Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-12-04
vaporizing process now pending
In Congress. and says; while

in Congress, and SAYS: "Whil
"A great majority of manufacturers of vinega
by this process are no dou btsfollo wing legit
& innate business. am convinced there are man
i who have engaged in the business for the ez
:. press purpose of defrauding the government o
Il Its tax upon distilled spirits"
r The total cost Of collecting the internal reve
nue. for the fiscal year was 81 sos, $40, being
4 percent of the total amount collected. Estimate
, | for expenses for the fiscal year ending Jun
8 S0lSS2, are s4,s95,8S0. During the fiscal year
oil .0O2 GA stamps were issued, the value
= which was SlS4. 942S60. The commissions
( quotes letter received by him from the secre
tary of the treasury. June 49,. the effect o
! which was to divest him (the commissioner O.
the authority of employing persons to be pait
from the stamp roll, an authority which hat
, been exercised by him for three years, ant
says: Under the changed system persons who
, are regarded by the court as competent and ex
perienced in their work, and were satisfactory
to him, have been removed and others without
experience and unknown to thu
commissioner, have been substituted
With the utmost respect to the
honorable secretary that in my opinion this
action is erroneous in principle and IN law
and. IN my Judgment, should be revoked by a
circular issued by Secretary Sherman" july
3Oth last the appointment of store keepers.
gaugsrs and tobacco inspectors was also trans
ferred from the commissioner of internal rev.
| enue to the secretary of the treasury. After
criticising this action to some extent, Gen.
Raum says:
81 have not questioned, aud do not question
the right of the secretary to obtain infoi ma
| ton from such sources as he may deem prop
| or on which TO make these appointments and
| removals, but 1t occurs to me that the officer
who by law has charge or the general superin-.
| tendence of the collection of the revenues, and
| has SO much to do with the officers in Que stion,
| should be consulted as to the necessity OF max
! ing appointments.
| The total amount of collections FROM tobacco
for the fiscal year ending June 80. 1880. was
| S3S, S7U, 40. This amount includes Collections
| of internal revenue taxes imposed upon i'm
| ported manufactured Tobacco stuff and cigars,
and special taxes paid by manufacturers of
| and dealers in leaf and manufactured tobacco,
and is less than the receipts from the same
| source for the fiscal year Immediately
preceding by $1,264,s62. The decrease
on tobacco and snuff was
SS 500 246. OF this decrease So, 533.720 was
| on chewing and smoking tobacco 1861, 500 on
snuff. The increase in collections from cigars
IF productions of manufactured tobacco,
cigars, etc., was IA 649,476 pounds. The re-
port continues: Ths entire receipts from
manufactured tobacco, including snnff. for the
year ending June 80, $780, were So, 804, 1853.
This is S3, S0l, 246 less than the receipts from
the same sources during the year ending June
So 1879. and 81, 579, 1903 less than the receipts
from the same SOURCES during the fiscal year
ended June 80. 1878, when the taxes on snuff
were collected at the rate of 80 cents per pound,
on manufactured tobacco ut the rate of "a
cents per pound. These collections were made
from 3, 966, 308 pounds of snuff and 1872, sos, 527
pounds of smoking and chewing tobacco. Had
there been no reduction in tho rate of tax on
snuff and tobacco, the number of pounds which
reached taxation the last fiscal year would have
yielded revenue of 49,, 023. sos or $ll.2lS-
IA more than was collected. The total coliec.
tons from cigars, cheroots and cigarettes for
the fiscal year ended June 80, 1850, were 9l4-
922 0s8 This is 50 383 636 more than the re-
ceipts from the same sources during the pre-
vious fiscal year. Owing to the large increase
in collections from cigars ard
cigarettes the total collections
from tobacco. snuff, tobaccos and cigarettes
amount to $50, IS So. which is only 81 4ll,-
6l0 less than the collections from the same
sources for the previous fiscal year. To fairly
determine the facts of the reduction of the
rate of tax on manufactured tobacco, includ-
ing snuff, medG by the act Of March l, 1879,
comparison should be made of the receipts of
the the two entire tn fiscal years
on snuff was thirty-twU cents per pound.
and the rate of tax on chewing and smoking
tobacco was twenty four cents er pound, and
1880. when the tax was uniformly collected
on all classes of man ufcctured tobacco, includ-
ing snuff at 81 cents per pound. Leaving out all
collections made from cigars and cigarettes
(as no change was made on the rate of tax
cigars and cigarettes by the act of March 1.
1879 this com parison shows falling off of
receipts from chewing and smoking tobacco
and snuff due to reductian of
rates, of Sa,579 1903. The apparent increase
in the consumption of manufactured tobacco
or in the quantity placed on the market tax
paid is not thought to be due to the reduction
of the cost of tobacco to consumers, for the
| reason that there has been no reduction of the
price Of tobacco paid by consumers, excepting,
perhaps, slight reduction on the very lowest
grades of smoking and chewing
tobacco. The true cause of the increase
in consunlp tion is to be found in the general
revival of business in the last two years, n ore
and better pay to laborers. and increased means
to purchase with. Regarding the apparent
overproduction of spirits the commissioner
says: II take the liberty of calling especial
attention of dIstillers and the trade to the fact
that on July 1, 1879, there were on hand in
distilery warehouses 1922, 900 gallons of spir-
its, which was an increase of aboGt $4,000
gallons over the stock on hand at the same
period the previous year, and that on the 1st
of November, 1880, the amount of spirits on
handwas 80 640, 900 gallons, being auincrease of
H. 400, 600 gallons over the amount on hand on
the first of January, 1879. The steady increase
in the number and capacity of distilleries in
operation suggests the probability of contin-
ued enlargement of the stock on hand. 1t has
occurred to me this business was on the eve of
being overdone, and that in the event of the re-
currence of the agitation for the reduction of
the tax the holders of these spirits would be
in danger of loss, as it appears
that exporters are willing to enclose two five
gallons tin cans in one wooden enclosure, and
az the commissioner believes such package
may be properly protected by stamps, he
recommends that the law be SO amended as to
provide for the expectation of alcohol in me-
tallic cans of five gallons and upward, provided
| the quantity contained in wood enclosures Is
not less than ten gallons. The quantity
| of spirits, go, $50, go gallons, produced
and deposited in distIlery warehouses,
puring the fiAcal year ended June 80. 1879. ex-
coed the production of the rev;ous year by
| Is, GAG gallons, the product for 1879, os
shown in last years report, have been greater
| than for any previous year. The increase IN
| product for the fiscal year 1880 over the pro.
| duction for the fiscal year 1879, is described
| among different varieties known to trade.
| The causes which, in addition to improve
nent in the lines, have led to
this great increase in tho produc.
ton OF distilled spirits, Gen. Roum says.
| are amendments Of the internal revenue laws
which have secured, first, the increase in the
bonded period from one year to three years
second, the allowance for loss by leakage
| ment of Interest on taxes while in bonded
l v1rkE H. E.