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

vaporising process" now pending
In Congress, and says: ''Whil
great majority of manufacturers Of vinega
by this process are no doubt following legit
innate business. am convinced there are many
press purpose OF defrauding the government oi
its tax upon distilled spirits"
The total cost Of collecting the internal reve.
nue. for the fiscal year was ST. sos. .842, being 6s
percent of the total amount collected. .Estimate'
for expenses for the fiscal year ending June
30 1882. are SsS95, $50. During the fiscal year
9ll .002 Ga stamps were issued, the value OF
which was sr3i, i,942.S6O. The commissioner
quotes letter received by him from the secre
tary of the treasury. June %, the effect OF
which was to divest him (the commissioner OF
the authority of employing persons to be paid
from the stamp roll, an authority which hao
been exercised by him for three years, and
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 the
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 q
circular issued by Secretary Sherman" July
| Both last the appointment of store keepers,
gaugers 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:
II have not questioned, and do not question
the right of the secretary to obtain informa-
tion from such sources as he may deem prop.
er on which to make these appointments and
removals. but it occurs to me that the officer
who by law has charge OF the general superin-
tendence of the collection of the revenues, and
has so much to do with the officers in question,
should be consulted az to the necessity of max.
ing appointments.
The total amount of collections from tobacco
for the fiscal year ending June so. 1880, was
S3S, ,S7o, l40. This amount includes collections
of internal revenue taxes imposed upon i'm
ported manufactured tobacco, snuff and cigars,
and special taxes paid by manufacturers of
and dealers in leaf and manufactured tobacco.
source for the fiscal year Immediately
on tobacco and snuff was
SO, sO0,24 OF this decrease 49, 5Ss. 72O was
on chewing aud smoking tobacco, 1851, 526 on
snuff. The increase in collections from cigars
and cigarettes was S2,SS9,5s6. The increase
Cf productions OF manufactured tobacco,
cigars, etc., was IA 649,476 pounds. The re-
port continues: The entire receipts from
manufactured tobacco, including snuff, for the
year ending June 80, 1880, were S2l, ,S04. 76S.
This Is S3 80l, ,2i6 less than the receipts from
the same sources during the year ending June
80. 1879. aud $4, 679 les less than the receipts
irom the same SOURCES during the fiscal year
ended June so, 1878, when the taxes on snuff
were collected at the rate of SO cents per pound,
on manufactured tobacco at the rate OF "a
conts per pound. These collections were made
from 8, 1908 pounds of snuff and l32, 800 527
pounds of smoking and che wing tobacco. Had
A. L -
snuff and tobacco, the Dumber of pounds which
reached taxation the last fiscal year would have
yielded q revenue of $50, ,023 505 or S1l,2l8.
TAI more than was collected. The total collec-
tIons from cigars, cheroots and cigarettes for
the isoal year ended June 80, 1850, were $l4,-
922 0ee. This is 50 3S9, 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 aad
cigarettes, the total collections
from tobacco, snnff, tobaccos and cigarettes
amount to $50, 1876 852. which il only 14l1,-
el0 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, mad7 by the act of March l, 1879,
comparison should be made of tho receipts of
the two .entirc fiscal years
1859, when the rate of tax
on snuff was thirty-two 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 GLASSES of man nufcctured 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 on
cigars and cigarettes by the act of March l.
I879) this comparison shows falling off of
receipts from chewing and smoking tobacco
and snuff due to reductisn of
rates, of S4,579 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 consumption is to be found in the general
revival of business in the last two years, m 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 dlstillers and the trade to the fact
that on July /, 1879, there were on hand in
distillery warehouses 1922 600 gallons of spir-
its, which was an increase of about $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 32 640, 600 gallons, being auincrease of
Is 400, 00O 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 1t appears
that exporters are willing to enclose two ivo
gallons tin cans in one wooden enclosure, and
as the commissioner believes such package
may be properly protected by stamps. he
recommends that the law be so amended as to
provide for the exporiation of alcohol in me-
| tallic cans of five gallons and upward provided
| the quantity contained in wood enclosures Is
not less than ten gallons. Tho quantity
of spirits, 90.353.27U gallons. produced
and deposited in distlliery warehouses,
| puring the fiscal year ended june S0 1879, ex-
ceed the production of the p rev:ous year by
| 18.462, ,649 gallons, the product for 1879, as
shown in last years report, have been greater
| than for any previous year. The increase ID
| product for the fiscal yesr 1880 oyer the pro.
| duction for the fiscal year 1879, is described
among different varieties known to trade.
The causes which, in addition to improve.
ment in the lines, have led to
| this great increase in the prod NC.
tion of distilled spirits, Gen. Roum says
are amendments of the internal revenue law.
which have secured, first, the increase in the
bonded period from one year to three years
second, the allowance for loss by leak ag;
while in warehouse; third. relief from pay
| ment of interest on taxes while in bonded