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you draw the line if the dealer exceeds the that we are going to realize much revenue from the existing law one or two parties in New amount of course he becomes liable to a higher distilled spirits by a tax of two dollars a gallon. York have enjoyed a monopoly; others dealtax as a wholesale dealer. It is a small amount I think the gentleman will concede that the || ing in lotteries have been dealing in them which the retailer is required to pay. The experiment has not in the past been very suc- surreptitiously and in violation of law, or have moment the amount of sales exceeds $25,000
cessful. Members of the House are, I suppose, been made to pay tribute to one or two men. the man becomes a wholesale dealer. 'We | fully aware that, within the last year at least, | The present bill changes all that. I hope the must have some line of demarkation.
the larger proportion of distilled spirits in the amendment will not prevail. Mr. DAVIS. It is provided in the bill at | United States has paid or no tax. What The amendment was rejected. persons and corporations in certain branches has been paid has been divided among
Mr. DAVIS. I offer the following amendof business shall pay a tax upon their annual ers, detectives, and the Government.
ment: sales. It is also provided, I believe, that they Mr. MORRILL. The gentleman will have Insert in line ten hundred and nineteen: shall
pay the tax before commencing business. an opportunity to discuss this question at a And provided moreover, That nothing herein conI desire to know how the amount of this tax is later stage of the bill.
tained shall be construed to authorize the sale of lot
tery tickets in any State whero such sales are prohibto be ascertained.
Mr. HARDING, of Illinois. I think the
ited by the laws thereof. Mr. MORRILL. The tax upon the annual discussion is apropos now. sales does not commence until those sales shall Mr. Chairman, the practice has been to || already in the bill.
Mr. HOOPER, of Massachusetts. That is have exceeded $50,000, though a special tax of a | manufacture distilled spirits illegitimately,
Mr. DAVIS. Then I withdraw my amendfixed amount is paid at the outset. making it out of dollar corn, and then smuggle
ment. The amendment was not agreed to.
the article into the market. When once in the Mr. DARLING. I move to amend the proThe Clerk read as follows: market, it can be sold in the groceries by pay.
viso by striking out the word "any' and in4. Wholesale dealers in liquors whose annual sales
ing a license of twenty-five dollars. Ipropose serting the word "every” before the words do not exceed $50,000 shall pay fifty dollars, and if to catch some of it in this way, by a charge of exceeding $50,000, for every additional thousand dol- fifty dollars for the privilege of selling.
person doing the business of lottery ticket lars in excess of $50,000, one dollar. Every person who
dealers," &c. shallsell or offer forsale any distilled spirits, fermented
Mr. MORRILL. 'I would not object if it
The amendment was agreed to. liquors, or wines of any kind in quantities of more were the sentiment of the country that all than three gallons at one time to the same purchaser,
Mr. DARLING. I move to further amend these beer shops and groggeries should be or whose annual sales, including sales of other merchandise, shall exceed $25,000, shall be regarded as a suppressed; but I warn gentlemen, if they
the same sentence by inserting after the words wholesale dealer in liquors. can enforce the law, the Government will get
"lottery ticket dealers” the words, " or dealMr. HUBBARD, of Iowa. I move to amend no revenue at all. If you adopt this increased
ers in policy of numbers." What I want to by striking out “one dollar'' and inserting in tax, a poor widow or å maimed soldier who is
get at is this: I want to prevent if possible the lieu thereof “two dollars.'' keeping a small beer shop will have to pay this spread of this nefarious and iniquitous prac
tice in our large cities, which is entailing so I understand that this business of selling | large tax; and hotel keepers will be compelled liquor is very profitable, and if so, I think the to pay this in addition." I hardly think Con
much ruin and distress and suffering upon the liquor sellers are able to pay the sum I progress will be disposed to raise the tax.
families of poor people. It is a species of The amendment was disagreed to.
gambling which is carried on to an extent that, pose. Mr. MORRILL. Mr. Chairman, I suppose The Clerk read the next paragraph, as fol
in my judgment, inflicts more misery, more
sorrow, and more suffering upon families than the object of Congress to be to obtain as large lows:
the use of intoxicating drinks, or at least quite a revenue as possible from liquors; but I con- 6. Lottery ticket dealers shall pay $100. Every per-,
as much. ceive that the more legitimate way to reach son, association, firin, or corporation who shall make, that object is to levy the tax upon the liquor ; sell, or offer to sell lottery tickets or fractional parts
Now, I do not mean, if I can help it, that any thereof, or any token, certificate, or device represent- person shall be authorized to do this business and if, as proposed in the bill, we allow the ing or intending to represent a lottery ticket or any
unless he takes out a license and is put under tax to remain at two dollars per gallon, it
fractional part thereof, or any policy of numbers in
any lottery, or shall manage any lottery, or prepare heavy penalties that he will pay the tax due to seems to me that ought to satisfy us.
schemes of lotteries, or superintend the drawing of the Government under the law. And there. therefore, that the amendment will not prevail. any lottery, shall be deemed a lottery ticket dealer
fore I want to include, not only those who sell The amendment was not agreed to.
under this act: Provideu, That any per doing the
lottery tickets, but those who do a business far Mr. MORRILL. I move to amend by insert- the sum of $1,000, with sureties, to be approved by the worse, that of selling policies of numbers, ing after the word "dollar" in line nine hun- collector of the district, conditioned that he will not which are sold principally to the poor, the dred and ninety-two the following words:
sell any ticket or supplementary ticket of such lot-
degraded, and the ignorant. And such excess shall be assessed and paid in the law.
Mr. HOOPER, of Massachusetts. I want same manner as required of wholesale dealers.
Mr. DARLING. I move to amend in line to call the attention of the gentleman from The amendment was agreed to.
ten hundred and five by inserting the word New York (Mr. Darling to a description of Mr. MORRILL. I move to amend by insert- policy” after the word “ticket. I shall lottery ticket dealers which renders his amending after the word "dollars” where it last occurs next move to strike out one hundred” and ment unnecessary.
The attention of the comin line nine hundred and ninety-one the words | insert " one hundred and fifty."
mittee was called to this subject, and they made "they shall pay.'
If we are to legalize this iniquitous traffic, I a provision to meet the point the gentleman The amendment was agreed to.
want to get the largest possible amount of refers to, by inserting it in the description of Mr. PRICE. Hopeless as the attempt may
I am satisfied, from the information || lottery ticket dealers.
Mr. DARLING. appear, I will make one more effort to amend
Where is that? this section. I move to amend by striking out frauded out of at least $9,000,000 a year in
Mr. HOOPER, of Massachusetts. In the the word “fifty" in line nine hundred and the way of taxes under the present law. All part of the paragraph which reads: eighty-nine and inserting in lieu thereof "one of the small dealers have been subject to the
Every person, association, firm, or corporation hundred;" so that the clause will read: monopolists who carry on the business, par
which shall make, sell, or offer to sell lottery tickets or
fractional parts thereof, or any token, certificate, or Wholesale dealers in liquors whose annual sales do
ticularly in New York city, the same as the device representing orintending to represent a lottery not exceed $50,000 shall pay $100.
banking business. It is carried on with a mag- ticket or any fractional part thereof, or any policy of Under this bill as it stands the wholesale nitude that would astonish the House. Every
numbers in any lottery, or shall manage any lottery,
or prepare schemes of lotteries, or superintend the liquor dealer selling $50,000 worth of liquor an- man who wants to go into the business is sub- drawing of any lottery, shall be deemed a lottery nually will pay only fifty dollars; while a banker ject to the orders of the large dealers. I desire
ticket dealer under this act. doing business right alongside of him, with a that every man who goes into the business, no Mr. DARLING. The gentleman from Mas. capital of $50,000, pays a license of $100, and matter how small his business may be, shall sachusetts [Mr. HOOPER] is right, and I will pays also upon every additional $1,000 double pay the tax directly to the Government, and withdraw that amendment. the amount which the liquor dealer pays. It that he shall give bond to the United States I move to amend by inserting in the proviso, appears to me that men in the liquor business that he will pay the tax into the United States before the words or supplementary ticket,' can afford to pay a tax of $100, which is not Treasury. That is the reason I move the the words "or policy of numbers." I want as much as men in honest branches of business amendment.
to make it so clear and distinct that there will pay on a corresponding amount of capital. Mr. MORRILL. We have already tried the
be no escape from a proper construction of the The amendment was agreed to.
policy of extreme taxation in relation to lottery || law. The Clerk read as follows:
dealers. We placed the tax as high as $1,000. The amendment was agreed to. 5. Retail dealers in liquors shall pay twenty-five It proved to be a bad policy, and we did not
The Clerk read the next paragraph, as foldollars. Every person who shall sell or offer for sale derive much revenue at all. Since the amount
lows: foreign or domestio spirits, wines, ale, beer, or other has been fixed as it is the Government is in malt liquors in quantities of three gallons or less, || receipt of a considerable amount of revenue.
7. Horse dealers shall pay ten dollars. Any person and whose annual sales, including all sales of other
whose business it is to buy or sell horses or mules merchandise, do not exceed $25,000, shall be regarded Let me say it is to ferret out, and seize the par- shall be regarded a horse dealer under this act: Proas a retail dealer in liquors under this act. ties who sell these tickets, and that we may
vided. That one special tax having been paid, no Mr. HARDING, of Illinois. I move to know who they are that this license or special
additionaltax shall be imposed upon any horse dealer
for keeping a livery stable, nor upon any livery stable amend by striking out “twenty-five,
" in the
keoper who may also be a horse dealer. first line of the paragraph just read, and insert- After all this is done, we impose a tax upon Mr. MORRILL. I move to strike out at the ing in lieu thereof “fifty.''
all of their sales of five per cent. If we suc- end of the paragraph the words “ who may also Mr. Chairman, while I have great respect ceed in collecting this special tax we shall col- be a horse dealer,' and insert in lieu thereof for the opinions of the chairman of the Com- | lect the other also.
the words “for dealing in horses." mittee of Ways and Means, I distrust the notion The law is amended in one respect. Under The amendment was agreed to.
Mr. BENJAMIN. I move to amend the first or any kind of personal property whatever, as secu- are now several hundred of them. Those dissentence so that it will read:
rity for the repayment of money lent thereon, shall be tilleries are making, in a great measure, con
deemed a pawnbroker under this act. Ilorse dealers whose annual sales do not exceed
traband whisky, which is being sold in the $10,000 shall pay ten dollars; and if exceeding the
Mr. MORRILL. . I move to amend this par- various markets of the country for less than sum of $10,000, ona dollar for cach additional thou- agraph by inserting after the words “two dol
the Government tax. sand dollars. lars the words and such excess shall be
Rectified whisky in the city of New Orleans My amendment is intended to make this par- assessed and paid in the same manner as is sold at $1 75 per gallon-twenty-five cents agraph correspond with the paragraph in regard required of wholesale dealers."
less than the amount of the Government tax. to cattle dealers. In this paragraph there is no The amendment was agreed to.
Unless the legitimate manufacture of whisky limit to the amount of sales that horse dealers
Mr. HOOPER, of Massachusetts. I move is protected by law, the Government will ob. may make under a license of ten dollars. In
to amend by inserting the words "shall pay' tain no revenue from this business, while the the case of cattle dealers there is a limit of before the words "two dollars."
country will be flooded with whisky. All the * $10,000, and I think this paragraph should be The amendment was agreed to.
evil consequences of the manufacture and conmodified accordingly. Or if a horse dealer with a license of ten dollars can sell without any lim
The Clerk read the next paragraph, as fol
sumption of the article will be experienced, lows:
while there will be no adequate compensation itation as to the amount of his sales, then the
to the Treasury of the United States. Unless
11. Land-warrant brokers shall pay twenty-five provision in regard to cattle dealers should be the same.
we adopt a system similar to that carried out This business of horse dealing is a
dollars. Any person shall be regarded as a land
warrant broker within the meaning of this act who in Great Britain, the Government taking charge large business in some localities; there is an makes a business of buying and selling land-warrants, of the manufacture of this article and recogimmense amount of capital invested in it; and
or of furnishing them
nizing those engaged in its manufacture as it strikes me there should be some limit on the
No amendment being offered,
agents of the Government, we shall get, comamount of capital invested or the amount of
The Clerk read the next paragraph, as fol
paratively speaking, no revenue. sales under a license of ten dollars. lows:
The manufacture of whisky in the United Mr. MORRILL. I do not know that I have 12. Cattle brokers, whose annual sales do not
States ought to produce to the Government a much objection to the amendment of the gen
exceed $10,000, shall pay ten dollars; and if exceed
ing the sum of $10,000, one dollar for each additional yearly revenue of $80,000,000. This is the tleman from Missouri, (Mr. BENJAMIN.). But | $10,000. Any person whose business it is to buy or sell amount of the estimate formerly made by the I do not believe there are a doden men in the or deal in cattle, hogs, or sheep shall be considered as
Committee of Ways and Means; and this United States who do so large a business in a cattle broker.
amount could be realized under a proper syshorse dealing as to render them liable to the
No amendment being offered,
tem. Estimating that the annual consumption proposed increased tax.
The Clerk read the next paragraph, as fol.
of whisky during the last two years has been Mr. BENJAMIN. I beg to inform the gen. lows:
forty million gallons per annum, a tax of two tleman that there are more than that number
13. Produce brokers, whose annual sales do not
dollars per gallon should yield to the Treasury exceed the sum of $10,000, shall pay ten dollars. in my district alone.
Every person other than one having paid the special $80,000,000. But if we allow every little disMr. MORRILL. They are very fortunate tax as a commercial broker or cattle broker, or tillery to be run for a license of twenty-five men. The business is very much reduced from wholesale or retail dealer, or peddler, whose occu
dollars, we shall have the country flooded with what it was for the last three or four years,
pation it is to buy or sell agricultural or farm prod
ucts, and whose annual sales do not exceed $10,000, contraband whisky, and the Treasury will obwhen the Government had occasion to employ shall be regarded as a produce broker under this tain but little revenue. If the license be fixed this kind of men. act.
at $1,000, we drive this contraband trade out Mr. DELANO. I would inquire of the chair
No amendment being offered,
of existence, thereby protecting the legitimate man of the Committee of Ways and Means (Mr. The Clerk read the next paragraph, as fol- manufacturer, who can thus afford to pay a MORRILL] if he is willing to have this amend- lows:
license of $1,000, and also a tax of two dolment adopted, and also allow the proviso to 14. Commercial brokers shall pay twenty dollars. lars per gallon. remain which allows a party to be a livery
Any person or firm whose business it is, as a broker, stable keeper also without paying an additional to negotiato sales or purchases of goods, wares, or
Mr HOOPER, of Massachusetts. I would merchandise, or to seek orders therefor in original like the gentleman to explain what he means tax. I would prefer the paragraph as it is. I or unbroken packages, or to negotiate freights and shall certainly move to strike out the proviso other business for the owners of vessels, or for the
by a “legitimate manufacturer.” if the amendment of the gentleman from Mis
shippers, or consignors, or consignces of freight car- Mr. INGERSOLL. I mean one who pays
ried by ressels, shall be regarded a commercial souri (Mr. BENJAMIN) shall be adopted.
his license, who makes his regular monthly broker under this act. Mr. MORRILL. I think the paragraph better
returns, as required by law, and pays two dol.
Mr. MORRILL. I move to amend by strikremain as it is; that is my view of it.
lars on every gallon of whisky that he manuThe amendment of Mr. BENJAMIN was not ing out after the word "merchandise" the
factures. Sir, it is known to the revenue oflicers words " or to seek orders therefor in original of the country that under the present system agreed to.
or unbroken packages.” The Clerk read the next paragraph, as fol
not one gallon out of every four gallons manThe amendment was agreed to.
pays any tax to the Government. The Clerk read the next paragraph, as fol- Mr. Chairman, I desire to submit some sta8. Livery stable keepers shall pay ten dollars. lows:
tistics relative to the manufacture of this artiAny person whose business it is to keep horses for hire, or to let, or to keep, feed, or board horses for
15. Custom-house brokers shall pay ten dollars. cle during the last fiscal year. The table which others, shall be regarded as a livery stable keeper Every person whose occupation it is, as the agent of I submit emanates from the internal revenue under this act. others, to arrange entries and other custom-house
department : papers, or transact business at any port of entry relatNo amendment being offered,
ing to the importation or exportation of goods, wares, Collections returned on distilled spirits for the first six The Clerk read the next paragraph, as fol
or merchandise, shall be regarded a custom-house months of the fiscal year ending June 30, 1866. lows: broker under this act.
$352,252 15 No amendment being offered,
267,457 88 9. Brokers shall pay fifty dollars. Every person,
755,662 06 firm, or company, except such as have paid a tax as
1,366,025 23 a bank or banker, whose business it is to negotiate lows:
3,050,671 28 purchases or sales of stocks, bonds, exchange, bul
16. Distillers shall pay $100. Every person, firm, lion, coined money, bank notes, promissory notes, or
3,762,134 21 other securities, for themselves or others, shall be or corporation who distills or manufactures spirits
Total for six months.......... shall be deemed a distiller under this act: Provided,
9,554,202 81 regarded as a broker under this act: Provided, That
3,751,469 91 Any person having paid the tax as a banker shall not
February or manufacturing less than one hundred and fifty bar
3,592,677 46 be required to pay any tax as a broker. rels per year from the same, shall pay fifty dollars: March
2,439,124 42 Mr. MORRILL. I move to strike out the And provided further, That no tax shall be imposed
Total returns to date............ for any still, stille, or other apparatus used by drug
..$19,337,474 60 words i except such as have paid a tax as a bank or banker,'' as that is provided for in the
gists and chemists for the recovery of alcohol for
pharmaceutical and chemical or scientific purposes, NOTE.-The collections for February and March proviso. which has been used in those processes.
will be somewhat increased, as all returns have not The amendment was agreed to.
Mr. INGERSOLL. I move to amend this
yet been receivel. Mr. MORRILL. I move to amend the pro- paragraph by striking out “$100%' andinserting Thus it appears that the Government, instead viso by inserting the word "special" before '$1,000" as the tax to be paid by distillers. of receiving, as it should, $80,000,000 per the words “tax as a banker."
I have this much to say in support of my annum from this source, receives annually The amendment was agreed to.
proposition: unless you guard and protect the only about twenty-four million dollars. Mr. MORRILL. I move further to amend | legitimate manufacturer of this article, you will [Here the hammer fell.] the proviso by striking out the word “any”
fail to derive any considerable amount of rev- Mr. STEVENS. I entertain just the conand inserting the words "ia special” before cnue from this source.
trary view to that of the gentleman from Illithe words "tax as a broker."
In one district in the State of New York | nois, [Mr. INGERSOLL;] and I move to amend The amendment was agreed to.
where three years ago the census shows there his amendment by inserting, in lieu of what The Clerk read the next paragraph, as fol
was no distillery, there are now thirty distil- he proposes, to strike out, the word “fifty,'' so
leries. And so it is in the State of Pennsyl- as to make the amount fifty dollars instead of lows:
vania. In the northern district of Georgia, $100, as it now stands in the bill. 10. Pawnbrokers using or employing a capital of where but a few years ago there was no dis- Now, Mr. Chairman, we do not expect to not exceeding $50,000 shall pay fifty dollars; and when using or employing a capital exceeding $50,000, | tillery, the internal revenue collector of the || raise any large amount of revenue from the for every additional thousand dollars in excess of district reports that there are now fifteen hun- licenses of these distilleries. Anybody who $50,000, two dollars. Every person whoso business or occupation it is to take or receive, by way of pledge,
dred distilleries. In one district in Virginia | knows anything about the matter must know pawn, or exchange, any goods, waros, or mercbandise, where there were formerly no distilleries there that the amount received from licenses is a
mere bagatelle compared with the whole of the Government. If you do not, as I have In another part of the paragraph it will be amount of taxation derived from this branch said, you will get but little
The small found that a less rate is imposed upon those of business. The object of requiring a license distilleries in Pennsylvania, Kentucky, or any who distill apple brandy or apple jack where to be taken by distillers corresponds with the where else, paying a license of twenty-five the amount is less than one hundred and fifty object of requiring a license for the manufac- dollars, and having no one to supervise them, barrels a year. ture of cigars. The purpose is that the offi- may return only one barrel on which the tax is The CHAIRMAN. Debate is exhausted cers of the Government may know who are paid, and willsellas many other barrels of whisky and the amendment is withdrawn. engaged in distilling, so that they may re- on which no tax is paid. They may make $100 Mr. HOOPER, of Massachusetts. I do not quire proper returns. If we induce every dis- profit each day, and I have no doubt many of withdraw it. I insist upon a vote. tiller to take out a license then the officers of them do, from illicit traffic in this article. The Mr. PAINE. I rise to a point of order. Has the Government have a clue as to who are Government, of course, gets nothing in the way not this precise amendment once been voted manufacturing whisky. But if the amount of of tax on this contraband whisky. You can- down? license be fixed at $1,000 not one in twenty not detect them, because you have no one there The CHAIRMAN. The gentleman from of these distillers will take out a license. The to watch them. If you put up the license to Pennsylvania [Mr. STEVENS) withdrew it, majority will prefer to risk the chances of $1,000, and have an agent in every distillery, and the gentleman from Massachusetts [Mr. being detected in the illicit manufacture, and together with severe penalties for violation of HOOPER) renewed it. the Government officers will not have the the law, I have no doubt the Government will Mr. PAINE, The House voted down the means of tracing them which they have when secure the collection of the tax.
amendment of Mr. STEVENS, I believe, and licenses are taken out.
I am speaking in the interest of the revenue, then he informed the House that he withBesides that, sir, there are all over the and not in the interest of the manufacturer, drew it. country very small distilleries, making per- whether he be a large one or a small one. I The CHAIRMAN. The Chair did not anhaps twenty-five gallons a day, They cannot ask whether twenty-five millions is an adequate nounce the result when the gentleman from afford to pay a large license.
revenue from this source. It ought to be Pennsylvania [Mr. STEVENS] rose and stated There are in several parts of the country | eighty millions.
that he withdrew it. small distilleries running out perhaps in the [Here the hammer fell.]
Mr. PAINE. There was a vote upon it. course of a year from four hundred to five hun- Mr. STEVENS. I withdraw my amendment The CHAIRMAN. The Chair does not sus. dred gallons. Now twenty-five dollars license Mr. HOOPER, of Massachusetts. I will tain the point of order, inasmuch as the genand then raising the tax on the distilled article renew the amendment simply for the purpose tleman from Pennsylvania withdrew the amendis, I think, a great deal. After all, the revenue of calling attention to the thirty-third section ment before the Chair announced the vote. The to the Government comes from the tax on the on page 155 of this bill, where it is required same amendment is now offered by the gentledistilled article.
that an inspector shall be appointed for every man from Massachusetts, (Mr. HOOPER.) No My friend from Illinois, [Mr. INGERSOLL,] | distillery established according to law. further debate is in order upon it. represents larger operations than those I have I concur with the gentleman from Pennsyl- The amendment to the amendment was disreferred to. He represents men who distill a vania that the object to be secured by having
agreed to. thousand gallons a day. What is a thousand dol- the rate of special tax a smaller sum is to in- The question recurred on the amendment lars to them if they can crush out all other dis- duce everybody who distilled to come and pay offered by Mr. INGERSOLL to strike out " $100" tilleries than those at Peoria? What is a thou- for a license. With a tax of $1,000 it is cer- and insert "$1,000." sand dollars to them in comparison to the enor- tain the small distiller would not and could Mr. HENDERSON. Are remarks in order mous profits which they are enabled to make? not pay it.
Then I think there will be more on that amendment? I am sure the gentleman would be glad to fraud in the large distilleries than the small The CHAIRMAN. No debate is in order: have the monopoly confined to Peoria. They If I am not mistaken, in the neighbor. The gentleman can move pro formâ to strike have had the monopoly there this year. I also hood of the gentleman from Illinois, (Mr. IN- out "one thousand" and insert “two hununderstand that a great many of them there GERSOLL., ] among the largest distilleries there dred.” were caught in attempts to defraud the Gov. were found some heavy frauds.
Mr. HENDERSON. Very well. I move ernment.
Mr. INGERSOLL. I will state how that is, to insert “eleven hundred." I was going to I am in favor of leaving the license at twenty- because I wish to defend every manufacturer renew the motion to insert “ fifty,'' with a view five dollars, and not increasing it as is proposed from any unjust imputation on his character. of stating, not that I was in favor of reducing to fifty dollars.
Within my knowledge in the Peoria district, so it to fifty dollars, but that I was in favor of I agree with the gentleman that down South far as the manufacturers are concerned, I think the amendment of my friend from Illinois, there may be thousands of gallons distilled there is but one house that has ever had any [Mr. INGERSOLL.] I think the first business which do not pay tax to the Government. It || charge preferred against it for any fraud, large of the Government is to so adjust the tax as to is I suppose because the Government cannot or small, upon the revenue connected with the have as little distillation as possible, and to find loyal men enough to take the oath and manufacture of whisky. That is the only case make as much profit as possible out of what support "my policy. [Laughter.] I am told that I am aware of in the fifth district.
is manufactured; the least possible amount of that one half of the whisky in the United States Mr. STEVENS. What was the amount of liquor with the greatest possible revenue from it. is now made in the southern States. the fraud?
Now, I cannot understand how it is that a [Here the hammer fell.]
Mr. INGERSOLL. I think the amount of thousand dollar tax will increase the distillation Mr. INGERSOLL. Mr. Chairman, I rise the whisky alleged to have been made in fraud of liquor. That is to my mind very strange. I to oppose the amendment. I have no sympa- of the revenue law was between four and five have heard it stated here by several gentlemen thy with the large distilleries in Peoria or the hundred barrels.
that by thus increasing the amount of tax you small distilleries in Pennsylvania. I believe Mr. HOOPER, of Massachusetts. I do not will increase the number of distilleries. If it is the distilleriesin Peoria and elsewhere are gen- mean to charge fraud upon the gentleman's so, and they all pay their tax, we certainly will erally carried on by Democrats. Of course district; but I know that in Illinois there have get more revenue. But I am impressed with the they support “my policy'' as it is termed. been large frauds committed.
belief that it will not have the effect to increase But, sir,
I am looking at the interests of the Mr. MORRILL. It is evident that in regard the number of distilleries; that is to say, if the revenue of this Government. I desire to state to the policy of having a high or low tax on the Government is able to enforce the laws which here in regard to the administration of the business of distilling liquors, there is a wide it makes. I do not believe that the Governrevenue law as it is applicable to the manufac. difference of opinion among members of the ment has come to that point that it cannot ture of whisky, that in the large distilleries the House. The revenue commission have reported enforce its laws, and consequently, I am fully collector appoints what is called an inspector a bill for our action, adopting the policy some. satisfied that the high tax, with vigilant prose. whose duty it is to remain there night and day || what of England, that is, of confining the busi- cution of the laws, will reduce the number of if necessary to watch and supervise operations, ness to a few large distilleries. But in this | distilleries, and at the same time increase the and to see that they return the exact number || country, I think, where the business is already amount of the revenue. My principle would of gallons that is manufactured.
established—and there is a large amount of be to reduce the amount of liquor and increase Mr. STEVENS. That is the way they do property invested all over the country in small the revenue. with the distilleries in my county, but they found || distilleries--it would be rather hard to suddenly [Here the hammer fell.] three of these inspectors who received $5,000 || adopt a policy that would crush the business of Mr. HENDERSON. I withdraw the amend. a year each from these distilleries for the
pur- these men and destroy their property without ment to the amendment. pose, I suppose, of watching. [Laughter.] notice.
Mr. LAFLIN. I move to strike out 'one Mr. INGERSOLL. I presume that is so. I am willing for one to go to some extent on thousand" and insert "twelve hundred." Of you will find here and there a fraudu- that line of policy. I believe that in the end I was very glad indeed to hear the chairman lent agent. But, sir, if you do not watch these we may find it to be the only policy by which of the Committee of Ways and Means assert distilleries, I will guaranty you will get but we can squeeze out of this manufacture the that the revenue commission, in making their little revenue. If you employ honest men, the || large amount of tribute that evidently is in- | propositions of amendment to the revenue Government will get its proper revenue. tended to be done not only by the people but by | laws, had endeavored, as far as possible, to
The gentleman from Pennsylvania says that || Congress. With that view the committee have follow the example set by England. As was it is not the license that goes to make up the raised the amount of special tax from fifty dol- remarked by the chairman of the committee amount of the revenue, but the tax on the lars to $100. I believe that is as far as we ought || when he first introduced this bill, this subject article. I am aware of that; but in order to to
of internal revenue is an entirely new one with get that tax you must have the manufacture of the conflicting opinions that undoubtedly now us, and I commend to the judgment of this whisky, to a certain extent, under the control Il prevail.
House whether it is not for our interest to fol.
low, as far as we can, the example set to us by individual selling liquor without a license, the So the committee rose; and the Speaker a nation which has had a long experience on city is receiving $1,000,000 of revenue annually having resumed the chair, Mr. Dawes reported this subject.
from this source. If men will manufacture, if that the Committee of the Whole on the state We find that Great Britain has adopted the men will sell, if men will drink alcohol, let them of the Union had had under consideration the plan of taxing all luxuries to the very greatest || pay the tax which the Government imposes. Union generally, and particularly the special extent, and it raises over $50,000,000 annually The amendment to the amendment was not order, being bill of the House No. 513, to from its tax on distilled spirits. By reference | agreed to.
amend an act entitled “An act to provide to the report of the revenue commission of Mr. HOTCHKISS. I move to amend the internal revenue to support the Government, that country it appears that in the year 1863–64 amendment by striking out “$1,000" and to pay interest on the public debt, and for England raised $50,666,775, and in 1864-65 | inserting the following:
other purposes," approved June 30, 1864, and $53,200,335 on spirits.
Distillers distilling less than fifty thousand gallons acts amendatory thereof, and had come to no Now, sir, what is our experience? We have annually shall pay $100; those distilling fifty thou- resolution thereon. a population nearly as great as that of England, sand gallons, or over, annually, shall pay $200.
CLOSE OF DEBATE. and the statistics of our returns show that we Mr. Chairman, it appears to me that this is consume fully as much in amount as England a more reasonable proposition than to make
Mr. MORRILL moved that all debate on does. And yet according to the returns of the distillers indiscriminately pay $1,000. The lat- the pending paragraph of the tax bill in the internal revenue it appears that in 1863 we ter system would simply break up the small
Committee of the Whole on the state of the raised a revenue of $3,229,990, in 1864 a rev- distilleries and give a monopoly of the business
Union be closed in five minutes after its conenue of $28,431,797, and in 1865, when we to the large manufacturers. I do not see that
sideration shall be resumed. taxed whisky two dollars a gallon, we raised any good is to be gained by it. It would not The motion was agreed to. only $15,995,702. diminish the amount of whisky distilled. It
TAX BILL-AGAIN. Now, what are the facts with reference to the would simply leave the monopolists at liberty production and consumption of whisky in this to increase the price of the article for their
Mr. MORRILL moved that the rules be suscountry? Prior to 1860 this country produced own benefit.
pended, and that the House resolve itself into
the Committee of the Whole on the state of one hundred million gallons of whisky annually. Experience has shown that the amount conIf the same amount was produced to-day and sumed is not decreased by an increase in the
the Union on the special order. the tax of two dollars a gallon was collected we price; and I see no reason why we should en
The motion was agreed to. should receive $200,000,000. But we find since act an oppressive law with the view to obtain
So the rules were suspended; and the House
accordingly resolved itself into the Committee the tax of two dollars has been imposed that revenue, or to effect a moral reform. I am as the amount consumed in this country is fortyhostile to the manufacture and the use of
of the Whole on the state of the Union, (Mr. five million gallons annually, which instead of whisky as any gentleman on this floor can be,
Dawes in the chair,) and resumed the considyielding a revenue of $90,000,000 has only || btt I do not think it wise for us to attempt to
eration of the special order, being a bill of the yielded a little over $15,000,000. enact oppressive laws to suppress this traffic,
House (No. 513) to amend an act entitled Mr. STEVENS. The gentleman must recolbecause I do not think that we would effect the
"An act to provide internal revenue to suplect that when we were about to impose the object.
port the Government, to pay interest on the tax of two dollars for six months there was not Let us have, however, a discrimination be
public debt, and for other purposes," approved a distillery that did not run night and day up tween large establishments and the smaller
June 30, 1864, and acts amendatory thereof. to the time when the tax commenced ; and
The CHAIRMAN stated the question to
I do not know how much a small estabfrom that time until within three months scarce lishment manufactures annually, but I suppose amendment.
be on Mr. HoTCHKISS's amendment to the a distillery ran at all, because they had laid in that the quantity would not exceed fifty thou
The amendment to the amendment was disan immense quantity at the old tex.
sand gallons. Those manufacturing more than Mr. LAFLIN. I understand that, but at that quantity will be required by this amend- | agreed to. the same time, during 1864, when we had a ment to pay $200. Gentlemen more familiar
The question then recurred on Mr. INGERtax of $1 50, we only raised $28,000,000. It with this branch of the business can, if they
SOLL’s amendment, and it was also disagreed to. is estimated that seven eighths of all the whisky | deem it proper, move to increase the license
Mr. RANDALL, of Kentucky, moved after produced in this country is used for drinking || fee in proportion to the amount manufactured.
the word “manufacture," in line ten hundred purposes.
Mr. MORRILL. I do not know but that I,
and eighty-nine, to insert the words “fifty Now, what is the fact in regard to the num- for one, would be willing that the Government | and,'' and after the word "dollars," in line ten ber of distilleries? In 1860 there were eleven should 'forego all revenue from this source if
hundred and ninety-one, to add the following: hundred and ninety-three distilleries in the we could entirely suppress the distillation and And those distilling or manufacturing less than United States. Now the number is estimated consumption of the article throughout the coun
fifty barrels per year fronı the same shall pay twenty
dollars. at five thousand. Why? Because under the try. But, believing that to be impossible, I am stimulus of high prices people all over the for obtaining the largest possible amount of
The committee was divided; and there were United States have engaged in distillation on revenue on the smallest consumption of the
-ayes 35, noes 47; no quorum voting. a small scale, some of them producing at the
Mr. ALLISON demanded tellers. article. I believe, however, that in this case rate of one hundred gallons a year. It is said moderation is true wisdom. Our own experi
Tellers were ordered; and Messrs. RANDALL, to be a fact, and I have not seen it denied, that ence, corresponding with that of other coun
of Kentucky, and Allison, were appointed. every manufacturer of small stills has more tries, has shown that when we undertake to
The committee was again divided; and the orders on hand than he can fill. And it is | levy an exorbitant tax we always defeat our
tellers reported-ayes 50, noes 43. said that in the State of Georgia there are fif- object. If we now undertake to levy a tax of
So the amendment was agreed to. teen hundred distilleries in one district. $1,000 upon every distillery in this country,
Mr. INGERSOLL. I move to strike out (Here the hammer fell.]
not one fourth of these distilleries will ever be the proviso as amended. Mr. DODGE. Mr. Chairman, all that we reached at all. Why? Because we give a
The motion was disagreed to. require in regard to this question of whisky is sufficient amount to make it an object for par- The Clerk read the next paragraph, as fola law sufficient to find out these small distiller- ties to conceal the fact-to hide their stills in
lows : ies. I fail to perceive the force of the sugges. || garrets and cellars.
17. Brewers shall pay $100. Every person, firm, or tion made by the chairman of the Committee As I said in my opening speech, it is true corporation who manufactures fermented liquors of of Ways and leans, that a small tax of twenty. || the manufacturers in small copper stills have
any name or description, for sale, from malt, wholly
or in part, or from any substitute therefor, shall bo five dollars will induce men who are carrying | been exceedingly busy for the last two years. deemed a brewer under this act: Provided, That any on an illicit traffic in cellars and garrets to They are spread over all parts of the country. person, firm, or corporation, who manufactures less come forward and make known the fact that If we leave this tax at the moderate sum pro
than five hundred barrels per year, shall pay the sum
of fifty dollars. they are engaged in this business. I hope, sir, || posed by the Committee of Ways and Means, that we shall fix a tax so large and frame a I believe we can collect it. I am therefore
No amendment being offered, law so stringent that every manufacturer of opposed either to reducing or increasing it.
The Clerk read the next paragraph, as fol. distilled spirits, whether he makes a thousand There is in the paragraph a provision by gallons a day or five gallons a day, will be found which distilleries of apples, grapes, and peaches
18. Rectifiers who shall rectify any, quantity of out, so that the Government shall receive from shall be taxed a less amount. We do not ex
spirituous liquors, not exceeding five hundred bar
rels, packages, or casks, containing not more than him the entire amount of revenue contemplated | pect to extract so much revenue from them. forty gallons to each barrel, package, or cask, shall by the law. These distilleries are located in Pennsylvania, pay twenty-five dollars; and twenty-five dollars ad
ditional for each additional five hundred such barWe may rest assured, sir, that a tax of Kentucky, and New Jersey, and are small
rels, packages, orcasks, or any fractional part thercof. twenty-five dollars will 'never bring to light || establishments—to accommodate their neigh- Every person. firin, or corporation, who rectifies, men who are seeking to carry on an illicit borhoods. Unless they shall be allowed to
purifies, or refines spirituous liquors or wines by any
process, or mixes distilled spirits, whisky, brandy, traffic. If the tax be fixed at $1,000 or $1,500 | remain, those who have large peach or apple gin, or wine, with any materials for sale under the there would be an object in finding them out. orchards will find they will have no sale for name of whisky, rum, brandy, gin, wine, or any other In the city of New York we have now a law their fruit. If we are to have whisky or brandy
name, shall be regarded as a rectifier under this aot. fixing the license at $200 and $150. Last year, at all I would as soon have it from apples or Mr. HARDING, of Illinois. I move to when only a small tax of ten dollars was peaches as from anything else. I hope we shall strike out the word “rectifiers." I notice in required for selling liquor, there were in that allow the bill to stand as it is.
a subsequent portion of this bill a direct blow city more than nine thousand places in which I move that the committee rise for the pur- at the only prosperous manufacturing business intoxicating drinks were sold. Under our pres- pose of closing debate on this paragraph. we ever have had in the West. We are situent system, where it is an object to detect every The motion was agreed to.
ated far from market; the products of our soil
out distiller is to taken bis spirits out of the Mr. MORRILL. I move further to amend eating saloon could sell any quality of liquor
are abundant in the forms of rye and corn ; word "coal" before the words “illuminating Mr. PIKE. The committee have just reand we have been able heretofore to compete oil.''
fused to adopt a very reasonable proposition I successfully in the business of manufacturing The amendment was agreed to.
made in regard to small taverns. I hope they alcohol with our friends in the East who are so
The Clerk read the next paragraph, as fol
will not adopt the proposition of the gentleman generally superior in manufactures. But if lows:
from Pennsylvania, (Mr. STEVENS,) which I this.paragraph shall pass that interest in the
20. Koopers of hotels, inns, or taverns shall be class
consider a very unreasonable one. This paraWest will be destroyed.
ified and rated according to the yearly rental, or, if graph provides that tavern-keepers whose rent Now, I wish to call the attention of the House | not rented, according to the estimated yearly rental does not exceed $200 per annum shall pay a
of the house and property intended to be so occupied. to the unfairness of this paragraph. I say what as follows, to wit: when the rent or valuation of the
license tax of ten dollars. The proposition of I mean; I use the word “unfairness'' inten- yearly rental of said house and property shall be $200, the gentleman from Pennsylvania is to allow a tionally. It is known to the country that the or less, shall pay ten dollars; and if exceeding $200,
man to take out a tavern license of ten dollars, for any additional $100 or fractional part thereof in business of manufacturing alcohol is performed excess of $200, fivedollars. Every place where food and
and then go into the retail liquor business. by two modes. The mode which has been suc- lodging are provided for and furnished to travelers Mr. STEVENS. Only to sell liquor to be cessfully performed in the West is the redis- and sojourners, in view of payment therefor, shall be drank on the premises. tillation carried on by continued processes in
regarded as a hotel, inn, or tavern, under this act:
Provided, That keepers of hotels, taverns, and eat- Mr. KUYKENDALL. Retail liquor deal. the same establishment in which the spirit is ing-houses, in which liquors are sold by retail, to be ers always sell liquor to be drank on their manufactured. By continued redistillation it
drank upon the premises, shall pay an additional
premises. is rectified to the standard of alcohol.
be fixed and established by the assessor of the proper Mr. PIKE. If it was to apply only to those Now this bill, infamous in this particular, district at its proper value; but if rented, at not less who did not sell liquor to be drank on the the vile brood of a local interest, I have no
than the actual rent agreed on by the parties. All
steamers and vessels upon waters of the United States, premises, then we would have to keep an inreference of course to the chairman of the Com
on board of which passengers or travelers are pro- spector always on the premises to see if the mittee of Ways and Means, [Mr. MORRILL,) for vided with food or lodgings, shall be subject to and liquor sold was or was not drank there. The he evidently has been imposed upon--this bill
required to pay twenty-five dollars: Provided, That
effect of the amendment of the gentleman provides that alcohol and spirits shall not be actual rent to the assessor there shall be a penalty from Pennsylvania [Mr. STEVENS] will be made in the same establishment. Why? There equal to double the amount of the tax required by simply to allow tavern-keepers to retail liquors is no other reason that can be given than that
this section, to be collected as other penalties under
to any extent under the license of ten dollars. it is because we can manufacture alcohol out
I hope the amendment will not be adopted. of the cheap corn of the West, in the same
Mr. MORRILL. In the sentence which now
Mr. THAYER. I was the author of this establishment where spirits is made, at such a
reads, “the yearly rental shall be fixed and rate that no man who buys his spirits in New established by the assesor of the proper dis
proviso in the old law, and therefore I feel
called upon to defend it now. I beliere that York or New England can compete with us. trict at its proper value," I move to insert the
no provision in the law has been more popular And therefore it is that obstacles must be put word "assistant” before the word "assessor,
than this one. I think it is a tax which nine in the way of the successful manufacture of and the word " assessment” before the word
tenths of every community will approve. alcohol in the West.
Now, without this provision in the law, any how that done? This bill requires
man who shall take out a small license for an whisky distillery, put it in barrels, put it into this paragraph by striking out the following: without paying any additional tax at all. And bond, then take it out of bond, and put it into Provided, That if there be any fraud or collusion a man who sells thousands and thousands of another establishment where it is to be made in the return of actual rent to the assessor, there shall dollars' worth of liquors, as they do in the firstinto alcohol. And when I asked why this was
be a penalty equal to double the amount of the tax
class hotels of this country, could carry on & done, one of the heads of bureau informed me alties under this act are collected.
retail liquor trade under this ten-dollar license that it was to enable the eastern manufacturer
And inserting in lieu thereof the following:
-a trade exceeding in its profits the legitimate to compete with the western manufacturer. Now here in this instance the man is not al
Provided, That any person who shall make a false
business of entertaining travelers, and not pay or fraudulent return of the annual rent mentioned in
one cent additional to the Government for the lowed to produce alcohol in any particular | this paragraph shall be subject to a penalty therefor purposes of revenue. quantity by rectifying, or if he does he has to of double the amount of the tax.
I do not consider it necessary to say much pay this additional tax for every few hundred The amendment was agreed to.
in defense of such a provision as this. I can gallons that are rectified.
Mr. PIKE. I move to amend by inserting || not conceive in what manner a tax can be laid Mr. ALLISON. I am quite as anxious as at the close of the first sentence in this para
which will be more universally approved, or my friend from Illinois [Mr. HARDING] to pro- graph the following proviso:
more justly imposed than by this provision. tect the interests of our western friends who
Provided, That no license shall be required when
Mr. PRICE. Let me ask the gentleman are engaged in this business. The provision the rent or valuation of the yearly rental shall be whether he does not think it possible in this that he objects to is a mere repetition of the less than $100.
age of the world to keep a tavern without sellexisting law; and I have yet to hear of a The object of my amendment must be ap- || ing whisky. single rectifier of whisky or manufacturer of parent to any one. It is merely to exempt from Mr. THAYER. I do think it possible ; alcohol in the West who complains of this this tax a class of people who keep small coun: and where that is the case, of course no tas is license.
try wayside inns, which can hardly be called to be paid for liquor sold. The provision prohibiting the rectifying of inns or taverns, except for the purposes of Mr. HENDERSON. Mr. Chairman, I view whisky or the manufacture of alcohol upon this act; places which are kept for the benefit
this question very differently from my friend the same premises or in the same establish- of passers-by rather than for profit. ment where high-wines are distilled, is in an
The amendment was not agreed to.
from Pennsylvania, (Mr. STEVENS,] who seems
to think that public houses where liquor is not other part of this bill, and has no reference Mr. STEVENS. I move to amend this par sold do not generally keep anything in the whatever to this subject. I think that it is a pro- || agraph by striking out the following proviso: shape of refreshments, except bread and milk, vision that should be adopted, perhaps with
Provided, That the keepers of hotels, taverns, and or something of that sort. According to my some modification; because it is well known eating-houses, in which liquors are sold by retail, to observation, those houses that keep no liquor that under the existing law most of the frauds be drank upon the premises, shall pay an additional that have been discovered have been in the tax of twenty-five dollars.
keep much the best provisions. Hence, I
think that my respected friend, in the remark cases of parties who manufacture alcohol upon In the first place, this proposes to tax tavern
which he made, was not in earnest. but was the same premises where they distill high-wines,
keepers on a pretty high rental. Now, a tavwithout having their high-wines inspected. ern-keeper, everywhere that I know anything joke.
only practicing upon the House an innocent This provision is evidently a just one. It | about, is a man who keeps a house of public Mr. MORRILL. For the purpose of tercertainly is a just one now, when we have entertainment, including liquor to be drank
minating debate on this paragraph I move that doubled the tax upon the manufacture of dis- | upon the premises. Retailers of liquor that is the committee rise. tilled spirits, but leaves the tax as it exists not to be drank upon the premises are a differ- The motion was agreed to. in the present law upon the manufacture of ent class of persons and are taxed differently.
So the committee rose; and the Speaker alcohol and the rectifying of whisky.
It is proposed by this paragraph to tax all
having resumed the chair, Mr. DAWES reported I hope the amendment of the gentleman tavern-keepers twenty-five dollars more for
that the Committee of the Whole on the state from Mlinois [Mr. HARDING] will not be selling liquors to be drank on the premises than
of the Union had had under consideration the adopted. if they sold none. Now, a tavern where no
Union generally, and particularly the special The amendment of Mr. HARDING, of Illinois,
liquors are sold is no tavern. All taverns, ex order, being bill of the House No. 513, to was not agreed to.
cept now and then a temperance house, as it is The Clerk read the next paragraph, as fol: called, sell what we propose to charge twenty,
amend an act entitled “An act to provide lows: five dollars for. In Pennsylvania a man licensed
internal revenue to support the Government,
to pay interest on the public debt, and for to keep a tavern is allowed by the law to sell 19. Coal-oil distillers shall pay fifty dollars. Any
other purposes," approved June 30, 1864, and petson, firm, or corporation, who shall refine, pro
liquors. duco, or distill crude or refined petroleum or rock
A tavern-keeper pays $200 a year rental, for resolution thereon.
acts amendatory thereof, and had come to no oil, or crude coal oil, or crude or refined oil made of what? To allow a man to call there and get asphaltum, shalo, peat, or other bituminous substances, or shall manufacture coal illuminating oil a little bread and milk. He can get nothing
CLOSE OF DEBATE. shall be regarded as a coal-oil distiller under this
to drink there unless the tavern-keeper pays Mr. MORRILL. I move that when the
twenty-five dollars extra. I therefore propose Committee of the Whole on the state of the Nr. MORRILL. I move to strike out the to strike out this proviso.
Union shall resume the consideration of House