The New York Herald Newspaper, June 16, 1867, Page 8

8 INTERNAL REVENUE. ITS INSTITUTION IN THIS COUNTRY, Guceessive Amendments to the Origi- nal Law. WTS RECEPTION IN NEW YORK. £ INCOME TAX AND ITS ORIGIN. Fhe Publication of Incomes and Its Effects. Rot Wo the history of any country, ancient or modern, an there bo found an instance of a people who re- *ponded so willingly and with such alacrity to a heavy, ud, m many cases, oppressive call for money, as did the cKizens of the United States 1n 1862, when rupture ‘and secession threatened their Union, and when the gov- ernment deemed it necessary, in order to raise funds to earry on the war, to levy « tax which covered every arti- ete of manufaciure, consumption and luxury, and which wished the poor man’s cabin as well as the rich man’s ‘palace, of the burden of which al! had to bear their share, which they did willingly and ancomplainingly, ‘and in a manner astonishing to the enemies of our gov- ‘ernment at home and abroad, who openly Toasted tbat when the trials and the costs of war camo home to each man’s pocket, Bo people on earth would be more anxious for peace and @esiroua to close their purse strings than the everlasting ‘Yankee, But in this after events proved them mis- taken aré explained fully that the race who initiated Sho great revolution which ended in their freedom and “she establishment of a grand republic by complaining of the Injustice of taxation on a single box of tea in 1779 wore equally ready in 1862 to sacrifice the equivalent to muilfions of the same to defend the freedom of their land and to preserve intact the Republic of the West, Foreign @splomatists and political essayists remarked at the time ‘Mat a peopio having such enlarged and extensive ideas ef hborty, a people who were their own governors, would never frame or submit to any laws which wonld deprive them of a portion of their fortunes or Properties, or would increase the price of the necessaries god jaxuries of life; that the moment such was at- tempted revolt would follow, peace be demanded, and the South, because of the mercenary spirit of the North- ern people, would quietly slip out of the Union, with Salt liberty to start an empire or a kingdom, ruled ever by any one, from the Pope of Rome to the Tycoon of Japan. Yet, notwithstanding the extensive knowledgo of those diplomats and the earning and acquirements of those clever and undoubt- edly able, though in this case mistaken, students of Political economy, the people of the United States did Bot oppose the tax. On the contrary, they accepted it in ® manner surprising even to their best friends and ad- moirers, abd traly gratifying to the lovers of freedom and of republican institutions all over the world. Jie INSTITUTION OF THE REVENUE LAW. Ata period when the safoty of the country was im- perilied, when it was threatened with dissolution by the slave power, and when the leaders of that party raised ‘ne standard of rebellion, the Congress of the United States, not deeming the usual revenue of the govern- ment adequate to the occasion or suflicient to grapple ‘with and pat down this rebellion, commenced on the 4th of Jay, 1861, being the date of the assembiing of the ‘TFhirty-seventn Congress in its first (extra) session, to imitiate proceedings towards legislation on the subject of fateroal revenue, From period until July, 1862, the subject was continually under consideration of the House. On the 1st of that month the Congress of the United States almost unanimously enacted the “Excise” er “internal Revenue,” containing one hundred and mincteon sections, for the purpose of providing increased Fevenue to pay Interest on the public debt, to support the government and for other purposes. On the 14th of July, 1862, it was provided that the portion of it relating to stamps should not trke effect until September 1, 1862, and that portion relating to the appointinent of assessors and collgctors should take effect on the 2ist of July. By joint resolution @ July 17, one of the sections ‘wae amended substituting August 1 for May 1, 1862, as ‘She date from and after which certain duties should be Jevied and paid upou carriagee, yachts and billiard tables; and further providing that certain matters re- quired to bo done, either on or before the 1st davs of ly or August, should be postponed to such time as might be fixed and determined by the Secretary of the Treasury, he, of course, to give pablic notice of the time ‘when thé law should take effect. This provision, though suomaiots in the enactment of a general law, and con- ‘Sine immense power and privilege to the discretion of an individual, was yet absolutely necessary at the time, end any person acquainted with the details and work- xs of the system at the present will at once see what a Bercolean task it must have been to arrange such a vast and extensive machinery, © law was anknown before, & efficient towards directing t Fiod, a novel and important s; this resolution "the Secretary g would take effect on September 1, 1862. SUNSEQUENT AMENDMENTS, On the $4 of March, 1863, important adopted by Congress, both in the machinery of ti and the rates of duty. On the 30th of June, 1864, after most thorough jew and examination of its details, be Committee of Ways and Means in the House and the Finance Committee of the Senate, the law was sub- stantially remodeiled, regard being had in its modified Provisions, as well to the defects in the practical work: ngs of the system as to the necessity for increased tax- stion. Again, on the 3d of March, 1865, other amendments ‘Were passed which, in most respects, increased the taxa- tion and provided for the taxation of certain articles Bitherto exempt, THE Law or 1966, ‘The law in force at the present is chiefly that passed 4%» Joly, 1866, by which a substantial reduction was mede in the rates of duty upon some articles; others, which bad been subject to taxes either burdensome or Smpolitic, were omitted, and aa estimated reduction Made in the aggregate revenues from internal duties of ome seventy miliions of doliara. A Board of Commis- sioners raised by Congréss, and of which Hon. D. A. Wells was chairman, was chiefly instrumental in mak- dng those changes, Which were considered very impor- tant and were received throughout the country with great satisfaction, THE AMENDMENTS OF 1967. Again, on the 2d of March, 1867, the mternal revenue ‘was amended, and several exceedingly important changes &nd modificetions were made, taxation on incomes was reduced, the amount liable increased, other taxes aol) ed, days of payment changed, and other alterations so dmportant that, as many persons are unacquainted with those amendments which are now the existing law, and ‘under which they are aseessed, it may be necessary and ‘useful in this article to resumé of the most im- Portant of those changes. Ail acta in relation to the assessment, return, collec- tion and payment of the income tax, special ‘ax, and other taxes hitherto required to be performed in ihe month of May mast bhenoeforth be performed on the March in each year; month of June sl: hereafter be performed on the corresponding day: month of April. In addition to the special tax provided for by the law of 1866, ander the new amendments, a| 08, Dutchers, confectioners, plumbers and gas fitters whose @nnual sales exceed twenty-five thousand dollars, are re- quired to pay & tax of one dollar for every thou: doliars tm excess of said twenty-five thousand dollars. and after the firs: day of Sepiember, 1867, a tax ‘only will be levied on nited States jed into different kinds sugars produced {rom the m or imphee, other than tax of one per cent per — and on the products ing syrup or molasses, particularized; canister ats per pound; sporting pow- one cent per pound; blasting powder, in if cons per pound, On @ tee, clgars and cherootes of all descriptions, made of tobacco or any substivute therefor, five dollars per Ob the following articles two per centum ad valorem is evied:—oota and shoes, made wholly or in part of jadia Lema I and boods of all de- Leather of all descriptions, sna cod oon goat, deer, calf, kid, 1, or im the rouga, aro centum ad valores,” The somata maoufactares of wool, or of which wool is the chief couw- ponent material, or the component material of chief ‘value; ee een mauufactures exclusively of 1 whl wel... b%y*’ TAUAUG NEW YORK HERALD, SUNDAY, JUNE 16: 1867—TRIPLE SHEET, af desertptions, and iron for the manutacture of steel: Provided, That this exemption shalt be confined exolusively to said articles in the state and vondition speeried in the foregoing weration, and sball not be construed as exempting spikes, nails or any other manufactures of iron from the taxes now im- posed by law; brush blocks, canned and preserved vegetables and’ fruits, casks, churns, barrels, wooden brushes aud broom handles, tanks and kits made of wood, ineluding cooperage of all kinds, bungs and plugs, packing boxes, nést boxes and match boxes, whether made of wood or other, materials; wooden bames, Plough bear, solit- bottom ebairs and turned material’ for the same unmanufactured, and saddle trees made of wood; castings of fron, copper or brass made for ma- ehinery, cars or scales and castings made to form a part of any article upon which, in a finished state, a tax is assessed and paid; cast iron hollow ware and cast iron bollow ware tinned, enamelled, japanned or galvanized; clock trimmings, namely: clock work, clock pillars, sash fasteniags for clocks, winding keys, verges and pendulum rods; clothing or articles of dress not spe- cially enumerated, made by sewing, for the wear of men, women or children, from cloths or fabrics hich a tax or duty has been paid; coffee mills, coffee grinders and roasters and applé-paring machines; copper bottoms for articles used for domestic and culinary pur- poses; doots, window gash, blinds, frames and sills, of whatever material; drain, gas and water pipe made of ‘wood or cement; frames and handles for saws and brick- ue and gelatine of all descriptions, in the solid glue and cement, made wholly or in part of glue, liquid stato; horse rakes, horse powers, tedders, , Scythe snaths, hay forks, hoes and’ portable grinding mills; horse blankets, made from etoths, on which a tax or duty has been paid; licorice and licorice pastes magnesium tamps; manufactures of jute; mo- jase, concentrated molasses or melado, syrup of mo- Jasses or sugar cane jurce, and cistern bottoms; oil naph- tha, benzine, benzole or gasoline, making more than seventy di Baume’s hydrometer, the product of the distillation, or redistillation, or refining of crude po- troleum, or of crude oil produced by a single distillation of coal, shale, Bed pegnalvary or other bituminous syb- stances; palm leaf and straw; potato heoks, pi'cbforks, &e.; pottery ware of all descriptions; pumps, garden engines and hydraulic rams; rock and root d ggers and excavators; root beer and other amal! beer; sail; school. room seats, desks, globes, black boards, &c. ; sleas, wt barrows and handearts; soap, common brown, in bars, sold for less than seven cents per pound ; saws for cotton gins, when used by the maker in the manufacture of gins; goles and heel taps, when made of india rubber or india rubber and other materials; shirt fronts or bosoms, wristbands or cufts, except those made of paper; spiral springs used in the manufacture of furniture; stove lish; steel of all descriptions; scythes: straw or ‘nders’ board, and binders’ cloth and straw wrapping paper; tags for merchandise and direction, of cloth, paper or metal, whether blank or printed; thimble skeins and pipe boxes, made of iron; tin ware, for do- mestic and culinary purposes; ultramarine blue; var. nish; wagons, carts and drays, made to be used for ing, freightng or lumber purposes; washing, mangling and clothes wringing machines; zinc washboards, spin- ning and flax wheels, hand reels, hand looms, wooden knobs and beehives. THE NEW LAW IN RELATION TO INCOMES, The most Important changes made by the act of March 2, 1867, were those in relalion to the tax on yearly in- comes, and by which the amount exempted was raised from $600 to $1,000, and the tax reduced from ten to five per cent, In assessing on incomes over a thousand doliars provision has been made to exempt house rent, shares in the gains and protiy of al) public companies, and income received from institutions or corpdtations, whose officers, as required by law, withhold a per centum of the dividends made by such institutions, and pay the same to the officer authorized to receive it; that portion of the salary or pay received for services in tho civil, military, naval or other service of the United States, including Senators, Representatives and delegates in Congress, from which the tax has been deducted, And in addition to $1,000 exempt, ail national, State, county and municipal taxes paid within the year are to be deducted from the gains, profits or income of the per- son who has actually paid the same, Allowance is also made for certain losses, for payments of labor and for ordinary repairs; but as regards the latter no deduction will be made for any amount paid out for new buildings, permanent improvements or betterments made to in- crease the value of any property or estate, The taxes on incomes for the future will be levied on the Ist day of March, and be due and payable on tho 30th day of April in each year untiland including the year 1870, and no longer. The other changes relate chiefly to the du- ties of assessors and other officials, bank dividends, time for payments, &€., and are not of any general import- ance. ‘Tne law as regards the distillation of spirits and tho tax payable thercon has been but slightly changed, the main features of the original bill being tho same that a this branch of the service under the existing aw. THF FIRST CHIEF OFFICERS. The first commissioner appointed under the Internal Revenue law was the Hon. George S. Boutwell, of Mas- sachusette, C. F. Estee, of this ctty, acting as his de- puty. These two gentlemen entered on their duties with a full knowledge of the responsibility attaching to th¥ir position, the immense amount of work before them, the obstacles to overcome, and the difficulty of organizing over a vast extent of territory a system which was to put In practical operanon laws. unknown before, and with the operations or even the provisions of which the great bulk of the people were totally unac- jaainted. To in part, is due the admirable system ot forms and details, which have uired but little change stuce — originated them, have only been essentially modified when absolutely to meet the changes of the law itself. Mr. Boutwoll was suc- ceeded by Hon. Joseph Lowis, of Pennsyivania, an ox- perienced and discriminating gentioman. He heid the office until 1865, when he was sucoveded by William Or- ton, of this city, who broaght to the position an ex- Pperienced mind of great business capacity, and who was je ny familiar with the practical operation of the system. le, however, ed in a few months, and was succeeded by Hon. A. Rollins, of New Hamp- shire, the present encumbent, who was the deputy com- missioner under Judge Lewis, and is an efficient and accomplished officer. The present deputy is. the Hon, D, ©, Whitman, who has had long experienco in the de- partment, and who, in the absence of the chief commis- sioner, is vested with all duties of the latter, The following constitute the class of officers charged with the superintendence of the assessment and collec- tion of the internal revenue:—The Commissioner and Depaty Commissioner, the Cashier, the Assessor and his assistants, the Collector and such deputies as he may see fit to appoint, responsibie immediately to him, with their remuneration fixed and paid by him; ten revenue agents appointed by the Secretary of the frea- sury and acting as tho police of the law, and charged with tts enforcement in the several districts, and also sach numbers of inspectors in each collection disirict asthe Secretary of the Treasury may deem neceszary, who are charged with the goneral enforcement of the law and the detection of frauds, For the inspection of dis- ulled eer and tobacco and cigars there are appointed ‘n the districts, when necessary, a corps of inspectors, whose duties are of a varied nature, RECEWTS PROM THE REVRNUR TAR, In the organization of the revenue system throughout the country the people gave every facility to the officials, no impediments were thrown in their way and the citi- zens voluntarily came forward with their proper retarns, made out honestly and trathfully, and in a manner that im the early days of the system it would be vory dim™_- cult for the authorities to enforce, were the people dis- posed to the contrary, The result was that in the first ten months of the operation of the original law of 1862, as amended in ne it realized for the L less than $40,000, it ap. pears by the returns of the Treasury for the fiscal year ending June 30, 1846, that the receipts wero actually im excess of $311,000.000. And this vast revenue has realized with but little embarrassment to the industrial Pursuits of the country; the peoplo have cheerfully re- sponded to this unprecedented burden upon their resources, and {ts success a8 a financial measure has 6x- wites the astonistmont and admiration of foreign jons, RECEIPTS FROM INCOME TAX. The internal revenue tax upon incomes was imposed by the act of 1862, and,with various cl ‘and moditi- its present form. is one of tne nt sources of rev , having prodaced in the year ending June 30, 1863 including actual coi. lections for ten months), $455,741; im the following Year, $14,919,279 (together with $28,929,312 imposed under the joint resolution of July 4, 1864), while in the fiscal year ending June 90, 1865, it produced, as esti- mated, something over $58,000,000, ORIGIN OF THE INCOME TAX, This system of taxation claims as its first parent Wil. Kam Pitt, the famous English statesman, who, in 1797, in order to moet a desperate emergency in the British finances arising from the enormous expense of subsidiz- ing continental Europe in the stra of “legitimacy’’ and monarchial conservatiam with the overpowering shadow of French republicanism, after exhausting every conceivable subject of assessment, devised the pian of Jovy ing & tax upon the ‘assessed value of houses, win- dows, &c,” under the name of “the assessed taxes bill,®’ | For conceiving sach an idea the minister was mobbed in the streets of London. In the year following its enactment, it being found that “the assesmed taxes bill” only realized one-half of what was originally con- templated, the name of the system was changed and Its basis Modified, and it was introduced into Parliamentas " .'’ The objectior the former bil were, that, inthe feet piace, it as taaea upon jon Of expenititure (income) founded upon the taxes; and, secondly, that the expenditure was a& one. The new bill obviated there object! in itt by providing that the statement of income should proceed from the person himeelf, and the assessment be made upon such Statement ag, under the system adopted hore, the com- missioner (assessor) having the power in certain cass to make arbitrary assesementa, This bill was also op many grounds [ts enforcement, it was raid, would wentually drain the resources of the nation. men of the aristocratic party, ‘What the bill Tar piper Baiegd te uncial a a to convenient and unjust disclesures cially in the case of mercantile oe Sere This bill 5 modifications continued 1816, when an attempt to retain even one-balf the tax was cried down, and the principle became established that an income tax wasa war tax, and could only be Justified by the existence of pecessit or, Mr. Sree sonra, te sxmanny ia mee = oa tet wo }, makes every joel womerenae “her faichf eubjecte” thes ie incoue tad Ter tbe coming Peet win bog Tednoed to one-half penny or a penny in the pound. INTRODUCTION OF THE REVENUB LAW TO NEW YORK CITY. When the Jaw was first introduced in thia city it was feared that public discontent would. find expression in some violent movement, and that its officers would meet with the ca‘ne reception as did their predecessors in 97, but in this there was a grave misiake timate of the patriotic fe of our was passed. Orders arrived from Wash- ington, Officials were appointed by governmont, and New York acquiesced im the new régime, and submitted with implicit obedience to the requirements of the first Internal Revenue law of the United States, Undoubt- edly many of the clauses of the act were embarrassing and burdensome, but the people waited for tho good time to make amends, The section re- quiring tax on incomes over $600 was @ great hardship, as it fell heaviest on a class of people who could but iil afford to pay ten or twenty doliars out of their scanty earnings, A great difficulty it must be ad- mitted was encountered in collecting this tax, as the great majority of the proprietors of small incomes were utterly ignorant of the law and its details, and, believing that “* where 1gmorance is bliss ’tis folly to be wise,” did not go to any especial pains to study the financial laws of the United States, But this is changed now, and tax is only levied on incomes over one thousand dollars per year, exempting also house sent, &o,, ag detailed in Gnother Column, xiii cn kh a Te ? Under the act of 1862 each Congressional district was made a collection district, and, therefore, the city of New York included the Fourth, Fifth, Sixth, Seventh Eighth and Ninth; but the Foarth district being an un- Beaally jarge an« extensive one was apportioned and a new district created. There being in all thirty-one Con- gressional districts in the State of New York, the now one was called the Thirty-second, which, as regards manufactures and commercial transactions ia about the most :mportant in this city. Its chief collection office is at No. — Cedar street, and Mr. Sheridan Shook, an efficient and experienced otticer, is the collector, fhe appointments in 1862 were as follows:— COLLECTOR. -Jobn Mack.. -Steinbrenner. . Cleveland, a with the exception of Mr. Steinbrenner, of the Fifth District, who, for po- litical reasons, was relieved, and sueceeded by Mr, Brew- er, and Charles Bellowes, of the Seventh, whos position is now filled by Mr. David Miller. Among the collectors there has been greater changing. In the Fourth Dis- trict Mr. Mack was succeeded by J. F. Bailey. In the Sixth M. B, Fields fills the place of Mr. Orton. In the Seventh Mr. Boardman superseded Mr. Blake, but his nomination not being confirmed, he was rejected by the Senate, Mr, Biake was renominated, confirmed, and re- appointed nominated to bis (ormer office. 1p the Kighth Major L. Harris was nominated to succeed Mr, Pataam, but his nomination was also rejected and Thomas Ff. Smith the present incumbent received the nomination which was confirmed by the Senate. The next change was inthe Ninth Pistrict, Mr, Ketcham was removed and General Thomas Crane received the nomi- nation, but, on rejection by the Senate, Thomas O'Callaghan was nominated, confirmed and appointed These oificers all bear testimony to the manner in which the tax was received in this city, and state that collections and assessments went on as if the system had been one of the oldest institutions in the country. In one respect ont} do they hear ee ee, to discontent and dissatistaction, and that was the objection that respect- able merchants and private gitizens have to +7 THe POGLICATION OF INCOME RETURNS, In the first days of the law in this city the pssqrsors objected to allowing any persdus to seé the inéome fe turns, deeming them made truthful only under the ex- pectation that they were to bo kept strictly secret. ‘This arrangement, however, was upset by the engincer- ing of a person in this city, who procured a letter from the Commissioner at Washington to the Assessor of the Eighth district, ordering him to give the individual in qnestion free access to the books, and trom this arose the practice of publishing incomes—a practice as inj:ri- ous to the revenue of the country as it is annoving to private citizens—narassing to one class of traders and totally ruinous to another. Inthe very words used by the people of Engiand on the self same subject nearly acen- tury ago, “It led to inconvenient and unjust disclosures of property, especially in the case of mercantile men, and involved’ gross inequalities.” The very same words point the moral to the case to-day. And to prove it instances can be adduced in this very ety where the re- sult has been embarrassing, in some cases ruinous. Some men of good business capacities, active sharp and strict- ly honest and honorable in their dealings may on the on the strength of this reputation and their known qualities, procure credit and stock, from which. in the course of time, a fortune may be developed. An oppo- nent in trade visite the assessor’s office, and finds out that their income for last ‘was but a thousand dol- lars, or probably less, This is published to creditors who become uneasy, to customers who will not believe {nm such a poor firm; sales are ended, credit is stopped, and ruin sweeps away the foundation of what may have ‘been yet one of the richest houses in our midst, Again, just take the exactly opposite view, and we finda case in point where, in Cincinnati, a year or so ago, on the returns made public, appeared the namo of a dry good: house, consisting of two partners, each of whom were Tepresented as haviag made $160,000 profit the previous year and paid taxon it Of course their credit ran up, and they availed themselves largely of it, and in less than two monthe after they swore bankrapt for 000, and their were nowhere. Many in this city to- day retura4incomes much larger than. the reality, pay a tax they cannot afford, and which burde weichs thom down from day to-day. Another vier A merchant of immense capital may, for sundry private reasons, spend on his trade a large sum of money, enough to absorb his year’s profite He may do it to imerease bis trade, to advertise it or push it through a new district; or he may try to put down an oj fon and sell at # loss. Tho result is that the house derives future benefit from this course of action, but his revenue for tne vear ap- pears on the books as naught. He cannot or will not explain to the public the cause, and the result is, it is whispered around his trade is going to the dogs, his credit is mjured, and for months after he will be groatly embarrassed, Morchants and others may also invest money in private speculations from which they expect to derive a large mcoms, and this income is the premi- um of their ability, shrewdness and clear headednes:; and hero again the labor of tho mind is depreciated in value, for their dealings have to be laid bare before others too stupid to invent, but quick enough to follow, who rusb in and tower the value of the scheme. Publication ot the returns is a pronmrium to wnfair deal- ing and injures the very object which it was intended to ptomote, The legitimate merchant, the honest store- keeper, the true patriotic citizen who derives bata small income from his trade makes a fair return to the ern- meat and pays his tax on it, whiie the “tag shyster’’ may make bis $15,000 m ono day on the s dewalk in Wail street, The gambler, with his rincs, diamonds and fast horses stratuing Broadway in his brilliancy, may do the same, and opposite his name on the returns ap- pear the words, “Income none.”’ Then why not keep Private che names and amounts of (hose who do return incomes, and publish only those well known characters who write after their names the cheap and significant word ‘‘none,’* ANALYS8 OF IxCOWES, In looking over the returns which have been pablished in the Hexano within the last few weeks, it will be notice? that many of the hitherto large incomes have come down considerably this year—that is the year end- ing 31st Decomber, 1866. In somo instances gentlemen whose returns for last year exceeded two hundred thou- 1, for this year fall far short of one hundred thousand ; and many who figured previously for a hyndred thousand, or clove on it, appear this year midways between thirty thousand and ‘fifty thousand. On the whole the large incomes are the only ones that have been affected whilst the common wealth of the district appears nearty the same as before. Inthe first division o: the Eighth district—the wealthiest in the city—the amount received from tax on incomes at ton per cent was $827,120 for last year, and for this year, at only five per cent, $461,- 114, In the Eleventh, the smailest division of the same district, the figures are, 1966 per cent), $291,277; 1867 (five per cent), $175,084. These fizures show that the amount received for the two re making allowance tor the change of rate ol has been nearly the same, In the first division of the Eighth district twenty persone returned over fiity thousand dollars and under ‘one hundred thousand, five returned over one hundrod thousand; two over two handred thousand and one over three hundred thousand. The thirteenth division of the same district gives fifteen over J thousand dollars, one over two hi dred thousand for the year ending December, 1863— that is in the returns for 1867, The fifteenth and six- teenth divisions boast of a solitary income over fifty thousand, and the same over one hundred thourand. Two other divisions sond in three over fifty thousand, and the remainder in this district have not been yet pubitshed, The Thirty-second district sends in one representa- tive for fifty thousand and the Fifth district five for the same amount. There are not, certainly, as many large incomes on the list this yoar as last, but the Wirs Of all branches of the Internal Revenue iment that relating to the tax on distilled spirits is the most amy jh in its effects and from the immenso yaluo of revenue that should be derived from it. A duty of bend ed gallon is on all dis- wer spirite manufactured Dope 3S bane say is is ve heavy; much 80: from iret all the meats fis ingenuity and ‘clever plone: Ti could devise have been resorted to in order to evade the Secret and illicit distilleries were brought ae pene es Sears wore nate te Reerecee pm pt ay igs pe oan eet a tor's name other appearances iy | ‘wore imitated and liberally used; an wos nome sat moved and transported country and sold it in the market as turpentine. A chemical process sepa~ rated the two liquids, and it was thas that ine number of cases government was defrauded of the tax. Other plans, too ntmerous to detail in this: were pdopeea aes ly, to evade this tax. large force inspectors was ated, numbers of with the ia New York market conte the tax pad. thts can be ert: and fi cattle, The in this key 20! Southern Of tracing manufactared in the city is closely watched by an eflicient corps, consisting of commissioner (Colonel Messmore), collertors, inspectors and special agents, who enforce strict compliance with the law, if possible; and who, on the slightest suspicion of unfair dealing, seize and close up the suspected distillery. The iirst seizure of illicit whiskey made in this city was by Deputy Collector’ Marshall, in July, 1862, under order of Collector Shook, from whom at that period he received commission detailing bim for that special duty, From that time up to the present seizures of whiskey and distillones bave been the order of the car In this city alone no fewer than two hundred establish. ments have been seized within the past six months, and in one d strict alone—the Kizhth—Collector Smith about eight weeks ago “pulled” twenty of those establisumeuts im three days, ae os THE LAW IGNORED BY OFFICIALS. The greater number of the distilleries seized in the Eighth district (as before ed) are again working, but before doiwg so the collector obliged them to flo new bonds and take out license, This action on the part of the collector was sey Wise aod necessary, as he had dis- covered that many of the distilleries had been hitherto pursuing their business without any bond whatever, and with the coolest digregard of the Jaw, which gays that “every person who is, oF who intends io be, a disti!- lor, must give Motice over bis own signature, to the Assessor of the diatrics in mbich such business is rr) & on, who will forthwith furnish a copy tendst Bs tee coltecbor? dike: sotice: ar any ‘change in the location, form, capacity, ownersbup, agency, or squbriotendcnce of sachs diettione eliellen on Giher implements, is to be given within twenty-four hours after such change. Every distiller must ‘gi Collectors will give especial attention to the instructions printed thereon, as to the manner of the execution of the bond, Bonds under the old law will not sufilce.’? Yet, notwithstanding the force and explicitness of this clause, distillers in New York city have been allowed to run their distilleries without even putting in an ap- pearance or a semblance of compliance with the law, WORTHLESS BUNDS, PERSONATION AND PERJURY, To go further to prove the spirit with which some men embark m this trade it may be well here to slate that in the Eighth district, of those who had complied, appar- ently, With tue law, the eificient collector ascertained that the bonds given by some of them were utterly worthless—not worth the paper on which they were write! Many of the sureties were irresponsible, and, in a few instances, bankrapt parties; and, still worse, it was found out that tho games of personation and per- jory had been played to some effect. Men came forward as sureties under the name of some rich gentieman, and in the collector's office deliberately swore they were the parties represented, and itis not more than two or three weeks since a would-be bondsman went to Collector Smith’s office, stated he owned certain proporty, specified by him, in the Ki bth district, and was prepared avd ready to swear, as re- quired, to the truthfulness of bis statements, wnen he (Was, to his surprise, informed that inquiries had been ‘made about his property, and that the true owner the day before stated that any assertion of ownership by any other party was a lie, and aa oath to thateifect a perjury. Of course the jittle game was spoiled, but the case will go far to prove the enormous frauds practised on the internal revenue through the illicit distiliation of spirits, THR GRIRVANCRS OF LRGITAIATE DISTILLERS. Fair and principled distillers have but avery poor show iu the market or elsewvere—illicit whiskey under- sells them and beats them at every point. They aro, of course, subject to the same annoyance and suspicion as the guilty parties. Many of them who have lad out thousands, in some cases hundreds of thousands 0 dol- lors, on their establishments, would to-day cheerfully withdraw from the trade could they only get back a por- tion of the capital invested, and thengthey would be free from suspicion and from the visitations and importuni- tigs of thom nyitut Soe ‘ poe pporrERs.”? “The gentlomen distinguished by this appellation are an offshoot of the tribe called loafers and corner bummers, ‘They have no trade nor occupation, but hang around the neighborhood of the collectors’ and assessors’ offices, and ‘lay’? for distillers and others engaged in the trade who may have occasion to visit the oflice to pay licenses or transact other business, When he comes out and turns homeward ho 18 doxged by the ‘spotter,’ who, finding his place ot business, watches it for a day or 80, and on the first chance give: rivate”” information to the collector, which in nine cases out of ten invariably turns out to be false. If by any cl @ the information wero correct and the whiskey were seized, the informer would rece half the amount over the tax realized by the sate of the samo. ‘Tho “spotter” sometimes aends @ note to the distiller, stating ‘that he knows something,” and would have’ no objection to his “‘see- ing” him," These men are great nuisances and annoy- ances, They have no official connection whatever, recognized or otherwise, with the service, and may most properly be regarded as the birds of prey of the Rove- nue Department. MISCELLANEOUS REMARKS. That the frauds perpetrated in this special branch of this department are numerous and gigautic is well kaown, and calls for immediate legisiation; for it is the opinion of experienced men that so long as the tax on whiskey is as high us two dollars per gallon efforis will be made to evade the payment, It is stated by some that the next Congress may reduce the tax to tifty cents, fa 80, far C- gue y would be sed ae ue the present system, an le raise its head and an POR fould = ‘be bel — ‘that in the Eighth diswiet, one moet important as regards distilling in this city, during a certain pees. (prior to the accession to office of the present collector), covering ths, not a single penny was collected from the and in the next two months the newly ap- por lector received into bis office over ele dred bog ‘el looks very pe am buersct Fa iaavion from the proper m solve hi ry. Tho New" York Tharket is stocked with ey, and yet there are but forty distilleries in ope- ration im the whole city, their combined capacity being unable to produce more than twenty-four thousand gal- Jons per day, Whatever effect heavy taxation may have on a people moraily may be a mater for discussion; but one thing certain and indisputable is that tbe system has been well organized in the country, and the people have re- plied to the call made on tueir purses cheerfully and willingly, and in @ manner 80 prompt as to cause the surprise and command the admiration of even the bit- terest enemies of the United states, Assessments for 1866 and 1867 inthe Thirty- second District—Manufactures and Special ‘Taxes. Below will be found the return of taxes for the year ending May 1, 1867, on manufactures and productions, and on the receipts of banking, imsurance, express and other companies, together with the income tax, &e., compiled from the monthly and annual Jists in the office of Mr. 5. P. Giivert, internal revenue assessor for the Thirty-second district, of whieh Mr. Sheridan Shook is collector, This collection district is the most important and wealthy in the United States, comprising tno First, Second and Fourth wards of this city, and the returns of tax made here are larger than those of any other district in this State or in the Union. It wall be noticed in the comparative table of returns for 1865-66 and for 1866-67 that the gross amount for the latter year is nearly $1,000,000 less than that of the year preceding. This dic crepancy is to be mainly accounted for from the follow- img fack:—The recurns for 1865-66 were based on the amount of sales made daring the previous year; while, owing to a change made in the revenne law by the Con- gress of 1866, a uniform rule of levying the tax was Subsequently adopted, and is the one by which the de- partment is now governed, A wholesale dealer now 8, for instance, a license fee of $50 per annum on ali wile made dering the year, provided they amount in to lees than $50,000; if over that sam tax is $1 for every $1,000 of the excess, monthly returns of sales being made to the as*essor. The indications are that the gross returns for the coming year, 1867-68, will be still smailer than those of its immediate if, as the spring business has been very backward, and the state of feeling in financial and commercial circles is of that unsettled and unsatisfactory character that prevents the “pushing” of traae and business enterprises to the extent that would otherwise be, as it was in ante bellum times, so marked a characteristic of this great metrop- olis. Sosa cate meen Set com} 2 ny fot untmn Nant monetary statement that will be eagerly aed those who are in matters of Rance :— MANUPACTORES AND PRODUCTIONS FOR TIE YEAR RNDING anit. 30, 1867. Tax. er manufac. turo of all de- Tas. Brushes. Boots and Far clothi Bullion gol silver in lum pa Quicksilver. vs... 396 Sails, vents, “awa ings... Hilbting: 5 Passporta... Unassessed penalties. Legacies and succession cere co nk profits not divided. f Bank cirvulation, , 76 anal companies’ 43,823, Insurance companies’ dividends,. 111,534 RECEIPTS PROM EXPRESS COMPANIES, APAMS, AMERICAN, 1866, Amt. returned, Taz. Amt. returned, | Tax, May.. $325,801 $9,774 $258,810 $7,764 June... 4 282,685 8,450 164 9,255 8,784 148 7,287 8,390 174,355 5,230 7.986 147,820 4,434 8,810 100,517 3,015 ned. 196,552 5,896 UNITED STATES EXPRESS, WELLS, FARGO AND CO. 1866, Am't returned, Tan, Am’t Taz, May $11,005 $69,525 $2,085 130,194 3,905 11,429 3.242 73,174 2.195 T3413 2,202 3534 2.806 85,270 2,558 66,489 1, 76,910 2.307 68,925 2, 3.966 198,905, 5,967 stace route from Nov,, 1866, to Feb., 1867....... 309,627 9,607 HARNDEN’R, NATIONAL, 1866. Amt. returned, | Tar, Amt. returned. Tax, $1,542 $23,931 $307 4,519 26,628 198 1,617 28,985 863 1,587 877 1,799 886 2,126 827 2,002 14 December ... 70,549 2,116 25,215 736 1867. 22,340 670 22.858 635 27.168 815 24,530 7 KINSLEY’S, Amt. returned. Taz. $12,214 3368 10,483 314 8,li4 244 10,342 310 12,095 362 13,307 AOL 9,611 258 7,735 232 Panuary..... 17,355 520 5,690 170 February. ... 16,483 494 6,216 186 16,833 504 7,172 215 y + Not yet retarned. 8,108 243 MONTSLY AND ANNUAL LISTS, YEAR ENDING APRIL 30, 1867— COMPARATIVE TABLE, : 865-66, 1866-67, May sees $658,278 $956,204 1,384,012 1,034,422 659,046 792.749 689,922 700,780 613,772 950,698 692,914 995,248 673,930 597,754 1,219,883 738,465 645,298 550,25) 696,818 639,773, 912,632 539,788 813,829 687,4 878,690 406, Total. .....++5 ++ $10,336,527 $9,489,072 RECEIPTS OF INSURANCE COMPANIES FOR THE YEAR ENDING $24,702 542.717 230,763 70,345 316,706 97,203 91,928 226 147,182 153,699 63,363 90,754 . 388 235,982 862,403, 811,673 td pnp 539 120.615 121,597 Hope (eleven months 177,628 Importers and Traders’ 77,422 Lonilard. 701,268 Security, 1,304,130 Internat: 262,200 Mercantile, $1,707 Washington 348,104 Citizens 287,371 Broadway .. 95,331 Howard... 168,583 Grocers’ ws 59,718 59,679 2,458,41 68, 162,218 74,51 134,753, 128,651 95,186, Market (eleven months). 277,067 Relief (eleven months 14,028 Commercial (eleven mon' 94,847 Avantic Matuai (eleven months), ++ 6,954,911 ‘St. Mark’s (eleven months). 114,793, United States (eleven months). 59.9 Commercial (cleven months) 41,317 Eagle (eleven months)... 87,881 221,221 180,438 203,025 70,523 Exchange (eleven months 95, 230 Central Park (eleven mont 32,40 Crinton niieleven months). 91,505 ina, of New York (eleven months). 107.740 Royal, or London (eleven montha) 162,387 New York Equitable (oteven months) 91,130 New Amsterdam (ten months) 120,018 Contitiental (tea months)... 633, Merchant’ (ten months). 48,1 Great Weetern Marine (ten months) . 1,219,989 Orient Mutual (ten months)... 609,907 Mercantile Mutual (ten months), ++ 1,076,738 San Mutual (ten months), 1,946,211 Hanover (ten months) 308,614 Gallatin (eight montha)... 12,552 Guartian (eight montts). 474 Metropolitan (eight months). .. Niagara (nine month: Harmony (seven moat Tebneco Factories Seized in Brooklyn. Inspector Isaac Harvey yesterday seized two tobacco manufactories in Brooklyn—one belonging to Julius Glogau, located at No. 83 Bergen street, and the other, the property of Mr, in High street, near Jay. The first snetisboctt baths only been in operation nine days. The pas in High street was seized im April but owing to the xy of the Internal Revenue Department the proprietor was allowed to retain the machinery. Shortly afterwards he again commenced manufacturing at No. 83 Bergen street, and subsequently sold out his establishment to Glogau, the present owner, returned to High street and continued pm Bonar alleged. to be the man won th eaeecacnt ie ise entries of tobacco manufactared, with tatent tovdetrand the govern- ment of the tax due on the product of the factories. The amount of seized in Glogau’s establishment is valued at about $1,000; that in the other factory at s*. nigga bp Nang is bog for confiscation, @ cases will undergo immed! Investigation before the United States courts, A RAILROAD WAR, Long Isinnd Railroad Company Against the South Side Railroad Company—A Conflict Intereste—The Police Called to Preserv: Public Peace. A difficulty between the Long Island and Flasbing railroad corporations, at Hunter's Point, culminated on Friday in a temporary difficulty, The facts appear from the several statements to be as follows:—The Flushing Raiiroad recently leased certain premises adjacent to those of the Long Istand Company, for the purpose of etractt reon a depot for’ thi y THE COURTS. UNITED STATES CIRCUIT COURT, Before Judge Shipman. ‘The United States vs, B. F. Oakie.—The defendant te charged with embezzling letters from the Post Office. He was yesterday morning arraigned and pleaded not guilty, On motion of his counsel the case was allowed. to stand over for the term, BANKAUPT COURT. The petitions of the following named persons were yesterday filed in the -office of Chief Clerk Wilmarth:— Poter D, Taylor, Newburg, Orange county; Jos. Rosen- bergh and Albert Hartman, New York city; James W. Stone and Elisha ©, , New York, UNITED STATES Ol IGT _GOURT—KINGS COUNTY. A Triangular Collision Case. Before Judge Benedict. Joshua Atiins, et al, vs, the ship Helen R, Cooper and the steamboat R. L. Mabey.—The \jbellants are she owners of the ship Isaac F, Chapman and allege that on, the 17th of February, 1866, she was lying moored on the easterly side of pier 45, East river, when the ship Helen R. Cooper, in tow of the steamer R, L, Mabey, came down, the river and ran violently into the side of the Chapman, cutting ber down to the water’s edge through the side and doing ber to the extent of about $18,500, The Helen R, Cooper alleges that she was lying at Shinbone wharf, next the Navy Yard, Brook- lyn, with her head up the pier: that the river was filled with floating ice, or partially filed, and that she took aboard a competent Sandy Hook pilgt and was carefully managed, but that the collision was the result of an ac- cident, The R, L. Mabey answers that she was subject to the orders of the owner of the Cooper in going to soa; that she obeyed all tbe orders of the pilot and master of the ship Cooper; that she used her best endeavors to save @ coliision, and claims that she can in no wise be held re- sponsible for the collision, It appears from the evidence that the steamboat put the pilot and crew aboard of the Cooper about noon; that by direction of the pilot a hawaer was fastened fo the port bow of the ship, rum along the decks to the port quarter and there attached by a stop-line; that the tu took the hawser from the chock near the stop, and pull the ship out from the wharf; that when fairly out from the wharf the stop was cut, the ship swung down with the ebb tide, which was then running strong, so that the steamboat commenced to tow the ship up the stream with a hawser of two hundred feet in lengih, and that both vessels then swung around so as to get headed down the river. Just at this time a ferryboat came across the bow of the tug, which compciied her to stop just in time to save a collision with her, by a space of only ten or fifteen feet. The ebb tide was at this time setting over from Shinbone Stores to pier 45, carrying a large floe of ice with it, The stopping of ‘the tug slackened the hawsor, and the ship sheered suddenly off with the tide and the ice to- wards pier 45. Both anchors of the Cooper were dropped by the pilot, but the rocky bottom of the river pre- vented their bringing the ship up, and she ran into the Chapman before her headway could be checked. ‘The trial has occupied two davs, and was adjourned to some future day for the argument of the points raised by the counsel. Benedict, Yracy & Benedict for the hbeliants; Emerson & Goodrich tor the R, L. Mabey; Beebe, Dean & Donahue for the Helen R, Cooper. cae Sous fe SURROGATE’S. COURT—KINGS COUNTY. The Wynns-Vinton Case—Wills Admitted. Before Surrogate Veeder. Charlotte A, Wynns vs, Francis Vin'on.—Tho decision in the question as to whether or not the Surrogate has the right to reopen the accounts of Rev, Dr. Vinton, previously passed upon by Surrogates for ten years past, was to have been rendered yesterday, Surrogate Veeder announced, however, that he has not had suffi- cient time toexamine the matter, but that he would render a decision on Saturday next. During the week past the wills of the following named. parties, deceaved, were admitted to probate:— John Bater, George Rollinson, William Butcher, Caro- ine Stall and Margaret McGeorge, of the city of Brook- lyn, and Patrick Murphy, of the town of New Lotts. Letters of administration were also granted on the es- tates of the foliowing named deceased persons:— Charles Sharp, James R. Arson, Alexander Gouriay, William Wilkinson, Joba Gallagher and Mary A. Connor, all of Brooklyn, COURT OF APPEALS CALENDAR. ABasy, June 16, a The following is the day calendar of the Coart is for the 17th; of Jone:—Nos. 129, 1293¢, 130, 188, 139, 140, 141, 142, 144, 145, 146, 147 and 148, POLICE INTELLIGENCE. Tur Boxpep Warenovse BurcLany.—The examination in the case of John Burns and Thomas Davis, charged with burglary in breaking into the bonded warehouse Nos, 393, 395 and 897 Greenwich street, and stealing therefrom $11,000 worth of silks and velvets, as already fully reported in the HexaLp, was yesterday commenced before Alderman Coman, at the ‘Tombs, Mr, Samuel A. Smith, one of the proprietors of the bonded warehouse, testified as to the commission of the burglary and lar. ceny. Tesiimony was aiso taken with the view of showing that the goods recovered are a portion of. those stolen from the bonded warchouse on the night of the borglary. Pronire Farley gave evidence as to the recovery of the goods in the a recently hired by the prisoner Burns from Sames Keily, at 429 Second avenue. The goods were found in two trunks secreted under the bed of the prisoner Burns, After a rigid cross-examination of one of the witnesses as to the identity of the goods, Mr. Spencer, counsel for Davts, renewed the motion pre- viously made for his discharge, In his extended re- marks the counsel contended that there was nota par- ticle of evidence on which to hold Davis, and reflected severely upon the police departm nt for his arrest aud subsequent incarceration When there was no testimony to warrant them in asseming such a responsibility. The prisoner, continved the counsel, may be a man of bad character, but this fact alone was not sufficient to de- prive bim ot his liberty; that a citizen cannot be de- prived of his liberty without due process of law, Alder- man Coman denied the motion, alter which the further investigation of the case wes adjourned till ten o'clock to-morrow (Monday) morning. In the meantime the prisoners remain in the Tombs, Ronnep by Hrs Roowmate.—Mayer J. Jacoboski and Davis Marks occupied a room together at No, 96 Baxter street. Early on Friday morning Jacoboski, as charged, stole from his companion's vest pocket $130 in Treasury Hotes, but subsequently replaced $29 of the money, together with some scraps af newspaper, 80 as to make the bulk about the size of the original package of the bills. Jacoboski then made his escape, and purchased a steerage passenger ticket for Europe in the steamer City of Paris, Marks made known his loss to officer Riker, of tne Sixth precinct, and search being made for Jacoboski, he was arrested on board the steam- er just before the time of calling. After his arrest the prisoner confessed to Marcus Solomon, 92 Bayard street, that be took the money from Marks, and expressed a desire to return it to him, In possesston of the accused was found the remainder of the money which had not been expended for t ticket, Alderman Coman committe dthe acct the Tombs for trial, Jaco- boski is forty-five years of age anda native of Poland. Attecep Faise Prereyces.—Dudley Nichols, of Balti more, Maryland, appeared before Justice Dodge yester- day, and entered a complaint against William Napier, of Tennessee, The complaint sets forth that on or about the Ist of January the accused visited the establishment of Mendenhall & Co., Baltimore, and obtained goods to the amount of $3,300, for which he gave notes in pay- ment maturing im April and May, These notes, it ir ale leged, have never been met, and the complainant, who te a member of the firm in question, ‘eontiog informa ton that the accused was about sailing for haw caused bis arrest upon the charge of false and fraudulent Fepresentations, by which tho establishment was do- frauded out of its property. The accused states he was born in Scotland, but fives in Tennessee, The Justice required him to find bail in the sum of $6,000 to answer the charge. The required bail was found and the gentle- man set at liberty. A Worrutrss Cunck.—George W. Holt, No, 489 Broad- way, caused the arrest of Henry M. House, whom he charges with obtaining money under false pretences, The complainant alleges that he lent the accused the sam of sixty dollars on a check for two hundred and ten dollars on the Park Bauk, and that he cailed at the bank and there ascertained that the order was valucloss, The case came up before Justice Dodge yesterday, who committed the accused for trial, ALLEGED Lanceyy ny 4 Lavyoness.—Yesterday morn- ing Catharine Burns was brought before Justice Dodge, at the Jefferson Market Police Court, charged with having stolen a quantity of lady's wearing apparel, valued at five bundred dollars, from Henrietia Cilley, No pd Broadway. AN Atusanp Receiver.—An cxamination was held yesterday before Justice Dodge in the case of Lewis Hamberger, who was charged by officer Gillen, of the Fifteenth ipaatiew to being the receiver of stolen in qu of ‘unbleached “mais whice Weis Rioged from the firm of Claflin & Co., by forged order. The accused was held to ae GENERAL GRANT IN WHEELING, the Mj oh ape June 14.) Cay oity, bas been honored General Grant "who with his, family i Dent, have been’ to our neighboring town of jog Ww attend the wodding of Mr. Willi 7 temained but a ehort time, ‘sald ine? much, and talked sensibly, He was to very brief PAY Washington and return te ~ - ‘