entire country. The number of additional special-tax stamps held by breweries and distilleries as dealers for carrying on business at or adjacent to the brewery or distillery was obtained from the collectors of internal revenue for each State except Louisiana and Mississippi. For these two States estimates are given.

SPECIAL-TAX STAMPS HELD BY DEALERS AND RECTIFIERS, BREWERIES, AND DISTILLERIES, BY STATES AND TERRITORIES, FOR THE YEAR ENDING JUNE 30,

From the preceding table it appears that if the estimate for each State be based on percentages computed from the total number (40,774) of internal-revenue special-tax payers canvassed, there were 161,483 establishments in the United States actually engaged in the liquor traffic at the time of the canvass, and these establishments represented 23,548 additional tax stamps issued to present proprietors or their predecessors, making a total of 185,031 special tax stamps held by establishments, being 82.22 per cent of the total number issued to dealers and rectifiers representing 161,483 separate places of business. The number of persons or firms that had paid the tax but had discontinued business at the time of the canvass is estimated at 22,231, or 9.88 per cent, and the number of persons or firms that had paid the tax but had no appreciable amount of capital invested in the liquor business at 17,770, or 7.90 per cent of the total. Of this latter number it is estimated that 944 of the special tax payers were social clubs, 10,548 druggists, 197 grocers, 2,897 keepers of houses of ill-fame, 513 keepers of restaurants, and 2,671 persons and firms engaged in business of a miscellaneous character.

The table on page 523 shows that out of the whole number of internalrevenue special-tax payers (40,774) canvassed by the agents of the Department, 29,258 separate establishments were found engaged in the traffic in liquors. The important facts concerning these establishments are those relating to the capital invested in the business, both owned and rented, the taxes and rents paid, the number of proprietors and employees engaged in the business, etc. Returns covering all of these points were received from every establishment, and are presented in a series of general tables in the Twelfth Annual Report. The analysis of such of the general tables as relate to the above-mentioned facts follows:

Table I.-Capital invested, tares and rent paid, and persons engaged in each class of liquor traffic, by localities, for the year ending June 30, 1896.-This table shows the total for each city in which there were 100 or more special-tax payers (liquor dealers and rectifiers), all other localities being combined and designated as "rural." The total is also shown for all the localities in each State. It must be borne in mind, however, that these State totals represent only such parts of the State as were covered by the canvass, as has already been fully explained.

Under employees were reported, first, the average number employed in or connected with the liquor traffic. For instance, clerks in a grocery store or waiters in a dining room or hotel in which liquors were sold were reported if they, during any part of the time, were engaged in selling or serving liquors; members of the family employed but who received no wages were also reported. The object was to ascertain the average number of employees that were in any way connected with the sale of liquor.

Second, in cases where the liquor traffic was carried on in connection with other business, such as a grocery, drug store, or hotel, the pro

portion of the entire number of employees necessary if employed full time to carry on that portion of the business that pertained exclusively to the liquor traffic was reported.

In this table, as well as in Tables II, III, IV, and V of the Twelfth Annual Report, which are summaries of Table I, the facts presented relate only to the purchase and sale of liquors. If an establishment was engaged in other business in conjunction with the liquor traffic, the amount of capital and the other information secured related to the liquor traffic only. The object of the investigation was to ascertain the volume of the liquor traffic as distinct from all other business. For instance, if the liquor traffic was carried on in connection with the grocery business the capital reported would be that portion of the land and buildings considered as essential to the liquor traffic only and the fixtures and sundry items that pertained exclusively to that traffic; the rent and taxes reported are the rent and taxes paid on this proportion of the entire capital. The number of proprietors and firm members reported were those who could be considered as actively engaged in the liquor traffic or its supervision. The facts are presented in this table and its summaries so as to show separately establishments engaged exclusively in the liquor traffic and those engaged in the traffic in connection with some other business. Thus establishments are grouped in six classes, according to character of business, as follows: Retail liquor only, retail liquor and other trade, wholesale liquor only, wholesale liquor and other trade, retail and wholesale liquor, and retail and wholesale liquor and other trade.

Table II.-Summary of capital invested, taxes and rent paid, and persons in each State engaged in each class of liquor traffic, for the year ending June 30, 1896.-The details presented in the preceding table are here summarized for each State canvassed, the grouping into the six classes according to character of business being preserved.

Table III.-Summary of capital invested, taxes and rent paid, and persons engaged in each class of liquor traffic, by States, for the year ending June 30, 1896.-This table brings together the facts for each of the six classes of business, showing for each class the total for all States combined, so far as canvassed.

Table IV.—Summary of capital invested, taxes and rent paid, and persons engaged in the liquor traffic, by States, for the year ending June 30, 1896.—This table brings together the State totals, showing the facts for the 29,258 establishments canvassed. The table shows that the 29,258 establishments had capital to the value of $173,421,799 invested exclusively in the liquor traffic. Of this capital $74,681,656, or 43.08 per cent, was owned and $98,740,143, or 56.94 per cent, rented. The value of the land and buildings owned and rented amounted to $125,788,971, or 72.53 per cent of the total. The total value of fixtures owned and rented amounted to $10,933,587, or 6.31 per cent of the total. The sundry items of capital, such as stock and cash on hand, bills receivable,

and unsettled ledger accounts, amounted to $36,699,241, or 21.16 per cent of the total capital. This table also shows that the 29,258 establishments paid yearly taxes amounting to $1,534,346 on the land and buildings and $291,096 on the fixtures and other items of personal property devoted exclusively to the liquor traffic. These taxes are the general tax assessed on all real and personal property. They do not include licenses or special taxes imposed on the liquor business as such. The total, $1,825,442, must not be accepted as the amount that would be collected at a given rate of taxation on the value shown for land and buildings and fixtures. In many cases the values were so small that a tax was not collected. In the State of Delaware, and possibly in other localities, no tax is levied by the State, county, or cities on fixtures in saloons. In the city of Chicago comparatively few liquor dealers reported taxes paid on personal property, the amount paid for license apparently being accepted as a sufficient tax on property of that character. Therefore the rate of taxation for the United States or for any particular State or locality can not be computed from these totals.

The amount paid as rent during the year is reported as $9,288,439. This is the total amount that would have been received if rent was actually paid for the entire time that the rented properties were used for the liquor traffic. In cases where the person occupying the premises at the time of the canvass had not been in possession for the entire year the amount of rent paid by him was reported, and it was also ascertained how long the premises had been used for the liquor business during the year; the amount paid by the former occupants was then estimated. The total, therefore, is only the rent charged to the premises or that portion of the premises used for the liquor traffic during that part of the year that they were used for that purpose. In many cases the premises were used for other business or were idle during a part of the twelve months, therefore the amount reported as rent can not be used to compute the per cent of return for rented property used in the liquor traffic.

The 29,258 establishments canvassed were controlled by 34,700 firm members and individual proprietors, of whom 33,017, or 95.15 per cent, were males, and 1,683, or 4.85 per cent, were females. The average number of employees who were engaged a portion of their time at least in connection with the liquor traffic was 43,802, of whom 37,984, or 86.72 per cent, were males, and 5,818, or 13.28 per cent, were females. If these employees had devoted their time to the liquor traffic exclusively, it would have required 31,332 persons to carry on the liquor business of the 29,258 establishments.

There were, according to the estimate based on the canvass of 40,774 special-tax payers, and already shown in the table on page 525, 161,483 establishments in the whole country engaged in the liquor traffic at the time of the canvass made by this Department during the year 1896. It

is also estimated that there were 22,231 special-tax payers who had evidently been engaged in the liquor traffic at some time during the year, but who had discontinued the business at the time the special agent called to secure a report. As the special object of this branch of the investigation was to ascertain the capital, employees, etc., of establishments engaged in the liquor traffic at any one time, those that had discontinued business should not be considered in this connection. There is a certain amount of capital invested in the liquor traffic by the persons or firms represented by the 17,770 special-tax payers estimated as having no appreciable capital invested in the liquor business. This amount, while perhaps considerable in the aggregate, could not materially affect the total, and as there appears to be no reliable method of estimating the amount so invested it has not been considered.

There is also a certain amount of capital that could be considered as invested in the liquor traffic by the 1,866 breweries and 6,689 distilleries, as these breweries and distilleries held 3,648 special tax stamps as dealers. These tax stamps were obtained for the purpose of carrying on the traffic at or adjacent to the brewery or distillery, and the capital invested in such traffic would naturally be considered as representing a part of the investment in the manufacturing plant, and it is supposed to have been so reported and is included in statistics for "Production." It was impracticable to make a separation of such capital so as to show the amount invested exclusively in the traffic in liquors.

Special-tax stamps issued to brewers and distillers for traffic at points distant from the brewery or distillery have been counted as dealers.

It is impracticable to give estimates of the capital, employees, etc., representing the liquor traffic in each State and Territory. Such estimates would have to be based on average conditions for all the States canvassed and would not correctly represent the individual States and Territories where widely varying conditions are known to exist. This may be seen by an examination of Table IV. But the facts given in Table IV, covering as they do a canvass of parts of 14 States and including nearly one-fifth of the entire number of establishments in the country, are believed to be fairly representative of the whole country. And it is believed that an estimate for the 161,483 establishments in the whole country, if based on an average of the facts shown in Table IV, will be substantially accurate. Estimates have thus been made.

For the year ending June 30, 1896, the capital invested exclusively in the liquor traffic by the 161,483 establishments, as estimated by the method just described, was $957,162,907. Of this amount $412,188,729, or 43.06 per cent, represented the value of land and buildings, fixtures, and other properties owned by the persons or firms carrying on the liquor traffic, and $544,974,178, or 56.94 per cent, the value of the property rented by them. The estimated annual taxes paid on the property was $10,075,120, and the rent paid on the rented property $51,265 ** For the reason heretofore given the estimated amount of taxes