Los Angeles daily herald., 1888-11-26
REVENUE REPORT.
Some Statistics on Internal
Taxation.
AN INCREASE IN COLLECTIONS.
Commissioner Miller's Figures for
the Fiscal Year Ending
June 30, 1888.
I Associated Press Dispatches TO the HERAI1

1 Associated Press DISPATCHES 10 the HERA1p1
WASHINGTON, November 25.-Josep oh
Miller, Commissioner OF Internal Rev
enue, has made an elaborate report to
the Secretary of the Treasury OF the
operations Of that service during the fis-
cal year which ended June 30h last.
The report shows that the total receipts
for the year were 1924. 326, ,475, an in
crease of S., ,4S9,174 over the receipts for
the previous year and more than the
receipts of any year since 1888, when the
receipts aggregated Sl44, ,053, ,345. The
receipts ior the year were also $4 336 ,475
more than the estimated receipts. For
the present fiscal year the estimated re-
ceipts are $l25, 100000, provided no
changes are made in the existing rates of
taxation.
The Withdrawals for consum ption dur
ing the year were as follows: Spirits
distilled from apples, peaches and grapes,
1856, 107 gallons; other spirits, 70,677 ,379
gallons; fermented liquors, 24,6SO, ,2l9
barrels cigars, 3,S44, 726, go; cigarettes,
1 1862, ,726, 100; snuff, 7,436,9 pounds !;
tobacco, che wing and smoking, POI 1925, :
6l3 pounds; oieomargarine, 80, ,667, ,755
pounds. This shows large increase,
compared with the previous year.
The cost of collection of internal taxes
for the year was $3,97S, 2S3, being less
than % per cent. of the amount col
lected. During the year 7Sl persons
we're arrested for revenue violations.
Property of the value of 1892, ,744.35 was
reported for seizure, aud $73 ,6l9 IA for
assessments for unpaid taxes and pen
alties. During the year 51S illicit stills
were seized, resulting in the death OF
one officer and the wounding of another.
The number of distilleries registered
during the year was 1894, and the num-
Der operated was 3,646; the number OF
grain distilleries registered was 300, OF
which ,O29 were operated; an increase
over the previous year of 140 of the num-
Der registered, and of 60 in the number
operated. There were 1854 frui. dis
tilleries registered, and 2,607 operated, a
decrease of 1902 in the number regis
tered, and 1919 in the number operated
The Commissioner devotes chapter
to the subject of fruit brandy, and renews
his recommendation of last year thai
authority be given for the distillation oi
all kinds OF fruits under the regulations
which govern the production of brandy
from apples, peaches or grapes, ex-
clusively. In regard to the proposition
to remove the tax from brandy distilled
from fruit, he says it appears to be prob.
able that the relief of this article from
taxation would lead to the utilization ol
large number of different fruits for the
distillation of spirits, and to the produc-
ton of an additional volume OF such
spirits, which might be reasonably ex-
pected to have an appreciable effect upon
the tax paid upon grain and molasse-
spirits with which it would come in com
petition. The reduction OF revenue by
the abolition of tax upon fruit brandy is
not, in his opinion, to be measured by
the subtraction OF the present collections
from that source; considerably larger
amount would, he says, in all probability
be lost, while the mischief to the revenue
service and increased difficulties in the
enforcement OF the law as to grain and
molasses spirits, out of all proportion tu
the amount of the tax surrendered, must
be seriously apprehended.
The quantity OF spirits (70,279, ,4O6 gal
lons) produced and deposited in the dis
tillery warehouses during the year, is
less than the production (77,831 ,599 gal
lons) of the year 1887, by 7,552,193 gal
Ions. There was an increase amounting
to 4 1927 ,669 gallons in the production q
alcohol; rum, gin, pure natural cologne
spirits and miscellaneous, and decrease
amounting to 12,379. 1862 gallons in the
production OF Bourbon whisky, rye
whisky and high wines. The quantity Of
spirits (70,74l, ,S11 gallons) Withdrawn
and tax paid thereon, from the distillery
warehouses during the year, is more
Withdrawn. from the distillery ware.
houses during the year 1887, by 4,353 ,50S
gallons. Ii the quantity 1856 1852 gal
Ions as stated by the Chief of the Bureau
OF Statistics) of exported domestic
spirits reimported during the year upon
the payment of customs duty equal to
the internal revenue tax, be added to the
quantity virtually withdrawn from the
distlllery warehouses during the year, it
is founo to be 1917, ,603 gallons, or
4.777,655 more than during the year
1887, including 2,216. GAS gallons re-
imported and tax paid thereon during
that year. There was net decrease Of
700, ,70S gallons in the quantity of spirits
withdrawn for export, as compared with
the previous year.
The Commissioner says in response to
numerous suggestions by members Of
Congress and others as to the practica-
bility OF Withdrawing spirits from the dis
tillery warehouse free of tax, for use in
the mechanical arts, and protecting the
revenue against fraud by methylating
spirits in bonded warehouses established
for the purpose, microscopist of his
office made experiments for the purpose
of ascertaining whether such spirits
could be demethylated. From an ex.
haustlve report it appears he has sue
ceeded in separating methyl, or wood
alcohol, from ethyl, or taxable alcohol,
and in deodorizing portion of ethel
alcohol throug b the use of boneblack and
other chemical substances.
The Commissioner says further: 'It
may be urged that if demethylation can
not be accomplished without the use of
still, the operator is readily liable to de-
lection, because Of the special eurveil
lance required by the internal revenue
law in the matter of stills and distillins
but do not take this view of the CASE"
The quantity of spirits remaining in
The distillery warehouses at the close of
The year is stated at 81 ,033 ,0l8, being
4, ,1l2, PSI more than the quantity so re-
at the close OF the previous year.
Of 1864, 704 gallons of grape brandy bonded
during the fiscal year, 535,583 gallons
we're produced in the first district of Gal |