, 1875-12-08


enter into tho sc.,.al cash receipts Of tho Treas
ury. They Include, also, an,ns reported "a col
lectod hut not actually paid iuto tho Treasury at
that time. ttenco tlloro II N hpparert tstcroI,-
ancy botwnen tho totalH tore shown and tho ATT
g1csato nmouut deposited on h:connt Of lhtosn,l
reveuue ~ shown by warrants covering tho ba1,lo
into tho Treasury for the tacAl year.
Tho receipts from internal revonue for tho
frft quarters OF tho fiscal years ending, rerrcct-
iyeIy, Juno 3o 1876 and 1870, we're - follows:
fIr,s tr,s .r,r aasT,sr Of Of 1ss
1ncrrake. isss,lea
Tho aggregate receipts for tho months Of Oc-
tobor aud November, OF tho current ysar, wero
Slo, C33, ,o07.19. nhllo for tho satno month"; OF
last year they wcrs sl7,47e, ,so2.o9, showing an
Increase Of "a 162, 7o4.2o.
Since tho lnat annual report to Congress fifty
Hi1 collection disttIcts have boon klolished by
consolidation with othor llstricta with m estl-
mntsd annual saving 10 Tho Government uf about
fl7O0O0.
chstActor and magnitude Hero discovered In this
branch OF tho hervlco, which appear to have boeh
carried on with moro or less injury to tie rove
nue. for seveial ycAfH raat. Ihe report Of tho
Which such frauds lago been perpo!ratod. aud
gives tho estimate Of that oieo Of the anlonut of
probable loHA to tue roTenuet With Huggestiouso of
notifications Of Tho 1aw deemed ehscntlsl to fnute
Tho astontion Of CungreHs IL invited especially
10 shat feAinre Of the report. Tho recommends
tions 1nada therein for modification Of The !4H
with Wow to the prevention Of like frauds in
futurU, aro concurrod In by the Secretary, and
commended to tho confederation Of ConXroHs.
10 long M it is necessary to uiaintHin ta1 On
lHtillod npfritB amounting per gallon to throo or
four limos tho cost Of production, II mar 10 ex-
rocteA tbas tlla groat tenltation to avoid par
mcnt Of the tax, On at least part OF the pro-
ductiou, will excite tho cuplltty OF producers,
! and that oyefy possible dcvice fur evasion will
b. used. Each gallon Of spirits that escapes
payment Of tux increanos by 70 mich tho profit
10 lilo producer. 1t cannot be dcntol that = tax
imposed for roTcnuo putposca IL regarded hy
! many persons AZ ha1sh exactiou from tho citi-
zou, to be thwarsad tt possible, or that viola
tlona, Of tho punitive ,ptovaions Of revenuo
ss venlal ofrenses. Dut the necozsi-
! ties Of uorcrnmcnt, including tho maintenance
Of nntonal fa'th, inlperatiyoly dOmand tho
closest collection OF all tho revenues lowed by
law; and besides, due regard for sbo interest Of
thoHo who meet honestly and promptly tho DO
| mandB Of loycrnnlont upon tllom, In Till
rosncct, requires that nil others shall bs mado to
bear their proper share Of such taxation. Every
evasion OF tax BY dishonest Parsons must
eventually increase tho burdous Of honeRt tax
| payers. These considerations should Induce
| ayety citizen TO render proper MD to tho Gov
| ornnlout In ita GGOrta to collect tho regc0ue, by
| KiFing Information Of violations o! law aud Of
ffauds on tho revenue, which may come to bis
/ knowledge; but experience shows tLat few are
willing 10 giyo auct information uncss they can
receive direct pec1ntary compensation.
Whom rocoaty It bccamo Known that the Gov
| csntnont was losing large lkrt Of tho rtvenno
duo from distilled Hpirte il WAS found extremely
difficult to obtau e1acs or natisfactosy i1nfoguss-
ton hs to tho method Of perpetrating tic frauds,
or TO ascertaip, With reasonable certainty, who
were tue guilty parties. 1t uns obvious that
frauds on tho rcyonue we're being extensively
prsctcc6, and it was equally clear that THIS could
uot 10 A,,ccesaiully done under existing pro-
visions of law, without guilty connivanco or par
t,cpatuu by inferior oliicors, and at least culpa-
bio negligence On the part VI othsrs Of higher
In .,,e on4n,on of the Secondary tim rfrcum.
etanccs noemn1 moi only to Justify hut rcnuiro
rcnnrt to n,oana other than thons in ordinary
ma lar slotectioe by tho I,uroau Of internal
itnYonne, Acc"Tdinrlv. tlo nnnfo,rfation fur
| dctcetinr and Grnr{nr 10 trial aud nuuisnmcut