The New York herald., 1875-12-08
sl02. 044. 746 s1l0. 545.1 .154

and therefore do not enter into the actual cash receipts
OF the Treasury. They include also, Sums reported as
collected but not actually paid into the Treasury AT
that time Hen0e there Is an apparent discrepancy
between tho totals here shown aud the aggregate
amount deposited account of internal rcvcnue as
shown by warrants covering the same into the Treasury
for the fiscal year.
The receipts from internal revenue for tho FIRST quar-
tcrs of the fiscal years ending respectively June so
1875 and 1876 follows:
First quarter OF 1S75.............S2 500 3I4 6i5 33
First quarter Of 1876 rs 100, 723 30
Increase 81, ss5. los II
Tho aggregate receipts for the months Of October and
November of the current year were $40 G3s, ,9o7 ~
while for the same months OF last year they werc
$lT4T6 202 s9, showing increase of 81 162 70l 20
Since the last annual report TO Congress hfysix col
lection districts have been abolished by consolidation
with other districts with estimated annual saving
the government of about $170, 600
During the past fiscal year frauds of unusual charac
ter and magnitude discovered in this branch of the
service, which appear to have been carried with
more or less injury 10 the revenue for several years
past Tho report OF the Commissioner sets forth in de
tail the manner in which such frauds have been perpc-
trated, and gives the estimate of that office OF the
amount of probable loss tothe revenue with suggestions
OF notifications of the law deemed essential to more
certain collection OF the tax on distilled spirits The
attention of Congress Is invited especially to that
feature OF the report The recommendations made
therein for mobilization OF the law with view the
prevention of liko frauds in future concurrcd in
by he Secretary and commended to the consideration
OF Congress So long IL is necessary TO maintain
tax on distilled spirits amounting per gallon TO three
iour times the cost Of production II may be cx-
pected that the great temptation to avoid payment OF
tho tax at cast part of the production, Will excite
the cupidity OF producers, and that every possible
device for evasion will be used Each gallon OF spirits
that escapes payment OF tax increases by much the
profit the producer. II cannot be denied that a tax
imposed for purposes regarded by many per-
harsh exaction from the citizen to be hwartcd
II possible or that violations OF the punitive provisions
OF revenue statutes are looked upon by many vcnal
offences But the necessities OF government including
the maintenance Of national faith mpcratvcy demand
the closest collection OF all the revenues levied by law
and besides due regard for the interest Of those who
meet honestly and promptly the demands Of govern.
ment upon them in this respect requires that all others
shall be made to bear their proper snare Of such
ton. Every evasion OF tax by dishonest persons
eventually increase the burdens OF honest taxpayers
These considerations should induce every citizen TO
render proper aid to the government its efforts TO
collect the revenue 10y giving Information of violations
of law and of frauds on the revenue which may come TO
his knowledge; out experience shows that few will
ing to give such Information 'unlcss they receive
direct pccuniary compensation.
Whom recently 1t became known that the govern.
ment was losing large part OF the revenue due from
distilled spirits At found extremely difficult to OBJ
tain exact or satisfactory Information as TO ho method
porpctratng tho frauds ascertain with reason
able certainty who were the guilty parties. 1t OBJ
vous that frauds on the revenue being extensively
practscd, and was equally clear that this could not
be successfully DONE under existing provisions of law,
without guilty connivance participation by inferior
officers, and at least culpabc negligence the part OF
others OF higher grade.
In the opinion OF the Secretary the circumstances
seemed not only TO justify, but require, to
means other than those IN ordinary for detection
by the Bureau Of Internal Revenue. Accordingly the
appropriation for detecting and bringing trial and
persons engaged III cOuntcrcituB ana Tor
detecting other frauds upon the government drawn
upon for this purpose Tho Solicitor OF the Treasury,
who is charged whahe proper and disbursement or
that fund.- was directed TO inquire into the alleged
frauds on the revenue In the matter OF distilled spirits,
and instructed TO spare proper effort TO detect
tho guilty parties, and furnish their names, With tho
evidence against them, TO the proper officers OF the
Depart ment OF Justice. This duty entered upon
with energy and after the existence of conspiracies
and combinaticns to dcfraud the government WAS de-
vcloped the Investigation continued IN opera.
ton with officers Of internal revenue and resulted IN
the certain detection or frauds the revenue of more
than ordinary significance. Undcrthe direction OF tho
Commissioner OF Internal Revenue, the investigation
has been pursued with cOmmcEdablc energy add zeal
considerable number OF officers OF internal revenue
have been found 10 IN guilty cOlluston With distil-
lers and rcctiilers In fraudulent p.actccs
whereby largo sums lost 20 tho rev.
reported to tho proper district attorneys, has
resulted In large number OF prosecutions tor con-
suiracy duplicate o stamps and other offences So
far as these prosecutions bavc been complctcd they
have with few and comparatively untmportant cNcep
tiuns resulted IN convictions. large number Of dis
tillcrs recthcrs and subordinate officers OF internal
roycnue have pleaded guilty ia indictments against
them thus consossng their offences aud thrown them
solves upon the mercy of the court
Besides the institution Of criminal proceedings, civil
suits have bccn brought upon the bonds Of officials and
OF dstlcrs; dscries and spirits have been seized rs
forfeited TO the lnod States Tor violations Of law; and
wherever the evidence warranted, assessments hayo
been made against distlrTs Ter delinquent taxes and
placed the hands OF collectors, with instructions
collect By process Of law Urgent applications have
been pTcscnicd for The compromise OF many OF the
cases Tut ii has btcn deemed better for tho interest of
the government TO allow oil oil them 70 take the usual