The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-11-16
THE NATIONAL GOVERNMENT
Something About the Operations Of the
Internal Revenue Bureau.
A Time When Almost Everything Was Taxed
The Laws and Regulations Under
Which the Bureau Is Operated.


Staff Correspondence of the indianapolis Journal.
WASHINGTON, Nov. 14-One of the most inn
portant branches Of the government in times of
peace or war is the internal revenue service
This, with the customs service, furnish the
revenue upon which the government is con-
Quoted. All the expenses of the government are
now paid by the revenues through the internal
revenue service or customs. At the beginning
OF the late war the government attempted to
| raise money by direct taxation for the purpose
of paying its expenses. The States were taxed
and nearly all of the loyal ones responded, but
| there were so many secession States and such
drafts upon State organizations generally in
equipping their troops for the fields that direct
| taxation was abandoned, and attention turned to
an increase of internal taxes For time near
ly every manufactured article paid an internal
| revenue tax Indeed, it was not until March.
1883, that the taxes imposed upon bank-checks
bills of exchange, matches and patent medicines,
was repealed. Up to that time matches paid one
cent on each parcel containing one hundred
matches or less, ard one cent for each additional
one hundred matches or fraction thereof Pat
cents or less in value. two cents for fifty cents
value or fraction three cents for seventy-ive
cents in value four cents for each dollar in val
ue, etc.
After the close of the war the people began
to groan under the heavy internal taxes, and
members of Congress opened up fierce fusil-
lade upon the existing laws So onerous were
| the taxes at that time that the farmer and
mechanic were hardly able to live by dint of the
hardest work. Some classes of manufacturers
were strained, and breathed heavily, because
| they were required to consume articles in large
quantities upon which there was large taxation,
The debts which the war had imposed upon
States intensified this burden; but it was only
short time until Congress began to lop off the
taxes upon this article and that article. until
finally only luXuries were taxed Now there
are no internal taxes imposed by the govern
ment except upon distilled spirits and fermented.
liquors and.tobacco.
Once the government taxed the gross receipts
of express companies, railroads and canals, and
smaller corporations 1t also taxed the net
earnings of such corporations, in addition to the
gross receipts; also the net earnings of such
individuals as had a sufficient profit to warrant
the expense of attention and collection. This
was for the purpose of meeting war Indebtedness
and the protection of public property and
private individuals. Inasmuch as people were
receiving war prices for everything, and money
was plenty, there was probably less complaint
on account of the taxing of these corporations
than the articles which were consumed by the
poorer classes. 1t has been a matter of
ao1 1f +Io+
should have been so long in removing the taxes
upon matches and patent medicines, since they
are consumed in every household. There should
be greater wonder at the length of time left for
the tax to rest upon patent medicines than
matches, however, for in the former instance
there were large money interests to fight off the
burden, while the people alone were left to cry
down the tax upon the latter. remember very
distinctly, the fight that was made by the manu-
facturers of and retail dealers in matches,
against the abolition of the tax on that article
Their only argument against the removal of the
tax was thatt would reduce the price of matches
SO low that it would not pay to handle them.
Purchasers of matches. nowadays can readily
discover the force of the argument.
1 had talk, the other day, with the Hon.
Henry G. Rogers, Deputy Commissioner of In
ternal Revenue, on subjects relating to the laws
and duties affecting the Internal Revenue Bu-
reau Mr.. Rogers has been in his office prob
ably as long any other official in the depart
ment He has all this time been considered the
real head OF the bureau, whenever there was a
new Commissioner, and always acts as Commits
sioner in the absence of the latter officer He is,
therefore, the best authority to be found. He is
familiar with all the ups and downs of the serv-
ice, from some time before the war to the pres
emit asked him what he thought about the
proposition to abolish the internal revenue serv-
ice, and permit the liquor traffic to run riot so
far as the government is concerned: He replied:
$50 long we have to pay pensions and in
terest on the debt think we shall have an
internal revenue service. The customs service
cannot satisfactorily yield enough income to pay
the expenses of the government; it must
have aid from this service. There is much more
agitation for a reduction of the tariff than in
ternal revenue Last year we collected $112.-
000 900 against 1923, 100000 the year before
This year our collection will amount to from
$4,000, 900 to $ll5, 100000. We might stand
reduction of $780, 900. 900, providing that the
tariff is not reduced materially"
us there rot Mr.. Rogers. good deal of ex-
pense attached to the collection of these sumsl'
asked.
Eyes," replied Mr.. Rogers, there is consider
able expense attached 10 the collections, but
they are very much less than those of the Gus
toms service. We are charged with employ
ing an army of officers. Of course we do en-
ploy good many men, but this is vast service,
and there is much work connected with it. Dur
ing the eight years commencing with 1877 and
ending June 30, 1884. our collections aggregated
81, OLA, 53l. O5l81 The aggregate cost of this
collection only $37, 314 80 So The per cent
of collection was but 65lOO. This is the low
est cost of any branch of the government which
collects revenues. And this cost embraces de-
tective service, and all the expenses of the bu-
reau'
What do you think of the proposition made
in Congress last year by ex-Speaker Randall and
others to consolidate the internal revenue and
customs servicesl"
at would be economy at ALL" quickly re-
piled Mr.. Rogers, 'for it would be only mixing
up the management, and the same forces en-
ployed now would be required. The service is
thOrOnghlV and we'll manacad that within