New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-06-27
INTERNAL RETENUE RETURNS
HEAVY DECREASE IN RECEIPTS UNDER
THE WILSON LAW.
EXTENSION OF TIE BONDED PERIOD. OVER
PRODUCTION AND THE NoNENFoRCEMENT
OF THE FREE ALCOHOL CLAUSE
THE EXPLANATION.
fay TELEGRAPH TO THE rRIBuSE.l


fay TELEGRAPH TO THE TRIBUSE.l
Washington. June 2G-The returns from the col
lectors Of internal revenue. covering their May
business which have just been received and sum-
married. show that the distillers are still ENJOY
ing the fruits OF their success In obtaining IL I'VE
years extension OF the bonded period The average
monthly Withdrawals OF spirits, tax paid, whlch
was in 1883 over eigh. million gallons month, Is
now averaging little over four million gallons
month The MAY withdrawals amounted to 4lOo,9l3
gallons those OF Aprl to 4.sJ5s26. and those az
March to $4,000 For the nine months since inc
enactment of the Law extending the bonded period
the Withdrawals have been 3l070l9 gallons. agans'
6S,9i,6}i in the corresponding nine months oil last
year.
1t was, OF course, he expected that the heavy
Withdrawals made In July AMI August of last year.
avoid the payment OF the aGdtiona. " cents a
gallon. would reduce temporarily the amount OF
Withdrawals after the enactment OF the new law
But those amounted to only about 100000 gallons
IN excess OF the normal. and as the Withdrawals
eince the passage OF the lcw law have faen far
short OF the amount expected. even in view OF the
July and August excess. the cause must be looked
for In some other direction The wlthdrawas III
1884, including fruit branli"s amounted IN rouh1
numbers to 100000 gallons. The average yearly IN
crease by reason OF increase of population ana
business has been OF late about 5Otoo gallons per
annun. So the Withdrawals OF the hscai year when
* TO end a week hence should have been. normally.
IS oolcDo gallons. Instead OF this. they VIII De- IN
Guiding the excessive Withdrawals OF july anu
August. only about 100000 gallons. or hWlv"
ga Ions short OF the normal on this lsH"Vp gallons
tho would have BEEN in round huihocfs w.
10000.
This enormous falling or in tho Withdrawals ana
conscqucnt loss OF revenue IL due. It IL believed TO
the whiskcy tax legislation in the wilson law ohc
cause and probably the greatest one. was the ex-
tension OF the bonded period. For years the pro-
duction spirits had been in excess of the demand
and the result that there was forced out c'o"
wear a certain quantity OF spirits for which there
was no mediate demand. but on which the tax must
be paid OF the expiration OF the threc-year
bonded period This Is shown by the fact that the
production In 1881 1892 and 1893 was m0oco gallons
In excess OF Withdrawals. SO 1t Is believed thar 'he
falling of Is largely due to the accumulatlonS oi
,,x-n,t1 stock in tho former years being used
I'm while the distllers able to sit back ana wait
for n market, since their goods may now remain
eight years In bond instead Of three. improving con-
stantly in vaue meantime
Another cause Is the fact that people who think
they ought 20 gc. the benefit OF the free alcohol
| c.,,ur. ~ the new law are holding back their
| orders hop,ng that the Treasury Department may
ve, make such regulations will enable them 10
| withdraw alcohol for manufacturing. free OF taxes
| The new law II VIII be remembered. attempted 70
give the use Of alcohol free OF taxes to those Hc-
| string 10 use Il legtimately In manufactured bu'
| the Treasury Department. finding the law - loVs"-
| ~ drawn as 10 open wide doors - Nauh' az 's
officials assert has refused 10 make the necessary
regulations As a consequence. thos" requiring '"''
| s,rt Of goods are holding back AS far as possible
+, their orders IN the hope that the doors WILL
| finally open and give them what the act ur'''''
alcohol for manufactures free OF taxes Even those
who 80 withdraw alcohol for this purpos" pay the
Tax under protest, ard are piing up claims amount
! Ing millions. . "a, ,...,. O., ,,,rl
| K thirI cause ~ H.. small wi'hlrawals ~ iouht
g., no enormous increase OF illcii lStilllnG Sh''
| ~ ' usage q, the new law Adlional incentive
~ cr naturally Increases the crime .tHc''. " ''
! 80. IN m soiri's was ~ cents a gallon. 'he IN.
| rontlyc to illicit ii4;latiOn Amountel 10 t"'.
/ much but when II was Ir'r"h"'l 10 = ~ -. -
,Sr incentive was increased - 2 per cent ne
...,,i, ms b.an an enormous Increase In illcit as
tilllng ana the placing on thc ma t-,s ms
| ahiy millions - gallons of IN aNel fy'rlts mus
| reducing hy that amount the demand Tor 'n"' u"
which the TAX IL paid .. ,,.,o., .,,.o,s f.,
I mo ,a,in, N therefore. OF ls'"Vp E'''"'S ~
| ,hn normal withdrawal o. spirits. ana IN" .
o,.-, Loss O, 80 rcvenu" Is evidently 'Ht,R'
able 10 the nov law IN ~ various ''a'ur"s - -
| " ,,,,t., ~ common gossip IN political crcIc@ 'ht'
| ,s,.lor ~ the bonded period or 'ree a'cohol Ioi
| manufacturing from tho Republi'ans IN W -,
| n,.I. heavy contributions to %" p"mocfaUc am
| -, ,lrt III lNc with this very l.IlHIh'lo ~.
| H.. AMI they got tho legislation. the treasury
| t.s losf 80 ir uf revenue by H. a"d IN, INK
ISh bondhoicrs are r"aping me rrS"t On .mc i,
| Ii,ion,i money the Government has been comp'H''
| Ia borrow ., them A. result $500, , ,,o
n. withIrawals ot spirits, TAX pall, Slii'' W,,
~, t,w vent INTO eject. compared WIN mos -
he Corresponding months .: last year are as '''-
|