all the right, title, and interest of such person in the lot or tract of land on which such distillery is situated, and all right, title, and interest therein of every person who knowingly has suffered or permitted the business of a distiller to be there carried on, or has connived at the same; and all personal property owned by or in possession of any person who has permitted or suffered any building, yard, or inclosure, or any part thereof to be used for purposes of ingress or egress to or from such distillery, which shall be found in any such building, yard, or inclosure, and all the right, title, and interest of every person in any premises used for ingress or egress to or from such distillery, who has knowingly suffered or permitted such premises to be used for such ingress or egress, shall be forfeited to the United States.

No amendment being offered, the Clerk read as follows:

SEC. 43. And be it further enacted, That every rectifier, wholesale liquor dealer, and compounder of liquors, shall provide himself with a book, to be prepared and kept in such form as shall be prescribed by the Commissioner of Internal Revenue, and shall, on the same day on which he receives any spirits, and before he shall draw off any part thereof, or add water or anything thereto, or in any respect alter the same, enter in such book, and in the proper columns respectively prepared for the purpose, the date when, the name of the person or firm from whom, and the place whence the spirits were received, when and by whom distilled, rectified or compounded, and where and by whom inspected, and, if in the original package, the serial number of each package, the number of wine gallons and proof gallons, the kind of spirit, and the number and kind of adhesive stamps thereon; and every such rectifier, compounder, and wholesale dealer, shall, at the time of sending out of his stock or possession any spirits, and before the same sha'l be removed from his premises, enter in like manner, in the said book, the day when, and the name and place of business of the person or firm to whom such spirits are to be sent, the quantity and the kind or quality of such spirits, and the strength thereof: and also the number of gallons and fractions of a gallon at proof: and, if in the original packages in which they were received, he shall enter the name of the distiller, and the serial number of the package. And every such book shall be at all times kept in some public or open place on the premises of such rectifier, wholesale dealer, or compounder of liquors, respectively, for inspection; and any revenue officer may make an examination of such book and take an abstract therefrom; and every such book, when it has been filled up as aforesaid, shall be preserved by such rectifier, wholesale liquor dealer, or compounder of liquors, for a period not less than two years; and during such time it shall be produced by him to every revenue officer demanding the same; and if any rectifier, wholesale dealer, or compounder of liquors shall refuse or neglect to provide such book or to make entries therein as aforesaid, or shall cancel, alter, obliterate, or destroy any part of such book, or any entry therein, or make any false entry therein, or hinder or obstruct any revenue officer from examining such book or making any entry therein, or taking any abstract therefrom; or if such book shall not be preserved or not produced by any rectifyer or wholesale dealer or compounder, as hereinbefore directed, he shall pay a penalty of $100, and, on conviction, shall be fined not less than $100 nor more than $5,000, and imprisoned not less than three months nor more than three years.

No amendment being offered, the Clerk read as follows:

SEC. 44. And be it further enacted. That it shall not be lawful for any rectifier of distilled spirits, compounder of liquors, liquor dealer, wholesale or retail liquor dealer, to purchase or receive any distilled spirits in quantities greater than twenty gallons from any person other than an authorized rectifier of distilled spirits, compounder of liquors, distiller, or wholesale liquor dealer. Any person violating this section shall forfeit and pay $1,000: Provided, That this shall not be held to apply to judicial sales, nor to sales at publie auction made by an auctioneer who has paid a special tax as such.

No amendment being offered, the Clerk read as follows:

SEC. 45. And be it further enacted, That all distilled spirits drawn from any cask or other package and placed in any other cask or package containing not less than ten gallons, and intended for sale, shall be again inspected and gauged, and the cask or package into which it is so transferred shall be marked or branded, and such marking or branding shall distinctly indicate the name of the gauger, the time and place of inspection, the proof of the spirits, the particular name of such spirits as known to the trade, together with the name and place of business of the dealer, rectifier, or compounder, as the case may be; and in all cases, except where such spirits have been rectified or compounded, the name also of the distiller, and the distillery where such spirits were produced, and the serial number of the original package; and the absence of such mark or brand shall be taken and held as sufficient cause and evidence for the forfeiture of such unmarked packages of spirits.

No amendment being offered, the Clerk read as follows:

SEC. 46. And be it further enacted, That on all wines, liquors, or compounds known or denominated as wine, not made from grapes grown in the United States, but made in imitation of sparkling wine or champagne, and on all liquors not made from grapes, currants, rhubarb, or berries grown in the United

States, but produced by being rectified or mixed with distilled spirits or by the infusion of any matter in spirits, to be sold as wine or by any other name, there shall be levied and paid a tax of six dollars per dozen bottles, each bottle containing more than one pint and not more than one quart; or three dollars per dozen bottles, each bottle containing not more than one pint. And any person manufacturing compounding, or putting up such wines, shall, without previous demand, make return, under oath or affirmation, to the assistant assessor, on the 1st and 15th days of each and every month, or within five days thereafter, of the entire amount of such wines manufactured or put up during the first fifteen days of the month, and the residue of the month, respectively; and the tax herein imposed shall be payable at the time such return is made. And in case such manufacturer shall neglect or refuse to make such return within the time specified, the assessor shall proceed to ascertain the amount of tax due as provided in other cases of a refusal or neglect to make returns, and shall assess the tax, and add a penalty of fifty per cent. to the amount; which said tax, and also said penalty shall be collected in the manner provided for the collection of tax on monthly and other lists. Any person who shall fraudulently evade or attempt to evade the payment of the tax herein imposed shall, on conviction, be fined not less than $500, nor more than $5,000, and imprisoned not less than six months nor more than two years.

Mr. BUTLER. I move to amend in line twelve, after the word "pint," by inserting the words and at the same rate in any quantity of such merchandise however the same may be put up, or whatever be the package. Mr. SCHENCK. I have no objection to that.

The amendment was agreed to.

authority to put it in this bill, as it includes this new officer. But these three sections are thought by the committee to be proper, and hence they agreed to report them as an amendment.

The first section provides for a superintend ent or supervising agent, who is to take the place of all these roving officers that are holding commissions now and traveling all over the country. We thought it would be right and proper to put one such officer in each United States judicial district, and not allow him to have any power to seize property or anything of that kind, but simply a supervisory control, to examine books and papers and take evidence and report to the Commissioner of Internal Revenue, so as to be an aid in the prevention of frauds, and in holding the local officers to their duty. That is the object of the first section.

The Clerk read as follows:

SEC.. And be it further enacted, That the Secretary of the Treasury, on the recommendation of the Commissioner of Internal Revenue, shall appoint one officer for each United States judicial district, to be called a supervisor of internal revenue on distilled spirits and tobacco, whose duty it shall be to reside in such district, and keep his office at some convenient place therein, to be designated by the Commissioner, and who shall receive in compensation for his services such salary as the Commissioner of Internal Revenue may deem just and reasonable, not exceeding $2,500 per annum, and shall be paid his necessary traveling expenses when absent from his office on official business. It shall be the duty of every supervisor of internal revenue on distilled spirits and tobacco, under the direction of the Commissioner, to see that all laws and regulations relating to the collection of internal taxes upon distilled spirits and tobacco are faithfully executed and complied with; to aid in the prevention, detection, and punishment of any frauds in relation thereto, and to examine into the efficiency and conduct of all officers of internal revenue within his district; and for such purposes he shall have power to examine all persons, books, papers, accounts, and premises, and to administer oaths, and to summon any person to produce books and papers, or to appear and testify under oath before him, and to compel a compliance with such summons in the same manner as assessors do. It shall be the duty of every supervisor of internal revenue, as aforesaid, to report in writing to the Commissioner of Internal Revenue any neglect of duty, incompetency, delinquency, or malfeasance in office of any internal revenue officer within his district, of which he may obtain knowledge, with a statement of all the facts in each case, and any evidence sustaining the same and he shall have power to transfer any inspector, gauger, or storekeeper from one distillery, or other place of duty, to another, or from one collection district to another within his district; and may, by notice in writing, suspend from duty any such inspector, gauger, or storekeeper, and in case of suspension shall immediately notify the collector of the proper district and the Commissioner of Internal Revenue, and within three days thereafter make report of his action, and his reasons therefor, in writing, to said Commissioner, who shall thereupon take such further action in the case as he may deem proper.

SEC. And be it further enacted, That from and after the passage of this act, no general or special agent, by whatever name or designation he may be known, of the Treasury Department in connection with the internal revenue, except as provided for in this act, shall be appointed, commissioned, employed, or continued in office, and that the term of office or employment of all such general or special agents now authorized as aforesaid under employment at the time of the passage of this act shall expire ten days after this act shall take effect.

SEC.. And be it further enacted, That from and after the passage of this act no assessor or collector shall be authorized to enter any other district than the one for which he has been appointed for the purpose of exercising any authority except as expressly provided for by this act.

Mr. LOGAN. Mr. Chairman, if the House will give me their attention for a moment, I will explain the reasons for these sections as they have been understood by the committee. The first of these sections is taken from the bill as originally reported, but under their instructions the committee did not feel that they had

judicial district who shall have supervisory

control.

That is the intention of the three sections, and nothing more. It is simply to do away with all these men who are traveling over the country and supply their places with one officer in each United States judicial district. The committee think this a proper amendment, and I hope it will be adopted.

The amendment was agreed to.

Mr. MULLINS. I offer the following amendment, which meets the approval of the chairman of the Committee of Ways and Means:

In line nineteen, after the word "respectively," insert "except when the wine is manufactured and put up or used exclusively by the family of the person manufacturing the same.'

Mr. SCHENCK. There is no objection to that.

The amendment was agreed to.

The Clerk read the next section, as follows: SEC. 47. And be it further enacted, That there shall be appointed by the Secretary of the Treasury in any district such number of internal revenue storekeepers as may be necessary, the compensation of each of whom shall be five dollars per day, one or more of whom shall be assigned by the Commissioner of Internal Revenue to every bonded warehouse established by law; and no such storekeeper shall be engaged in any other business while in the service of the United States. Every storekeeper shall take an oath faithfully to perform the duties of his office, and shall give a bond, to be approved by the Commissioner of Internal Revenue, for the faithful discharge of his duties, in such form and for such amount as the Commissioner may prescribe. Every storekeeper shall have charge of the warehouse to which he may be assigned, under the direction of the collector controlling the same, which warehouse shall be in the joint custody of such storekeeper and the proprietor thereof, and kept securely locked, and shall at no time be unlocked and opened, or remain open, unless in the presence of such storekeeper or other person who may be designated to act for him as hereinafter provided; and no articles shall be received in or delivered from such warehouse except on an order or permit addressed to the storekeeper and signed by the collector having control of the warehouse. Every storekeeper shall keep a warehouse book, which shall at all times be open to the examination of any revenue officer, in which he shall enter an account of all articles deposited in the warehouse to which he is assigned, indicating in each case the date of the deposit, by whom manufactured or produced, the number and description of the packages and contents, the quantities therein, the marks and serial numbers thereon, and by whom gauged, inspected, or weighed, and if distilled spirits, the number of gauge or wine gallons and of proof gallons; and before delivering any article from the warehouse, he shall enter in said book the date of the permit or order of the collector for the delivery of such articles, the number and description of the packages, the marks and serial numbers thereon, the date of delivery, to whom delivered, and for what purpose, which purpose shall be specified in the permit or order for delivery, and in case of delivery of any distilled spirits the number of gauge or wine gallons, and of proof gallons shall also be stated: and such further particulars shall be entered in the warehouse books as may be prescribed or found necessary for the identification of the packages, to insure the correct delivery thereof

and proper accountability therefor. A daily return shall be furnished by every storekeeper to the collector of the district of all articles received in and delivered from the warehouse during the day preceding that on which the return is made, a copy of which shall be mailed by him at the same time to the Commissioner of Internal Revenue; and each storekeeper shall, on the first Monday of every month, make a report in triplicate of the number of packages of all articles, with the several descriptions thereof respectively, as above provided, which remained in the warehouse at the date of his last report, and of all articles received therein and delivered therefrom during the preceding month, and of all articles remaining therein at the end of said month; one of which reports shall be by him delivered to the assessor of the district, to be recorded and filed in his office; one delivered to the collector having control of the warehouse, to be recorded and filed in his office; and one transmitted to the Commissioner of Internal Revenue, to be recorded and filed in his office. Any internal revenue storekeeper may be transferred by the Commissioner of Internal Revenue from one warehouse to another within the same district. In case of the absence of any internal revenue storekeeper by sickness or from any other cause, the collector having control of the warehouse may designate a person to have temporary charge of such warehouse, who shall, during such absence, perform the duties and receive the pay of the storekeeper for the time he may be so employed; and for any violation of the law he shall be subject to the same punishment as storekeepers. Any storekeeper or other person in the employment of the United States having charge of a bonded warehouse, who shall remove or allow to be removed any cask or other package therefrom without an order or permit of the collector, or which has not been marked or stamped in the manner required by law, or shall remove or allow to be removed any part of the contents of any cask or package deposited therein, shall be immediately dismissed from office or employment, and, on conviction, be fined not less than $500, nor more than $2,000, and imprisoned not less than three months nor more than two years.

Mr. PRICE. I move to amend this section by adding thereto the following:

Provided, That no distilled spirits shall be removed from the place of distillation until the tax provided for in this act shall have been paid, anything herein contained to the contrary notwithstanding.

Mr. LOGAN. Will the gentleman withdraw that amendment for a moment, until I have offered one which has been agreed upon by the Committee of Ways and Means?

Mr. PRICE. To accomplish the same purpose?

Mr. LOGAN. No, sir; to accomplish a different purpose, but it is to a preceding part of the section.

Mr. PRICE. Very well; I will withdraw the amendment for that purpose.

Mr. LOGAN. I move to amend the first sentence of this section by inserting after the words" such number of internal revenue storekeepers as may be necessary," the words "who shall be bona fide residents of the districts in which they may be appointed." This provis ion relates to the storekeepers to be appointed by the Secretary of the Treasury.

The amendment was agreed to.

Mr. PRICE. I now renew my amendment. Mr. SCHENCK. I rise to a point of order. This section relates exclusively to and defines the duties of storekeepers. I think the amend ment is not pertinent to this section, though there are many other portions of the bill to which it would be germane. I make the point of order that the proposed amendment is not germane to the section now under consideration.

The CHAIRMAN. The Chair sustains the point of order, and rules that the amendment is not in order.

Mr. KOONTZ. I move to amend this section by inserting after the words "the compensation of each of whom shall be five dollars per day," near the commencement of the section, the words "to be paid by the United States." I understood from the chairman of the Committee of Ways and Means [Mr. SCHENCK] that the intention was to have these storekeepers paid by the United States. But it is not so nominated in the bond," as I understand this section. I want to have this matter fixed, so that there may be no misunderstanding about it.

The amendment of Mr. KOONTZ was agreed to. Mr. ROBINSON. I move to amend this section by striking out the following:

Any internal revenue storekeeper may be transferred by the Commissioner of Internal Revenue from one warehouse to another within the same district.

Before making any observations on this amendment I wish to call the attention of the Committee of Ways and Means to an amendment offered by the gentleman from Illinois [Mr. LOGAN] which was adopted a few minutes since. If I understood it correctly, the supervisor provided for by that amendment was authorized to change and alter these storekeepers, and designate where they shall go. Is that so?

Mr. LOGAN. Yes, sir.

Mr. ROBINSON. Then I move to strike out the words I have indicated. If you are going to give the power to do any of these things, then let it be concentrated in one person. By the amendment which you have already adopted you propose to give the supervisor of the judicial district the power to transfer these storekeepers from one place to another at his option. Then by this section you give that same power to the Commissioner of Internal Revenue. And no storekeeper may be able to perform any duty, because he may be kept marching around by this divided allegiance. There is a confusion in the bill. It is not important to me, so far as I am concerned in perfecting this bill, whether the Commissioner of Internal Revenue or the supervisor has this power. But I ask the Committee of Ways and Means to see that this divided duty does not lead to difficulties.

Mr. LOGAN. This is included in this bill, because, under the resolution of instructions to the committee no provision was made for it, and we had to provide for it somewhere in the bill. I would suggest to the gentleman to modify his amendment so as to insert before the words "the Commissioner of Internal Revenue," the words "the supervisor of the judi cial district, or;" so that either may give the orders, the Commissioner, of course, being governed by the information he may receive from the supervisor.

Mr. ROBINSON. I am willing to modify my amendment in that way. I merely wanted to submit the suggestion to the Committee of Ways and Means.

The CHAIRMAN. The question is upon the amendment, as modified.

Mr. ROBINSON. But, Mr. Chairman, that amendment would still leave it doubtful. We want something positive in these matters as to who shall have this power. I would still sug. gest that one or the other of these officers shall have the control of the matter.

Mr. LOGAN. The words I have suggested were in the original bill. The Commissioner can never exercise this power except on the recommendation of the supervisor. În fact he is to report all his acts to the Commissioner, to be supervised by him, as will be seen by reference to the amendment I offered.

Mr. ROBINSON. I think the permission to each under the law is absolute; and any person appointed will deny the authority either of the Commissioner or of the other officer. I do not wish to continue this discussion. But I will say that unless this is amended in some way, you will have no peace and no harmony of action under this bill.

Mr. LOGAN. There is another reason for the modification I have suggested. The supervising agent may have more than one district within his jurisdiction; "a United States judicial circuit or district.' This bill leaves it to the two in the same district; but where it is outside of the district the supervisor has the control of it. The changing in the same district will depend upon the recommendation of the supervisor. In fact, under this bill the Commissioner might revoke his action; that is probably the true construction of it; but it does not affect the harmony of the bill.

The amendment, as modified, was then agreed to.

Mr. BARNES. In this section is to be found the following provision:

In case of the absence of any internal revenue storekeeper by sickness or from any other cause, the collector having control of the warehouse may designate a person to have temporary charge of such warehouse, who shall, during such absence, perform the

duties and receive the pay of the storekeeper for the time he may be so employed; and for any violation of the law he shall be subject to the same punishment as storekeepers.

I move to amend this clause by inserting after the words "may designate," the words, "with the consent and approval of the bondsmen of the absent storekeeper.' By the sec tion, as it now stands, the appointment of this temporary storekeeper is given to the collector of the district where the storehouse is situated. There is no storekeeper in the districts with which I am acquainted that cannot be made safe at less than $2,000 a year. The word "ring" has been frequently used in this debate. I would suggest that this section makes a ring in a very few hands-the collector, the assessor, and the storekeeper to be appointed by the collector of the district. I hope my amendment will be adopted.

Mr. LOGAN. amendment.

Oh, no! we object to that

Mr. SCHENCK. I oppose the amendment, and ask for a vote.

The question was taken upon the amendment of Mr. BARNES; and upon a division-ayes, twenty-two, noes not counted, it was not agreed to.

No further amendment was offered.

The next section was read, as follows:

SEC. 48. And be it further enacted, That there shall be appointed by the Secretary of the Treasury, in every collection district where the same may bo necessary, one or more internal revenue gaugers, who shall each take an oath faithfully to perform his duties, and shall give his bond, with one or more sureties, satisfactory to the Commissioner of Internal Revenue, for the faithful discharge of the duties assigned to him by law or regulations; and the penal sum of said bond shall not be less than $5,000, and said bond shall be renewed or strengthened as the Commissioner of Internal Revenue may require. The duties of every such gauger shall be performed under the supervision and direction of the collector of the district to which he may be assigned, or of the collector in charge of exports at any port of entry to which he may be assigned. Fees for gauging and inspecting shall be prescribed by the Commissioner of Internal Revenue, to be paid to the collector by the owner or producer of the articles to be gauged and inspected; and said collector shall retain all amounts so received as such fees until the last day of each month, when the aggregate amount of fees so paid that month shall, under regulation to be proscribed by the Commissioner of Internal Revenue, be paid to the gauger performing the duty; but in any city or part of a city within a district where there may be two or more gaugers on duty, the said fees shall be equally divided by the collector among them, In no case, however, shall the aggregate monthly fees of any gauger exceed at the rate of $3,000 per annum. All necessary labor and expense attending the gauging of any article shall be furnished and borne by the owner or producer of such articles. Every gauger shall, under such regulations as,may be prescribed by the Commissioner of Internal Revenue, make a daily return, in duplicate; one to be delivered to the assessor and the other to the collector of his district, giving a true account, in detail, of all articles gauged and proved or inspected by him, and for whom, and the number and kind of stamps used by him. Any gauger who shall make any false or fraudulent inspection, gauging, or proof shall pay a penalty of $1,000, and, on conviction, shall be fined not less than $500 nor more than $5,000, and imprisoned not less than three months nor more than three years.

United States." I think that the fees to be paid these various officers ought in all cases to be paid by the Government. I think it is contrary to sound policy that the officer should be any way responsible or under obligation to the distiller; for that reason I move this amendment. And I think it should be concurred in for the same reason that the storekeepers were provided to be paid by the Government of the United States. I now yield the rest of my time to the gentleman from New York, [Mr. RoвINSON.]

Mr. ROBINSON. I trust this amendment will be adopted. I think that in all cases where a distiller or manufacturer or any person interested against the Government is allowed to pay the officer it is very bad policy. If we employ officers we should' pay them a fair and reasonable remuneration for their services. In no case should any officer be paid

to the old system of setting this article in motion without having the tax paid.

Mr. BOUTWELL. I move to amend the amendment by striking out the last word for the purpose of making some remarks in reply to the gentleman from Illinois, [Mr. JUDD.] He seems to misunderstand my amendment, and if he will give me his attention I will try to explain it. In the first place, these distillers who are to be authorized to manufacture spirits for exportation are prohibited by the terms of this amendment from manufacturing spirituous liquor for general use. We classify the distillers into two classes. Those who manufacture for consumption in this country are obliged to pay at the distillery warehouse all the taxes levied, as provided in the first section of the bill. Those who manufacture for export are not to manufacture for any other purpose. Therefore the assessor and collector and every officer will know that the product of a distillery so designated is to go forward in bond for export. The product of a distillery not so designated cannot be removed from the distillery warehouse until the taxes are paid. We therefore classify and separate the businesses absolutely.

Now, as to its being a monopoly to be authorized by the Commissioner of Internal Revenue, it amounts to nothing in that respect. To be sure but a small number of persons can live by manufacturing spirits for export, but there will be a sufficient number to enable them to com. pete with each other and keep the price at a proper rate as compared with the price for home consumption, because these manufac turers come in competition with the producers of spirituous liquors in other countries; and inasmuch as a distillery established at Peoria, for example, to manufacture for export cannot, by any legal process, get the product of the distillery into the general trade of the country, they must sell it for export, and therefore they have to take the price which the market of the world enables them to get. Whenever spirituous liquors are put upon railroads and rivers for exportation there is danger that they may be diverted. But the smaller the number of persons engaged in the manufacture of these spirits who are authorized to transport in bond the less the danger that they will be taken off by the way, and frauds committed upon the Government. The question is whether you will have five or six men in this country authorized to export in bond, or whether you will have two or three hundred of them.

Mr. PRICE. If I understand the force of the amendment of the gentleman from Massachusetts [Mr. BOUTWELL] it is simply to narrow down the danger, so to speak. His argument admits that it is not safe to allow distillers promiscuously to put their liquors upon the railroads and steamboats of the country in bond, and he proposes to correct the evil by limiting that privilege to a certain number of men to be named and specified by the Commissioner of Internal Revenue.

Now, I do not believe there is any safety in allowing any man to ship a gallon of distilled spirits before the tax upon it has been paid. We have tried this thing for years; it has been guarded by all the ingenuity that could be brought to bear upon the question by those best 'calculated to advise wisely and well in regard to it; and we have failed signally in every case. The very moment the spirits have left the distillery and been put in transit we have been cheated out of the tax upon it; and I am afraid the men in that business now are of that class who will cheat us every opportunity that is offered. I do not believe there is any security to the Government in collecting this tax unless you compel it to be paid before the spirits leave the distillery. Let the tax be paid at the place where it is manufactured, and then, if it is exported, when it gets to the place of sale get the certificate of the party to whom it is consigned or sold, and when that certificate gets back to this country let the drawback be paid. If it takes three months, very well; if it takes

three years, very well. It is a matter of no importance to me how long it takes. But I do not propose that they shall get the benefit of the drawback until it is established by a certificate that the liquor has gone to a foreign country, never to return. Thousands and thousands of barrels have been shipped for export which never was exported at all, and the tax upon it was never paid, and never will be.

This proposition is only tinkering with the matter without securing any degree of safety. If I ever get the opportunity I shall propose the same amendment that I tried to have considered a few minutes ago, providing that no liquor shall be removed from the place of distillation until the tax has been paid upon it; and when I offer that amendment I will give my reasons for it.

Mr. BOUTWELL. I withdraw the amendment to the amendment.

Mr. PAINE. I renew it. I wish the committee to understand what is the extent of this foreign commerce in distilled spirits and alcohol, for the benefit of which my friend from Massachusetts [Mr. BOUTWELL] proposes to open wide the door to frauds upon the revenue by the establishment of this system of transportation in bond. I asked the chairman of the Committee of Ways and Means, here in his seat, on yesterday or the day before, what was the amount of this exportation of distilled spirits and alcohol. He informed me that the first cost of the manufacture of the alcohol and rum exported did not exceed $5,000,000. The gentleman from Massachusetts [Mr. BOUTWELL] tells us that the amount exported and used in manufacturing cosmetics, &c., does not, in the aggregate, exceed five million gallons. The gentleman remarks that he did not include cosmetics in this estimate; so that the exportation amounts to five million gallons.

Now, let us put this export trade at the highest figures, those of the chairman of the Committee of Ways and Means. We will say that the cost of the manufacture of the distilled spirits and alcohol exported is $5,000,000; that it actually costs the parties who export it that amount. If that be so, then I take it it would be a very liberal allowance if we say of those engaged in this export trade that they make a net profit of twenty per cent. on this cost of $5,000,000; that would be a net profit of $1,000,000. Now, let us see what we lose in order to enable these exporters to realize $1,000,000 on this trade. In the first place the internal tax on spirits, the first cost of which is $5,000,000, will be not less than $7,500,000, for the tax per gallon under this bill is over fifty cents, while the cost is less than thirtyfive cents.

1

In the first place this tax of $7,500,000 is not paid to the Government. The exporters take the commodity free of that tax. It will be safe to say, Mr. Chairman, that by adopting this system of transportation in bond we furnish opportunities for frauds upon the Treasury to an equal or greater amount. therefore believe that besides remitting the $7,500,000 of taxes, we shall incur an actual loss of at least $7,500,000 through frauds on the Treasury, in transportation in bond through the United States for the pretended purpose of exportation. So that the Government will actually lose, I think, not less than $7,500,000 in order to enable the gentleman's friends to realize a profit of $1,000,000.

Now, if there can be no export trade in distilled spirits for the benefit of these exporters, without involving the United States Government in this serious loss, then I am opposed to the existence of any such export trade. I say frankly that I am willing to crush it-nay, it must be our duty to crush it-if it cannot be carried on except at such an immense expense to the people of the country. Unless some other plan can be devised, unless the system of drawbacks which has been proposed by my friend from Illinois, [Mr. LOGAN,] or some other system, will obviate this great loss to the Government, I am in favor of abolishing alto

gether this export trade in distilled spirits. Sir, it is at best but mere bagatelle. It is utterly insignificant! It is not worth while for us to expend our efforts to preserve it if it involves an annual loss to the country of millions of dollars.

Now, sir, let the plan which has been suggested by the gentleman from Illinois be fully explained, and if it proves to be one by which we can allow this export trade in distilled spirits to live without costing the Government of the United States $7,500,000 or $10,000,000 or $15,000,000 annually, then let it live; if not, let it disappear.

Mr. ALLISON. Mr. Chairman, I desire to say a word in relation to the amendment proposed by the gentleman from Massachusetts, [Mr. BOUTWELL.] But before doing so, I wish to reply briefly to my friend from Wisconsin, [Mr. PAINE.] I cannot see how it is possible that the Government can lose anything by the exportation of any article.

Mr. BOUTWELL. If the gentleman will yield one moment I desire to say that, at the suggestion of some gentlemen around me, I have modified my amendment so that there shall be no discretionary power vested in the Commissioner, but that whoever applies for authority to manufacture, especially for exportation, according to the provisions of the law, shall be authorized to do so.

Mr. ALLISON. Mr. Chairman, the amount of distilled spirits in this country paying the tax must necessarily be measured by the consumption. Therefore, if we export five million gallons or ten million gallons it cannot affect the amount of money that goes into the Treasury, because whatever amount is necessary for consumption in this country will either pay the tax or evade it by some fraudulent means. But I want to call the attention of the gentleman from Massachusetts who offered this amendment to a proposition which I think is absolutely conclusive upon this question. By the provisions which we have already inserted in this bill we are about to impose, indirectly, special taxes which will amount to about fourteen cents per gallon on all distilled spirits manufactured in this country, and this indirect taxation cannot be in any manner evaded even by those who desire to export distilled spirits.

Now, I submit to the gentleman, whether there will be any spirits exported when there is an indirect taxation of fourteen cents per gallon on spirits. I believe that by this indirect tax we shall actually cut off most of the exportation of distilled spirits. One of these methods of taxation was adopted to-day, on the motion of the gentleman from Massachusetts, [Mr. BOUTWELL;] and I should have opposed it if I had fully understood the proposition. That amendment imposes a tax of two dollars for every twenty bushels of grain mashed, amounting to about three and one third cents per gallon-a much higher tax than was proposed by the committee. Then we propose to impose a tax of four dollars on each barrel, making ten cents more per gallon.

But there is another difficulty in the proposition of the gentleman from Massachusetts. The Supreme Court has decided that the Government cannot authorize any special persons or class of persons to carry on a business. The court held if we adopt any principle here we must let every man who desires to manufacture spirits for exportation do so. If we license one man we must license every other man in the United States to manufacture spirits for exportation. We reasoned in a circle and fell back upon the proposition in the bill to allow the distillers to ship the goods in bond to the ports of entry for exportation. So I see no advantage in the proposition of the gentleman from Massachusetts over the proposition now contained in the printed bill before the House.

The CHAIRMAN. The hour of half past four o'clock p. m. having arrived, under the order of the House the committee will take a recess until half past seven o'clock p. m.

EVENING SESSION.

At half past seven o'clock p. m. the Committee of the Whole was called to order by the chairman, Mr. POMEROY, and resumed the consideration of House bill No. 1284, to change and more effectually secure the collection of internal taxes on distilled spirits and tobacco,

and to amend the tax on banks.

The pending question was on Mr. BOUTWELL'S amendment to the forty-ninth section, which was read, as follows:

The Commissioner of Internal Revenue shall authorize such distillers as may apply to be so authorized, and as he may deem suitable, distillers of alcohol and spirituous liquors for export. Persons so authorized may distill alcohol and spirituous liquors for export and for the uses specified and authorized in sections fifty-six, fifty-seven, fifty-eight, and fiftynine of this act, and for no other purpose; and distillers not so authorized shall not distill alcohol or spirituous liquors for export or for the purposes specified in said sections. All provisions of this act relating to the transportation of distilled spirits in bond shall be limited to spirits produced by persons designated or authorized by this section.

Mr. LOGAN. I move the following amendment in the nature of a substitute for the pending amendment:

SEC.. And be it further enacted, That from and after the date at which this act shall take effect there shall be an allowance of drawback on all rum and alcohol on which any internal tax shall hereafter be paid, equal in amount to the tax so paid thereon and no more, when exported in good faith. The payment of said drawback to be made only when the evidence shall be furnished to the entire satisfaction of the Secretary of the Treasury by such person or persons who shall claim allowance of drawback that such tax has been paid, and the said rum or alcohol so exported-landed, and delivered to the consignee or consignees at the foreign port to which it was exported, to be proved by the sworn testimony of responsible persons where exported from and exported to the same to be paid by the warrant of the Secretary of the Treasury on the Treasurer of the United States, out of any money arising from internal tax on distilled spirits not otherwise appropriated: Provided, however, That no claim for drawback shall be allowed on either of the said articles which shall have been exported as aforesaid prior to the time at which this act shall take effect.

SEC.. And be it further enacted, That if any person or persons shall fraudulently claim or seek to obtain an allowance of drawback on any article or articles aforesaid on which no internal tax shall have been paid, or shall fraudulently claim any greater allowance or drawback than the tax actually paid thereon as aforesaid, such person or persons shall forfeit and pay to the Government of the United States triple the amount wrongfully or fraudulently sought to be obtained; and on conviction thereof shall be imprisoned in the penitentiary for a period not less than one nor more than ten years.

Mr. SHANKS. There is no quorum present. Mr. LOGAN. I prefer not to submit my remarks until the chairman of the Ways and Means Committee is present.

Mr. JUDD. We amended the first section this morning, and if the amendment of my colleague be adopted it will lead to striking out five or six sections, and it is therefore desirable the chairman should be present.

Mr. WILSON, of Iowa. If the vote be taken on the amendment it will develop the absence of a quorum.

The committee divided on the amendment; and there were-ayes 13, noes 17; no quorum voting.

The CHAIRMAN, in obedience to the rules, ordered the roll to be called, and the following members failed to answer to their names:

Messrs. Adams, Anderson, Archer, Arnell, Delos R. Ashley, James M. Ashley, Axtell, Baldwin, Banks, Barnes, Barnum, Beaman, Beatty, Benjamin, Benton, Bingham, Blair, Boles, Boyer, Bromwell, Brooks, Buckland, Burr, Butler, Cake, Cary, Chanler, Churchill, Reader W. Clarke, Sidney Clarke, Cobb, Cook, Cornell, Covode, Cullom, Dawes, Delano, Dixon, Dodge, Donnelly, Driggs, Eckley, Eggleston, Eldridge, Farnsworth, Ferry, Fields, Finney, Fox, Garfield, Glossbrenner, Golladay, Gravely, Haight, Halsey, Harding, Hawkins, Hinds, Hill, Hopkins, Hotchkiss, Asahel W. Hubbard, Chester D. Hubbard, Richard D. Hubbard, Hulburd, Humphrey, Hunter, Ingersoll, Johnson, Jones, Julian. Kelley, Kerr, Ketcham, Kitchen, Knott, Laflin, William Lawrence, Lincoln, Loan, Loughridge, Lynch, Mallory, Marshall, McCarthy, McCullough, McKee, Mercur, Morrell, Morrissey, Mungen, Myers, Newcomb, Nicholson, Nunn, Orth, Perham, Phelps, Pike, Pile, Pomeroy, Pruyn, Randall, Raum, Robertson, Robinson, Roots, Ross, Sawyer, Schenck, Scofield, Selye, Shellabarger, Sitgreaves, Aaron F. Stevens, Thaddeus Stevens, Stokes, Stone, Taffe, Taylor, John Trimble, Lawrence S. Trimble, Upson, Van Aernam, Van Auken, Burt Van Horn, Robert T. Van Horn, Van Trump, Van Wyck.

Ward, Elihu B. Washburne, Welker, Thomas Williams, William Williams, John T. Wilson, Stephen F. Wilson, Wood, and Woodward.

The committee then rose; and the Speaker having resumed the chair, Mr. BLAINE reported that the Committee of the Whole on the state House, had under consideration the Union genof the Union had, pursuant to the order of the erally, and particularly the special order, being House bill No. 1284, to change and more effectually secure the collection of internal taxes on distilled spirits and tobacco, and to amend the tax on banks, and finding itself without a quorum had directed the roll to be called and the names of the absentees to be reported to the House.

Mr. HOLMAN. Mr. Speaker, is it in order now to move, as proposed by the chairman of the Committee of Ways and Means last evening, that the list of absentees be published in two daily papers besides the Globe? [Laughter.]

The SPEAKER. That will require unanimous consent; no quorum being present.

Mr. GRISWOLD. Is it in order for me to explain why the chairman of the committee is not present?

The SPEAKER. It would be by unanimous

consent.

Mr. BOUTWELL. I object.

Mr. GRISWOLD. He is within the building, but ill.

Mr. ALLISON. I move a call of the House. The motion was agreed to.

The roll was accordingly called; and the following members failed to answer to their

names:

Messrs. Adams, Anderson, Archer, Arnell, Delos R. Ashley, James M. Ashley, Axtell, Baldwin, Barnes, Barnum, Beaman, Beatty, Benjamin, Benton, Bingham, Boles, Boyer, Bromwell, Brooks, Buckland, Burr, Butler, Cake, Chanler, Churchill, Reader W. Clarke, Sidney Clarke, Cobb, Cook, Cornell, Covode, Cullom, Dawes, Delano, Dodge, Donnelly, Driggs, Eckley, Eggleston, Eldridge, Ferry, Fields, Finney, Fox, Glossbrenner, Gravely, Haight, Halsey, Harding, Hill, Hinds, Hopkins, Asahel W. Hubbard, Richard D. Hubbard, Hulburd, Humphrey, Hunter, Jones, Kelley, Kitchen, Knott, Laflin, William Lawrence, Lincoln, Loan, Lynch, Mallory, Marshall, McCarthy, McCullough, McKee, Mercur, Morrell, Morrissey, Mungen, Myers, Newcomb, Nicholson, Nunn, Perham, Phelps, Pile, Pruyn, Randall, Raum, Robinson, Roots, Ross, Sawyer, Selye, Shella barger, Sitgreaves, Aaron F. Stevens, Thaddeus Stevens, Stokes, Stone, Taffe, Taylor, John Trimble, Lawrence S. Trimble, Upson, Van Aernam, Van Auken, Burt Van Horn, Robert T. Van Horn, Van Trump. Ward, Elihu B. Washburne, Thomas Williams, John T. Wilson, Stephen F. Wilson, Wood, and Woodward.

The SPEAKER. Only eighty members have answered to their names. The Doorkeper will close the doors, and the Clerk will call the roll of absentees for excuses.

The Clerk accordingly called the roll for

excuses.

GEORGE M. ADAMS.

Mr. GROVER. Mr. ADAMS left the House to-day sick. He is not able to leave his lodgings to-night. I move that he be excused. The motion was agreed to.

GEORGE W. ANDERSON. No excuse offered. STEVENSON ARCHER.

The SPEAKER. Mr. ARCHER has leave of absence.

SAMUEL M. ARNELL.

Mr. MAYNARD. My colleague desires me to state that the state of his health is such as to render it utterly impossible for him to be out at night. I move that he be excused. The motion was agreed to.

DELOS R. ASHLEY. No excuse offered.
JAMES M. ASHLEY.

The SPEAKER. Mr. ASHLEY has leave of absence.

SAMUEL B. AXTELL. No excuse offered.
JOHN D. BALDWIN. No excuse offered.
DEMAS BARNES. No excuse offered.
WILLIAM H. BARNUM.

Mr. HOTCHKISS. Mr. BARNUM is sick, and has been so for some months. He has leave of absence.

FERNANDO C. BEAMAN.

Mr. TROWBRIDGE. Mr. BEAMAN was ex

Mr. BROOMALL. Mr. FINNEY has been absent a long time on account of illness. I move that he be excused.

The SPEAKER. He has been absent during the entire session on account of sickness. He will be regarded as excused.

ADAM J. GLOSSBRENNER.

Mr. GETZ. Mr. GLOSSBRENNER is absent

by the leave of the House.

JOSEPH J. GRAVELY. No excuse offered.
CHARLES HAIGHT. No excuse offered.
GEORGE A. HALSEY. No excuse offered.
ABNER C. HARDING. No excuse offered.
JOHN HILL. No excuse offered.
JAMES HINDS. No excuse offered.
BENJAMIN F. HOPKINS.

Mr. PAINE. I believe Mr. HOPKINS has leave of absence.

The SPEAKER. The Chair does not remember.

Mr. PAINE. I do not remember, but I have a very strong impression that he has.

The SPEAKER. He is certainly not within a thousand miles of the city. The Chair thinks he has leave of absence, and he will be regarded as excused.

ASAHEL W. HUBBARD.

Mr. WILSON, of Iowa. My colleague, Mr. HUBBARD, is unwell, and has leave of absence. RICHARD D. HUBBARD.

Mr. STARKWEATHER. My colleague, Mr. HUBBARD, has leave of absence.

CALVIN T. HULBURD. No excuse offered. JAMES M. HUMPHREY. No excuse offered. MORTON C. HUNTER.

Mr. WASHBURNE, of Indiana. My col league, Mr. HUNTER, has leave of absence. THOMAS L. JONES. No excuse offered. WILLIAM D. Kelley,

Mr. BROOMALL. I move that Mr. KELLEY