The record-union., 1896-12-13
With Estimates of a Larger Total at
the End of Next June.
The Commissioner Recommends That
the Statute Relating to General
Bonded Warehouses be Amended
SO as to Limit the Privilege of
Storage to Such Spirits as rlay be
Approved by the Internal Revenue
Office.

WASHINGTON, Dec 12.-The report
Of Hon. Joseph Smiler, until recently
Commissioner of Internal Revenue, was
made public to-day. The receipts for
the year ended June 80, 1896, were
SAG, ,S30,615, an increase of So, 5S4, ,53S
over the receipts of the preceding year.
For the current fiscal year the Commits
sioner estimates the receipts will ag
gregate $15O,000,0OO
Compared with the receipts for the
preceding year, the receipts of the bu-
reau on the several objects of internal
taxation for the fiscal year ending June
80, 1896, were as follows: Spirits, $780,
G70,070, increase $S07, ,443; tobacco,
$50, III 500, increase $1,OO6,721; fer
mented liquors, $33, 7S4 235, increase
So, 1867 oleomargarine, S1,219, ,432,
increase $3.50, 77S; banks, bankers, ETC..
S134 Cirst assessmenD; miscellaneous,
S445 113, a decrease of S1S3 500.
The quantities of various articles on
which tax was paid during the fiscal
year 1896 are as follows: Spirits dis
titled from apples, peaches and grapes,
1,44O,S10 gallons, an increase of 33S,-
on gallons over the previous year;
spirits distilled from materials other
than apples, peaches and grapes, 6I,-
U39,91O gallons, a decrease of 1,413,-
127 gallons; fermented liquors, 80, 029,
u9S barrels, increase 2,264 ,6S7 barrels;
cigars and cheroots, 4, 237 155.943 in
number, increase 73, 1888, ,603; cigarettes
Weighing not over three pounds per
thousand, 4,042 391 $40 in number, in
ora n. o{rr toe. irrt,-
ing over three pounds per thou
sand, 1,401 .091, increase 333, 200; snuff,
12,54S, 800 pounds, increase LII, ,125;
tobacco, chewing and smoking, 253,-
66l, 13l pounds, increase 1897 ,499
pounds; oleomargarine. 47,623, 1773
pounds, decrease 5,640, ,S97 pounds
1t is shown by the report that the
cost of collecting the internal revenue
was $4.0S6, 292, and the Commissioner
estimates that for the fiscal year end
ing June 30, 1898, the expenses of the
bureau will be S4 1863, 900
The registered distilleries seized dur
ing the fiscal year numbered 210. the
Illicit distilleries seized and destroyed
numbered 1915, while the value of the
property reported for seizure aggre-
rested for violating the internal revenue
laws.
The whole number of grain distiller-
les registered during the fiscal year
ended June 80, 1896, was ,S33 of which
number l 1,351 We're operated. The larger
portion of the decrease in the number
registered and operated occurred in the
class of distilleries having the smaller
capacity for the production of spirits.
The total number of grain, molaSses
and fruit distilleries registered during
the year Is 6,6S9, and the total num-
Der operated is 6,17S There was an in
crease of 3,15S in the number of all
kinds operated during the fiscal year
ended June 80, 1896, as compared with
the fiscal year ended June 80. 1898.
The quantity of molasses for the pro-
duction of spirits other than rum has
become extremely large, numbering
during the past fiscal year 1907, 600
gallons, with product therefrom of
2,642,322 gallons
The quantity of grain used for the
production Of spirits during the fiscal
year ended June 80, 1896. Us. S.63O.61S g
bushels) shows an increase Of |, 1905 .901
bushels over the actual amount of grain
used in the preceding year. The num-
Der OF gallons of spirits produced from
grain during the year, 80, 1876, 153. shows
an increase of 4,2S364 gallons over the
production for the year ended June 80,
1879. The yield Of spirits from each
bushel of grain is 442 gallons.
The quantity of molasses used for the
production of rum during the fiscal
year, 1.1S9, 1876 gallons. shows a de-
crease of 32S, 191 gallons from the GUAM
tity used in the previous year The
quantity of rum distilled from mo-
lasses during the fiscal year 400. 229
gallons, SHOWS a decrease of 2S6, $50
gallons from the product of the previ-
Gus year.
Concerning the general bonded ware
houses, the commissioner has this to
say: Under the general provisions of
law the privilege of removal to and
storage in these warehouses is ex-
tended to all kinds of distilled snir-its
without exception, and consequently
several of the warehouses so astab-
lished have been mainly used for tenn
porary occupancy by spirits for which
the warehouse served merely as distrib-
uting agencies instead of furnishing a
convenient place for the permanent
storage of spirits which REQUIRE to be
aged and ripened, as was contemplated
by the statute
The practice of distributing these
spirits, designed for immediate con-
sumption from the warehouse rather
than from the distillery. has resulted
of course, in delaying the payment of
the tax thereon until the expiration OF
the period covering the transportation
of the spirits from the distillery to the
warehouse. and their subsequent dis
position to the trade and consequently
the natural loss of the taxable article
occurring during such delay is in re-
spect to the tax transferred to the
Government, instead of falling upon the
owner by whom 1t has properly hitherto
been borne.
I'm view of this condition of affairs
have deemed it best to discontinue
such of these warehouses as were mani
festly not subscribing the purpose OF
their establishment. would recon-
mend that the statute in this regard be
so amended as to limit the privilege OF
1torage in these warehouses to such