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be excused. On account of the condition of at evening sessions. If there is no objection WARD, is not at all well, and I hope he will be
The SPEAKER. If there be no objection,
SAMUEL J. RANDALL.
the name of Mr. WOODWARD will be omitted
from the warrant. Mr. HUBBARD, of West Virginia. Mr. Mr. O'NEILL. My colleague, Mr. RANDALL, KITCHEN is absent by leave of the House. is absent for the same reason as last night,
There was no objection. J. PROCTER KNOTT. No excuse offered. when he was excused. He is detained on im Mr. SCOFIELD. I move that the gentle• Mr. INGERSOLL. Is it not in order to portant personal business, and I hope the man from Ohio, Mr. BINGHAM, be excused. I move that all gentlemen have leave of absence House will excuse him.
came from his room a short time ago. He for to-night?
No objection was made.
told me he was not well, and did not feel able The SPEAKER. Each case must be treated GREEN B. RAUM. No excuse offered.
to come up. He desired me to ask that he be
The SPEAKER. If there be no objection,
the gentleman from Ohio (Mr. BINGHAM] will
be excused. a quorum here to-night.
past. He requested me this afternoon to ask
There was no objection.
Mr. INGERSOLL. Is it in order to move leave of the House.
No objection was made.
that those members who are reported absent, WILLIAM LAWRENCE.
LOGAN H. Roots. No excuse offered.
but who are now within the lobby, be admitted ?
The SPEAKER. As the call is now opcrMr. WELKER. My colleague, Mr. Law- LEWIS W. Ross. No excuse offered. BENCE, is absent on leave.
PHILETUS SAWYER. No excuse offered.
ating, the House bas ordered those gentlemen WILLIAM S. LINCOLN. LEWIS SELYE.
to be brought in by the Sergeant-at-Arms. The The SPEAKER. The gentleman from New Mr. VAN WYCK. My colleague, Mr. SELYE, || Sergeant-at-Arms is now about to execute the
Speaker has just signed the warrant, and the York, Mr. LINCOLN, stated to the Chair this has not been very well for some days pust.
order of the House. afternoon that he was called home on import- ask that he be excused.
Mr. WELKER. I have just come from the ant business. The Speaker intended to ask No objection was made.
room of my colleague, Mr. DELANO, who stated leave of absence for him, but he was not in SAMUEL SHELLABARGER.
to me that he was not able to be here to-night. the chair this afternoon at any time when he Mr. BROOMALL. I move that Mr. Shel- || I move that he be excused. could do so.
I.ABARGER be excused on account of the con- here INGERSOLL.ASI hope that no more Mr. FARNSWORTH. I move that he be dition of his health. He was here last night, excuses of this kind will be offered. They will excused.
but he is not fit to be here. The motion was agreed to.
give this capital a bad reputation for healthfulThe SPEAKER. The gentleman from Ohio, ness throughout the country. [Laughter.] BENJAMIN F. Loan. No excuse offered. Mr. SHELLABARGER, and the gentleman from The SPEAKER. If there be no objection, John Lynch.
Pennsylvania, Mr. Stevens, will be excused, || Mr. DELANO will be excused. Mr. PETERS. My colleague, Mr. Lynch, if there is no objection.
There was no objection. was called to New York on very important No objection was made.
The Sergeant-at-Arms appeared and reported business. I move that he be excused.
AARON F. STEVENS. No excuse offered. that, in accordance with the order of the House, The motion was agreed to. WILLIAM B. STOKES. No excuse offered.
he had arrested and brought to the bar of the Rufus Mallory. No excuse offered. FREDERICK STONE.
House Mr. BENTON, Mr. CORNELL, Mr. CULSAMUEL S. MARSHALL. No excuse offered. The SPEAKER. The Chair thinks the
LOM, Mr. ECKLEY, Mr. NEWCOMB, Mr. Myers, DENNIS McCARTHY.
gentleman from Maryland, Mr. Stone, is absent Mr. Sawyer, Mr. Stevens of New Hampshire, Mr. STEWART. My colleague, Mr. Mcon leave.
Mr. BEATTY, Mr. MERCUR, and Mr. HUMPHREY. Carthy, was called away this afternoon. He CALEB N. TAYLOR. No excuse offered.
The SPEAKER. Mr. Benton, you have intended to ask leave of absence.
been absent without the leave of the House; The SPEAKER. The Chair had his name Mr. MAYNARD. My colleague, Mr. Trim. what excuse have you to render for your abon his list, and intended to ask leave of ab- BLE, is absent on leave.
sence? sence for him. He will be excused if there is LAWRENCE S. TRIMBLE. No excuse offered. Mr. BENTON. I came as soon as I could. no objection.
CHARLES UPson. No excuse offered.
I arrived here at a few minutes to eight o'clock,
and thought I was in time, but found the doors Hiram McCullough. DANIEL M. VAN AUKEN. No excuse offered.
closed. The SPEAKER.
BURT VAN HORN.
Several MEMBERS. The hour of meeting is Maryland, Mr. McCULLOUGH, has leave of
Mr. VAN WYCK. My colleague, Mr. VAN half past seven. absence.
Horn, of New York, has leave of absence. Mr. BROOMALL. I move that the gentleSAMUEL MCKEE. The SPEAKER. His name will be excluded
men who are now at the bar of the House from the warrant. Mr. MOORE. The gentleman from Ken
under arrest be discharged on the payment of tucky, Mr. McKee, is sick and unable to be
ROBERT T. Van Horn.
the usual fees. here. I move that he be excused. Mr. McCORMICK. My colleague, Mr. Van
Mr. ORTH. Five dollars each, and the The motion was agreed to. Horn, of Missouri, is sick.
Mr. BROOMALL. Oh, no!
The SPEAKER. The motion does not pre-
clude any member in arrest from having a sep. William MUNGEN. No excuse offered.
PHILADELPH VAN TRUMP. Noexcuse offered. arate vote on his case.
Mr. SCHENCK. Is it not proper to exclude
from the motion those who were reported to is temporarily indisposed. (Laughter.], He
Mr. WASHBURN, of Wisconsin. I move be so ill as to be unable to be present, and yet
that Mr. Elihu B. WASHBURNE be excused on are here now? expects to be here during the evening. I ask that he be excused. account of the condition of his health.
The SPEAKER. Sometimes gentlemen who Mr. INGERSOLL. I object.
The SPEAKER. If there be no objection are ill and so reported by their colleagues do Mr. O'NEILL. He is now outside the Hall,
Mr. WASHBURNE, of Illinois, will be excused. attend night sessions. The gentleman from waiting to come in.
There was no objection.
Ohio (Mr. SCHENCK] was reported to be ill, The question was taken on the motion to
Tuomas WILLIAMS. No excuse offered. and yet is now present in the Hall. [Laughexcuse Mr. MYERS; and it was not agreed to.
John T. Wilson. No excuse offered. ter.)
Mr. TWICHELL. I move those who are John A. NICHOLSON. No excuse offered.
Mr. BROOMALL. It was stated last night still outside and cannot get in also be disDayid A. Nunn,
that my colleague, Mr. Wilson, was absent on charged. Mr.MULLINS. My colleague, Mr. Nunn,
leave. I do not know whether such is the The SPEAKER. That cannot be done at is absent by leave of the House. fact.
present, and not until they are brought to the The SPEAKER. The Chair thinks it is the bar of the House, Mr. PETERS. My colleague, Mr. PER- city.
fact. The gentleman is certainly not in the Mr. BROOMALL'S motion was agreed to,
His name will be omitted from the and the members named were accordingly dis. HAM, is absent by leave of the House. warrant.
charged. CHARLES E. PHELPs. No excuse offered. FERNANDO WOOD.
The Sergeant-at-Armas again appeared and WILLIAM A. PILE. No excuse offered. Mr. STEWART. I believe my colleague, | reported that, in further obedience to the order JOHN V, L. PRUYN.
Mr. Wood, has leave of absence. I know he of the House, he had arrested and brought to the The SPEAKER. The Chair was requested was obliged to leave the city on account of l bar of the House Mr. Jones, Mr. Raum, Mr. by the gentleman from New York, Mr. Pruyn, sickness.
Upson, Mr. Barnes, and Mr. Nicholson. to state that the condition of his health is such GEORGE W. WOODWARD.
Mr. BROOMALL. I move tbat they be disthat it is almost impossible for him to be here Mr. GETZ. My colleague, Judge Wood. ll charged on the payment of the usual fees.
malze of the Barret.
ger: the Ladiena
The SPEAKER. Either of the members at by means of the provisions of the existing law, to be adopted in reference to distilled spirits the bar has the right to ask for a separate vote that the best mode we could adopt would be to either to be exported or under any circum. on his case.
provide for the payment of all taxes at the dis- stances removed from the distillery ware. Mr. BROOMALL.'s motion was agreed to. tillery warehouse when the spirits should leave | house. My colleague upon the committee
I. LOG The SPEAKER. A quorum is now present.
it for any purpose whatever, and then provide | [Mr. Logan] proposes to abolish entirely the Mr. ALLISON moved that all further pro
a drawback for the amount of taxes that inay whole export system through a warehouse surceedings under the call be dispensed with. be paid upon all exported distilled spirits, rounded by proper guards in the law, and 10 The motion wa's agreed to.
which would be all the alcohol and rum that is allow no exportation except of distilled spirits 11. H00 exported from this country.
which shall have first regularly paid the tax at LEAVE OF ABSENCE.
de abendua I think the exportation of rum and alcohol the distillery, and then, so as not to break; Mr. McCORMICK. I move that my col- is well guarded. This amendment provides | down the export business altogether, to intro. are and league [Mr. NEWCOMB] be excused from attend- that when either of the articles is exported duce what we have been for a number of years N. SCH) ance upon the sittings of the House this even from this country to a foreign port; before the trying to get rid of as itself an opening to great (wachte i ing. He is not well, and wishes to retire to drawback shall be allowed or paid on the war- opportunities of fraud, a system of drawback, his room.
rant of the Secretary of the Treasury the evi. so that the tax paid may be returned to the The motion was agreed to.
dence shall be furnished of the payment of the exporter. Mr. Hill and Mr. FIELDS were granted indefi
tax from responsible witnesses under oath re- Now, sir, I desire to call the attention of the nite leave of absence,
siding at the place where the exportation takes | committee to this whole subject of the trans-
of capital Mr. LAFLIN, from the Committee on Print
is exceedingly loose upon that subject. The
Mr. WILSON, of Iowa. I desire to ask the | present law authorizes, with few or no guards, ing, reported the following resolution :
gentleman whether or not he intends to include 1 very insufficient guards and regulations, liquors Resolved, That five thousand copies of the Army in the provision relating to drawbacks such to be taken
bond without payment of tax Register be printed for the use of the llouse.
alcohol as may be used in the manufacture of The resolution was adopted.
fron the distillery to what is called warehouse medicine and cosmetics which may be exported || “B," and to be transported from warehouse MESSAGE FROM TIC SENATE. from the country.
to warehouse, from distriet to district, and
Mr. LOGAN. The amendment includes all A message from the Senate, by Mr. GORHAN,
from one extreme part of the United States to its Secretary, announced that that body had
alcohol that is exported. That is my intention. | another, almost without limitation as to the
Mr. WILSON, of Iowa. After it has been passed a bill (H. R. No.365) constituting eight
number of transfers, thus opening the door to hours a day's work for all laborers, workmen,
used in the manufacture of medicine or cos. enormous frauds, which frauds have been in and mechanics employed by or on behalf of
metics, is the provision broad enough to include numberless instances shamefully committed,
that? I think it ought to. the Government of United States.
evading payment of the tax and injuring the
bave no objection to any gentleman proposing So great the evil grew to be that the Com. Mr. ALLISON. I call for the regular order
such an amendment. The section I propose mittee of Ways and Means introduced into of business.
to amend has no reference whatever to any. this House in January last, at one of the first The House, under the order herctofore made, thing of that kind. It is easy to provide for a expedients, while they should be engaged in resolved itself into the Committee of the Whole drawback on cosmetics and articles of that | revising the law, a stoppage, for the time on the state of the Union, (Mr. Blaine in the kind. But I think it is necessary to establish being, of all removals of whisky, without the chair,) and resumed the consideration of the the principle whether we will allow exportation | payment of tax, from bonded warehouses. bill (H. R. No. 1284) to change and more in this way or under the amendment of the That was passed almost unanimously through effectually secure the collection of internal | gentleman from Massachusetts, [Mr. Bort- the House, and afterward passed the Senate, taxes on distilled spirits and tobacco, and to WELL.) I desire for a moment to give my and is now upon the statute-book. But what amend the tax on banks.
reasons for objecting to the proposition of the did all that mean?. Some construe it to have The CHAIRMAN stated the pending ques- gentleman fro Massachusetts. He proposes | properly meant an intention to break up the tion was on Mr. Logan's amendment to the to export these articles by giving to . few dis. whole bonded warehouse system, as incapable amendment of Mr. BOUTWELL to the forty- tillers an exclusive license for that express of reform. Others, and I among them, underninth section.
purpose. There are many objections to that, stood it to be a temporary expedient by which Mr. LOGAN. I modify my amendment so which I have not time now to allude to. But this loose system could be broken up and it will read as follows:
the greatest objection is this: that from all entirely interrupted until some revision of the Sec. –. And be it further enacted, That from and parts of the country it would allow the transport- law should take place by which reform could after the date at which this act shall take cffect there ation in bond for the purpose of exportation ; ll be accomplished. Now, if the object be to shall be an allowance of drawback on all rum and alcohol on wbich internal taxes shall hereafter be
and, as we all know, we have been attempting | utterly destroy everything like the removal of paid, equal in amount to the taxes so paid thereon here to provide against the frauds that have liquors in bond under any circumstances, the and no more, when exported in good faith. Tho occurred under this transportation system. Ifwe course is plain for this House, and some such payment of said drawback to be made only when the evidence shall be furnished to the entire satisfaction
permit the transportation from West to East or provision as that proposed by my colleague on of the Secretary of Treasury by such person or
from the East to the West in bond, without first the committee ought to be adopted. f, on persons who shall claim allowance of drawback, that having the taxes paid, we only provide for the the other hand, it is not to be destroyed, but such tax has been paid, and the said rum or alcohol 60 exported--landed, and delivered to the consignee
starting of the alcohol or spirits; and after to be regulated, then I think we have accomor consignees at the foreign port to which it was you have started it from the distillery ware- plished it pretty effectually in the bill which is exported, to be proved by the sworn testimony of re- house, and it has proceeded a short distance before the House. sponsible persons where exported from and exported to-the same to be paid by ihe warrant of the Secre
locked up in a car, no one having any knowl- Now, then, what is to be the result of all tary of the Treasury on the Treasurer of the United edge of what is in the car except the agent this? I claim that there is a general outcry States out of any money arising from internal tax himself, it has only to be left at some way. against the whole bouded system, founded upon on distilled spirits not otherwise appropriated: Pro
station and started on some other route, taken vided, however, That no claiın for drawback shall be
actual abuses which have been committed, allowed on cither of the said articles which shall from the car, stripped of the stamp, and put which is running into the mistake of destruchave been exported as aforesaid prior to the time at on the market. This has been done so often, tion instead of reform, and that it is a thing which this act shall take effect.
and we have so much evidence of the fact, that i SEC. — And be it further enacted, Thatif any person
perfectly capable of revision and reform, reor persons shall fraudulently claim or seek to obtain do think we will not be doing justice to the coun- straint and regulation, under such circuman allowance of drawback on any article or articles try unless we provide some protection against stances as will make it an efficient help to the aforesaid, on which no internal tax shall have been
this manner of perpetrating frauds. Itis the easiraid, or shall fraudulently claim any greater allow
revenue of the country, and at the same time aid ance or drawback than the tax actually paid thereon est and simplest thing in the world to perpetrate the general business of the country. If you do as aforesaid, such person or persons shall forfeit and frauds, provided persons are desirous of doing not permit, under any circumstances and that pay to the Government of the United States triple the amount wrongfully or fraudulently sought to be so under the transportation laws. You may
seems to be your present conclusion--distilled obtained; and on conviction thereof shall be im- ship three hundred barrels of whisky to-day on
spirits to be removed, say from the West to the prisoned in the penitentiary for a period not less one certificate; by having a triplicate and ship- East, without payment
of the tax in advance, than one nor more than ten years.
ping on different railroads you return the one Mr. Chairman, I hope the committee will certificate. I speak of the old law, but it may
how will it operate? Here is a western man,
a trader or distiller, a manufacturer, who has give me its attention while I explain my rea- be done under any law where there is collusion on hand $10,000 worth of whisky, say ten thousons for offering this amendment. Under the between the collector and the man who trans
sand barrels, or ten thousand gallons, to bring provisions of the bill, inasmuch as we have ports the goods. These frauds have been per- it within more probable limits, provided that the tax shall be paid at the dis- petrated to such an extent that I have become
twenty cents to produce it, which is $2,000. tillery warehouse, that presupposes that we will convinced that the only way in which we can He cannot put
upon provide some way for the exportation of such prevent them is to allow drawbacks in this
ing to the $2,000 in value $5,000 more of tax, articles of distilled spirits as are exported.
rating the tax at fifty cents. I predict that There being nothing of the character exported [Here the hammer feil.]
under these circumstances the trade will be save rum and alcohol, I thought, rather than Mr. SCHENCK. Mr. Chairman, my pur
driven to the East, and it will not be a year to allow the taking from bond for redistillation pose in rising is to call the attention of the
before the western interest will be clamoring and exportation, in order to guard against House to the fact that we are at a turning point for some provision by which they shall not be many of the frauds that have been perpetrated in this bill as it regards the system which is called upon to advance twice and a half the
It cost hini
the market without add
value of their production in order to get it to men are generally mistaken who suppose that Now, I propose that drawbacks shall be paid market.
the system of transportation provided for in on that only which is exported and nothing [Here the hammer fell.]
this bill is the present system at all. It is sur- else; and I say that if the Government were Mr. LOGAN. I will withdraw my amend- rounded by such guards, such restrictions in to pay $5,000,000 on this whisky, and then ment to the amendment, in order to give some respect to removal from one place to another, throw it into the canal down here or into the gentleman who desires to be heard an oppor- a single removal, the route to be selected, the || river, not a gallon being exported, the Govtunity to renew it.
guards along the route, the bonds under which ernment would make money by the operation. Mr. HOOPER, of Massachusetts. I renew it is to be done, the forms to be observed, that | The Govern:nent has, during the last twelve the amendment to the amendment, and yield it seems to me it is impossible by any human months, lost over one hundred million dollars
time to the chairman of the Committee of calculation or ingenuity to make such frauds by transportation bonds and bonded wareWays and Means, [Mr. SCHENCK.) possible as are now committed.
bouses. This is well known to gentlemen of Mr. SCHENCK. My colleague upon the [Here the bammer fell.]
the House. We ought to have realized the tax Committee of Ways and Means (Mr. HOOPER, ŠIr. HOOPER, of Massachusetts. I with- on at least one hundred million gallons, which of Massachusetts) gives me his time, which draw iny amendment to the amendinent. would have been $200,000,000. How much have enables me to finish what I desired to say. I Mr. LOGAN. I renew the amendment to we realized? Fourteen million dollars. It is say
that I have no doubt the effect of this prop- the amendment. I desire to occupy the atten- said that the two-dollar tax cannot be collected. osition will be that the western trader or dis- tion of the committee for a few moments; and But why has it not been collected ? Because the tiller, finding that he cannot afford the amount I hope the chairman of the committee will not whisky got on the market by virtue of fraudu. of capital that he can employ and handle think that my opposition to this bonded system lent transportation bonds, by virtue of bonded and advance twice and a half the price of his is actuated by anything except a desire to arrive | warehouses, by virtue of transportation from product in order to get it to market, will be at that which is right. But I wish to call the one part of the country to another. If you compelled to sell out at a disadvantage to some attention of the committee to one of the argu. want to reënact the same scenes and deprive one who can afford to lay out so much money, ments presented by the chairman. If this bill the Government of $100,000,000-for out of to some one who is a capitalist and comes from is designed to provide for exportation only, this you will not get more than forty or fifty the East to speculate in those spirits, and who very well. Then I ask the chairman to tell me million dollars—if you want to deprive the will expect in return to drive him down to the why he uses all through the bill the words Government of this revenue reënact the old lowest possible living price for the article which "distilled spirits?” Distilled spirits" in- bonded warehouse system, call it by what name he produces. Thus the whole will operate to cludes whisky; it includes crude spirits ; it you please, and you will have the same frauds the benefit of the capitalist rather than to the includes high wines and alcohol and rum. This yon have had for the last eighteen months. man who produces the article. Such will be bill, then, allows the transportation in bond [Here the hammer fell.] the effect of the proposition that eventually, of whisky, alcohol, high wines, crude spirits, Mr. ALLISON. I rise to oppose the amendand probably within twelve months from this and rum. Now, sir, I want the committee to ment, and I wish to call the attention of the time, if we pass a law under this impulse which understand that we do not export any of these gentleman from Illinois to a defect in his now seems to prevail
, to break up everything articles, except alcohol and rum; and when | amendment. like transportation in bond, we will have the you provide for transporting for export that Mr. LOGAN. If the gentleman will allow whole West clamoring for a renewal of the which is never exported you hold out to the me, I wish to state that I have two amendments, bonded system. The man who has to advance country an inducement that is a false induce- one I think at the suggestion of the gentleman $5,000 in order to get $2,000 worth of his pro. ment. I do not mean any intentionally false from Iowa. I will read them, and will, if genduct to market must lay out of the interest of inducement. Gentlemen say "the provisiontlemen desire, let them go with my substitute. his money until he gets that to market, must can be easily changed." I understand that, Add to the first section of my amendment: be subjected to all the losses and incidental and I propose to change it.
Provided, also, That a deduction of five per cent. expenses, until finally, when he does succeed in It is said that the West will be howling here shall be made from the amount of drawback herein making a disposition and sale of his property, next session for transportation in bond. You
allowed. these incidental expenses will pretty much eat have already provided in this bill for the trans
Then, again, insert before the word "proup the original cost of the article, or at least portation in bond of any kind of distilled spirits vided” the following: that proportion of the amount for which it sold for exportation. Then, again, spirits may be And in like manner a drawback shall be allowed which was likely to be profit. taken out of the warehouse for redistillation. upon all alcohol and rum used in the manufacture
of medical preparations, compositions, perfumery, Now, meeting this question, and seeing the Now, if this is not the old law over again, cosmetics, cordials, and liquors, under such rules determination not to have any removal gene- except that there are a few additional guards, and regulations as the Commissioner of Internal rally of spirits in bond without the prepayment I do not understand the matter.
Revenuo shall prescribe. of the tax, the committee have sought to pro
Mr. SCHENCK. It only goes from the Mr. ALLISON. Does the gentleman mod. vide at least a system by which the export || distillery.
ify the substitute as he suggests by those two trade of the country might be kept up by a good
Mr. LOGAN. I understand that. You allow l amendments? and complete machinery of bonded transpcrta- it to be taken out of the distillery warehouse Mr. LOGAN. I do not. I merely wish to tion, upon which subsequently might be in. for redistillation. There is one cbance for show the amendments of the substitute that grafted, if thought proper, by future legislation, fraud by stealing the whisky: Then you allow have been suggested to me. some restoration of that which I think will be it to be returned. There is another chance The CHAIRMAN. The pending proposi. demanded particularly by the western part of for fraud on that trip. Then you allow the tion is the sabstitute moved by the gentleman the country. We have provided that at least liquor to be transported to New York, Phila- from Illinois. Does the gentleman withdraw it? distilled spirits may go forward from the dis- delphia, or Boston--for what? For export- Mr. LOGAN. I do not. I am willing to tillery warehouse, under careful restrictions,
ation. There is another chance for fraud. modify it so as to make it more effective if where they are actually intended for exporta. Thus, by the provisions of this bill, you allow possible. tion and are really exported. We have made the liquor to go all over the country. Now, I The CHAIRMAN. It cannot be modified an exception in favor of those manufactured propose to adopt what seems to me fair deal- unless it is withdrawn. compounds into the production of which spiritsing with the country., propose that we shall Mr. ALLISON. I am opposed to the amend. mainly enter, in order that we may save that permit rum and alcohol to be exported, be- ment of the gentleman from Mlinois. I have a much toward our foreign trade.
cause these are all of this class of articles that proposition, which I will hereafter move, proAnd here I will remarkin passing that, among ever are exported. If we intend to allow only 1l viding this drawback shall not exceed fifty other houses, there is a single house in New the transportation in bond of that which is to cents per gallon. He has the extraordinary York city which exports some four hundred be exported, and want to deal fairly with the proposition here that we shall refund upon and twenty thousand dollars worth annually country, let us say so in this bill. It is useless any kind of exported spirits all the taxes paid even of what may be considered the insignifi- to tell the western people that they can trans. thereon. I should like to see any man who can cant article of cosmetics, getting their distilled port in bond for exportation. They will under- tell what the taxes are that under this amendspirits in this country without the payment of stand perfectly well that they can export just ment will be refunded. a tax, because it goes abroad, being able to as they have done heretofore; and so will Mr. Chairman, I believe we all agree upon compete with the French and other manufac
But how was it that your the general proposition that some method turers so as to push their goods out of the whisky got on the market when it was trans- should be ascertained whereby we can protect market
. So in regard to the distillation of ported from Peoria, from Dubuque, from Chi- the interest of those who in good faith are the alcohol, the production of rum and all forms of cago, and from everywhere else to New York.
exporters of distilled spirits. But I wish to distilled spirits in which that article goes abroad How was it? Why, some of it was transported say to my friend from Illinois, [Mr. Logix,] to any extent; we compete with all Europe in perhaps for exportation, some for one thing when he attacks the principles of this bill and our redistilled spirits, in our alcohol used ex- and some for another; some perhaps to be used proposes to substitute bis drawback system in tensively in the arts, used for the production in the preparation of cosmetics. Yet that my judgment he opens the flood-gates of fraud. of that brandy by mixture which they send back liquor got on the market
, and the Government He seems to ignore in his entire argument to us and pay a high duty upon. We crowd lost the tax, just as it will if you provide by that we have provided a stamp for distilled out the alcohol of Europe ; and that trade is this bill for transportation in bond. We have spirits by which it will be impossible to transcontinually increasing;
now in bond some twenty-five million gallons port them unless they have paid the tax except Now, I think my colleague on the committee of whisky, the tax on which under the pres- on a designated line of transportation to a port [Ma Logan] is mistaken. I know how strong ent law is $50,000,000. Under the reduction of entry. Any detention or diversion from this his opposition is to anything like the trans- of tax proposed in this bill the tax would line would at once render them liable to seizure portation of spirits in bond. I think gentle- amount to $12,500,000.
for want of the tax-paid stamp; no one would 40TH CONG. 20 SESS.No. 217.
manufacture spirits is the
buy them for consumption because they could So the amendment of Mr. LOGAN was You are destroying an interest which might not be put upon the market. My friend ought || agreed to.
be rendered profitable to the people of this also to know, when he charges the commit- The question recurred on the amendment of country and put millions of dollars into your tee with perpetrating a deception upon this Mr. BOUTWELL as amended.
Mr. BROOMALL. I move to insert at the Why, Mr. Chairman, if we did not get one Mr. LOGAN. I beg the gentleman's par. don, I have not charged anything of the kind. || proviso: end of the first section the following additional | dollar of tax out of the exportation of alcohol
it would be well to encourage it. When we Mr. ALLISON. I understood him to say And provided further, That the whole amount of
cannot export our corn or grain with prosit on tbat the words “distilled spirits," used in this | drawback allowed shall not exceed the entire amount account of its distance from the sea-board and bill, are a deception. I know, and I presume of tax collected.
its great cost of transportation, you can distillit most of the members of this House know, that
I am afraid the drawback will exceed the
into alcohol; and a package which would only bers of his alcohol is distilled spirits, and everything that entire tax.
carry four bushels of grain in bulk will carry contains the element of alcohol, when it comes
Mr. LOGAN. I hope it will not be adopted.
to market, put into alcohol, what' would be from the processes of distillation known in
equivalent to twenty bushels of grain. Then the markets of the world. I say when we use agreed to.
it goes into the markets of the world in foreign the words " distilled spirits" we use the exact Mr. INGERSOLL. I am opposed to the countries and pays our debts, and pays for and proper words. I agree with my friend principle embodied in the pending proposition; goods which we wish in exchange for it. But that we should adopt some means by which these but if we must pass it I desire this amendment by this bill you put such expensive restrictions frauds should be prevented. In my judgment to be added to the section:
and burdens upon the export trade that you his proposition is not the true method, and And provided further, That there shall be allowed cannot export one single gallon out of the if we cannot transport distilled spirits from
and paid to the exporter, in addition to the draw-
country under this law at a profit to the ex Chicago, Peoria, and Dubuque to New York
rate of six per cent, per annum for the time the tax porter or manufacturer. without reopening the flood-gates of fraud, then shall be held by the Government.
[Here the hammer fell.] every gallon should pay the tax at the dis- If the proposition of my colleague [Mr. Mr. SCHENCK. Mr. Chairman, I wish I tillery warehouse, without any exception or LOGAN] is to prevail I hope this amendment | felt able this evening to talk more to my own limitation whatever, and let our exportations | will become a part of the section for the ben- satisfaction in regard to this matter. I shall of this article entirely cease. It is a small busi. efit of this interest. From the legislation that oppose the amendment offered by the gentle ness compared with the interest at stake in we have bad here to day it would seem to me man from Illinois (Mr. IngERSOLL] because it this question of collecting the tax on distilled to be the intention to break down the manu. relates to an extension of the drawback sys. spirits.
facture of distilled spirits in this country alto tem, and I think the whole drawback system Mr. WILSON, of Iowa. I desire to ask my | gether, including the exportation of alcohol to a mistake. colleague a question.
foreign countries, and to transfer the produc- Mr. INGERSOLL. I said so, sir. Mr. ALLISON. I will yield if you will tion of distilled spirits to Canada, allowing Mr. SCHENCK. I know you did. There make it short.
Canadian smugglers to supply this country is a question now distinctly made between the Mr. WILSON, of Iowa. Do I understand with that article. Under the thirty-third sec- provisions of this bill and the amendment by this bill that spirits may be transported in tion of this bill, which was not stricken out offered in several sections by the gentleman bond for any other purpose than exportation on my motion to-day, as it ought to have been, || from Illinois, (Mr. LOGAN,) and I confess, and use in the manufacture of medicine and I maintain that no house that distills five hun: without any feeling about the matter at all, I other articles?
dred bushels of grain a day can continue to do prefer to stand by the bill. I believe it is a Mr, ALLISON. I know very well what my business. The thirty-third section provides more complete, well-digested system, and will colleague proposes to follow with that ques that the distillery shall remain idle two days accomplish more good and give more safety tion. There is no proposition here to allow out of the seven.
than that which is proposed in lieu of it. I transportation in bond except for exportation
Mr. SCHENCK. Ob, no.
impeach no gentleman's purposes either upon to foreign countries and for the manufacture Mr. INGERSOLL. It provides that the one side or upon the other, but I say this, that of cosmetics, perfumery, cordials, &c., which distillery shall go out of blast at eleven o'clock in my opinion the outcry against a bonded shall afterward be exported, and when we on Saturday forenoon.
system of any kind, against the removal of come to that I shall move to strike it out. It Mr. PRICE. Oh, no; on Saturday night. spirits at any time anywhere, has been carried opens the door for the perpetration of the Mr.SCHENCK. One hour before midnight. so far, occasioned as it was by the enormous worst species of fraud that can be perpetrated Mr. INGERSOLL. Let me see; I have the frauds committed, that gentlemen have run in this article of distilled spirits. I have been section here. The gentleman is right; it is not into an infatuation almost, as it informed that one house in New York has | quite so bad as I thought it was.
appears to me,
It says at on this subject, and are not for reforming now, exported six thousand barrels of brandy to the eleven o'clock in the afternoon. That is rather but for utterly destroying a system to wbich I Mediterranean coast, which was little else than a queer way to state it. However, it requires | think they will hereafter come back to a cerwater, under the protection of the one hundred the distillery to cease operations for one whole tain extent if they should now destroy it. and sixty-eighth section of the present law, || day, from Saturday till Monday. Now, a dis- This drawback system is one that has been which is to some extent reënacted in this bill
. || tillery that is distilling fifteen hundred or two as open to frauds as any other. I believe the This brandy was almost valueless when it ar- thousand bushels a day will feed four or five records and statistics of the custom-house, in rived at the foreign port, and doubtless repre- thousand hogs and five hundred head of cattle, regard to all instances where drawbacks have sented six thousand barrels of distilled spirits and it is not expected to go out of blast from been allowed of taxes paid upon
manufactures put on the market in this country without the November until the following May. You require and goods, will show that they have contrived payment of any tax whatever.
that the cattle and hogs shall *fast" one day out by false oaths and otherwise to draw back more [Here the hammer fell.] of seven. (Laughter.]
taxes than bave ever been paid on those goods. I'he CHAIRMAN. Debate is exhausted on Mr. PRIČE. Will the gentleman allow me And it was rather a significant vote of the the amendment to the amendment. Does the to ask him a question?
Committee of the Whole a few moments ago gentleman from Illinois desire to modify it Mr. INGERSOLL. I cannot be interrupted. on the amendment to prevent paying out of the before the vote is taken ?
Mr. PRICE. I would like to know if the Treasury more money for drawback than these Mr. LOGAN. No, sir.
hogs could not eat something else that day? parties have paid into the Treasury for taxes. Mr. INGERSOLL. I ask my colleague to (Laugliter. ] withdraw it and let me renew it.
Mr. INGERSOLL. Well, I suppose they
Now, this has been sought to be limited by
keeping back five per cent. for the expenses Mr. LOGAN. I will modify it, at the sug. could if they could get it. It is not, however, incident to the system. That, however, has been gestion of several gentlemen, by inserting after worth while to waste words on a question so abandoned entirely by the proposition made the word “thereon " the words not exceed tritling. You have retained that provision, and | by the gentleman from Illinois, (Mr. Jupp.) ing fifty cents per gallon on each gailon of now you propose to kill the export trade alto. Now, what is it that the bill proposes? So proof-spirits," and by striking out the words | gether. You put on a heavy special tax, and far as the removal from distillery warehouses it and no more ; so that it will read as follows: all sorts of taxes, as though the United States without the prepayment of the tax is concerned
That from and after the date at which this act sball was the only country that produces alcohol on we have given up the removal of liquors which take offect there shall be an allowance of drawback the face of the whole earth, whereas we have to
are to be consumed or used in the United States. on all rum and alcohol, on which any internal taxes shall hereafter be paid, equal in amount to the tax
compete with English, and more especially with As I said before, I think it not impossible that so paid thereon, not exceeding fifty cents per gallon German manufacturers. During the war we
at least the western ióterest will hereafter be on each gallon of proof-spirits, when exported in actually imported alcohol for home use from found calling for the restoration of the bondedgood faith.
Germany, and we shall do it again if this bill warehouse system in some degree and in some Mr. INGERSOLL. Is it in order to move shall ever become a law. If you intend that
respects, for reasons which I have assigned. an amendment? the distillers in this country shall export
But all that is given up by this bill. What is The CHAIRMAN. It is not. alcohol, where are they going to find a mar
sought to be saved by the carefully prepared The question being taken on the amendment, ket? Not in England, not in France, not in
section in regard to removal at all? Why, as modified, there were-ayes 48, noes 45 ; no Germany; for under the burdens and imposi- | that there may be removal for actual trazis quorum voting. tions of this bill those countries, notwithstand
portation, that there may be removal for redisTellers were ordered; and the Chair ap. ing the high price of raw materials, can make
tillation, to go back again into the distillery pointed Messrs. Logan and Allison. alcohol much cheaper than we can. Germany warehouse, the redistillation to be in the dis
The committee divided; and the tellers can, and probably will, furnish us all our alco- trict. This is so that alcohol may be sent reported—ayes 52, noes 46. hol if you pass these provisions into the law. abroad;
and so in regard to other compounds
manufactures of the country, of which distilled not one distiller who sends whisky to the sea- in this proposition, I was willing to join in any spirits is the principal component part. board for exportation. There are one or two proper legislation or any amendinent that
The gentleman from Illinois (Mr. Logan) | establishments in Cincinnati that send whisky would obviate this supposed hardship. complains that we use the term "distilled to the East for that purpose, but they do not The gentlemen who believe in protecting the spirits" in the bill; and he wants to know why export it. It is sold to New York speculators | exporting interest in this country, and think it that term is used. Simply because this is an and jobbers, and they do the exporting. I would be destroyed by the regulation adopted, act in relation to "taxes on distilled spirits.' know that there are parties in New York who, made very great complaint; and to remedy that I do not know that I can answer the gentleman since this great cheating in whisky has been complaint my friend from Massachusetts (Mr. in any other way than a Dutch friend of mine going on, have been buying illicitly.distilled | BOUTWELL) offered an amendment that he answered a like question. He said to a neigh whisky and getting the drawbacks upon it; and thought would accomplish the object and at the bor of his, "Meinherr, can you tell for what I they have in this way been rolling up their same time afford protection against the frauds calls my little poy Hans?" His neighbor wealth by millions. I could in this connection perpetrated in transportation. Following in replied, Well, no; I really don't know." mention some names. The money has been the wake of this supposed necessity, and to "Vell, the reason I calls my little poy Hans | made by, in the first place, stealing the whisky obviate the objections urged by the gentleman is because his name is Hans." [Laughter.] or buying it for a mere song, and, in the sec- who were afraid of destroying the export trade, We call this “distilled spirits" because it is ond place, getting the drawbacks upon it. As my colleague [Mr. LOGAN) introduced this distilled spirits ; because that is the generic I have already remarked, I think we had bet- drawback system, 80 that by removing this term which embraces all articles of the kind, ter make a clean sweep in this matter. We objection the principle might be maintained of including rum, alcohol, crude whisky, and want no bonded whisky. What we want is collecting revenue at the place of manufacture, everything of the kind. Now, it may be that, that every distiller, when he moves the whisky not because he believed there was not a possideparting from the language used in all the rest from the bonded warehouse in his vicinity, | bility of perpetrating fraud under it; not be. of the bill, you might use the words "alcohol shall pay down the money. Let the tax be cause it was a perfect system, but because he and rum."
And if it is more pleasing to the paid, and then let the party take the whisky | desired to adhere to the principle that the Gov. gentleman to contine this transportation for where he pleases. But let us not reinaugurate ernment could not get revenue without collectexportation provided for in this section to the this bonded-warehouse system.
ing the tax on distilled spirits at the distilleries. specific articles alcohol and rum I do not know I yield the remainder of my time to the gen. I say, then, that there is no issue as to the that I would oppose it, although it would be a tleman from Illinois, [Mr. INGERSOLL.] fraudulent nature of action under the drawback departure from the general generic term used Mr. INGERSOLL. Mr. Cbairman, I wish system but that does not reach the real issue throughout the bill. I know, as well as the to say, in reply to the gentleman from Obio, presented here; the drawback is only incidental gentleman from Illinois (Mr. Logan] does, || [Mr. EGGLESTON,) that such restrictions as he to the other question. I do not care whether that crude whisky is rarely exported. It is proposes to put upon this trade would kill it there is a drawback law passed or not. My only after it is redistilled and converted into entirely. And how would we derive money | object is to collect the tax at the place where alcohol that it is found profitable to export it. from whisky if none were made in this coun: the article is manufactured. I know that so far as crude spirits are con- try? I desire to make a further statement. In Mr. SCHENCK. Thai is in the bill. cerned they are not transported except in the | Chicago or Peoria an alcohol establishment Mr. JUDD. In the original bill; so I undershape of rum.
will make one hundred barrels of alcohol in a stand. I do not desire that thegentleman should (Here the hammer fell.] day.
make any side issues with me. The question Nr. INGERSOLL. I withdraw the amend- Mr. EGGLESTON. How much have they | of alleged frauds in all drawback systems must ment to the amendment. made?
not be allowed to keep from view the real ques. Mr. EGGLESTON. I renew it. The dif- Mr. INGERSOLL. They have made that tion of where tax shall be collected; but in this ficulty-and there is really not much differ. quantity, and they can make a great deal more. bill there is permission under which all distilled ence between the views of the majority and the An alcohol house which produces one hundred spirits manufactured at all the distilleries in views of the minority of the Committee of Ways | barrels a day will, at the end of three months, the United States, every gallon of it, can go and Means upon this question—the difficulty have produced nine thousand barrels, making, to a port of entry without paying a dollar of is this: one party proposes that ardent spirits at the rate of sixty gallons to the barrel, five tax; that is, if the parties comply with the proor distilled spirits, including everything else of hundred and forty thousand gallons, upon which | visions in this bill, claiming that it is for exthe kind, shall be transported in bond through- a tax of fifty cents a proof gallon would make portation. You get it there under the claim out this country.
about three hundred thousand dollars. The cost that it is for exportation, and leave it in the Mr. SCHENCK. Only for exportation; not of production is $540,000 more, making a total hands of such officers as have dealt in distilled throughout the country.
of $840,000. Now, suppose that the manu- spirits heretofore. Mr. EGGLESTON. From the place where facturer exports this alcohol. Six months will Mr. SCHENCK. Will the gentleman perit is manufactured to some export warehouse; be required for the receipt of the evidence that mit me to say that he states what is not in the and that will take in the entire length and the alcohol has reached the port to which it | bill. The provision is that it shall only go to breadth of the country. Now, I am opposed to was shipped. The manufacturer makes his the warehouse when intended for exportation, that for the reason that it cannot be done with application for the drawback; and it is reason- and it prevents fraud in preventing it going out out frauds being committed. It is said that able to suppose that he will not get it within || for any other purpose than exportation. It has the people of the West will have a chance to less than from six to nine months from the to be exported within a given time or else it send their goods to New York or Philadelphia time he commences the production of the will be forfeited. or New Orleans for exportation; and that thus alcohol. So that a capital of $840,000 will be Mr. JUDD. I hope this does not come out they will have an equal chance with dealers on required to produce nine thousand barrels of of my time. I repeat my statement, the chairthe sea-board. But, Mr. Chairman, why should alcohol for the export trade; and the manu- man's statement to the contrary notwithstandwe want to export distilled spirits at all? I ask facturer must be deprived of the use of this ing, that every gallon of distilled spirits made my good temperance brethren here, whether amount of capital for from six to nine months. in distillation in the country may, under these the object is to build up a foreign trade in this | It is evident that under such conditions the provisions of the bill, be transported from the article? Are they willing to go on the stump || business must be abandoned in this country. warehouse at the distillery to any port of entry and say that while this article has so bad an [Here the hammer fell.]
in the United States, thus subjecting it to the effect upon the people of this country they Mr. JUDD. Mr. Chairman, it is very desir- contingencies and frauds connected with inland want to have it manufactured in large quanti
able that this committee should take its reck- transportation. It is these contingencies that ties to be sent abroad? I know that the object oning and ascertain where they are, so that no I would guard against by collecting the tax of spreading our trade over the world is to side issue which does not really beloog to the before it starts. build up the interests of this country; but I question shall be allowed to divert their atten- Mr. SCHENCK. In bond. throw out this hint for the benefit of those tion from the real issue. Now, this committee Mr. JUDD. Why, the gentleman has in whom it may concern. If, however, you are in its morning session adopted an amendment his committee-room counterfeit, forged, ficti. to send distilled spirits abroad, I say let it go to the first section of the bill declaring that tious, false, and fraudulent bonds given under from the seaports, and let the duty be paid distilled spirits should not be removed from the old law to secure safe transportation and the there, and let the drawback be paid there, if the distillery warehouse until the tax was paid revenue that are not worth the paper they are there is to be a drawback.
thereon, and there was hardly a vote against | written upon. While your restrictions in this But, sir, I am opposed to drawbacks. I the proposition ; at any rate there was no con. bill are stronger and additional security is want this bill put in such a form that there
question at that time. Whether given, the opportunity is left. shall be no transportation of this article in this was occasioned by a belief that the sub- Mr. INGERSOLL rose. bond, and that there shall be no drawback sequent sections of the bill would neutralize Mr. JUDD. I cannot yield now. I cannot when the article goes to a foreign country. the amendment so adopted I do not know. submit to further interruptions. I will repeat Thus we shall have a home market for the My object, Mr. Chairman, has been to get a again that the distilled spirits manufactured in article. I say to my brethren of the West direct vote and settle the question whether we the West can be all moved to New York if the that we can gain nothing by transporting this are again to establish for any purpose the claim is set up that it is for exportation. The article in bond. Alcohol bas never been business of the transportation of distilled spirits gentleman provides by his bill that it shall shipped
in any great quantities from the West in bond. This proposition was declared to be go abroad, but that will depend, first, upon to the East for exportation. I venture to say in opposition to the business of exporting dis- whether it ever gets there; and second, upon that in the district of the honorable chairman tilled spirits, and that by it a branch of trade what officers you have to execute the law. If of the Committee of Ways and Means there is I would be destroyed. Although not believing they are anything like the officers we have had