The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-11-02
REVENUE BUREAU SAVES
UNITED STATES MONEY
Efficient Methods During Present Ad-
ministration Bring Large sum
Into Treasury.
GIGANTIC FRAUDS UNCOVERED.
Whiskcy Conspiracy, Which Had
Operated In Many States Tor Many
Years, Brought to Light by Govern
nent Agents.

Efficient business methods inaugu-
rated in internal revenue service and a
fair and impartial enforcement of laws
during present administration resulted
in uncovering gigantic frauds and
evaded taxes to the Unprecedented
amount of more than $4,000, 600, of
which s22,509.5764I was assessed and
collected during the three hscaI years
ending June 80. 1916. This total re-
covered amount waSs greater by S2,-
1000 than the entire cost of col
Letting the total revenue receipts of
81. &os. Alb. 205.59.
sions existed unchecked and undiscoy-
cred during twelve or more years pre-
ceding this administration.
The sum of sl1.326,l2j.S2 was un-
earthed in corporation excise tax
alone. ss.433.707.60 Of which was due
since 1909. 1910. 1911, 1912 and 1919
The sum Of s5.0oe6s692 of income
tax otherwise lost TO the government
was discovered and collected. while
s9s4,791.I in compromises Of minor
evasions was turned into the treasury.
Frauds Brought Light.
Gigantic oleomarEarine frauds,
amounting to more than $4,000. 0oc,
existing unchecked during previous ad-
The statute of limitations barred as
sessment Of all but s5,16s,1esl3, the
other being collectible by suit To
date s9504ess has been recovered
, and S1o0ooo9 more IS expected TO be
recovered In the near future
Money to the amount OF s4241.555.45
from fraud and evasions Of distilled
spirits, tobacco and miscellaneous taxes
was paid into the treasury
One large whiskey conspiracy. oper-
ating for many years in more than a
dozen States. was bounded to light
Eleven oorspirators tried to date have
been convicted and are serving prison
sentences. Three hundred and eight
three thousand one hundred and TWEEN
tyfve dollars and sixty cents of
evaded taxes and fnes IN this one
case is a matter OF record It is esti-
mated that more than $4,000 900 was
evaded in remote years by this one
conspiracy.
In one oleomsrFarine conspiracy
thirty-four offenders In a single city
were convicted or pied guilty and sen
fenced to terms OF imprisonment to-
falling sixtv-three ard one-half wears
and to pay fine. aggreEating slas.eo0
One investigation OF tobacco frauds
extending over three States resulted
offenders and the uncovering OF a
large amount OF tax
Economics Are Effected
While the above millions OF taxes
otherwise lost 20 the government were
being ferreted out through the ener-
gettc activities OF the commissioner
and his organization. more efficient
methods for handling the public bust
ness were put into operation and econ
ou1les effected which result in a saving
Of more than $500. 600 annually.
The sum Of s4oo. coo is saved annually
through the discontinuance OF govern
ment EauKinE at rectifytng establish
ments $50 .a6a s saved in clerks sal
aries annually by elimination OF dupll-
cate and unnecessary work and Install
ing OF modern equipment. and $4,000
is saved annually IN cost OF paper.
printing, ink and labor through inn
provemeuts made In form and size Of
internal revenue stamps,
Cost of Collection.
The activities of the bureau are re-
feeted In the cost OF collection. The
average cost during the past three
years was only sI51 per sloo. as com
pared with s167 per 500 for the four
years of the previous administration.
II the rate OF collection under this
administration had remained as high
as the cost Of the previous administra-
ton the additional expense TO the
government during the past three years
Guild have amounted to approximately
50 600, 600
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 three
years. The amount OF evaded taxes