The New York herald., 1877-01-17
INTERNAL REVENUE.
The Annual Report Of the Commis-
sioner to Congress.
IMMENSE INCREASE IN RECEIPTS
Forty Million Dollars for Tobacco Defeat Of
All the Combinations Against
The Government.

The Government.
The annual report Of the Gem missioner Of Internal
Revenue will be presented to Congress in few days.
The following synopsis of tho report, which is up
tho of June, 1885, viii be found particularly In
tcrcsting and at the time full OF Information.
There seems TO have bcen general increase in the
revenue from all sources, Notwithstanding tho OK
ceedingly hard times prevailing during the period COW
cred by the report The Commissioners is Of Tho
opinion that thero combinations against the
government to dcfraud the rcvcnuo-no "crooked
whiskcy" men. tho disasters which overlook them
recently have proved lesson which has resulted Ia
the increase OF that received In previous
years. II appears that immense OF seized
property in tho hands Of the officers and 90.
ing ruin might and should bo sold for the bene-
III OF the government BY the report II appears that
the number OF distleries registered and operated
throughout tho country during the nsca year ended
Juno 20, 1876 g 9ls. OF which 6t7 were grain and
molasscs distillcrics and the balance fruit or this
number 44O arc situated In each OF the States OF
Georgia and North Carolina 396 In kentucky, SAG In
Virginia and 90 In New York Tho total numUcr OF
grain and molasses distleries havc net spirit pro-
ducing capacity Of 100000 gallons per month,
o. 500. 900 gallons pc. year. During the year tho
government collected tho of $5l394 400 43 upon
distilled spirits, showing net increase OF
$4,344374 OF last year. These dstil-
lcrcs arc superin.endcd by LAO storekocpcrs and
gaugcrs and located In 1903 collection districts
Upon this point tho Commissioner says:-"It would
be quite impossible select ony other obcc. for
,ion that would produce equal amount Of revenue
with few persons superintcnd It's collection 1t
Is confidently believed that the amount OF real
ICED from distilled spirits will steadily increase from
year year the business Of the distlries
hampcred with legal restrictions as TO prevent tho
owners realizing fair profit from their business
Although great frauds have heretofore been pcrpe-
tratcd by dstlers various parts Of the country in
combination with officers oi the government, yct II Is
believed that these fraudulent combinations now
entirely broken up, and that tho past experience OF
those engaged them has been fruitful Of misfor-
tune and pccunary disaster atthcro is but little
probability OF whskey frauds reaching the
gigantic proportions Of few years past" Sixytwo
dstilleres and rcctying houses and other property
scizcd. the estimated value being ST. $50 ia As
scssmcnts madc against various dstllers 10 tho
amount Of 81, 1925, 772; numerous suits nsti.
tucd upon distiilery and other bonds, aud for the
recovery Of to tho amount OF So 26S 44 and
indictments wcro preferred against S2l persons
charged with offences AS result OF these proceed
ngs about $500 900 have been paid into the Treasury
Some OF these dsteries and roctiiying houses have
renamed idio since their These dstilleries
falling ruin, and in short tmo will DO OF
little value. In Wow Of these facts the Comms-
recommends that the dispose these
dstcrcs TO private individuals who will operate them,
whereby tho property will bc converted into means
Of producing revenue TO the government. Ho turthcr
recommends that the property bo rented Tor short
periods oi time. AS tho law now stands dstillcrics
and recttying houses, acquired under DEGREES OF tor
ieturv, remain under tho orders or the Court until
how nrea aus Int ek IN
Sono OF this property has been sold al u low price
Much OF II has been offered for sale without bidders
remains IN tho custody oi tho United states
marshas al great expense to the government and Is
also rapidly going To decay.
The statement shows the receipts from crmcned
liquors during tho year, including the tax OF 81 per
barrel brewers special tax aud ihe special tax OF deal
malt liquors amount to 80, al, $50 H. beng net
increase of S42727o %. The number Of brewers en-
gagged IN the Manufacture OF crmented liquors were
3,293, who produced an aggregate Of
MILLION BARRELS OF BEER.
Upon tho question of the appropriation for the pay.
meut OF colleclors deputies, &C., tho report says:-
alt Is good deal less than tho estimates therefor. IL
found necessary to reduce the pay OF deputy col
and clerks about per cent below the allow
OF last year, anu III some instances 10 reduce tho
numver Oi employees in tho districts. AS now ar
ranged. many dcpcs have i've or SIX counties under
their charge These officers are required by INV and
regulation travel through their from tino
to slime TO prevent the perpcraii oi frauds upon the
revenue 10 collect the revenue and TO accumulate ne
necessary lacts upon winch assessments made.
This involves largo expense. which the oiccr has TO
pay out OF his salary and which III majority OF IN.
stances leaves him very small sum MS not salary.
| Tho commissioner recommends that the number of
collectors be increased least cent order
TO secure the iuli collection o The revenue. The
amount Of the appropriation made by Congress tor tho
services o! sorckcepers aud gaugcrs and for misccl
! lancous expenses connected with the service was
! $l475. O0o being S425O 900 less Than the amount
tuay expended for the during the last nscai
year. Although number OF gaugcrs have boon dts
charged undor the act dispensing with The sauging OF
whoes ale liquor dealers packages and the oiccs OF
sorekcepcr and gauger have ~ many instances been
saving of $425 QUO thereby, so tuat Will 10 absolutely
necessary 10 ask Congress for deficiency approprin
| ton to MAINTAIN this service.
The total expenses OF every description incident TO
the collection OF the internal revenue for the year
ending June 80, 1876 as shown by the books OF The
! department, are 81, 737, 435 g. TO This sum should
properly be addou certain accounts FOR services during
that period yet adjusted az grogang about
making the cnre cost not over $4,,15,00 AS the
total collections for tho year wore Sll7, 2370S7, the
cost Of collecting is thus shown TO be ~ cents on
each dollar collected The quantity OF distilled spirits
removed from dst:llcry warehouses for export during
the year ending 81 1878, 5s74i3 gallons and
crease OF 72i,4s. gallons, consisting Principally Of
rum No tax ~ laid upon these exports
TOTAL RECEIPTS FROM TOBACCO
| IRON all sources, including special taxes upon the
utacture and o same, special taxes upon raw
addition to the collections OF the specific taxes imposed
upon manufactured tobacco. snuH AMI cigars Tor the
year S30 795, $50 81 an increase on manufactured
tobacco OF 81 800 020 50 over The previous year bcn
an Increase of 23 per cent and an increase over tho
year 1874, when the tax was 20 cents pound on man.
ufactured iobacco Of <4Sl6s24 Ill, or nearly % per
The OF collections cigars and cigar.
amount $500 4I4 o. tho total collections hav
ing boon sll, 272 As. Computing the number
Of pounds OF tobacco and snull, and the number
OF cigrrs, cigarettes, &c, produced IRON the
amounts OF tax collected on the same. tho
| returns show an apparent decrease IN pro-
ductvn OF SIS SIS 463 81 THIS accreasc is apparent
| Only The collections since the Inauguration OF tho
present stamp system and particularly since the
adoption OF tho Uniform tax on all grades OF manuiac-
turcd tobacco, excepting snuH show uniform IN.
crease IN the production and sale or removal annually
OF manufactured tobacco. The large Tor the
fiscal year ending Juno 30, 1915, was undoubtedly
owing 10 the fact that prior 10 the passage o the act OF
March 3. 1875 winch increased The tax on inanufac-
turcd tobacco twenty per cont, nearly al, manufnc-
turcd tobacco hand stamped and reported. Had
not the rate OF taxation changed III that time much oil
this stock oi unsampeh toborco would hnvo been cnr-
rcd forward INTO the next fiscal year before was re-
ported for taxntiou, and consequently would have ap
pcarcd this report tho product OF the last hsca
year instead OF being reported, was as tho pro-
duct OF the previous fiscal year. Tho amount OF man