The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-05-10
MISREPRESENTATION
THE STRUCTURES NOT BUILT BY
THE GOVERNMENT.

| Private Individuals or Companies
Their Owners-Many Allan cemen Of
the Impression That the Govern
ment Furnished the Buildings-One
of Them Raised the Point as a Sub
treasury Argument
WASHINGTON. May 9. Some Of the
farmers alliancemen in the south
and west, who are advocating the
warehouse system for adoption
by the government, have been met
with the argument that it is not the prov
vince of the government to build warehouses
for any class Of producers, TO which the
advocates Of the warehouse system have
replied that il the government can build
warehouses in which to store whisky there
ought TO be no reasonable objection to make
to the construction OF warehouses for grain
and other products of the farmers. Senator
Cockrell, who believed that this notion was
an erroneous one, sent an inquiry to Inter-
nal Revenue Commissioner Mason, and has
received the following reply:
OFFICE COMMISSIONER OF INTERNAL REVENUE,
WASHINGTON, May 2, 1892.
Hon. p. II. CocEreH United states Senate:
SRI am in receipt of your letter asking
whether the United states government, out Of
government funds, has built any warehouses for
the storage OF liquors distilled spirits, and ii
50, the number of such warehouses, when built,
the cost thereof, and under what authority of
law they were constructed. If not, to explain
who builds bonded warehouses for the distillers
how they are bonded, and upon what terms
spirits are stored therein and revenue collected
thereon. In reply would say that the United
States does not now and has never built any
warehouses for distilers for the storage of their
liquors and distilled spirits. There is no law
authorizing expenditure OF public money for this
purpose. All distilled spirits, with the eXcep
ton of brandy distilled from apples. peaches
and grapes, are deposited in a warehouse pro-
vided by the distiller himself. Section 327l of
the revised statutes provides that; Every dis
tiller shall provide, at his own expense, ware
house to be situated on, and to constitute part
OF his distillery premises, and TO be used
only for the storage of distilled
spirits Of his own manufacture. until
tillers of brandy from apples, peaches and
grapes, exclusively, are exempt from the pro-
visions of this statute. These distillers either
pay the tax upon the spirits as soon as pro-
duced or the spirits are deposited in a bonded
warehouse erected by private individual and
stored there until the tax becomes due, but in
no case is the government liable for any ex-
peases incurred in storing distilled spirits of
any kind. Before the dister commences
to operate his distillery he executes
a bond, condition Of which among other
things is for the payment Of the tax upon the
spirits produced by him. When the spirits are
placed in the warehouse, which be is required
TO provide, an additional bond. known as a
''warehousing bond" is executed for the pay
ment of the tax upon said spirits. In addition to
this distillery the premises and apparatus are
liable for the tax, and the government
has first lien upon spirits them
Until this tax is paid the government has the
custody Of the spirits, by Its officers, in these
bonded warehouses. AT the expiration OF three
years, or sooner, If the owner desires possession
and use Of the spirits. the internal revenue tax
of 80 cents gallon must be paid. Very re-
spectfuly, JOHN w. MASON,
Comm ssiOner.