The times., 1899-11-29

An Increase in Illicit DistiiIcries.
c. ". Wilson, Commissioner OF Internal
Revenue, yesterday submitted his annual
report to Secretary Gage. The report Gov
ers the operations Of the Bureau of Inter
nal Revenue for the fiscal year ending
June 90 1888 and is a document of over
200 printed pages, containing many tables
Of statistics.
in his report Commissioner Wilson takes
occasion to refer in rather caustic man
ner 10 utterances Of the Civil Service Com
mission on the subject Of the classification
Of internal revenue collectors, both in let
tiers and in its annual report.
The total receipts Of the Internal Rev
enue Bureau for the year amounted to
S273, 49,. .573.s4. which exceeded the esJi-
mated receipts by s3,4S4,573.44 The per
centage Of cost Of collection was LES per
cent. as compared with 2-29 per cent for
the year previous.
The objects Of internal taxation from
which this revenue was derived, together
with the amount from each, are as follows;
Spirits. S99-2S3, ,53f-ls: fermented liquors.
$6S Ga. .55S.45; tobacco. So, 4g3, ,201.64; oleO-
margarine, 81 .e56, ,6lS.56; filed cheese, SIS
G9S42; mixed -four, S7,S4o.62; miscella-
neous, sd. .OS0 1859.
The Civil Service Commission receives
the attention OF Commissioner Wilson as
follows
i deem it my duty TO take notice Of the
last paragraph Of the report OF the United
States Civil Service Commission for the
year ended June 80, 1898, which is as fol-
lows:
On April q, 1890, Associated Press dispatches
from New York. san Francisco, New Orleans,
Toledo and thirteen other large cities in dIf-
fereut parts Of the country announced the seizure
Of some hundreds df thousands of cigars manu-
factured az Lancaster, Pa. bearing counterfeit.
revenue stamps X does not appear that the
deputy collectors Of internal revenue throughout
the various districts 10 which these cigars were
sent discovered that the stamps upon the boxes
were counterfeit, but the discovery was made bv
an old and experienced internal revenue emplove
n " Washington Il VIII be Noted that tins is
Sue oi counterfeit stamps was made in the dis
rrlci where these changes 0f deputies occurred In
coItrayenilon Of the civil service act and reguia-
tioHs
1T is mauifesily the inteution Of the
Commission 10 convey 10 the mind Of the
public the impression that the Jacobs &
Kendig frauds upon the revenues in the
tax on cigars by the use of counterfeit
stamps were largely 10 be attributed TO
the alleged disregard by Collector Hershey
Of the civil service rules and regulations.
II declining 10 reappoint the deputies Of
his predecessor whose commissions expired
when he retired from Office, and in some
instances in reappointing such deputies for
a limited time only, in both cases appoint !
ing others Of his Own selection
In the interest OF truth and justice to
Collector Hershey il IS proper 10 state that
the facts co not warrant the conclusion
reached by The Civil Service Commission.
The only one Of the old ana sO-called classi-
fed deputies who remained in the service
was the one in charge Of the territory where
the Jacobs d kendig factories were 10
Gated, whose duty il was to investigate said
factories each month and see that they wers
complying with the law and making proper
and accurate returns.
IT was soon found by the honorable Sec /
re,ary of the Treasury from reports. re-
ceived from the Secret Service division. that
this deputy was in the pay Of the counter
feiters. Collector Hershey, without know
ing this fact, proposed 10 remove the dep
uyt referred 20, and was only prevented
from doing so by being called to Wash
ington and advised that the best interests
Of the service would be advanced by not
dismissing him at that time The deputy
is now in jail awaiting his trial.
desire also 10 state that the internal
levenue force began to suspect that some
thing was wrong at the factories named
soon after Collector Hershey entered on
duty. and investigated the matter going
so far as 10 swear out a warrant for the
arrest OF the accused and arrange for the
seizure Of the factories, when the honor
able Secretary called the present Commfs-
sioner OF Internal Revenue. then Deputy
Com missioner, 10 his Office, and requested
him, in view Of the Importance Of the dis +
coveTy Of the counterfeit Of the Monroe
note (Which far transcribed the internal
revenue frauds involved in the counter
felung oI stamps 10 call OF the internal
revenue force and allow the matter TO be
handled by the Secret Service force. This /
office acquiesced, and sent for Collector /
Hershey and instructed him, as above
stated
The statement that the discovery OF the I
counterfeit stamps was made by an old
and experienced internal revenue employe
at Washington. would seem to be mislead-
ing, that discovery having been made by
Mr. Wilke. Chief Of the Secret Service /
Division, who does not appear to have
been connected at any time with the In
ternl Revenue Service.
1t is also noted that the report Of the /
Commission embodies a Misrepresentation, /
which has heretofore appeared in the public
press IN regard 70 lAe responsibility OF
the present Commissioner OF Internal Rev
enue for the classification Of deputy col
lectors Of internal revenue under civil SER
vice rules. On page 2s5 Of said report
appears the following:
The classification reported to- she Commission
bears tbe signature Of g. W. Wilson, acting com
missioner of internal revenue, as well as Of the
Secretary Oi the Treasury, and includes deputy
collectors ID the classified competitive list
In this matter beg 10 quote the follow
ing extract from letter from John r. Proc