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Marvin, Maynard, McClurg, McKeo, Mercur, Moore,
Moorhead, Mullins, Myers, Newcomb, O'Neill, Orth,
Paine, Pike, Pile, Plants, Poland, Polsley, Pome-
roy, Price, Raum, Robertson, Sawyer, Schenck,
Scofield, Shanks, Shellabarger, Smith, Spalding,
Starkweather, Aaron F. Stevens, Thaddeus Stevens,
Stewart, Stokes, Taylor, Thomas, Trowbridge,
Tvpicheli, Upson, Van Aernam, Van Wyck, Ward,
Cadwalader C. Washburn, Henry D. Washburn,
William B. Washburn, Welker, William Williams,
James F. Wilson, John T. Wilson, Windom, and the

YAYS- Messrs. Adams, Axtell, Barnes, Beck, Brooks, Cary, Chanler, Eldridge. Getz, Golladay, Grover, Haight, Holman, Hotchkiss, Humphrey. Jones, Kerr, Knott, Marshall, McCormick, McCullough, Niblack, Nicholson, Phelps, Pruyn, Robinson, Sitgreaves, Taber, Lawrence S. Trimble, Van Auken, and Woodward---31.

NOT VOTING-Messrs. Archer, James M. Ashley, Baker, Banks, Barnum, Bingham, Boyer, Bromwell, Burr, Cake, Churchill, Reader W. Clarke, Cook, Dawes, Dodge, Donnelly, Fields, Finney, Fox, Glossbrenner, Hill, Hopkins, Asahel W. Hubbard, Richard D. Hubbard, Hulburd, Hunter, Jobason, Kitchen, Latlin, Loan, Lynch, Mallory, McCarthy, Miller, Morrell. Morrissey, Mungen, Nunn, Perham, Peters, Randall, Roots, Ross, Selye, Stone, Taffe, John Trimble, Burt Van Horn, Robert T. Van Horn, Van

Trump, Elihu B. Washburne, Thomas Williams,
Stephen F. Wilson, Wood, and Woodbridge-55.

During the roll-call,

Mr. GETZ said: On this question my col. league, Mr. GLOSSBRENNER, is paired with Mr. CAKE and Mr. MORRELL.

The roll-call having been concluded,

The SPEAKER. On the question, Will the House, on reconsideration, agree to the passage of the bill to admit the States of North Carolina, South Carolina, Louisiana, Georgia, Alabama, and Florida to representation in Congress, notwithstanding the objections of the President?—the yeas are 108, and the nays are 31. Two thirds having voted in the affirm. ative, the bill has again passed the House, and will be transmitted with the objections of the President to the Senate for similar reconsider: ation.

PROTEST OF DEMOCRATIC MEMBERS. Mr. BUTLER. I ask unanimous consent to submit the following resolution :

Resolved. That twenty thousand copies of the protest of the Democratic members of the House against the admission of the Representatives from Arkansas be printed for the use of the House.

Mr. ELDRIDGE. I hope the gentleman will say fifty thousand copies.

Mr. BUTLER. Agreed; I have no objec. tion to that.

Mr. ROBINSON. Say one hundred thou. sand.

The SPEAKER. Is there objection to the reception of the resolution as modified, to be referred under the law to the Committee on Printing?

No objection was made; and the resolution, as modified, was received and referred under the law.

Mr. ELDRIDGE. I hope the cominittee will report it back at once, if they can.

TEST OF LIFE-SAVING APPARATUS. The SPEAKER. The Chair has received the following communication, which he will lay before the House for the information of members:

WASHINGTON, D. C., June 25, 1868. To Hon. SCHUILER COLFAX,

Speaker of the House of Representatives : Having come here for the sole purpose of giving an exhibition before the honorable members of Congress to prove the benefits of the life-saving apparatus of the National Life-Saving and Ship-ballasting Company, to take place Friday the 26th instant at six o'clock p, m., Hon. Gideon Welles, Secretary of the United States Navy, has kindly furnished me with a United States steamer, which will be in readiness at the foot of Seventh street wharf to convey such members of both Houses as wish to participate in this exhibition,

Trusting to have the honor of proving before your honorable body the great benefits of this life-saving apparatus, I have the honor to remain, most rospectfully, your obedient servant,

M. L. ROSSVALLY, General agent National Life-Saving and Ship

ballasting Company. INTERNAL TAX BILL, Mr. SCHENCK. I now insist upon the regular order of business.

The House, under the order heretofore made, accordingly resolved itself into the Committee of the Whole on the state of the Union, (Mr.

Blaine in the chair,) and resumed the consid- fifty per cent. of more of his commercial capieration of the bill (H. R. No. "1284) to change tal in Government tax shall be able to hold and more effectually secure the collection of whiskey for ripening? I am sure no interest of internal taxes on distilled spirits and tobacco, the country can be subserved by such action as and to amend the tax on banks.

that. There is no reason why a man who may The pending question was upon the motion deposit his whisky one day after this law goes of Mr. O'Neill, to strike out the following || into effect shall have one year on which to pay section :

the tax, while another man who deposits it the Sec. 62. And be it further enacted, That all distilled day before shall on pain of forfeiture pay his spirits in any bonded warehouse shall within one tax within one hundred days. The provision hundred days after the passage of this act be with

embodied in this section will compel every man drawn from such warehouse, and the tax paid on the same; and the casks or packages containing said who has a large stock of fine whisky in bond spirits shall be marked and stamped and be subject who is not a millionaire and able to add to his in all respects to the same requirements as if manu

investment hundreds of thousands of dollars factured after the passage of this act. And any distilled spirits remaining in any bonded warehouse for by paying the tax to throw his stock upon the a period of more than one hundred days after the market. This pressure is to be applied all passage of this act shall be forfeited to the United States.

over the country. It will produce panic. It Mr. O'NEILL. I will withdraw my motion | adding to the wealth of its owners and the

will compel the sacrifice of that which has been to strike out this section, and move instead to

country by the improvement imparted to it by strike out all after the enacting clause and the lapse of time during which its owner has insert in lieu thereof the following:

been losing interest and paying the expense That all distilled spirits in any bonded warehouse shall, on and after the passage of this act, pay, in

of storage. When the war came on there were addition to the tax unpaid upon the same, one per

stocks of fine whisky in the country ten or cent. a month upon the amount of the said tax while fifteen years old which were bringing from five remaining in any bonded warehouse as aforesaid.

to seven dollars a gallon. That class of whisky Mr. SCHENCK. I hope that amendment || competed for supremacy among epicures and will not be adopted. Whisky now in bond is bon vivants with French brandy and was begin. that which has paid no tax. The tax at pres- ning to be an article of exportation to England ent is two dollars per gallon. It has been in and France. The high tax interrupted the bond for various periods of time; some of it for | growth of that export trade. And now by the but a few months, probably, but some of it for provisions of this section all such stock in bond years, during all of which time the United

is to be thrown upon market, and men who are States has been playing the part of the ware- endeavoring to build up a great trade are to house-keeper for the owner. I have always be sacrificed. thought there ought to have been some limit- Now, sir, I am not here to ask any special, there was none originally made, I suppose- privileges for distilled spirits that other indus.' to the time during which whisky can be left in tries do not enjoy, and when we make other bond, because it is generally presumed to be || industries pay a tax of one hundred and listy an article that grows better with age, unlike per cent. upon the cost of production, and some of us here, I suppose. But the proposi- l when we require those engaged in them to tion now is to leave it in bond for an indefinite | embark three fifths of their capital in Governtime, upon the condition that there is paid ment taxes, other industries will be upon the upon it what is called a tax, but which in fact same level with this, and may ask to hold stock will be storage fees, at the rate of one per cent. in bond. There is no analogy between this a month. Now, I am afraid the whisky will and any other interest except tobacco, which, leak, by some means or other, just about as as a luxury, is also heavily taxed. much as the one per cent. would amount to. [Here the hammer fell.] Even if it did not leak, I would object to the Mr.MULLINS. I rise to oppose the amendUnited States becoming for an indefinite time ment on the same ground advocated by the the warehouse-keeper for the owners of this chairman of the committee. It is evident to whisky. The system being now changed, and every gentleman who has heard the able arguthe tax reduced from two dollars to fifty cents ment of the gentleman from Pennsylvania who per gallon, the Committee of Ways and Means || preceded me that it must come to this and have thought it but wise to make provision || nothing more. I give all credit to what he has requiring that within a given time all this said about the quality and value of whisky whisky shall be taken out of bond, and the tax being increased by its age. I speak from paid upon it; the time being limited to one theory, and not from practice. I have not hundred days, which is perhaps not too short such an experimental knowledge on the suba time for the purpose, with the condition that ject as some others. Now, the gentleman at the end of that time it should be forfeited. from Pennsylvania desires this whisky to re.

Mr. KELLEY. I move pro forma to amend main in bond at the expense of the United the amendment by striking out the last word, | States, while its value is being increased to for the purpose of saying that if the amend. the owner. Every one of us is interested in ment of my colleague (Mr. O'NEILL] does not the revenue that is to accrue from this tax, prevail I will move to extend the time for the and I believe that it ought to be paid promptly removal of whisky now in bond from one hun. so the Government shall get the benefit of it dred days, as now proposed, to six months. in order to as rapidly as possible extinguish

There is a special trade connected with our great national debt. The gentleman's whisky which deserves the consideration of theory is, however, that it should be kept in this House. The general business of raw bond as long as possible, at the expense of the whisky for alcohol is one trade, and the man. Government, for the benefit of the owners. I ufacture of fine whiskies for the table and gen- am against it. He reverses the argument. He eral use is another. These provisions of this says this is for the poor men.

It is not so.

It section aims specially, though undesignedly, || is the rich who hoard up liquor. They keep it at the latter class of goods. The tax of fifty for weeks and months in the bonded warehouses cents adds one hundred and fifty per cent. to at the expense of the Government. They have the cost of western whisky, and one hundred their liquor locked up and make the Governper cent. to the cost of that produced in the ment keep it for them. I am opposed to it. I eastern States, and if demanded immediately think it is nothing but class legislation. It is the will absorb the capital that would otherwise bowing of the law to the rich. It is hoarding be employed in production. Whisky gains in up this liquor at the expense of the Governquality and value with age. Whisky three, ment. I say let it go upon the market and let four, or five years old is another thing than us have the tax upon it. The Government new whisky as to price in the market. That needs all this tax to pay the public debt, and carefully distilled from grain, either Bourbon it ought to have it. or Monongahela, is bringing in our market to- [Here the hammer fell.] day from seven to twelve dollars a gallon Mr. COVODE. My colleague (Mr. KELLEY] where its age is well established.

withdraws his amendment, and I renew it for Now, are we ready to declare that no man the purpose of giving my views on this subject. not worth millions of dollars who can embark As I stated a few days ago, I live in a district


where there are now one milliou uine hundred duce of the country is not far from ninety | the whisky upon the market and sell it at what thousand gallons of whisky in bond, as re- million gallons, and the amount now in bond it will bring. What will the Government make ported to me by the collector of the district. is hardly the consumption of one hundred by that process? But if you give these men Now, the effect of compelling these distillers days. Those who are familiar with the manu- six months then they will come out all right, to pay this tax on that quantity in one hun facture of spirits, I presume, will bear me tes


and the Government will get the money withdred days will be to put them at the mercy of timony that there will be very little liquor out breaking down these parties. But othercapitalists who furnish them money. They manufactured between now and the 1st of wise you not only will not get the money, but have already exhausted their ability to borrow November, the summer season of the year not you will break down these parties and outrage money to keep their distilleries running, and || being favorable to this business. The one the feelings of the community where this tax now to compel them to pay this tax would force hundred days allowed by this bill will have is to be paid. All the whisky which is in bond them to put their whisky into market or to elapsed by that time. The liquor that is now now belonging to distillers is just that portion accept whatever conditions the bankers and in bond will supply the demand of the country which they were unable to smuggle. moneyed men of the country require of them during that period, and when the fall distilla- Mr. LOGAN. I must confess I am a little for the purpose of raising the money to pay tion commences.the supply on hand will have surprised to see the favor which this proposithis vast amount. It will require $1,000,000 || gone out of the warehouses, the Government tion apparently receives. My friend from Philain that district in which there is to-day a bank- will have received the tax upon it, and we shall delphia, (Mr. KELLEY,] who offered this amending capital of only $50,000. They will have be ready to open new books and commence ment, has submitted an argumentupon it, which to go into the eastern market and get the money | again. There is a great deal of force, it seems I have read in a letter which has been sent on such terms as they can, or put their whisky to me, in what has fallen from several gentle. here. in the market at once, which must unquestion- men in respect to the burden that already Now, if gentlemen will examine the statistics ably depress the price and cause a great loss exists upon the liquor that is in bonded ware- they will find this to be the fact: within the last to the owners.

houses, enough, as I think, to counterbalance || eight months-after the passage of the bill by Mr. INGERSOLL. I rise to oppose the the per-bushel tax and per-barrel tax which is Congress to prevent the taking any more of this amendment. Mr. Chairman, what is the ne- specially imposed by the present bill as it whisky out of bond without the payment of the cessity of legislating in regard to when this comes from the committee. I do not think, tax-The majority of the whisky of the United particular article shall be put on the market therefore, that it is giving whisky in bond an States has been purchased for from fifteen to any more than as to when corn or flour or any undue advantage to allow it to be taken out thirty cents.per gallon, the greater portion of other article of trade or commerce shall be put by a payment per gallon the same as we re- it at not more than eighteen cents per gallon, on the market? Why not leave it subject to quire upon whisky that is now made, and that by large whisky speculators, and that whisky the laws of trade? If you have twenty-five is a policy which will insure the tax on all that is now in bond. It has been held in bond waitmillion gallons of spirits in the warehouses, let liquor which has been accumulating.

ing for the tax upon it to be reduced. And it be taken out whenever there is a demand for [Here the hammer fell.]

now the very moment you reduce the tax to it. If you urdertake to legislate as to when it Mr. EGGLESTON. I rise to oppose the fifty cents per gallon gentlemen get up here shall be put on the market, why not legislate amendment. I am decidedly in favor of the and asked that they be allowed six months to fix the price, and at such a price that sball amendment proposed by the gentleman from to take it out of bond, so that they may be be remunerative to the owner. Whenever the Pennsylvania [Mr. KELLEY) to extend the time enabled to speculate more largely in it. price will justify its sale the owner will sell it for paying the duty on this whisky in bond to Now, I am opposed to any such proposition. without any requirement of law. He will | six months. I do not wish to be factious about If these men could afford to pay the tax of two gladly pay the Government tax whenever he this matter; but I know that if the Committee dollars per gallon at once, they certainly can can sell it at a profit. The owners of these of Ways and Means will look at this subject as afford to pay the tax of fifty cents per gallon in twenty-five million gallons would have taken it really is, they will be in favor of that amend. a hundred days. If you ever expect to have the them out of bond at any time since the tax of

time commence when you can collect the rev. two dollars per gallon was imposed if they Now, my friend from Illinois [Mr. Inger: enue from this whisky you must bave some could have sold them at the cost even of pro- SOLL] asks why should we not let the laws of time fixed when this whisky shall be taken out duction above the tax. There is not a gallon trade regulate this subject the same as corn of bond, so as to let the new stock of whisky of whisky in New York made from grain that and other articles? I will tell him why. We come forward. It is said that this is not fair, has not cost fifty cents a gallon to make it. have, as a Government, held out inducements because the distiller who now makes whisky Some of it has been manufactured, perhaps, to certain parties to pile up their products, their can put it in bond and keep it there a year. two years ago, and has been held by the owner manufactures in bonded warehouses. By law But the distillers are now to commence under at a cost of not less than ten dollars a barrel we have held out those inducements, and they the new law at fifty cents a gallon tax. These in addition to the original cost. Now, you pro- have so done. We have now reached a point other men were under the old law at two dol. pose to place them at a great disadvantage where we are about to disband and disorganize | lars a gallon tax. Suppose a man owed you with those who make whisky to day. Old high those warehouses and tell them to take their $400,000, and the debt was now due. He comes wine is no better for manufacturing purposes stock away. We say by this.bill that they must to you and says: “I am not able to pay this or redistillation than new. But you allow take it away in one hundred days. Well, we $400,000; great frauds have been committed a distiller to make whisky at a tax of fifty ask in justice to these parties that you give upon the country, and you must reduce this cents, and he may redistill it or do what he them at least six months. And why? Why, debt." Well, you agree to reduce it to $100,000, pleases with it, while those who happen to be as the gentleman has well said, if you throw just one quarter of the debt, and then agree to so unfortunate as to have made it two years whisky on the market faster than the market take his note for that $100,000 at one hundred ago and held it till now at a cost of nine or ten will take it, you will glut the market and break | days. Just as soon as you have reduced his dollars a barrel by insurance, leakage, and it down so that there will be, as there has been debt three fourths, he asks you to extend the storage, you compel to pay four dollars a barrel heretofore, no sale whatever; but if you let it time to six months, just because you reduced in addition and take it out of bond in one hun- go out gradually it will all work off and the his debt so much. That is the proposition of dred days or you will forfeit it to the Govern. Government will get the money. Now, what the gentleman from Philadelphia (Mr. KELLEY] ment. There are twenty-five million gallons | does the Government lose by this? It may be and the gentleman from Cincinnati,[Mr. EGGLEnow in bond that are required to pay this tax said that the Government is paying to keep up ston.] After you have reduced the tax three in one hundred days or suffer confiscation by the bonded warehouses; but is not the owner fourths, then they ask you to extend the time this bill. Now, why not leave it in bond until of the whisky paying for storage and insurance? in which that one fourth is to be paid. There there is a demand for it? If there is a demand Does he not have to stand more than the Gov. is not a man with this whisky in bond who can for it you will get your tax as fast as it is taken ernment stands?

have the impudence to come here and ask any out without breaking faith with the manufac- Now, I want to tell gentlemen how it will such thing. turer and bankrupting him beside. Leave it to operate in my city. One fifth of all this whisky, [Here the hammer fell.] be called for when there is a demand for its || according to the report of the internal rev. Mr. BÉCK. I advocate the view of this consumption. Then it will be brought out per- enue department, is in the city of Cincinnati. || subject taken by the gentleman from Pennsyl; haps in thirty, sixty, or ninety days, or six or About five million gallons, a little over one hun. || vania, (Mr. Kelley,] though I would extend twelve months, just as it is required for trade, || dred thousand barrels, is in bond there. I tell the time longer than he suggests. Much of commerce, or consumption. That is the way the committee that the distillers do not own the this whisky, in fact all of the whisky that is this should stand, and in no other way.

whisky. The men who made the whisky own made for home consumption and to be drunk Mr. MAYNARD. The gentleman from Penn- very little of the whisky that is in bond in that without rectification or redistillation, has to be sylvania withdraws the amendment and I renew city. There are small rectifyers who have bought kept from one to two years before it is fit to it. I desire to say that I prefer the bill as it their one, two, and three hundred barrels. There be drunk. And the men who have been making comes from the committee. I think it ought are alcohol dealers who have bought it; there that grade of whisky heretofore have been makto pass in this shape, and for these reasons: are druggists who have it; it has gone through | ing it with the assurance, if not with the agreeI take it there is in the country now little or no various shapes and trades; and there are com. ment, that if they placed it in the hands of the whisky or spirits exported that have honestly mission merchants who have advanced money | Government, allowed the Government collect; paid the tax. All that is outside of the ware- upon it. I say we should give them a chance || tors to take it and lock it up in their bonded houses, or the greater portion of it, has been to pay the money to the Government and take warehouses and hold the keys, that this whisky illicitly distilled. How much of it' there is I

this liquor away. Suppose, at the end of the should be allowed to remain, subject to the will not undertake to say. The best informa- one hundred days, these men cannot pay the tax, until they could make a sale of it.

And tion we have is that there are about twenty- inoney, what is the result? You are then to if the Government can get its tax before the five million gallons in hond. The annual pro- put the officers of the law upon them and put manufacturer gets his money as it does now,

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that seems to be all the Government has a or shortened to some extent; but we need to they were disposed to pay the tax while the right to ask. That liquor has been so put into get"rid, at some early period, of the present scoundrels all round them have been permit. bonded warehouses, and held by the Govern- system of bonded warehouses; and especially ted to sell their whisky without paying any ment so that the distiller cannot touch it. should we get rid of the system, now that we tax. It provides that within one hundred days There are now twenty-five million gallons of have adopted a principle whereby the tax on they must gather up one hundred and fifty per whisky in bond. It has been agreed that this every gallon of whisky is to be collected at cent. upon the prime cost of the whisky. What shall be allowed to remain in the hands of the the distillery warehouse. Gentlemen say that I propose, the extension of this time to six Government. Yet now it is proposed to re- a distiller can keep his whisky in bond a year || months, is a commercial necessity. If gen. quire that this whisky shall be forced upon the under this bill. l'hat is true ; but he is in a tlemen will traverse the block from Dock to market within one hundred days after the very different position from the man who lias Front and Walnut to Spruce streets, Philadel. passage of this bill. The distillers of my dis- whisky in bond in the city of New York. My | phia, they will see warehouses containing sevtrict and that adjoining, represented by Colonel friend from Illinois, [Mr. INGERSOLL,] who | eral millions of capital embarked in these fine Jones, have in bond three million four hun.

represents a large distilling district, must re. old whiskies, and there is no reason why the dred thousand gallons, the tax on which would member that there are men having four, five, Government should compel their owners to be $1,700,000, and they are to be forced to put or ten million gallons of distilled spirits sacrifice them and prostrate the general market. this upon the market in one hundred days. If in bond in the city of New York, and they [Here the hammer fell.] that is done our distillers will have to stop occupy a very different position from those Mr. SCHENCK. I move that debate be business and go to work to raise money to who have their distilleries and distillery ware- closed on this section by unanimous consent. take their whisky out of bond, or let it be con- houses at Peoria, Dubuque, or other cities of Mr. INGERSOLL. I want five minutes. fiscated and sold for whatever the speculator the West. This whisky now in bond will be Mr. STEVENS, of Pennsylvania. I have will give. Is this fair treatment on the part required at once for consumption in the coun- an amendment which I will offer at the proper of the Government?

try; and I believe it will be to the interest of time, and if there be no objection I will have “But,'' it is said, "we have reduced the tax, every man who has whisky in bond, except the Clerk read it. and it can now be paid much easier." Not at those who are holding it for the additional Mr. SCHENCK. I do not object. all. Now the purchaser pays the tax. The value which it is to obtain from age, to bring it Mr. STEVENS, of Pennsylvania. It is a important point to the manufacturer is that on the market, because the moment this new tax substitute for section sixty-two. there shall be stability in the price. You now system goes into operation, most of our distill. The Clerk read as follows: propose to compel the manufacturer to force eries will resume the manufacture of distilled That one half of all distilled spirits now on hand on the market whisky made within the last six | spirits.

in bonded warehouses sball be withdrawn within one months, and which has been held back because [Here the hammer fell.]

hundred days after the passage of this act, and there

after one half of the remainder within sixty days, and purchasers have refused to buy, in expectation Mr. O'NEILL. I withdraw the amendment. the balance within sixty days more: Provided, That of the passage of this very bill making a reduc- Mr. KELLEY. I renew it. Mr. Chairman,

this act shall work no remission of tax on distilled tion in the tax. If the manufacturers be now

spirits already manufactured. thegentleman from Illinois [Mr. LOGAN] closed compelled to sacrifice this whisky within the his remarks by substantially expressing his sur

Mr. STEVENS, of Pennsylvania. I would next hundred days, the speculators will hold prise that anybody should assume to know any.

like to offer that amendment and make a few back till that time, and buy it all up at their | thing about the commercial affairs of this coun.

remarks. own prices, to the ruin of the distiller. Why | try which he does not know, or should bave

The CHAIRMAN. The amendment is not should not the owners of whisky be allowed as considered any facts he has not specially con

now in order.

Mr. much time as the owners of inported goods | sidered. I have the vanity to assume that I

Mr. STEVENS, of Pennsylvania. when placed in bond. The Government, at do know a little more about the particular ques

Chairman, I am told that certain distillers and any rate, gets its money as soon as the article tion before us than he does, and to know that others have on hand an amount of whisky that is sold. Why should we kill the goose that the whisky of which I speak, that is in bond,

would pay a tax, if collected, of $80,000,000. lays the golden egg? I concur in the statement has not been bought by speculators, although

Now, to collect it in one hundred days and to inade a few moments ago by the gentleman may be true that persons may have attempted,

compel them to raise the money in that time from Pennsylvania, (Mr. KELLEY,] that this and perhaps successfully, to speculate by pur

would be a great burden. It would distress interest, from which the Government expects chasing new whisky in bond. I know one

those engaged in the business seriously. It is to raise its largest revenue, ought to be fos- warehouse in the district of my friend from

a legitimate trade with them, and I think they tered and encouraged, instead of being crushed || Alleghany, [Mr. MOORHEAD,] the owners of

should have more time. If we provide they out by hostile legislation. which have given bonds to the Government to

shall pay so inuch in one hundred days, and [ [Here the hammer fell.] the extent of $1,500,000 on whisky of their own

then so much in sixty days, it will be a great Dr. ALLISON. I desire to state briefly the || distilling. I know, too, that that firm has in two

relief to them and will be no injury to the Gov. reason for the insertion of this section. Every years paid the Government over two million dol.

ernment. I have added a proviso because I gentleman must have observed that we have lars, and that the whisky in bond belonging to

am not quite sure but that the effect of the pas. entirely changed, so far as this bill may take it is much of it three or four years old, and that

sage of this act will be to repeal the uncollected effect, the law in relation to the production of

I incline to think it will, though I give no as an offset to the loss of interest and cost of distilled spirits. We do this at the precise | storage, it has more than doubled in commer

opinion, for I presume the committee have period of time when no distillery in this country cial value. They hold the fact that it is in

examined it. But I have added the proviso to can run. At this time grain is commanding bond as a certificate of its purity, age, and con

save any difficulty about that. I would like to such a price in the market as to prevent any sequent value. It adds to its cominercial value,

be able to offer this amendment and see whether honest distiller from cominencing operations as it shows it has not been doctored, but went

it meets the approbation of the House.

The CHAIRMAN. The amerdment will be at this season of the year. No legitimate dis. there directly from the still of a well-known tiller will undertake the business of manufac. | distiller of 'fine whisky. I ask gentlemen | consent it will be considered pending.

entertained at the proper time. By unanimous turing whisky until the new crop comes in, | whether they are willing to sacrifice the men because at the present price of grain whisky | who are legitimately engaged in trade because

Mr. PRUYN. I suggest to the gentleman cannot be manufactured so as to compete with the gentleman from Illinois asserts that others

from Pennsylvania that from the reading of distilled spirits that have been already manu- are taking advantage of the contingencies and

the last clause I understand it to say that it factured. There is very little whisky now on seeking to profit by them? The Government

shall not take effect upon spirits already dis

tilled. Does he intend to collect the two-dol. the market; and nearly all of that which is on will get from day to day the tax on the whisky

lar tax on that? the market is illicitly-distilled whisky. The demanded for consumption. These men have amount of whisky now in bond is twenty-five | been paying tens of thousands, hundreds of

Mr. STEVENS, of Pennsylvania. No, sir; million gallons, and this, it is estimated, is | thousands, and millions of dollars tax on this

if there is any tax now assessed on anything about what is necessary for the consumption article of whisky, and indeed have paid all the

which has been removed from the distillery within the one hundred days following the pas- tax that has been collected. The illicit distiller

the passage of this act before its collection I

fear will be a remission of the whole of that sage of this bill.

or dealer in whisky sought the concealment of Mr. PILE. I desire to ask the gentleman from || night and got his goods off his hands as quickly

tax. I give no positive opinion about it, howlowa [Mr. Allison) whether he is not aware as he could. His dealings have been surrep

I have added the proviso by way of that since this bill has been agreed upon by titious, while the honest dealer has sent his


Mr. INGERSOLL. I move to amend the the committee, fixing ninety days as the time goods intobond. They are in the bonded warefor the removal of whisky from bonded ware- houses. Yet, sir, this provision and the argu

section by inserting the following: houses, and fixing the tax at sixty cents, whisky

Provided, That the days in which the market price ment of the gentleman from Illinois are calcu

in New York during that time shall be less than ono in bond has increased in price at the rate of lated to hurt the honest distiller whom we have dollar per proof gallon, including the tax, shall not from eight to ten cents per gallon?

already ruined by failing to collect the tax be counted in the one hundred days. Mr. ALLISON. I believe that is the fact. from the illicit distillers who were andersell. If that amendment is adopted it will prevent Mr. INGERSOLL. I would like to knowing him.

any considerable loss, beyond the mere cost of the authority for that statement.

Mr. INGERSOLL. Will the gentleman the production of the distilled spirits to the Mr. PILE. I know it is the fact in my own yield me a minute?

owner. Suppose that the price in New York is city.

Mr. KELLEY. I have but five minutes, only eighty cents, the tax included. Fifty cents Mr. ALLISON. Now, sir, we propose in and cannot yield twenty per cent. of the time of that goes to the Government, leaving thirty this bill to fix one hundred days as the time allowed me.

to be returned to the manufacturer. Now, I within which this-whisky must be taken out of The provision I am striving to amend affects affirm here that there is not a gallon of whisky bond. Possibly this time inight be extended those whom we have almost ruined because in New York which was made

out of corn that




clause of the section order tomtokehle amend baitakets hogenezave do it and will order":



cost less than fifty cents a gallon without the a message from the Senate, by Mr. GORHAM, The CHAIRMAN. The Chair understood tax; and when you add a tax of fifty cents that its Secretary, informed the House that the the chairman of the Committee of Ways and makes it cost one dollar. Now, if you want to Senate having proceeded in pursuance of the Means to assent to the amendment with the do justice and at the same time collect your Constitution to reconsider the billentitled "An modification. revenue, do not force a sacrifice upon the owners act to admit the States of North Carolina, South Mr. SCHENCK. Not at all. I wanted to of these spirits; and if you do not want to, then Carolina, Louisiana, Georgia, Alabaina, and make the amendment not quite so bad as it count only the days to make up the one hun. Florida to representation in Congress,'' was, but I tried to get a vote on it. dred when the market price shall be at least turned to the House of Representatives by the Mr. INGERSOLL. I make the point of order one dollar a proof gallon, which amounts per: President of the United States with his objec. || that we have passed that section, haps to the mere cost, including the tax. tions, and sent by the House of Representatives The CHAIRMAN. It has been the uniform

But I have other objections to this section. tu the Senate with the message of the President habit of this Chair-of the Speaker, carried I am in favor of the original proposition to returning the bill, have resolved that the bill du l into the Committee of the Whole—that where a strike out this section. It has no business in pass, two thirds of the Senate agreeing to pass | misunderstanding has occurred—and the chair. the bill. I desire to call the attention of the the same.

man of the Committee of Ways and Means committee to the fact that when every gallon The Committee of the Whole on the state of the states that that is the case now-the Chair will of the twenty-five millions now in bond was Union then resumed the consideration of the go back and take the vote over again.

That manufactured it was made under the express


is the uniform practice of the House and of authority of Congress that it should remain in

the Committee of the Whole, and therefore, the bonded warehouses just as long as the maker

KELLEYIn second

Chair not the call for a division, of it should please to leave it; that it should only be withdrawn from bond at his option.

ment which has been adopted, I move to strike division. Had the maker supposed that within a year

out the words “one hundred days” in line Mr. SCHENCK. Then I hope the amend. after the passage of that act you would have nine, and insert “ six months.”'

ment will be voted down. declared that unless they should pay the tax

The amendment was agreed to.

Mr. RAUM. I wish to offer an amendment in one hundred days after the passage of this Mr. INGERSOLL. I move to add to the to the amendment, to come in immediately bill their spirits should be forfeited and confis- section, as amended, the following:

before it. cated to the Government, do you believe they Provided, That it shall be sold at publio sale and

The CHAIRMAN. The Chair cannot enterwould have made a gallon? No, sir; instead to the highest bidder for cash, and all overplus arising tain an amendment to the amendment. He of there being now twenty-five million gallons from such sale shall be paid to the owner.

goes back only on this point to correct a misthere would not have been a gallon in bond at

Mr. SCHENCK. I move to amend the

understanding. this time. Sir, it is downright robbery on the amendment by adding the words :

Mr. INGERSOLL. I suppose as we have part of Congress to declare a forfeiture of But no such sale of distilled spirits shall be made gone back and as there was no debate on this

for less than the taxes. twenty-five million gallons of spirits unless

proposition, that debate is now in order? the tax shall be paid within one hundred days.

Mr. INGERSOLL. I agree to that. I The CHAIRMAN. It is not; the Chair It is bad faith, it is in violation of every prin

goes back merely for the purpose of a division. ciple of right and justice. On the part of an

The CHAIRMAN. The amendment, as Mr. INGERSOLL. I ask leave to modify individual it would so be considered. Per- modified, will be regarded as agreed to if there

my amendment so as to read, “the overplus haps it can be justified by some when the Conbe no objection. The Chair hears none; and

beyond the taxes and costs. gress of the United States does it, but not by the Clerk will read the next section.

Mr. MULLINS. I object.
It will not stand the test of common jus-
The Clerk read as follows:

The question was then taken upon the amend. tice between man and man.

Sec. 63. And be it further enacted, That any person ment; and it was not agreed to, there being The question being taken on the amend.

owning, or having in his possession, any distilled
spirits intended for sale, exceeding in quantity fifty

upon a division-ayes 14, noes 92. ment of Mr. Kelley, to strike out

one hun

gallons, and not in a bonded warehouso at the time Mr. RAUM. I ask consent to offer another dred days' and insert “six months," there when this act takes effect, shall immediately make amendment to section sixty-two. were--ayes 51, noes 49.

a return, under oath, to the collector of the district
wherein such spirits may be held, stating the num-

Mr. ALLISON. I objeet.
Mr. SHELLABARGER. I demand tellers.
ber and kind of packages, together with the marks

The Committee of the whole then resumed Tellers were ordered; and the Chair ap- and brands thereon and the place where the same the consideration of section sixty-three. pointed Messrs. KELLEY and Judd. are stored, together with the quantity of spirits, as

Mr. BOUTWELL. I wish to call the atten. nearly as the owner can determine the same. Upon The committee divided; and the tellers the receipt of such return the collector, being first tion of the Committee of Ways and Means to reported-ayes 53, noes 48.

satisfied that the tax on said spirits has been paid, this section on this point; there seems to be So the amendment was agreed to.

shall immediately cause the same to be gauged and
proved by an internal revenuo gauger, who shall

no provision in it for getting a tax on spirits The question was then taken on Mr. O'Neill's mark, by cutting, the contents and proof on cach that may be in bottles or vessels of any sort amendment, and it was disagreed to.

cask or package containing five wine gallons or more, holding less than five gallons. It seems to me

and shall aflix and cancel an engraved stamp thereon, Mr. STEWART. I move to amend the sec. which stamp shall be as follows:

that opens the way for the disposition of an tion by adding to it the following:

(Stamp for stock on hand. No.--.]

immense quantity of whisky which may be on Issued by

hand on which the tax has not been paid. And may be sold or disposed of for the benefit of

Collector the same in such manner as shall be prescribed by

of -district, State of

Mr. ALLISON. The gentleman is mistaken. the Commissioner of Internal Revenue under the Distilled spirits. Tax paid prior to (bere engrave

Mr. BOUTWELL. If the committee have direction of the Secretary of the Treasury.

the date when this act takes effect.) proof gal- considered the point that is enough.

lons. Gauged –, 18, Mr. INGERSOLL. I move to amend the


Mr. ALLISON. The committee have conamendment by striking out the word “ may”

All distilled spirits owned or held by any person, as sidered it fully, and I do not think there is any

aforesaid, sball be included in the same return, and and inserting shall."

necessity for any further provision. the gauging shall be continuous until all the spirits Mr. STEWART. I accept that as a mod. owned or held by such person are gauged and stamped,

No amendment was offered to section sixty. ification.

as aforesaid, and a report thereof in duplicate shall three. Mr. INGERSOLL. Very well; but I object

immediately be made by the gauger to the collector The next section was read, as follows:

and assessor of the district, showing the number of to the amendment. It is a vicious amend- packages, contents, and proof of each package gauged

SEC. 64. And be it further enacted, That all distilled ment.

and stamped; and one of said reports shall be transmit- spirits sold by order of court, or under process of dis

ted by the collector to the Commissioner of Internal traint, shall be sold subject to tax; and ihe purchaser The question was taken on the amendment; Revenue. No such spirits shall be gauged or stamped

shall immediately, and before he takes possession of and there were-ayes 49, noes 11; no quorum in any cistern or other stationary vessel. Any per- said spirits, pay the tax thereon. And any distilled voting.

son owning, or having in possession, such spirits and spirits condemned before the passage of this act, and Mr. INGERSOLL demanded tellers.

refusing or neglecting to make such return shall for- in the possession of the United States, shall be sold feit the same; and all distilled spirits found, after

as herein provided. And if any tax-paid stamps are Tellers were ordered; and Messrs. INGERSOLL thirty days from the time this act takes effect, in any

affixed to any cask or package so condemned, such and STEWART were appointed.

cask or package containing more than five gallons, stamps shall be obliterated and destroyed by the col

without having thereon each mark and stamp re- lector or marshal after forfeitore and before such The committee divided; and the tellers quired therefor by this act, shall be forfeited to the

sale. reported--ayes 62,.noes 86.

United States. Any person who shall gauge, mark, No amendment was offered. So the amendment was agreed to. or stamp any cask or package of distilled spirits

Mr. SCHENCK. I ask that the next secunder the provisions of this section, or who shall The question recurred on the amendment cause or procure the same to be done, knowing that tion, relating to special taxes on distilled spirits, proposed by Mr. STEVENS, of Pennsylvania.

the same were manufactured or removed from ware- be read by paragraphs for amendment.

house subsequent to the taking effect of this act, or Mr. ROBINSON. I make a point of order that the taxes thereon have not been paid, shall, on

No objection was made. on that amendment. We have just adopted a conviction, be fined not less than $500 nor more than The first paragraph of section sixty-five was clause that the time shall be six months.

$5,000, and imprisoned not less than six months nor then read, as follows: The CHAIRMAN. The Chair overrules the

moro than three years. All stamps required by this
section shall be prepared, issued, and affixed upon

SEC. 65. And be it further enacted, That the follor. poirit of order. This is a substitute for the casks and packages and canceled in the same man- ing special taxes shall be, and are hereby, imposed, section. ner as provided for other stamps for distilled spirits

that is to say: The question was taken; and the amend. in this act, and shall be charged at the rate of twenty

Distillers producing fifty barrels, or less, of disfive cents for each stamp.

tilled spirits, counting forty gallons of proof-spirits ment was disagreed to—ayes fifteen, noes not Mr. SCHENCK. I rise to a question of

to the barrel, within the year, shall pay $200, and if counted.

producing more than fifty barrels shall pay in addition order. The Chair did not know that we were four dollars for each such barrel produced in excess MESSAGE FROM THE SENATE. objecting to the amendment of the gentleman

of fifty barrels. And monthly returns of the namber

of barrels of spirits, as before described, distilled by At this point the committee rose informally, from Illinois [Mr. INGERSOLL] to the last sec- him, shall be made by each distiller in the same and the Speaker having resumed the chair, Il tion.

manner as monthly returns of sales are made. Every

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person who produces distilled spirits, or whe brews The CHAIRMAN. Debate is exhausted. and less on other whisky. Supposing whisky or makcs mash, wort, or wash for distillation or for Mr. BOUTWELL. I move to ameud the on the average brings twelve quarts or three the production of spirits, or who by any process of vaporization separates alcobolic spirits from any fer

amendment by inserting after the word “bar- gallons to the bushel and a tax of two dollars, mented substance, or who, making or keeping inash, rel,'' where it occurs the second time, the every twenty bushels of mash would be equivo wort, or wash, has also in his possession or use a still, words and an additional tax of three and alent of course to a tax of two dollars on shall be regarded as a distiller: Provided, That no tax shall be imposed for any still, stills, or other ap

one third cents per gallon;" so that the pro- every sixty gallons. I agree with the gentleparatus used by druggists and chemists for the re- viso will read:

man in that calculation ; but when the com. covery of alcohol for pharmaceutical and chemical or scientific purposes which has been used in those

Provided, That n like tax of four dollars on each

mittee looked over the whole ground they recprocesses.

barrel containing forty giddlons of proof-spirits to the ollected there is now little regular distilling.

barrel and an additional tax of three and one third Mr. SCHENCK. I move to amend the

It will not recommence, except slightly, at cents per gallon shall be assessed and collected from the owner of any distilled spirits wbich may be in

this season. paragraph just read by inserting just before the

The heat of summer is most unany bonded warehouse at the date of the taking proviso the following:

favorable to distilling, and as distilling is not effect of this act. Provided, That a like tax of four dollars on ench

likely to come into competition with the man þarrel, containing forty gallons of proof-spirits to the

The CHAIRMAN. Does the gentleman from who has whisky in bond until late in the fall barrel, shall be assessed and collected from the owner Ohio [Mr. SCHENCK] accept this as a modi- or the winter there is not much advantage in of any distilled spirits which may be in any bonded

fication of his amendment ? warehouse at the date of the taking effect of this act,

the holder of whisky in bond over the distiller to be paid whenever the same shall be withdrawn

Mr. SCHENCK. Certainly not.

in this matter of competition. Looking over from such warehouse under the provisions of the Mr. BOUTWELL. Mr. Chairman, I wish || the ground the committee came to the consixty-second section of this act.

to explain to the committee what I understand clusion while fifty cents was not a proper I will explain in a few words the object of to be the reason for this additional tax. I charge upon this whisky in bond, being what this amendment, which I have offered in pur- have fixed the additional tax at three and is the charge on whisky taken from the distill. suance of the instructions of the Committee one third cents per gallon, which corresponds ery warehouse, yet there ought not to be, in all of Ways and Means. There is a special tax exactly with the amount of tax now levied in fairnessa, dded to that any more than ten cents, provided in this paragraph upon distillers dis- this bill upon distilled spirits according to the which will bring it up to whisky in bond. If tilling fifty barrels a year or less of $200, and capacity of the distillery; that is to say the this additional tax be extended to whisky in four dollars per barrel on each barrel addi.

taxes altogether if this paragraph should be bond as an equivalent for the special taxes tional. This special tax amounts to ten cents a adopted, will amount to sixty-three and one imposed on the distiller is to be based on any gallon, and is in addition to the direct tax of

third cents per gallon upon spirits to be here- principle at all, as I think it is, that principle fifty cents. Then there is the capacity tax, after distilled.

is, if you did not impose it, it would give the which will be some three and one third cents Now, there are certain spirits held in bond, advantage to the dealer in whisky in bond, per gallon, and the tax on sales, which, of some having been so held one year, some two, and give him the control of the market. course, cannot now be estimated. We supposed some three years, decreasing in quantity while [Here the hammer fell.] it would not be unfair, and so the committee || thus stored, but increasing rapidly in value. Mr. BOUTWELL's amendment to the amend. have decided to add at least as much as this The letter which has been read upon the sug. ment was rejected. special tax on whisky in bond in order to make | gestion of the gentleman from Wisconsin (Mr. Mr. Schenck's amendment was agreed to. the tax uniform so far as regards the distiller || PAINE] does not bear at all upon this question. Mr. HOLMAN. I move to strike out the and the owner of the bonded whisky. The In spite of the storage, the leakage, the wast- clause as amended. distiller who manufactures hereafter is not to age, spirits kept in bond increase in value. It

Mr. BOUTWELL. I wish to move an amend. be charged the two dollars per gallon that dis- || will be seen that if this tax be omitted those

ment to perfect the clause. tillers heretofore have been charged, but only who have spirits in bond derive an advantage The CHAIRMAN. That is first in order. fifty cents per gallon. The tax on whisky now from the policy of the Government in not tax- Mr. BOUTWELL. In line seven, after the in bond is also brought down to fifty cents per | ing old spirits in a sum corresponding to the word “barrels," I move to insert as follows: gallon. And we propose to put the same special tax to be hereafter imposed upon new spirits. tax of four dollars per barrel on that whisky | For example, spirits waste, according to the

And the amount of said tax upon alcohol and rum

shall be allowed as drawback when said articles are that is proposed to be put on whisky hereafter statement of that letter, at the rate of eight cxported; this drawback to be in addition to the distilled. gallons to the barrel in eighteen months; in

drawback of fifty cents per gallon in this act otherMr. PAINE. I send to the Clerk's desk to | fact, by evaporation alone, about one gallon

wise allowed; and the Secretary of the Treasury is

hereby authorized to prescribe such rules and regulabe read a communication relating to this sub- and a half in a year. These spirits when taken tions as may be necessary to carry the provision into ject which I have received from the firm of

effect. out of bond will be regauged, so that a bar; Armour, Plankington & Co., who are beef and rel of spirits which when it went into bond Mr. Chairman, it will be recollected that the pork merchants of the city of Milwaukee. They contained forty gallons, having been reduced previous amendment in reference to drawback, also have a house in Chicago and another in to thirty-five gallons by evaporation, will pay a which the committee adopted, limited it to New York. It seems that they have on hand || duty of sixty-three and one third cents per fifty cents, the amount of direct tax. This about five thousand barrels of whisky in gallon upon the thirty-five gallons only, while paragraph imposes an additional tax of ten bouded warehouses. Now, I have no knowl- the men who hereafter manufacture new spirits cents a gallon on distillation of whisky. The edge as to the particulars which they set forth will be obliged to pay the tax upon the new amendment I have offered will allow drawback except what I derive from this letter. But I

spirits at the rate of forty gallons to the barrel, on alcohol and rum to the amount imposed by can assure this committee that these gentle- thus paying tax upon five gallons more in each this section, to wit: ten cents per gallon in admen are among the very first business men of

barrel than the man who has held his spirits dition to that allowed by the previous section. Wisconsin. They are not distillers or dealers two, three, or five years in a bonded ware- The effect of this is to give sixty cents, while in whisky, but beef and pork packers. I invite | house, because the latter escapes the tax on the aggregate paid is sixty-three and one third, the attention of gentlemen to the facts and the amount which has been lost by wastage,

which makes a difference against the exporter figures they give. By their statement it would || leakage, and everything of that kind; while of three and one third cents. If the amend. seem that the expense incurred in storing and the value of the spirits has increased not in ment is not adopted I think the action of the keeping this whisky, together with the loss in || proportion to the loss in measurement and the committee is equivalent to the abolition of the wastage, amounts usually to about sixteen

expenses of keeping it from year to year, but | export trade altogether, for the export trade cents per gallon, just about the amount of the in a much greater proportion in consequence cannot stand a differential duty of thirteen and additional tax laid by this bill over and above of the increasing age of the spirits. New spir- one third cents per gallon. I will say this is the direct tax of fifty cents per gallon. I ask its are worth at the present time, minus the but an indirect way of enacting an inhibition the Clerk to read the letter.

tax, only thirty cents, the cost of manufacture, of exportation. To impose a tax of sixty-three The Clerk read as follows:

while old spirits which have been in bond two, and one third cents and grant a drawback of OFFICE OF ARMOUR, PLANKINGTON & Co., || three, or five years, are worth from three to only fifty cents is equivalent to a tax against

129 BROAD STREET, NEW YORK, June 24, 1868.

seven dollars a gallon over and above the tax. exportation of thirteen and one third cents DEAR SIR: We have noticed in the public journals

Mr. SCHENČK. Mr. Chairman, I did hope ) per gallon. I think the committee ought to a movement on foot to make a special tax on spirits that we should derive some tax within a hun- deal fairly with this question.

Either we now in bond of ten cents per gallon, and

wish to call dred days from the large amount of whisky should provide a drawback which allows this your attention to a few facts showing the injustice of such a special tax. We have held from necessity about

now in bond; but it has been the pleasure of business to be carried on, or we should say diseighteen months some five thousand barrels of whisky

the House to decide that we shall not get any- tinctly that on grounds of public policy we will on commission at an expense as follows, namely: thing from this source until next winter. But, abolish exportation of this article altogether. Storage and labor eighteen months, 20@20C...... $3 80 || although I think a great deal has been gained I will say, so far as my experience of this busiInsurance, 1 bbl., average 55 gal., at 40.=922 for eighteen months, 21 per cent. per annum ...... 82

to the holders, owners, dealers, or distillers ness extends. that a drawback of fifty cents, Cooperage, 60c, per bbl., interest 7 per cent on who have whisky in bond, by the extension of with a tax of sixty-three and one third cents, $22.

2 91 Lenkage and evaporation at 4 gal. per bbl. at

the time to six months, still I believe it would is an abolition of the export trade of this arti. 40c.....

1 60 be a hardship to exact from them to the letter | cle. Therefore I hope my amendment will be

all the taxes which may be calculated under | agreed to. Making a total cost per bbl. of

$9 13 or over sixteen cents per gallon. In view of these

the bill now proposed. The special tax at Mr. PRICE. This is the same proposition expenses incurred through lack of "Government pro

four dollars a barrel of forty gallons amounts, that we have had before us this morning once tection” we think this special tax very unjust, and as I have already stated, to just ten cents on before, and which we have voted down. I do would thank you to give it attention when brought up. the gallon. The tax the gentleman proposes not suppose it is necessary to make much of an Yours, with respect, ARMOUR. PLANKINGTON & CO.

also to add may be estimated at about three and argument in reference to the proposition, beHon. H. E. PAINE, Washington.

a half cents. It will be more on some whisky ll cause the questiou has been fully and fairly 40TH Cong. 2D SESS.-No. 219.


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