Evening star. [volume] (Washington, D.C.) 1854-1972, 1879-11-25
Internal Revenue.
ANNUAL REPORT OF THE COMMISSIONER.

3
port an improved condition of the internal reve-
nue. service; first, in regard to the receipts sec
ond, in respect to the character and efficiency OF
the officers employed; third, in respect to the
disposition of taxpayers to observe the laws;
and, fourth, in regard to public opinion in refer
ence to the enforcement of the laws. The
marked improvements in the receipts during the
past four months in the face OF the great redlc-
ton of the tax on tobacco, gives promise that
the receipts from internal revenue taxes will.
during the present fiscal year, reach the sum of
$115,00O,000. The one hundred and twenty-siX
collectors and their subordinates, as body of
officers to whom is intrusted the duty of collect
inh nearly S115, 10000, 900 Of revenue are entitled
to the respect and commendation Of the people
and the government for their capacity, integ-
rty, and fidelity to duty. The great majority OF
the taxpayers have observed the laws, and
faithfully paid their taxes, and it is believed
that in the greater portion of the country VIOLA
uOnS of the internal revenue laws are as infre-
auent as can reasonably be expected And in
those districts where the laws have been for
years openly violated, and the officers set at
defiance, there is a returning sense of majority
of the people to the duty of the tax payers to
observe the laws and of the officers of the gov
eminent TO enforce them.
During the last three years and four months
3,117 Illicit dstillerieS have been seized, 6,363
persons arrested for Illicit disting and 81 Off
GERS and employees killed and IS wounded while
engaged in enforcing the internal revenue laws.
These facts clearly show the dangerous and
difficult character of the work that has been
performed by our officers in the enforcement of
The laws; and the fact that during the past Six
teen months ,395 Illicit diStillereS have been
SeiZed 3,2S1 Illicit diStilerS arrested officers
and employees killed and % wounded while en-
forcing the laws, and the further fact that
nearly all OF these seizures, arrests, and resist
ance of authority are confined to the districts
long infested with these troubles indicates un-
mistakably that much remains to be done to
place the service upon q satisfactory footing.
This can only be done by constant, vigorous,
and courageous efforts OF repression with such
force OF deputies armed when necessary, as
will demonstrate the ability and determination
of the government to collect its revenues and
enforce its laws. And | deem it my duty to
again Call your attention to the fact that the
appropriations have been, and now are made
quate to the proper enforcement of the laws.
1t is in the interest of the government whose
laws are violated and whose revenues are with
held; it is in the interest of the public. whose
peace is disturbed and whose morals are de-
bauched and it is in the interest OF the officers
OF internal revenue whose lives are endangered
while enforcing the laws that sufficient appro-
priations should be made toprovide an ample
force to suppress illicit diStilling wherever
found, and to police the infected country so as
to prevent recurrence of these demoralizing
frauds and therefore have the honor to recon-
mend the appropriation OF 100000 as def
cheney, for the present fiscal year for this ser
vice.
REDUCTION OF TOBACCO TAX.
During the discussion OF the question OF the
reduction of the tax on manufactured tobacco,
ventured to suggest that the loss to the reve-
nueS would be at least 50, 100000 per anntlm,
anu lLdt 10 pecunldIy DeneIlu would result TO
consumers by reduction of the retail price OF
tobacco. During four months OF the present
fiscal year the decrease in the receipts from
tobacco and snuff, as compared with the cores
pOnding period OF last year, was 81 1886, 500; these
figures indicate a reduction for the year in re-
ceiptS from this source of over $I,000,000. The
increasing prosperity OF the country which has
given so favorable an impulse to all business
has largely benefited the tobacco trade, and the
receipts have in consequence not suffered so
heavily as was anticipated. Experience has
shown that no material advantage has Injured
10 consumers in reduction OF the price by
reason OF the reduction of the tax.
COST OF COLLECTION.
The total cost OF collecting internal revenue in
the United States for the fiscal year ended June
80, 1879. was 4,2O6 $50, being 3 I-1O per cent.
upon the amount collected.
ESTIMATED EXPENSES FOR NEXT FISCAL YEAR.
estimate the expenses of the internal reye-
nue. service for the fiscal year ending June 80,
1SS1. as follows:-For salaries and expenses OF
collectors, 81 900; for salaries and expenses of
80 revenue agents for surveyors, for fees and
EXPENSES OF gaugerS, for salaries OF storekeeperS
and fol- miscellaneous expenses, 81, 100000; for
dies. paper and stamps. $4,000; for detecting
and bringing to trial and punishment persons
guilty OF violating the internal revenue laws,
including payment for information and detec-
ton, 100000; for salaries of officers, clerks and
employees in the Office of the Commissioner of
Internal Revenue, s253,330. Total, 8, 32S, $3.50.
DISTRICT ATTORNEYS AND MARsHAI.s FEES.
The intimate relations existing between this
office and the offices of the several district attor-
neyS and marShaIS throughout the United States
has caused me to give considerable attention to
the subject OF their compensation, and have
reached the conclusion that there are are very
few subjects of legislation that so well merit the
attention OF Congress. In my opinion, the SyS-
TEN which requires these officers to rely upon
fees as means of compensation is vicious
one, tending to demoraliZe the service. and /
think should be abolished. Ii authority was
conferred upon the Attorney General to fix the
salaries OF the district attorneys as he now has
Oft heir assistants. and also to fix the salaries of
the marshals and their deputies, with such
allowance for travelling expenses as would be
lust, the whole to be paid out OF the Treasury:
or if these salaries were fixed by law venture
10 say that the service would be greatly i'm
proved.
OPPOSITION TO THE LAWS
During the year 80 revenue agents were en-
ployed. at cost of s25,97l.03, OF which SSO.ls3
was paid in salaries These agents arrested 934
S2SO, ,94i. II worth of property was seized on in
formation furnished by the agents. During the
past three fiscal years 165 revenue officers have
been proceeded against in state courts for '.acts
committed while in the discharge OF their OIL
cial dutieS'
on this subject the Commissioner says. My
information is, and l am OF the opinion, that
very nearly if not quite all OF these prosecutions
are without probable cause and are instituted
as means OF o5stlucting the enforcement OF
the laws and these facts afford additional eYf-
dence OF the difficulties in the way OF collecting
the internal revenue. | deem it proper TO state
and take pleasure in stating, that in the states
NHtlt OppOSitlOl Is lilGl llle enforce
nlent OF the laws, there are many honest and
d, honorable manufacturers and dealers, who not
only pay their taxes but condemn the frauds
and laWlessness of Others
SALARIES.
Tie commissioner recommends that Congress
appropriate for the fiscal year ending June 80,
1881, the sum of S25330 as salaries for the reve-
nue. bureau, comprising 1893 persons '.In max
Ing this recommendation. would state that it
is the same amount that Congress appropriated
for the fiscal year ending June 3O 1885, and
find that it will be wholly impracticable to re-
duce the force In any particular without mate
rial injury to the public service" The total eX-
penseS OF 1876 revenue districts for the year. in
Guiding salaries, was 81, .5S 1872. 30. The receipts
ron distilled spirits amounted to S52 so 2St.69
an increase OF 81, 149 46S. SO over the preceding
year.
THE QUANTITY OF SPIRITS.
:. ,s92t2l gallons produced and deposited In
stillery warehouses during the fiscal year
ended June 80, 1879. was greater than the guam
tlty produced during any other year. The
closest approximation to this product was that
OF the year ended June 50, 1870, which was
Il ,33t ,0C9 gallons. The production Of the fiscal
year 1870 was obviously excessive, as it fell to
446 gallons in 1871, and it might be appre-
henGed that the product OF the year 1880 would
fall below that OF 1879 But when it is conSid-
cred that IA S31 ISL gallons OF spirits were ex-
ported during the year 1879, and that the foreign
demand is unabated, it seems probable that tn
large product for the early portion OF this yea
Will be continued during the year. AS compared
With the hscal year 1873. the increased produc
t1on of the fiscal year 1879 Is 1879 56S gallons
oft tinr,