Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-11-02
COLLECTED s22,50s,576
FROM BIC TAX DODGERS
Internal Revenue Department Made
Extraordinary Record Under
Wilson Administration.
GIGANTIC FRAUDS UNCOVERED
Liquor Conspiracy Operating in a
Dozen states Forced to Disgorge
S:fS3, i25. While Lawbreakers Are
Sent to- Prison.

1888, 10. While LRWbreakers Are
sent to Prison.
According 10 data obtained for the
United states Treasury Department.
efficient business methods inauguratcd
in tho Internal Ecvcnue Service and ..
fair but strict enforcement OF laws
during tn" present admnistra ton re-
| suited in uncovcring gigantic frauds
ana eNaded taxes to the unprecedented
amount of more than S5O.O00.Ooo, Of
which *22.5os,5IG.47 was assessed and
collected during the three fiscal years
ending on June 80 1916. This total
recovered amount was greater by
S:.IOu.opO than the entire cost OF col
"citinS tn" total revenue receipts OF
! tl.3"S.4l3.2o55s.
! This information was furnished yes
t.r'lay by the Treasury department. to
! Collector OF Internal Revenue x. G. L..
Moncnre. and was given out by the
/ latter.
I The letter TO Collector Moncure from
Commissioners Osborn states-that these
frauds and most OF the evnsions exist ed
unchecked aud undiscovered during
| twelve or. more years preceding the
present administration. In the COR
poration excise tax alone sll,:c6,-
l:'.s2 was unearthcd. and of this
amount SS.443.10,.S0 was due since
1909. 1910 1911. 1912 and 1919 Income
taxes otherwise lost to the government
was discovered and collected TO the
amount OF s5,O06,S96.s2. In COM
promises OF minor erasions $ssI,7sl.41
was turned into the Treasury
OLEO FRAUDS AMOUNTED
TO OVER 81. ,0OU.OOo
Oleomargarine frauds, amounting to
more than s27.000,00O. existing un-
checked during previous udministra-
tons were brought to light. The
stptute of limitat tions barred assess
mcnt OF all but s5.l6S,l66 the re-
mainder being collectablc By suit To
date ss50.i0G has been recovered,
and Si.ooo,oo0 more is expected to be
recovered in the near future.
From fraud and cvasione OF distilled
spirits. tobacco and miscellaneous
taxes t+.2il.oS5.45 was paid into the
Treasury. One gigantic whisky CON
spiracS operating for many years in
more than dozen states was bounded
until il was uncovered Eleven con-
spiriators tried SO far have hcen con-
victed and are serving prison sentences
In this one case .S3s3.!a6.6O OF evaded
taxes and in fines was collected, and
the collection is a ''tattcr of record II
Is estimated that more than $4,000. 600
was rraded by this one conspiracy
lr one oleomargarinc conspira cv
thirty-four Offenders - one city were
convicted or pleaded guilty, and were
sentenced To terms OF Imprisonment
totalinS siNty-three AID a half years
and t" pay fines uggrcsuting s1sS. 600.
T0DACCO TAX E,,.DF.ns
WE'RE BROUGHT 10 nOOK
One Investigation OF tobacco frauds
eXtcndinr over three States resulted
in the seizure OF .3c factories Of the
offenders and the uncovering OF
large amount OF taxes due the govern
l.. ent.
Whi' these millions of take. which
otherwise would have been lost to rho
government. wer" being terreted ont
through the energetic activities or tta
commissioner OF Internal Revcnu. ana
ms organization. more efiicien. methods
t"T handline til puhli3 business We're
pnt into operation. and economies ef.
i''ted winch resulted in a sa-inG of
more than 100000 annually.
Through Tho discontinuance ~ .or
ernment EausinG ut rcctifyins cstah-
ihshmonts. more than 100000 is saved
every Year. Hy elimination OF dupn-
cate and unnecessary work aud the in
Siaiiahon Of modern equipment. $50. 600
annually ~ saved in clerks salaries
In 'he cost OF paper. printing. inl, ana
labor. through improvements made in
form and size or internal revenue
stamps. S5o.oc0 is saved annually.
GOsT OF COLLECTION
MATERIALLY NEDuCt.n
The activities of the bureau" ac-
""rdinS 10 the letter. lis reflected in
the cost of collection. Tho average
cost during tile past three years was
"nlE sl.Sl per 500. as compared with
Sl.S. per 500 for the four years of
thc previous administration II tho
rate OF collection under this adninis-
trhtion had remained Us high as the
cost OF tho previous administration,
the additional expense to the govern
ment during the pas. three years would
nave amounted TO approx imately
s2.0oo,000.
The records OF the Internal Revenue
Bureau show that never in it's history
have results been achieved in any way
comparable with those of the last
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