Jasper Republican, Volume 2, Number 10, Rensselaer, Jasper County, 19 November 1875 — Commissioner Pratt’s Report. [ARTICLE]

Commissioner Pratt’s Report.

Washinston, Nov. 11. The Commissioner of Internal Revenue has completed his report for the fiscal year ended June 30,1875. The document is very voluminous, and shows that the actual amount of receipts into the Treasury from all sources from and after June 30, 1861, to June 30, 1874, exclusive of loans and Treasury notes, was as follows: Customs. - .$1,973,710,387 Internal revenue 1,956,828,725 Direct tax 14,810,189 Public lands 22,151,958 Miscellaneous. 236,081,985 Premiums on loans and sales of gold coin 198,557,117 T0ta154,895,688,341 The collections Jor the fiscal yeas ended June 30,1874, were $102,844,746; for the year ended June 30, 1875, $110,575,154. The Increase during the last fiscal year is owing in part to the increase of the duties laid by the act of March 3, 1875, upon distilled spirits, manufactured tobacco, cigars, cigarettes and in part to taxes collected under the laws repealed, extraordinary efforts having been put forth to collect delinquent taxes due from banks and bankers,-railroad and other corporations and-taxes due on Incomes, legacies and successions. A statement is given showing the receipts under the act of March 3,1875, up to and inclusive of June 30,1875, from different articles subject to an increased tax, showing the total tax returned $3,203,818. The tax returned upon distilled spirits was $1,779,799The net amounts received from all sources of internal revenue during the last fiscal year in the several States is given as follows: Alabama $111,816 Missouri $4,591,856 Arizona 10,263 Montana 23,666 Arkansas 71,828 Nebraska 292,472 California .... 2,988,595 Nevada. 53,147 Colorado 70,531 N. Hampshire 298,812 Connecticut. 622,225 Ntw Jersey.. .2,362,478 Dakota 10,010 New Mexico. 21,965 Delaware... v 360,881 New York... 15.290,898 D. Columbia.. 111,027 N. Carolina.. 1,629,994 Florida 184,547 Ohio 14,656,295 Georgia 387 154 Oregon 47,939 Idaho 19,136 Pennsylvania. 6,149 DM Illinois 17,627,6 fl Rhode Island. 231,767 Indiana 4,655,883 8. Carolina... 120,818 lowa I,o4o,(64Tennessee ... • 885,910 Kansas 188,585 Texas 257,448 Kentucky .... 9,082,636 Utah 81,5«5 Louisiana ... 583,151 Vermont 58,251 Maine 107.261 Virginia 7,659,689 Maryland 2,755,845 Washington.. 21,146 MassacHUsetts 2,<70,491 West Virginia 508,684 Michigan 1,939,606 Wisconsin ... 2,720,868 Minnesota.... 228,362 Wyoming.... 11,942 Mississippi... 96.Q851.

The number of distilleries registered during the year war 4,736, and the number operated, 4,608. Of the number onerated 656 were grain distilleries, seven molasses distilleries and 3,945 fruit distilleries. . The Commissioner says public attention has been often called within the past few months to the extensive frauds committed in certain local it Ims upon the revenue by distillers and rectifiers of distilled spirits. He gives an account, first, of the checks, guards and protections against frauds established by law; second, of the manner in which the whisky frauds, so-called, lately exposed were perpetrated upon the Government; third, the extent of these frauds; fourth, the checks recently established to prevent a recurrence of the same, and, fifth, suggests legislation which, in his opinion, is necessary to insure a fuller collection in future of the taxes upon distilled spirits. The Commissioner gives it as his opinion that the only law necessary is one that shall make the requirements as stringent and the penalties for defrauding the Government as severe in the case of the rectifier as they now are in the case of the distiller. The rectifier should be required to give a bond in an amount equal to the tax represented by all the spirits he can possibly rectify each month. The house and tract of land upon which the establishment is located should be forfeited to the United States in case of fraud. He should not be allowed to handle any spirits at his rectifying-house except those he purchases for rectification and sells under rectifiers’ stamps. Under the present system of detecting frauds at least thirty days must elapse before discovery could be made and guilt fixed. As the apparatus in a rectifying-house capable of refining the quantity of spirits upon which the tax would amount to SIOO,OOO a month may not be worth more than SIO,OOO, it will readily be seen that under the present law, which only forfeits the apparatus and spirits owned by him at the time of seizure, a rectifier may aid in defrauding the’Government of SIOO,000 and forfeit only SIO,OOO. By absconding to a foreign country be also escapes criminal punishment.

The Commissioner is firmly of the opinion that the present large tax upon distilled spirits can be collected with but small loss. This opinion is based upon the fact that every Storekeeper, Gauger and employe who Is connected with a distillery where fraud is perpetrated becomes a pensioner upon the distiller. If, therefore, distillers be kept under such strict surveillance that the amount of money gained by fraud is not sufficient to pay a lajge corps of officers and workmen in necessary collusion with them to consummate fraud, they will, as a matter of policy, be honest. As an indication of the extent of the frauds above described the Commissioner reports that documentary evidence is in possession of his office which has warranted the seizure of 23 distilleries and 37 reatifying-houses, and implicated over 50 United States Gaugers and Storekeepers. This evidence also shows the issue between July 1, 1874, and May 1, 1875, of fraudulent spirits, by duplication, of 20,000 packages, containing probably 1,200,000 proof gallons, and by aid of false gauging to the additional amount of 1,000,000 proof gallons. This, he says, is but a portion of the fraud ■ctaaßfr-eommitted, but in itself indicates the loss of tax to Government in ten months o! an amount not less than $1,650,000. The receipts from all sources relatli.g to fermented liquors for the fiscal year were

$9,144,004, a decrease of $180,675 as compared with 1874. The number of brewers manufacturing fermented liquors is 3,784. The Commissioner expresses* of revenue. The number of cases compromised during the year is 744, and the amount received by compromise $156,876. - The total receipts from tobacco were $37,303,461, an increase over 1874 of $4,060,586, and an increase over any previous fiscal year of $2,917,158. The total amount of tax effected on tobacco and snuff from Sept. 1, 1863, to June 30, 1875, is $235,888,319. The total collections on cigars, cheroots and cigarettes the same time is $68,283,206. It is expected, that during the current year the assessments of tax on tobacco will be largely increased. The whole amount of taxes assessed during the year was $8,395,Q05; increase over the previous year, $344,435. The quantity of distilled spirits in warehouse July 1, 1874, was 17,755,969 gallons; distilled spirits produced during the year, 60,930,425 gallons; total, 78,686,394; total withdrawn, 65,819,141, leaving in bond June 30, 1875, 13,367,253. Spirits removed from warehouse for export for the year ending June 80, 1874, 4,060,106 gallons, while only 587,413 gallons were thus removed during the last fiscal year. The quantity of tobacco removed for exportation In bond without paying the taxes, 9,179,315 pounds, a decrease of 1,621,611 pounds. The Commissioner says the force of revenue agents is inadequate and recommends the passage of a law authorizing fifteen more. He thinks further consolidation of collection districts can be made without affecting the revenue, and that the system of gauging wholesale liquor-dealers’ packages by United States Gaugers can be dispensed with and a simple system of checks by stamps substituted, which will prevent overissue. He recommends making the violation of the law relating to friction matches a criminal offense, punishable by fine and imprisonment. He also desires that internal revenue agents be empowered to demand and obtain the Inspection of books and papers of distillers, rectifiers, brewers, wholesale liquordealers and manufacturers of tobacco, snuff and clajarg. ■ » The Commissioner estimates the collections of the present fiscal year from all sources of internal revenue at $132,000,000.