Chargeable to appropriations-Continued. Equipment, stores, and other penses Mint Bureau contingent appropri- Mints and assay offices, contin- Total miscellaneous expenses Total expenses chargeable to Chargeable to revenue: Seigniorage on minor coinage Expenses of distributing minor coin to Treasury offices.... $5, 438.94 256, 027. 16 20, 935. 37 $282, 401. 47 $1, 217, 731. 89 7,926. 06 Net income of the Government from the Mint Service........ 3,757, 145. 83 4, 985, 174.89 Deposits, income, expenses, and employees by institutions. The number and value of deposits, the income (including seigniorage), the expenses of the fiscal year 1916, and the number of employees on June 30, 1916, at each institution, are given below: 1 Includes transportation of bullion and coin between mints and assay offices. INTERNAL REVENUE. The receipts from internal-revenue taxes for the fiscal year 1916, as shown by collectors' reports, were as follows: Ordinary receipts, including the emergency revenue. Income-tax receipts.... Total...... Net increase over 1915..... $387, 786, 035. 16 124, 937, 252. 61 512, 723, 287. 77 97, 042, 263.91 The ordinary receipts for 1916, including the emergency revenue (act of Oct. 22, 1914, which was extended to and including Dec. 31, 1916, by joint resolution approved Dec. 17, 1915), show a net increase of $52,306,770.16 for the year. The ordinary receipts, excluding the emergency revenue, show increases from the following sources: The emergency revenue, collected during the fiscal year 1916 under the several general classifications as designated in the act, was as follows: Wines, champagne, liqueurs, cordials, etc.. Grape brandy used in fortification of sweet wines.... Special taxes relating to manufacture and sale of tobacco, cigars, and $2,631, 529.98 491, 202.91 29, 311, 164. 50 2,739, 853. 05 Special taxes, including bankers, brokers, theaters, bowling alleys, etc. 6, 908, 108. 21 Schedule A (documentary stamps, etc.)............ Schedule B (perfumery, cosmetics, etc.).. Total..... 38, 110, 282. 49 4,086, 160.99 84, 278, 302. 13 The income-tax receipts from corporations aggregated $56,972,720.88 as compared with $39,144,531.71 collected during the fiscal year 1915. There was also collected $20,937.10 on account of income tax on railroads in Alaska as compared with $11,065.06 collected in 1915. During the month of July, 1916, $3,740,853.06 was collected from corporations, nearly all of which was upon assessments made during the fiscal year just closed. This amount, while due and payable last fiscal year, will now, owing to date of its payment, be included with the collections for the fiscal year 1917. The income-tax receipts from individuals aggregated $67,943,594.63, or $26,897,432.54 in excess of the amount collected during the preceding year. There was collected $4,280,478.89 during July, 1916, which likewise practically represents and is included in assessments made during the fiscal year ended June 30, 1916. The total expenditures of the Internal-Revenue Service during the fiscal year 1916 amounted to $7,199,163.32. This does not include expenditures amounting to $43,337.68 made from the appropriation Refunding internal-revenue collections," as such payments were in no sense an expense incident to the cost of collection. The cost of collecting $1 of internal revenue was $0.014. 66 1 Includes $2,631,529.98 from wines, champagne, liqueurs, cordials, etc., and $491,202.91 from grape brandy used in fortification of sweet wines (act of Oct. 22, 1914, as extended Dec. 17, 1915). 2 Includes $259,097.63 from sale of internal-revenue stamps affixed to Philippine products (act of Aug. 5, 1909) and $2,739,853.05 from special taxes relating to manufacture and sale of cigars, cigarettes, and tobacco (act of Oct 22, 1914, as extended Dec. 17, 1915). Includes $29,311,164.50 from the additional tax (50 cents per barrel) on fermented liquors (act of Oct. 22, 1914, as extended Dec. 17, 1915). Includes $819,654.20 from playing cards; $175 from opium manufactured for smoking purposes; $244,897.07 from manufacturers, importers, or distributors of opium, etc. (act of Dec. 17, 1914); and $480,477.22 from accepted offers in compromise, unassessed penalties, interest, etc. 5 Collected under an act approved July 18, 1914. Distilled spirits. During the past fiscal year there were produced from material other than fruit 249,123,921.8 taxable gallons of spirits, an increase of 116,989,769.6 gallons as compared with the production of like spirits during the fiscal year 1915. This increase, consisting mainly of alcohol and other high-proof spirits, was in a large measure due to the unusual demand for this class of spirits for export and for denaturation. The quantity of spirits removed in bond, free of tax, for abovementioned purposes during the last two fiscal years was: The production of fruit brandies during the fiscal year 1916 was 4,159,351.6 gallons, as against 8,521,951 gallons in 1915, a decrease of 4,362,599.4 gallons. During the fiscal year 1916, 605 distilleries of all kinds were operated, a decrease of 30 as compared with the preceding year. Fortified wines. There were fortified during the fiscal year 1916, 6,284,003.5 gallons of wine and the records of the office show that the quantity of brandy used for this purpose amounted to 1,257,399 taxable gallons. The quantity of wines so fortified during that year was far below the quantity (14,681,924.5 gallons) of like wines fortified during the preceding year. By the act of June 7, 1906, a charge of 3 cents per gallon was assessed on brandy used in fortifying wines, and up to the passage of the emergency revenue act of October 22, 1914, imposing a tax of 55 cents per gallon on the brandy so used, the wines fortified during that period averaged about 16,000,000 gallons annually. The noticeable decrease in the quantity of wines fortified during the past year was doubtless due to the comparatively high rate of tax imposed on the brandy used. Fermented liquors. The production of fermented liquors during the fiscal year 1916 was 58,633,624 barrels, as against 59,808,210 barrels for 1915, a decrease of 1,174, 586 barrels. In 1916, 58,564,508 barrels of fermented liquors were withdrawn tax paid for consumption and 69,116 barrels exported (in bond) free of tax, while in 1915, 59,746,701 barrels were tax paid and 61,509 barrels exported. Exportation of tobacco, etc. The quantity of manufactured tobacco exported, free of tax, during the fiscal year 1916 was 4,926,559 pounds, or an increase of 1,028,639 pounds exported during the preceding fiscal year. The numbers of cigars and cigarettes exported, free of tax, during the fiscal year 1916, were 728,625 and 94,224,000, respectively, or an increase of 395,525 cigars and 63,997,910 cigarettes as compared with the year 1915. Dealers in leaf tobacco, etc. In previous reports attention was called to the weakness of the statutes relating to the business of dealers in leaf tobacco. The recommendation heretofore made is again renewed-that section 3360 of the Revised Statutes should be amended so as to require every dealer in leaf tobacco to give a bond, the penalty of which should be fixed by the collector according to the amount of business to be done; to make a true inventory of stock on hand on January 1 of each year, and to render monthly report of his transactions to the collector for the district within 10 days after the close of the month. The commissioner should be given authority to make assessments for tax on tobacco not properly accounted for by leaf dealers. It is also again recommended that section 26 of the act of October 1, 1890, be amended so as to require registry of manufacturers of cigars, manufacturers of tobacco, dealers in leaf tobacco, and peddlers of tobacco on commencement of business only and not on July 1 of each year, as required when special taxes on these classes of persons are not in force. Adulterated butter. A considerable increase in the number of violations of the act of May 9, 1902, known as the adulterated-butter law, is reported for the fiscal year ended June 30, 1916, as compared with the preceding fiscal year. The greater portion of these violations consisted in the manufacture and sale of creamery butter containing 16 per cent or more of moisture which had been accidentally or unintentionally incorporated therein by the producers, and in all such cases where these facts were shown prosecutions were not instituted, but the cases were dropped upon payment of the special and stamp taxes imposed by the law or by compromise where the manufacturers were financially unable to pay the taxes reported due. A new class of violations of this act was discovered in considerable numbers in some of the large cities during the past year, and in every such case prosecution was instituted in addition to assessment of special and stamp taxes imposed by the law. This new class consisted of dealers in butter who purchased the product from creameries and added thereto water ranging from 30 to 50 per cent and afterward sold it as creamery butter. This illicit business gave every indication of assuming large proportions until sweeping investigations were made and criminal actions pressed and the offenders convicted. These drastic steps, it is confidently believed, will effectually stamp out this form of fraud upon the public wherever it may develop. It is again recommended that the act of May 9, 1902, be amended and that some definite standard of moisture or butter-fat content be |