COMMITTEES ON BEHALF OF THE GOVERNMENT 243 
adopted likewise, and a manual of instructions in their use furnished revenue 
officers. The hydrometers are furnished by the manufacturer in sets of five, at a 
charge of eighteen dollars per set, and in sets of three at thirteen dollars. Seven 
hundred and thirty-four sets have been received from the manufacturer at a cost of 
$11,826.50, and about five hundred sets have been distributed to officers. 
Inspectors supply themselves at their own charge with the necessary gauging 
instruments.” °2 
Thus the work of the committee relative to the proving and 
gauging of spirits was completed, but the question of the preven- 
tion of fraud still remained for consideration. 
There was a widespread belief at the time, based on the 
strongest evidence, that the Government was being deprived of 
a vast amount of its revenue through frauds practiced on an 
enormous scale, either by the distillers separately or in collusion 
with the inspectors, and many thought that these could be stopped 
by making the capacity of the distilleries the basis of the tax. 
The Commissioner of Internal Revenue, E. A. Rollins, was con- 
vinced that this idea was erroneous, but he was of the opinion 
that measurement of the output by means of meters attached 
to the stills would aid the inspectors in detecting gross misstate- 
ments of the amount of spirits manufactured, besides having 
incidental advantages. He remarks in his report for 1867 re- 
garding the law as follows: 
“Tt does not undertake to levy the tax in accordance with any real or estimated 
capacity, for this has always been regarded as impracticable; but it does endeavor 
to give to revenue officers information from which the possible product may be 
approximately estimated, so that fraud may well be presumed if the product 
returned is unreasonably small. ... . Could the production of distilleries be 
ascertained for the purpose of taxation by some mechanical means, and were it 
impracticable for distillers to deceive officers or to collude with them, it is evident 
that much of the cost of supervision would be avoided, while efforts to discover 
illicit spirits after they have left their place of production would no longer tend to 
embarrass and discourage honest dealers. It was for this reason that the Depart- 
ment was persuaded nearly two years ago to invite the co-operation of the National 
Academy of Sciences, and a committee of the Academy, consisting of Professors 
Joseph Henry and J. E. Hilgard, gentlemen of eminent ability and wide reputa- 
tion, has given the subject the full consideration which its importance deserves.” *? 
= Rep. Comm. of Int. Rev. for 1868, p. xxxiii. 
Rep. Comm. Int. Rev. for 1867, pp. xxvii, xxviii. 
