The Toledo chronicle. [volume] (Toledo, Tama County, Iowa) 1873-1924, 1875-11-18


ing the year was 4,736, and the number
operated, 4,60S. OF the number operated 656
were grain distilleries, seven molasses distill-
cries ard 3,945 fruit dstilleries.
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 rectitiers 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
recently established to prevent recurrence
of the same, and, fifth, suggests legislation
which, in his opinion, is necessary to insure
a fuller collection in future of the taxes upon
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 tie case of the rectifer as they
now are in the case of the distiller. The
rectifier should be required to give a bond
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.
He should not be allowed to handle any
spirits at his rectifying house except those
he purchases for rectitication 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 She tax would
amount to 100000 a month may not be
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, rcctifier may
aid in defrauding the Government of $780,
600 and forfeit only $4,000. By absconding
to foreign country he also escapes criminal
punishment.
The Commissioner is firmly of the opinion
that the present large tax upon distilled
spirits can be collected with but small loss
This opinion is based upon the fact that ev-
cry Storekeeper, Gauger and employe who
is connected with a distillery where fraud
is perpetrated becomes a pensioner upon
the distiler. If, therefore, distillers be kept
under such strict surveillance that the
amount of money gained by fraud is not sur
ficient to pay large corps of officers and
workmen in necessary collusion with them
to consummate fraud, they will, as matter
of policy, be honest.
ba .yta pf hp n6s
above described the Commissioner reports
that documentary evidence is in possession
of his office which has warranted the seizure
OF % distlleries and 81 rectfying- houses, and
implicated over 50 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 100000 proof
gallons, and by aid of false gauging to the
additional amount OF 100000 proof gallons.
This, he says, is but q 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 $l,650,O0o
The receipts from all sources relatil g to
fermented liquors for the fiscal year were
80, 144 O04, a decrease of $l60,675 as CON-
pared with 1874. The number of brewers
manufacturing fermented liquors is 2,7S4.
The Commissioner expresses full conf
dence in tie stamp system for the collection
of revenue.
The number of cases compromised during
the year is 744, and the amount received by
compromise si56,576.
The total receipts from tobacco were $37,