The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-07-03
REASONS SHOWN
FOR LARGE Deficit
Collector Lowry's District Lost
:, 73l,27O.33 in Whiskey and
Tobacco Tax.
PARTLY OFFSET BY GAINS
Cigar and Cigarette Tax Increases
$447,156.6o and Plugs
Telling Hole.
PARTLY OFFSET BY GAINS

A careful study of the itemized re-
port OF collections during the fiscal
year ending June 80 by the Richmond
district of tho United States Internal
Revenue service shows that the $780,
600 deficit is due to enormous decreases
In taxes on spirits and smoking to-
bacco. gain OF s447.15669 in cigar
and cigarette revenue was not enough
to Offset slumps Of s4eo.113.71 in smok-
Ing tobacco taxes and s262,15662 in
the wine and whiskey tax. A com
parative statement of the itemized re-
ports of 1913 and 1912 show that the
receipts from the corporation income
tax and special taxes also fell below
1912, while the 1913 beer tax and mis-
ceilaneous taxes each showed a sub
stantial increase.
The moving from Richmond OF the
manufacturing department OF the Il. A.
Patterson Tobacco Company, incident
10 tho reorganization of the American
Tobacco Company following the gov
ernments dissolution order, was al
most entirely responsible for the de-
crease in revenue from smoking and
chewing tobacco. The decrease of taxes
much 10 the wave of prohibition or
any loss of the alcoholic taste as to
the numerous sci lures Of dist.llerios in
the district by revenue officers for
fraudulent practices to ESCAPE the Fed
eral spirit tax.
Frequent Seizures.
At more than one period during tho
fiscal year all the distillerics in the
district we're closed dow for one r4a-
son or another. Many were seized
by the revenue officers for tIaud, and
while some were allowed to resume
operation under bond after period
OF idleness, several plants were CON
fscated by the government and not re-
opened at all. At the present time all
nine distilleries in the district are or
Grating, although the Pocahontas in
Petersburg. one of the largest OF all,
is involved with the government over
alleged frauds. 1t is expected, how
ever. that the recent compromise OF
five fraud cases by the government and
the examples made of other offenders
will keep the distillers in tho straight
and narrow path during the next ns-
cal year and restore the spirit tax to
its normal proportions. The constant
ly increasing revenue from the manu-
facture of cigars and cigarettes is en-
pected to wipe out the smoking to-
bacco deficit during tho next twelve
months.
According to the figures of Cashier
Dozier. the total collections OF this
revenue district for the fiscal year end
ing June 80. 1913. amounted to $685.
970.93. as against total OF S7,027,I4O.69
in the fiscal year 1912. The exact de-
crease in the 1913 collections was s291,-
1875.
Tobacco Best Farmer.
Cigars and cigarettes continue to be
the most productive source Of revenue
for Uncle Sam in the Richmond dis
trict. or the S6.785.97O.76 collected
tax on the rolled tobacco weed fur
nished S4.169,335. This was just $751;
1868 more than the cigar and cigar
cite tax yielded in 1912. when the coll
| lections were S3,722.17S.31. Smoking
and chewing tobacco brands Melted a
tax of S1,290.60 placing IT second
in rank OF money makers for the gov
eminent. The deficit in this particular
source OF revenue was $469,ll3.71 In
1913 taxes on all forms of manufac-
tured tobacco yielded $5.45?, 943.57 Of
the s6.735.970.93 collected from all
sources.
Wine and whiskey held to the honor
Of being third in rank OF tax producers
with total revenue Of 1927 60040 This
was S262.156.62 short of the revenue
obtained from the spirit tax In 1912
~
Not included under the spirit tax, the
tax on beer showed Il material gain
over 1912, the breweres escaping en-
tangling relations with tho revenue
agents In 1918 the revenue from the
tax on beer was sS7.17S. as against
s75.755 collected in 1912. gain OF
Sl1.423.
Tho Federal governments tax on tho
| incomes of all corporations earning
more than $4,000 annually formed no
small source of revenue. even though the
1913 collections foil short of those of
the preceding year. Deputy Collector
Wade. In charge of collecting the cor
poration excise tax. secured n total OF
sS04.600.76 In revenue in 1918, as
| against S309.964.11 In 1912, n decrease
OF s5.363.35.
The totals OF the special taxes. which
include taxes on Wholesale and retail
liquor dealers. showed decrease Of
SlS,290.31. In 1919 this source OF rev.
enue yielded s54.4s7.99. and only s36.-
107.6S in 1913. The effect of prohibit
ton shows visibly In this form of the
governments taxes. As against this
decrease, there Is an increase OF S.
1854 in the miscellaneous receipts.
under which are included the taxes on
oleomargarine. playing cards and PEN
| alties for delinquency and interest In
1913 this totaled S20.450.52. and in 1912,
S16 OK on