Knoxville journal. [volume] (Knoxville, Iowa) 1874-1986, 1875-11-25

Gently established 10 prevent recurrence OF
The came: and fifth, suggests iegieiauou
which In bis opinion. n necessary 20 insure
a fuller collection in future Of the taxes upon
distilled spirits.
The Commissioner gives II as his opinion
that the only Law necessary Is one that shan
make the requirements as stringent and The
penalties for defrzudipg the Government as
severe in the case Of the rectsher as they nov
are In the case OF the distilIer. The rectifer
should be required 10 give bond In an
amount equal TO the tax represented by al
the spIrits be can possibly rectify each
month. The house and tract Of land upon
xbieh the establishment. il located should be
forfeited to the United States In case OF fraud.
He should not be allowed 10 handle any
spirits at his rectIfying house except those
he purchases for rectincstlon and sells
under rectifers' stamps. Under the present
system Of detecting frauds at least thirty
days must eiapse before discovery could oe
made and guilt fixed. As the apparatus in
! rectifying. house capable OF refining the
quantity Of spirits upon which the tax
would amount TO 100000 month may not
he worth more than $1,000 IL VIII readily
be seen that, under the present law, which
only fofeits the apparatus and spirits
owned by him at the time OF seizure,
recti6er NAV aid in defraudiDg the Govern
ment Of 10000 and forfeit only $1,000.
escapes criminal punishment
The Commissioner is firmly OF the opinion
that the present large tax upon distilled
spirits can be collected with but small soss.
This opinion Is based upon the fact that
every storekeeper, Gauger and empIoye who
ID connected with a distillery where fraud is
perpetrated becomes a pensioner upon the
dsiller. II, therefore, distillers be kept I'M
der such strict surveillance that the amount
Of money gained by fraud Is not sufficient TO
nav a large corps of officers and workmen In
necessary collision with them 10 consum-
mate fraud, they win, as matter OF policy,
be honest
As an indication OF the extent OF the frauds
above described, the Commissioner reports
that documentary evidence IL In possession OF
his Office which has warranted the seizure OF
twenty -four distiileries and thirty-seyen recti-
fying- houses, and implicated over fifty United
States Gaugers and storekeepers. This evil
dence also shows the issue between July l,
1874. and May /, 1915, Of fraudulent spirits,
by duplication, Of 1000 packages, containing
probably 1000 900 proof gallons, and by aid
OF false gauging 10 the additional amount Of
600, 900 proof gallons. This, he says, IL but
a portion Of the fraud actually committed,
but in Itself indicates the loss OF tax TO the
Government In ten months Of an amount not
less than 100000.
FEKMENTKD LIQUORS.
The receipts from all sources relating TO
fermented liquors for the fiscal year were
1914, O04, adecrease OF $50 G75 as compared
with 1874. The number OF brewers manu-
featuring fermented liquors is 2,1S4.
The Commissioner expresses full conf
dence In the stamp system for the collection
Of revenue.
The number OF cases compromised during
the year is IA, and the amount received by
compromise sl5,576.
TOBACCO
The total receipts from tobacco were $751;
303. 46l, an increase over 1874 Of "a, &C., $50,
and an increase over any previous fiscal year
Of s2,9l7, 1853. The total amount Of tax col
iected on tobacco and snuff from Sept. /,
1862, 10 June 20, 1875, Is s225, 356, 2l9. The
total collections Oh cigars, cheroots and CT
garettes the same time Is SOS, 233, 206. II Is
expected that during the current year the as
sessment Of tax on tobacco will be largely In
creased. The whole amount Of taxes assessed
during the year was 1920, 003; increase over
the previous year, tS44, 49,.
OTHER STATISTICS.
The quantity Of distilled spirits In ware
house July /, 1874, was IL, 1853 gallons;
distilled spfits produced during the year,
90, $50, i25 gallons; total, 7S,6s6,39I; total
Withdrawn, 65,319,14l, leaving In bond julie
30, 1915, 13,a57,25s. Spirits removed from
warehouse for export for the year ending
5S7 ALB gallons were thus removed during the
last fiscal year.
The quantity Of tobacco removed for ey-
portatI0n In bond without paying the taxes,
S,iT3,3i5 pounds, decrease Of l,G2l,6l
ponds.
OTHER RECOMMENDATIONS.
The Commissioner says the force OF rev.
enue agents Is Inadequate, and recommends
the passage Of law authorizing fifteen more.
He thinks further consolidation OF collection
districts can be made without affecting the
revenue, and that the system Of gauging
wholesale liquor dealers packages by United
States Gaugers can be dispensed with, and a
simple system Of checks by stamps substi-
tuted, which will prevent oyer-issue.
He recommends making the violation OF
the law relating TO friction matches Grim
inal efiense, punishable by fine and impris-
onment. He also desires that internal rev.
enue agents be empowered to demand and
obtain the inspection OF books and pa Ders Of
distilers, rectitiers, brewers, wholesale liquor
dealers aud manufacturers OF tobacco, snuff
and cigars.
The Commissioner estimates the collec.
lions Of the present fiscal year from all
AEn