Annual Reports

SïNOrSIS OF COMMISSIONER RaüM's REPORT. From the report of Hon. Green B. R&um, Coramissioner of Internal Rovenue, we glean the following : During tho laat fiscal year 4,952 diatillerics were registercd and 4,510 operated. The net aggregate incroaseof reccipts from the scveral sourccs rclating to ditstilled spirits for the fiscal year wero 91, 043,344. An abstract is given of tho reporta of District Attorneys for the fiacal year, showing the vholo number of suita commenced to be 5,828 ; snit decided in favor of the United States, 3,327 ; suits decided against tho United Staten, 605 ; suits settled or dismissod, 3,046 ; fuits pending July 1, 1877, 6,085. Tho tatoment is made, showing a falling ofT in the amounts assessed in tho year 1877 of $1,704,324 from the amount assessed in the provious yoar, an ainount almost cqual to the decrease of assessments on the singlo articlo of diutilled spirit seized or frauduïeiitly removed, on which thcre was asseased in 1877 L1,707,299 less than in 1876, in which latter year very largo aseossments woro made on account of stupendous frauds committed by distillera in various parts of the country, anii diecovered in the latter part of tho year 1875. The tax on deposita, capital and circulation of banka, etc., in the fiscal vear onding June 30, 1877, was $93,437 loss thañ in the previous year, a decroaso which must be accountcd for by the general depression of business prevailing in the past year, and to which mnny banks, and particularly savings insülutki a were compelled to succumb. It should, honever, bo romombered that tho amount reported in 187G showed an unusual increado of $211,852 of the tax on current banking buaineas of that year over previous years. The amount assessed on tobáceo, snuff and cigars removod from factory unstamped shows the large increase of $314,505 over the amount assessed in the previous year, the amount so assessed in 1877 being about four times th6 amount assessed in 1876, to wit, f419,308. It is truo that aasessmenta equaling in amount this excess were mado againat certain manufacturen in Virginia and North Carolina, on tobáceo alleged to have been frauduleutly removed nearly fifteen nionths prior to the date of the asaessments, and that additional evidence was : subaequently filed upon which a largo part of the assessments were made. Ñoverthelexs, i even after making these deductions, tho valne I of the safeguards provided by law, other than ' that of aflixing the stamp, is demonstratod by figures abo ve given. The total quantity of distilled spirits in ' ble gailons at the 70 and 90 cents tax placed in distillery wareho'-ises, withdrawn therefrom, and remaining therein at the beginning and close of the fiVcal year ending June 30, 1877, is given at 74,143,388, Statements showing the grosa amount of average capital and deposits of savings banks, baukers, and banks othör than national bauks, ! for the year ondiug May 3), 1876 and 1877, are given : 1876. 1877. Capital of saviDgs banks $5,016,050 $1,965,500 Capital of banks and bankers 211,634,58 217,215,38S ' PepOBitB of gf-vingB bank hnving capital. 38,207,801 38,055,54U Deposite of favings banks having no capital 845.109,217 855,057,027 Deposits of banks and bankers 483,458,242 475,790,064 Totale 11,583,420,595 $1,591.083,510 The total collections from tobáceo fbr the fiscal year ending Juno 30, 1877, were S41,010,540. Iu addiüon to the collection of specific taxes from mauufactured tobáceo, snuff, and cigara in their various formx thero are included in tho above total collections from special taxes upon the manufacturo and salo of tobáceo, spec'al taxes upon raw or loaf tobaoco, and from the sale of export stamps. Tho following exhibit gives the number of persons engaged duiing the last fiscal yoar in the handling of raw or leaf tobáceo, in the ! manufacture of tobáceo, snuff and cigars, and I in the distiibution of mauufactured producís, ' ascertained from tho amouut of collections from the sale of special-tax stamps : Leaf dealere 3 08 Manufacturera of tobáceo 87.1 Manufacturers of cigars ' 15,402 Petïdlers of mauufactured tobáceo ülíÍ045 Tiie exhibit presentad oy the foregoing ' figures in, in many respects, a gratifying one I both to the Government and to the numerous parties engaged in the business of manufacturing and handling tobáceo. Thereare threefaets in this connection which I the Commissionor deerns especially worthy of I note. The first is, that the production of I ufaetnred tobáceo for tho last fiscal year was greater than for any other fiscal year embraced within tho records of this office, with the single exceptionof tho year ending June 30, 1875. Tho second fact is, that a larger amonnt of money Was collected from manufaetured tobáceo put I upon the market for consnmption than during ' auy previous fiscal year; and the third fact ík the pleaaing ouo that a greater quantity of manufacturad tobáceo and more cigars and cigarettes wera removed directly from ; factoriea for exportation to foreign countries during tho last year than during any previous year of which an account bas been kopt by the office of internal revenue. These results are believed to be largcly due to those provisions of law which were intended to give to the Government a general control over the movements of rawor leaf tobáceo, regulntitig its sale, transfer and shipment, and preventing iti bcing Fold for direct eonsumption without pavment of any i tax, and in compehtion with manufaetured and tax-paid. The Commissioner Fays: "Acontinuance of these features of the sai j law is nececsary to maintain the present amount of receipts from said source. " The manufacture of perfumery for exportation is a large and growing interest. About 2,5000 barrels of alcohol are used in this business, all of which are importod and withdrawn without paymont of duty, and used in tho I ufacture of perfúmenos in bonded mauufactoriep, and finally exported freo of tax or duty. Undcr exinting laws, American alcohol cannöt be used in the business without payment of tax, and there i no provisión of law authorizing a drawback upon the exportation of goods so manufaetured. I seo no reason for this discrimination against American distillers." The I Commiasioner, thereforo, 'respectfully recommenda that an act be passed authorizing the withdrawal of alcohol without payment of tax. to be usod by manufacturing perfumers in tho j prqduction of goods for export, under such sirictions as to prevent fraud and protect the rights of the Government. " It has been found that, in some portions of the country, match manufactnrors havo put up matches in boxes containing so great a number as to facilítate frauds upon the revonuo by reuse of st&mpcd boxes. I respectfully recommend that a law be passed limitmg the number of matches to be contaiaed in a single box to 500. "Irecommend legislation upon the following additional points: First, that a retail liquir i dealer bo authoiized to close out bis stock without incurring a wholesalo licpior dealer'a tax; Hecoiid, that a bona-fido mortgageo of Kpirits hliould be authorized to se)l and delivor tho same under mortgage to any person qualified to buy thom, without incurring a wholesale ! dealei'a tax, and the perBon so receiving spirits without re ferenco to the amount should net be hable to any penalty therefor : third, where : mc-mbers of a firm who have paid a special tax ! for pursuing any business aro changed by tho ! withdrawal or admisBion of a partner, the new i firm that is created phould be allowed to pursuo ' businoHH upon giving notico of such chango to the Ooilector of their district without the payment of a new tax ; fourth, that a perfon . caught in the act of manufacturiug or selling lllicït sirita may bo arrested on view, without a warrant, by a Marsbal or Depdty Marshal, and fotthwith taken before the proper tribunal for examination; fifth, that tho existing law be ' so changed as to authorizo tho cmployment of thirty-five revenue agentR. " Tbo total amonnt of drawback of internalrevenut taxes allowed cluring tho fiscal jearon exiiorted murohandiae ia $30,5-46, au increas of .-524,545 in claims allowed duriug tho past year."