The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-07-07
Existing Statutes Will Not Permit Exporta-
ton of Whisky for the Purpose of
Evading Tax.
Discharged Cadets Propose to Report
for Duty and Sue for Pay.
General Crook and the Washington Au-
thorities in Consultation on the Indian
QuestiOn-Capital Notes.
THE wH1sKY-ExPoRT QUESTION.

licitor- General Phillips.
WASHINGTON, July 6-The opinion of So
licitor-general Phillips concerning the pro-
posed withdrawal of spirits to be shipped to
Bermuda was given to the press to-day.
After stating the origin of the case the
Solicitor says:
'In pursuit of this plan, several thousand
barrels of spirits are now at Newport News,
Va, for shipment. Thereupon you ask:
| First-Is such shipment OF whisky, with
| such purpose and intention, to Bermuda, and
| landing it there, an expectation within the
intent of section 1880 of the Revised Statutes
and act of 1874, and does such shipment and
| landing there fulfill the conditions of the ex-
portation bond, and discharge of whisky from
| internal revenue tax thereon?
| Seconds such whisky, upon its return
to this country, entitled to be admitted I'M
der section $500 of the revised statutes, on
payment OF the duty or equal tax imposed
thereon by the internal revenue laws.
Thirds it entitled upon return to this
country, to the rights and privileges of i'm
| ported merchandise, under the warehouse
laws. Chapter 7, title IS, revised statutes.p
TO the above statement you have, on June
%, added as variation. the following, which
is also to be considered and made an addi-
tiona subject of decision:
/" 'First-Exportersp propose to comply with
all the requirements of the law in respect to
the expectation of their whisky, so that the
transportation and export bonds shall be can
celed and the whisky exported legally dis
| charged from the lien the government has
| upon it for internal revenue tax.
"Second-Arrangemen have been made
for the storage of whisky in Bermuda for
period OF twelve months and longer, at the
option of the owners at advantageous rates.
| This storage is in climate which, in re-
markable degree, facilitates the ageing of
whisky.
"Third-No arrangements have been made
| for the return of said spirits, and that the
same or any part thereof will not be return
| ed TO this country, except in response to the
| demands of trade, and that the expectations
are being made for the purpose of relieving
an overloaded home market, with the inten-
| ton, in the due course of business, of max
ing sale of all that can possibly be placed
| upon the British and continental markets.
| "Fourth-It is the intention of the export
ers to preserve the identity of the spirits ex-
ported, so that if market is found in the
United States for any portion of it, it can
| be entered as domestic distilled spirits rem-
ported, upon which a duty equal to the in
| ternal revenue tax will be levied and col
| lected'
The Solicitor then proceeds to define the
word export" as used in this connection,
| and reaches the conclusion that the proposed
! expectation is nothing more than an at
tempted evasion, the intention being to re-
turn the goods to this country. This point
! is argued strongly, and the case of a citizen
going abroad for temporary residence, re-
tanning his citizenship, is cited in compari-
son. The Solicitor continues:
LAS in the case put by you in your first
note, in which an intention exists to carry
the spirits now at Newport News, Va, to
Hamilton, Bermuda, with the purpose, after
landing there of shipping it back to this
country, am OF the opinion that there will
| be no expectation, or, consequently, impor-
| tation so far, at all events, as to entitle the
owners to any privileges connected with ex-
| portation or importation. Whether they
may subject themselves to another class of
| provisions of the customs laws is obviously
a different matter and will best be
decided when specific case arises
ANSWERS TO INTERRoGAToRIEs
"First-The landing specified in the bond
referred to in your first question is, by its
own words, and by those of the statute which
requires it, landing in the course of an ex-
portation, and no landing at Hamilton, there
fore the case put by you is such landing.
Neither landing nor any other detail, statu-
| tory or other, can obviate the necessity of
that intention which is of the essence of ex-
portation. l therefore answer your first
question in the negative.
"Second-I must add, of course, that the
case in view is not within section $500 for
Enthusiastically, such spirits will not be en-
titled to the rights and privileges referred to
in question three. | now ask your attention
to the effect of the variations of which YOU
speak in your second note l premise that l
understand these statements to affect cases
in which nothing else appears as to the in
tention of the owners in shipping the goods
out of the contry, for if they accompany the
cases in which the intention is asceytained to
be what you have already stated, / am of
opinion that the theory of the owners fails
them, there being no expectation. So, if the
only Intention in shipping them abroad is
for twelve months storage in Bermuda,
that, also, is as inconsistent with
expectation as the legal notion
that emigration is going abroad
with the jnteption of not returning; so that.
expectation is a severance of the goods from
the mass of things binding them to this
country with the iptentiQn Of uniting them
to mass of things belonging to some foreign
country or other.
II suppose the case may often be the same
with expectations as above detined-a con-
tingent change in the state of the market by
which it may be profitable to bring them
back, the immediate bona fide purpose as
well as act, however, being to seek foreign
market. This would, nevertheless, be expor-
tation, and upon return of course, an
importation. Nor would such expectation
be defeated by the incident of preserving the
identity of the goods; but if the only pur-
pose were to obtain, for q time, the advant-
ages which some foreign port gives for inn
proving the spirits, and meanwhile of escap-
ing some home revenue regulation upon
domestic spirits and acquiring, after return,
the same home revenue privilege appropri-
ate to foreign spirits, / submit that the
statutory requisites for such effect would be
wanting. | say statutory requisites, for |