Huntsville gazette., 1885-11-28
INTERNAL REVENUE.

Annual Report of the Commissioner of In
ternal Revenue, With Opinions and Re.
concentrations of that Officer In Regard
to Future Legislation.
WASHINGTON, d. c., November o.
The annual report of Joseph S. Miller,
Commissioner of Internal Revenue, for
the fiscal year ended June 30th, 1885, is
an exhaustive document Of J35 pages,
pamphlet size, and contains many valua-
BILE suggestions respecting the internal
revenue service. The Commissioner
shows that there are now 1000, 900 gal
Ions of distilled spirits abroad, which to
find market will have to be reimported
This, with more than 10000, 900 gallons
that had, on June Both last, been in bond
for three years'or longer under the seven
months extension, affords ample margin
for assuming that the receipts for the cur
rent fiscal year viii aggregate at least
$1l5,000, 900. The total receipts from all
sources of internal revenue taxation for
the fiscal year ended June 80, 1885,
were $1l2,42l,l2l, as compared
with S12l, ,590,O39 for the year 1884;
$144 ,553, ,344 for the year 1888, and $l46,-
523,273 for the year 1882. The collec-
tions made in the Fifth District of Illi-
nois ($l3, ,29S,6 ,6S7) were the greatest, and
those in the First Ohio District (SS,058,-
1869 were second in volume. The cost
of collection aggregated $4,445,43O,
against $5,076,9 914 for 1884. Six hundred
and twenty-four violations of the law were
reported during the year,
and It's Illicit distilleries were
destroyed. The Commissioner recon-
mends an increase in the number of rev.
enue agents, and submits estimates for
the next fiscal year aggregating $4, 1913
Nine hundred and tWenty-Six diSmissals
have been made in the force of storekeep-
ers, gaugers, ETC., during the year. The
aggregate amount of taxes collected
from tobacco during the last
fiscal year was $26, ,407, ,O8s. New
York did the greatest manufacturing
business; Pennsylvania is second on
the list. 1t is recommended that an
other examination be made to ascer-
tain the exact amount of taxes from
States still due, and that proper action be
had to obtain settlement of the accounts
of the direct Tax Commissioners. Con-
siderable space is devoted to the sub
ject of taxation of fractional parts
of gallon of distilled spirits during the
course of which it is shown to be quite
practicable for the distiller so to fill his
packages as to have number OF full gall
Ions and large fraction less than one
half gallon in nearly every instance. I'm
der existing law fraction Of half gall
lon is exempt from taxation. The COM
missioner is of the opinion that the prac-
ice should be checked without de-
lay and that the best remedy will
be found in taxing all fractional parts of
gallon of distilled spirits, and for this
purpose he recommends "that legisla-
ton be had, which, in lieu Of the pres
ent method of taxing and exempting
fractions, shall authorize the assessment
and collection monthly of the
tax upon the whole number Of proof
gallons, or of wine gallons when below
proof, which the fractions of gal
Ions removed from each distil-
lery warehouse may aggregate.
Under the act of March 8, 1877, distillers
of brandy from grapes are afforded the
advantages of three years storage of their
product in special bonded warehouses.
The Commissioner is of the opinion that
it would be advisable to make the pro-
visions of the act applicable to all dis
tillers of fruit brandy. The quantity Of
spirits, 81, ,G49, ,32l gallons withdrawn, tax
paid from distillery warehouses during
the fiscal year ended June 30, 1885,
was less than the quantity
(7s,342,474 gallons) withdrawn from
distillery warehouses during the
fiscal year ended June 80, 1884, by
lO,693,l5 gallons. On the subject OF
Withdrawals of spirits the Commissioner
says he is of the opinion that it would be
best to allow spirits to remain in dis
tillery warehouses an indefinite time,
subject to peremptory Withdrawals In
case of excessive losses, provided the
United States " reimbursed for the addi-
tional expense incident to such storage.
He adds: sAs in case OF all other arti-
cles subject to internal revenue tax, the
quantity actually consumed is the measure
of the quantity upon which the tax is paid.
ANY law. therefore, which fixes the date
of the payment of the tax at any time
other than the date of the actual demand
for consumption, is disturbing element
in the business of the producer, more or
less severe, as the business of the dlstiller
varies more or less from the artificial
standard set up by the law"
In concluding, the Commissioner rec
ommends that the Inspector OF Tobacco
be abolished, and that his duties be de-
yolved upon the collectors of districts
where inspections of tobacco, snuff, CT
gars or cigarettes for expectation are nee
essary.