The New York herald., 1876-03-10
THE REVENUE SYSTEM.
Proposition Of Senator Gordon for Reform in
Collecting the Whiskey Tax.
THE ENORMOUS FRAUDS PERFORATED.
An Excise Corps To Be Ap-
pointed for Life.
SENATOR MORTON IN OPPOSITION.

WASHINGTON, March 8, 1915
In the Senate to-day Mr. Gordon called up the reso-
ution submitted by him on Tuesday instructing the
Committee on Finance to ascertain, II possioe what
amendments to our revenue laws are necessary TO
ecure economy and certainty OF the collection Of In
lernal and prevent the recurrence OF Official
frauds in that branch OF tho public service He modi-
fed the resolution to read as follows:-
Whereas the frequent and frauds committed by
ernment OF alarge proportion OF It's legitimate revenues
nuse service ana whereas the interest OF the people and
the GOOD Of the government demand that Congress
economy honesty in the collection OF the internal
Resolved That the Committee Finance be instructed
to ascerta possible What are the defects in the present
defects, and especially lily Sr,r 70 naHireo s,,lI
ing tubs require it be collected in advance; and
Seoond-Create corps OF excise TO mold Office indeh
Office
Mr. GORDON said the resolution proposed radical
that he should explain the and necessity for
such change and he disclamed In advance any dispo
Bton to reflect upon the head Of the Revenue Bu-
reau the Treasury Department His purpose
was to deal with the system alone, and show
lis defects Had this resolution been adopted three
years ago Joyce would have been compelled to
honest The whskey distillers would have
paid the tax and the Whiskey Ring would have been
impossible. Money enough would have been saved to
the government to pay the cost OF 100 centennial exit
btons build Pacific railroad. not only to Califor-
MIA but around the world IL there land to sustain
It. In department of the governments was there a
louder more imperative demand upon Congress for
wise and energetic legislation than in the Revenue
Bureau. Mr. Gordon then read from the report of Mr.
Fessenden when he was Secretary of the Treasury In
1854 to the effect that
ANNUAL PRODUCTION
of distleries ooo 600 gallons, and argued
that since 1864 the population of the country had
Increased all OF the Southern States had been added to
The consuming and producing capacity since that time,
yet Commissioner Pratt in his annual report, showed
that the tax upon only IL 500 900 gallons paid in
1870 This demonstrates that there had been fraud.
He believed that there should have been received into
she Treasury since 1864 ST. 200 OO0 600 from
On whskey but instead of that only about $3.50 000 900
bad been received. Take into consideration the fact
that the production as we'll as the consumption had
been increased by tho Southern States resuming their
relations with the Federal government and he believed
At least 600 O00 900 had lost to the government
On account OF whiskey frauds Where had this money
gomez Into the pocket OF the dishonest dlstiler,
what worse into the pockets OF dishonest govern
ment officials and brought disgrace and Generalization
upon the nation. He had but one object In bringing
this thing to the attention of the Senate that
to arrest the attention OF Congress and OF the
country and have such legislation that
would ferret out and prevent these frauds,
AID rescue the country. In organizing our revenue
system there had been extensive plagiarism from the
English system, but he was bound TO say that the
shadow of that system merely had been stolen and the
substance lett behind Great Britain could collect and
did collect 81 So gold gallon the product OF her
distllleries but the United States could collect
twenty cents per gallon In grecnbacks, and when
greenbacks all lost Why 1t that England,
Inder the system could collect ten times much
Ia gold the United States could in greenbackss 1t
was because England appointed her officers solely to
collect the taxes, while here they appointed
collect the and help the party which for the time
might be in power Applause in the galleries. but
promptly checked by the presiding oliccr) Mr.. Cor
don, continuing. said the efficiency OF
ENGLISH
depended upon the honesty Of its officers Were Eng
hshmen honest and Americans dshonestS He resented
any such mputaton; il was not true II was true
though that officers OF tho English excise did not steal
English revenue while officers of the American excise
did appropriate American revenue England had but
motive IN selecting her officers while here we had
double rhe English excise officer was forbidden
10 belong 10 any party organization, but here such
officer not only might belong to party organization,
but he must beiong TO party and 10 one to which no
was indebted for his commission he must work for
and pay to the party appointing him. and II he refused
10 do his Official head went into the basket
Mr. Gordon further commented on the English sys-
tem said in this country political partisan with
out anv experience without any training and without
any qualifications the influence which he could
bring In favor OF party, oitentimes stepped TO
the topmost round OF the ladder and was
trusted with untold millions OF the government money
and the peoples revenue. In England her revenue
agents were proverbiay honest and the repuia-
while here our politics were debauched by
revenue officers and our government dis
graced by revenue frauds Under the English
system Of selecting non-partisans aud enforcing The
law collected. while under our system OF
selecting partsans and not enforcing the law taxes
were evaded. In England the revenue system
success aud the pride Of the people, while IN this
country the system was ienominlous failure;
famous only from failure and conspicuous only from
crIme Infamous with the people and disgrace TO the
country. As long as revenue officers were appointed
by the party for the time in power the country would
have these corruptions Tree meters might
DO increased, diligence might no doubled and
agents quadruped but long
appointed account OF their party influence so long
would dishonest disters brbe dishonest officials He
wished to add his deep conviction that whatever party
might be called upon TO administer the government
appointed collect the taxes account of their
party influence disgrace would be brought upon the
Parry III should be the will OF the American people,
he believed II would be soon, to put the democratic
party in power that party would bring honesty
these departments Yet, so fully was he persuaded
that there would be temptation to use money TO keen
THE PARTY IN POWER
that he felt very much like praying "Lord deliver
democrats also from temptation" He then referred
10 the amendments TO the revenue laws proposed by
Commissioners Pratt and said they would not be sufi-
scnt The must be laid at the very root OF evil
rhe Collectors of Taxes must be taken away from party
temptation and party influence. To have pure ad
mnstraton corps OF excise must be created removed
from the temptation OF party support such corps
should have moderate salary, and hold onice during
lie or good behavior, and at the end OF service they
might he retired with pay. What would the army OF
the United States be II appointments IN u we're made
by political nnuenceg IL would descend from
It's high position and become an intriguing and ais
reputable mob. Why not appoint excise officers ike
army and navy officers were appoinicdy he urged
upon the Senate TO pass the resolution and have the
excise CORDS established But II the adoption OF that
would be much OF party sacrifice
then he hoped the other proposition would be adopted
and levied upon the tubs, 20 be collected IN ad
vaEce. There but three classes who would object
10 that:-Flrst those who honestly believed the
method could not be success on account oil ih sim
plcity second, once.hoers, because II 10 should be
adopted their occupation would be gone, and third, DIS
honest distIllcrs because they could not evadc the
law. The irst class the only one mcritng any
notice, but he claimed the method would
be successful lie discaimcd any party motive m this
matter, and hoped he moved by higher consider
alton He appealed 10 tho party IN power aud 10 The
party expected TO power to adopt tue resolu
uons that there might be honesty IN the collection OF
The revenue He argued that the adoption oi the reso-
iutions would make the receipts from revenue certain,
and they would rid the service OF vast hordes OF
REVENUE HARPiKs