856, and number
operated 1850 Of TIE number operated,
55S Were grain distilieries, Z moIa SEES
and 1854 fruit dfstiIlerits
Ine commissioner says public attention
ass been often called within the past few
months to the extensive frauds commit 7
e1 In certain localities upon the rev.
enue by distillers and rectifiers of dis. |
llle1 spirits He gives an account, first, [
IL the checks, guards and projections 6
against FRAUDS established by law; sec. {
md, OF the mann er in which the whisky s
rauds, lately expos Ell, were Ierpetratei I
lpon the government: third, the extent 4
Il the treuCs; fourth, the checks re- (
entity s.abLshed to prevent the occur
ence CT the same; fifth, suggests TIE
gslation which, in his opinion, is nee.
sssTy to insure full collection Of taxes
pon distilled spirits. 4
The OmmIssloner says with regard to
he additional legislation required to en-.
Ofce the honest collection or tax on dis
lied spirits: 81 give it as my opinion
nat the only law necessary is one that y
ball make the requirements stringent.
nd the penalties for defrauding the e
overnment as severe in the case Of rec t.
Itiers as they now are in the case of the Il
lstlller. The rectifieT should be requir- n
q to give a bond 10 an amount equal to b
ne tax represented by all the spirits 81
e can possibly rectify each month. The a
ouse and tract of land upon which the 81
staoilshmenti is located should be forfeit. b
q 10 the United States in case of fraud. g.
lie should net be allowed to handle sny CT
pitts at his rectifying house, except II
nose ne purchases for rectification and a.
Ellis under the rectifier's stamps. Under pl
ne present system OF detecting frauds. NJ
least thirty days must elapse before b
he discovery could be made and the. l.
1ilt fixet. As the apparatus in a rec &C
Tying house is capable Of rectifying a 10
uantity OF spirits upon which the tax N
ould amount to 100000 per mouth, 10
nd may not be worth more than $40 600, ID
will readily be seen that under tbe v
resent law, which only forfeits the sp. Ell
Iatus and spirits owned by him at la
he time OF the seizure, rectifier NAV ba
d in defrauding the government out of liz
.C0O1O, by forfeiture merely of SlO.- th
70. By ASCENDING to foreign coun. tn
y, he also escapes criminal punish pc
ent. l have also to suggest that the To
W now in force in regard to the re- tn
rms TO be made by reciifiers is so in I'll
,tnite that some legislation is needed tie
enforce toe regulations of the COM tn
l also think it would he di
liter II rectifiers, dislilleIs and whole wi
lie liquor dealers were required to pc
axe transcripts of their books MONTH III
instead Of this labor being performed m
: local officers as 1t il at present. II Nj
Ould also relieve the officials CT an i'm. rel
ense amount Of labor, and would az.
mplish the more important result of -
evening the destruction of books bv !ie
e parties about to be detected in fraud. e.
lere would then be a sworn copy in %
is office that would always be admis. Tx
Die evidence in the courts against the
lily parties. / am firmly OF oninion so