The herald and mail. [volume] (Columbia, Tenn.) 1873-188?, 1875-11-26

VI bAiC sdnlCt HILIy buRSbotS onC IcBlS
lation which, in his opinion, is necessary
to insure full collection of taxes upoT
distilled spirits.
The commissioner says with regard tC
the additional legislation required to en-
force the honest collection of tax on dis
titled spirits: "I give it as my opinion
that the only law necessary is one that
shall make she requirements stringent
and the penalties for defrauding the
government as severe in the case Of rec
tifiers 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 estab-
lishment is located should be forfeited to
the United States in case of fraud. He
should not be allowed to handle any
spirits at his rectifying house, except
those he purchases for rectification and
sells under the rectifier's stamps. Under
the present system of detecting frauds,
at least thirty days must elapse before
the discovery could be made and the guilt
fixed. AS the apparatus in rectifying
house is capable of rectifying a quantity
of spirits upon which the tax would
amount TO one hundred thousand dollars
per month, and may not be worth more
than ten thousand dollars, it will readily
be seen that under the present law, which
only forfeits the apparatus and spirits
owned by him at the time of the seizure,
rectifier may aid in defrauding the gov
ernment out of one hundred thousand
dollars, by forfeiture merely of ten
thousand dollars. By absconding to a
foreign country, he also escapes criminal
punishment. | have also to suggest that
the law now in force in regard to the re-
tulns to be made by rectifers is so in
definite that some legislation is needed
to enforce the regulations of the COM
missioner. | also think it would be
better if rectifiers, distillers and whole
sale liquor dealers were required to make
transcripts of their books monthly in
stead of this labor being performed by
local officers as it is at present. 1t would
also relieve the officials of an immense
amount of labor, and would accomplish
the more important result of preventing
the destruction of books by the parties
about to be detected in fraud. There
would then be a sworn copy in this office
that would always be admissible evidence
in the courts against the guilty parties.
l am firmly of opinion that large tax
upon distilled spirits can he collected
with but small loss.
This opinion is based upon the fact
that every storekeeper, gauger and en-
plOye who is connected with distillery
where fraud is perpetrated, becomes a
pensioner upon the distiller. If, there
fore, the distillers be kept under such a
strict surveillance, that the amount of
money gained by fraud is not sufficient to
pay large corps of Officers and workmen
in necessary cOllusiOn with them to con-
summate fraud, they will, as a matter of
policy, be honest. As an indication of
the extent of the frauds above described,
l have the honor to report that docu-
mentary evidence is in possession of this
office which has warranted the seizure of
twenty-fOur distilleries and thirty-seven
rectifying houses, and duplicating over
fifty FUnited States gaugers and store
keepers. This evidence shows the issue,
between July l, 1874, and May l, 1875,
of fraudulent spirits by the duplication
of 10000 packages containing probably
1900 900 proof gallons, and by the aid of
false guaging, to an additional amount of
], 100000 proof gallons. This, of course,
is but portion of fraud actually COM
mitted, but in itself indicates the loss of
tax to the government, in ten months, to
an amount not less than one million six
hundred and fisty thousand dollars" J"
Receipts from all sources relating to fer
mented liquors for the fiscal year, nine
million one hundred and forty-four thou
sand and four dollars, and decrease, one
hundred and sixty thousand six hundred
and seventy-fve dollars, as compared
with 1874. Number of brewers manu-
featuring fermented liquors, 2784. The
commissioner expresses full confidence of
the stamp system foll the collection of
revenue. The number of cases cOmpro-
missed during the year is IA; amount
received by compromise, one hundred
and fifty-six thousand seven hundred
and fifty-six dollars.
A recommendation is made that de-
serving gaugers receive seven dollars per
day, and that III some instances the of
fees of gauger and storekeeper be con-
solidated, by which one hundred thou
sand dollars, would be saved in expenses.
Total receipts for tobacco, thirty-seven
million three hundred and three thou
sand four hundred and sixty-One dollars,
an increase over 1874 of four million
sixty thousand five hundred and eighty
six dollars, and an increase over any pre-
viOus fiscal year of two million nine hun
dred seventeen thousand and one
hundred and fifty-eight dollars. Total
amount of tax collected on tobacco and
snuff from September l, 1862, to June
80, 1875, two hundred and twenty-five
millions three hundred and ffty-six
thousand two hundred and nineteen dol
lars total collections on cigars, cherOOts
and cigarettes same time, siXty-eight
millions two hundred and thirty-three
thousand two hundred and six. 1t is
expected that during the current yerr
the assessment of taxes on tobacco will
be largely increased. The whole amount
of taxes assessed during the year is eight
millions two hundred and thirty thou
sand and three dollars, and increase over
the previous year of three millions four
hundred and forty-four thousand three
hundred and thirty-five dollars. The
quantity of distilled spirits in ware
houses July l, 1874, is 1888 gal
Ions; distilled spirits produced during
the year, so, $780, ,425 gallons; total, 49,
CSC, 1874 gallons. Total withdrawn, Co.
319,1 gallons, leaving in bond June 80,
1875, 1857, ,253 gallons. The spirits re-
moved from warehouses for export for
the year ending June 80, 1874, reached
1900, 10S gallons, while only 5S7 ,4l3
gallons was thus removed during the last
fiscal year. The quantity of tobacco re-
moved. for expectation in bond, with
out paying taxes, amounted to nine mil
lions one hundred seventy-nine thousand
three hundred and fifteen dollars, de-
crease of one million six hundred and
twenty-one thousands six hundred and
eleven dollars. The commissioner says
the force of revenue agents is inadequate,
and recommends the passage of a
law authorizing fifteen more agents.
He thinks a further consolidation
of the collection districts can be
made without affecting the revenue, and
that the plan of gauging wholesale liquor
dealers packages by United States gaugers
can be dispensed with, and simple sys-
TEN of checks by stamps substituted,
which will prevent an over issue. lie
recommends making violation of the
law relating to friction matches GRIM
inal ofiense, punishable by fine and i'm
prisonment He also desires that internal
revenue agents be empowered to demand
and Obtain the iDSDactiOn of the books