New-York tribune., 1896-01-25
,py TELEGRAPH TO THE TRIBUNE.l

II a
u val disturbed over the lightness OF internal
! C'0' ~ ,ecen;s Despite the fact that the Wilson
rN'"eased the tax on distilled spirits from 90
~" ner gallon 20 81 10. the January receipts are
gu" % fall below those of any normal January
p p,nv years and those of the year 1885, the
W. for which are just completed. are many
N~o,s below those Of former years. 1t now
- that the internal revenue end of the VIII
w law is likely TO be as disappointing has
w ,,s tariff end 1t would seem logical that an
.ssse of % per cent in the tax whiskey
,d have added materially to the revenue pro-
\ 80 from that article. And the officers Of the
..surv Department are cudgelling their brains to
\ s,s out what this falling OF IT. receipts under
\ .,sse circumstances means
\ rhev find on comparing the Withdrawals OF tax
\ IA snirits during the year 1895 with those OF
\ F,.sdng wears that there has been u great reduc-
~, IN the amount withdrawn. ne number Of
nons of distilled spirits withdrawn tax-paid dur
! -, 1895 amounted TO only 65.757.l55 about two
.s,,ds the amount in 1893 and but little half
i Ms amount Withdrawn in 1892 In making these
.,mnarsons they do not take into consideration the
! ...r 1894 which was an abnormal year by reason
. the large Withdrawals In anticipation of the in
,.ssed tax. The number of gallons withdrawn
,.x.paid Ia 1898 95o5l,lsS. and the number In
,sr was over lO5.Ooo 600 gallons From January !.
,se 10 January l. 1895. the Withdrawals of spirits
,.,.paid average over loo.0U0o gallons yearly,
.hue as indicated above the Withdrawals in the
,.,r 1895 only amounted TO 65757.l55 gallons.
When they add to this remarkable showing the
net that the January 1896. Withdrawals are likely
| a be less than in any normal January for many
Years they puzzled to understand why the in
| ceased tax IS followed by decreased Withdrawals
.ra BY decreased receipts. one of these is the
excessive Withdrawals just before the new law
.snt into effect. But that excessive with
tawa only amounted to about 25.enocO gallons. II
scarcely believed that it could affect conditions
more than one year later. Another cause for the
snal Withdrawals is suggested in the general bus!-
ness depression. which probably reduced somewhat
ne amount that many people spend for liquors for
ner personal use.
MORE ILLICIT DIST1LLING.
third and extremely important cause is found in
NE steadily increasing Illicit dstillation When the
ux was 90 certs per gallon there was strong
temptation TO fraud. but when it was increased p
Ter cent and brought up to 81 10 per gallon the in
eentve TO fraud greatly increased. And with
that increased incentive there has doubtless been
m increase in fraudulent dstillation until ii
ia believed that from 100000 to 100000" gallons OF
As,iled spirits of various classes are manufactured
md sold without the knowledge Of the Government
and without the payment of the tax. Recent dis
coyeries have brought about method Of produc-
ns alcohol from low grades of refuse from
houses molasses factories and even the washines
Of vessels which bring sugar and molasses from
there was put into use small stin which "ouu
occupy no more space than upright boiler ana
could be concealed in basement or ciosel anu u!
which alcohol can be manufactured from molasses
Or the refuse OF sugar houses and vessels which
a,ry sugars The cost Of producing alcohol by
eis new process is small. 1t can be produced for
40 more than 10 cents per gallon probably less 1t
n easy for persons so disposed TO operate still In
cam. ction with in the neighborhood OF sugar
rean.ries or suga: factories and sugar plantations
and the result is that a great deal OF alcohoi Is
being manufactured in this way. OF course the
honorable sugar producers ana renners, IL 'heE
manufacture alcohol by this process, pay the tax
M, tho temptation to the smaller manufacturer
and tho man of lower grade of hcror is great
much greater than 1t was when the spirits which
ne nroduced cost 25 cents per gallon ana his tax
was 90 cents Now his spirits cost MIN ~ cents
per gallon and he must pay eleven times as Hiuch
ss taxes on It, So the profit from Illicit distila-
,,o, has enormously increased and the number Of
people willing TO take chances and the propor.onate
risks have both greatly Increased. and with TINS
corresponding increase in the quantity Of distilled
epirts put into the market without payment OF tax
,hus reducing by that amount the internal revenue
Yeceipts which the Government should realize from
Tho navment OF taxes on the spirits so used in the
United States
Still another cause for the light Withdrawals tax
maid lies in the fact that the new law permits dis
ters 10 hold their goods in bond eight years, in
ste Of
no Withdrawals tax-pad OF any goods except those
-hicb tho market actually demands. while under
N. three wears law whiskey was being constantly
forced out OF bond by reason Of the expiration Of
the three-year limit. While the estimate OF those
familiar with the operations OF the internal revenue
system is that the Illicit distaions do not exceed
ZOO 900 or 100000 gallons a year, Il is not .mpos
sihle that the amount is much greater, ana may run
No In ~ 90 600 or 100000 gallons under the stimu-
law There are throughout the South hundreds on
hundreds OF small distiiieT,ies regs'ehred s ana
ent law which so small that 1t Is
for a and the otSer
faud-pfeventng paraphernalia applied H. 10 ine arge x
es.aS in ontof ,heway places that much of this
fraud 10 carried on. while in cellars pasenehth anu
is,ions there is also more less of 1t IN constant
progress In many districts where small s,s al ar g
sSarses ram far into the hundreds last year, and in
single district Of North Carolina the aeuons s,,1 De
gun tor violation Of the internal fe'e"oe laws HUM
kered 1000 in year
REVISION OF THE LAWS NEEDED
So II seems not improbable that the lightness IN
withdrawals OF legitimate tax-pa.d spirits "hch
has been so strongly marked since the ne" Id"
vent into effect is due In greater extent 10 lau'
Induced by the incentive offered In the ."A
ne than has been Is generally SUPPOSED az az
rowing evil likely to result IN deinailu ~ a.. a.
rry day for revision OF tne Which permit
ne operation OF small distilleries free from co
rant governmental supervision. While the PROPOSE
toa 10 prohibit the small farmer and grain producer
nom utilizing his fruit grain TO MAKE Splits - -
Ut. popular one with the average LEGISLATOR Oh
nember who wants a reelection, there IS grow
hg demand for such action from those VINO ma ma {
0eir money Invested in legitimate distllinS opera
tons and who pay promptly and fairly the taMss
assessed them They Insist that al dstiieries. as Ne bs =
sme rules those imposed upon the large onss ,hs;
sno until this Is done IL cannot be expecteu ina
i The frauds from which they now suffering ana
nom which the revenues OF the Government are st
sox suffering will be or be prevented IN 'le lae
sate OF North Carolina alone there are over ,, ~,
spsered distilleries, with daily gram fapSc't -,
not over Ave bushels each, none OF wnich, OF
Surse. be subjected TO close Government scIu,
And the same conditions exist IN ,n muen 'es In
l SSAKed degree in other parts or the South az az
2sss sections the only reproach attached TO nci'
Sssulng is that connected with discovery ana pun
l sequence