same.

who raises tobacco. We may say he sells his on such list in all cases of willful neglect or refusal to ions of a previous section of the act which I land, because if he continues to cultivate to- make and render a list or return, and in all cases of understand has been considered in Committee

a false or fraudulent list or return having been renbacco on the same land from year to year in

of the Whole at a time when I was not present, dered, to add one hundred per cont, as a penalty, to four years the land is worthless unless it is the amount of duty ascertained to be due, the duty but which I understand has been reserved for recuperated by putting on an amount of manure and the additions thereto as penalty to be assessed future consideration.

and collected in the manner provided for in other that would be equal to the value of the land. cases of willful neglect or refusal to render a list or

In both these sections—the fourteenth and Take the case of timber. If a man sells tim- return, or of rendering a false and fraudulent return: the one now under consideration--very vague, ber from his land he often sells off all the value Provided, That any party, in his or her own behalf,

general, and loose language is used, which is oras guardian ortrustee shall be permitted to declare. there is in the land. Now, if we go into this under oath or affirmation, the form and manner of

upon its face susceptible of what strikes me at question we shall be compelled to go much fur- which shall be prescribed by the Commissioner of least as very dangerous constructions. This ther than the gentleman proposes. Therefore

Internal Revenue, that he or she, or his or her ward I think we had better not adopt it. or beneficiary, was not possessed of an income of

paragraph provides that an assistant assessor $1,000, liable to be assessed according to tbe pro

may increase the amount of a list or return, if The amendment was not agreed to.

visions of this act; or may declaro that he or sho he has reason to believe that the amount is un.

has been assessed and paid an income duty elsewhero Mr. DAVIS. I move to add at the end of

derstated. It provides that in case of refusal in tho same year, under authority of the United the paragraph this additional proviso: States, upon his or her income, gains, and profits,

to make a return he may prepare a return ac. Anul provided further. That any gains and profits

as presoribed by law; and if tho assistant assessor cording to the best information he can obtain. of any company, association, or partnership which shall be satisfied of the truth of the declaration shall

It provides that, if he shall come to the conshall be returned and the tax thercon paid before the

thereupon be exempt from income duty in said dissame shall be divided, shall to the amount on which trict; or if the list or return of any party shall have

clusion that a party has rendered a false or been increased by the assistant assessor, such party such tax has been paid be exempt from tax when

fraudulent list or return, he shall have power afterwards divided.

may exhibit bis books and accounts, and be permit- to make a new return for the party. It does

ted to prove and de are, under onth or aflirmation, I was told that that provision was already the amount of annual incoino liable to be assessed; not provide in terms that he shall give any made in the bill. I find that the provision but such oaths and evidence shall not be considered notice or hearing to the party interested in

as conclusive of the facts, and no deductions claimed alluded to does not cover the point I had in

either of these cases; but it does provide that in such cases shall be made or allowed until approved mind at all. The provision in the bill is this: by the assistant assessor. Any person feeling ag. he may go on and impose a penalty, in the one And the share of any person of the gains and profits

grieved by the decision of the assistant assessor in instance of fifty per cent., and in the other of of all companies, whether incorporated or partnersuch cases may appeal to the assessor of the district,

one hundred per cent. It has come within my ship, who would be entitled to the same, if divided,

and his decision thereon, unless revened by the whether divided or otherwise, except the amount of

Commissioner of Internal Revenue, shall be final, personal knowledge that it has been assumed income received from institutions or corporations,

and the form, time, and manner of proceedings shall by assistant assessors that they have power on whose officers, as required by law, withhold a per

be subject to rules and regulations to be prescribed ex parte evidence, without any hearing of the cent. of the dividends mado by such institutions,

by the Commissioner of Internal Revenuo. and pay the same to the Commissioner of Internal Mr. HALE. I move to amend the para

party, to make up a corrected return in lieu of Revenue or other officer authorized to recoive the

what they have been pleased to consider a false graph by inserting after the words - and in

and fraudulent return, and to impose a penalty There are many cases where the corporation case any person, guardian, or trustee shall

for such false and fraudulent return. cannot divide it up. But by this provision the neglect or refuse to make and render such list

The CHAIRMAN. The gentleman's time individual stockholder is required to return or return, or shall render a false or fraudulent

has expired. the uudivided profits of the company or assolist or return, it shall be the duty of the as.

Mr. HALE. For the purpose of concluding sessor or the assistant assessor," the following: ciation, and when he returns that it is consid

what I desire to say, I move to amend the

After notice to the party so neglecting or refusing, ered as a part of his income and taxed, and or making or rendering such false or fraudulent re

amendment by striking out the last word. afterward when the company or association turn, and after a reasonable bearing being afforded Now, sir, I do not believe that such a construcmakes the dividend the company or associato such party.

tion of this paragraph was contemplated by the tion must pay the tax. Now, if we would do The hour of half past four o'clock having | framers of the law." I doubt if that be the fair justice and prevent the payment of the tax | arrived, the Speaker resumed the chair, and

construction of the paragraph as it stands. If twice over, it seems to me the amendment I the House took a recess until half past seven that be the proper construction of the parahave offered should be adopted. o'clock p. m.

graph, I certainly have no doubt that it is in Mr. HOOPER, of Massachusetts. If I un

violation of every principle of law, and it is, I derstand the amendment of the gentleman from

EVENING SESSION.

believe, an unconstitutional provision. I there. New York [Mr. DAVIS] I can see no necessity The House reassembled at half past seven

fore wish that this section and the fourteenth for it. No corporation makes a return; only l o'clock p. m.

section, both upon the same general subject, persons are called upon to make returns. I

TAX BILL.

and both seeking to attain the same general think his amendment would only obstruct the

end, shall be so modified as to provide for a

Mr. GARFIELD moved that the rules be operation of the law, and I hope it will not be adopted. suspended, and that the House resolve itself

proper hearing, and a proper examination,

both in the case where a person neglects to into the Committee of the Whole on the state The amendment of Mr. Davis was rejected. Mr. MORRILL. I move to insert a proof the Union on the special order.

make a return, and where a person is charged

with making a false return, and that in the vision that was omitted by mistake. It is the

The motion was agreed to.

latter case the question may be brought before provision of the present law, with the change || accordingly resolved itself into the Committee

So the rules were suspended; and the House

a competent tribunal which shall have power, to $1,000 from $000. I move to add to the paragraph the following: of the Whole on the state of the Union, (Mr. || according to the Constitution, and according

to settled principles of law, to impose the penDAwes in the chair,) and resumed the considAnd provilell further, That in cases where the sal

alty which the law seeks to impose. ary or other compensation paid to any person in the eration of the special order, being a bill of the

In conformity, therefore, to the suggestions employment or service of the United States shall not IIouse (No. 513) to amend an act entitled exceed the rate of $1,000 per annum, or shall be by "An act to provide internal revenue to sup

which have been made by other members of fees, or uncertain or irregular in the amount or tho

the Committee of the Whole, including some time during which the same shall have accrued or port the Government, to pay interest on the

members of the Committee of Ways and Means, been earned, such salary or other compensation shall public debt, and for other purposes,'' approved

I will, if it be acceptable to the committee, be included in cstimating the annual gains, profits, June 30, 1864, and acts amendatory thereof. or income of the person to whom the samo shall havo

withdraw my amendment, with the understandbeen paid, in such manner as the Commissioner of

The pending question was upon the amendInternal Revenue, under the direction of the Secre- ment of Mr. Hale, to insert after the words | ing that this paragraph shall pass over for fur

ther consideration in connection with the fourtary of tho Treasury, may prescribo.

"and in case any person, guardian, or trustee The amendment was agreed to.

teenth section, which has already been passed. shall neglect or refuse to make and render

I trust that a carefully prepared and proper The Clerk read as follows:

such list or return, or shall render a false or That scetion one hundred and eighteen be amended fraudulent list or return, it shall be the duty | graph and for that, so that the objections which

substitute may be found both for this paraby striking out all after the enacting clauso and in- of the assessor or assistant assessor,” the gerting in lieu thereof the following: that it shall following:

I have pointed out may be obviated. be the duty of all persons of lawful age to make and

The CHAIRMAN. Is there any objection render a list or return, in such form and manner as

After notice to the party so neglecting or refusing, may be prescribed by the Commissioner of Internal or making or rendering such false or fraudulent re

to the understanding that this paragraph shall Rovenue, to the assistant assessor of the district in turn, and after a reasonable hearing being afforded

be reserved for action hereafter? which they reside, of the amount of their incomo, to such party.

Mr. ALLISON. I will not object, if it be gains, and profits, as aforesaid; and all guardians Mr. HALE. I do not propose to urge a understood that it shall be open to amendment and trustecs, or any per on acting in any other fiduciary capacity, shall make and render a list or return,

vote to-night upon the amendment which I with reference only to the points presented by as aforesaid, to the assistant assessor of the district have proposed, after conversation with some the gentleman from New York, (Mr. HalE.] in which such guardian or trustee resides, of the of the members of the Committee of Ways Mr. HALE. I desire that it should be amount of income, gains, and profits of any minor or person for whom they act as guardian or trustee;

and Means; but I wish to call the attention amended purely with reference to the machin• and the assistant assessor shall require every list or of the committee very briefly to what strikes ery of the act-the manner of making returns return to be verified by the oath or affirmation of meas a palpable defect of this paragraph, which and imposing penalties. the party rendering it, and may increase the amount of any list or return, if he has reason to believe that

ought to be remetlied, and toward which the The CHAIRMAN. If there be no objection, the same is understated; and in case any person, amendment I proposed was directed. When such will be the understanding. guardian, or trusteo shall neglect or refuse to make I

proposed this amendment I did not consider There was no objection. and render such list or return, or shall render a false it sufficient to cover the whole case. or fraudulent list or return, it shall be the duty of

I offered The Clerk read as follows: the assessor or the assistant assessor to make such || it merely as pointing in that direction, and That section one hundred and nineteen be amended list, according to the best information he can obtain, with a view of putting it into a proper form by striking out all after the enacting clause and inby the examination of such porson, and his books

hereafter. and accounts, or any other evidence, and to idd fifty

This paragraph as it now stands

serting in liou thereof the following: that the duties

on incomes hercin imposed shall be levied on the 1st per cent, as a penalty to the amount of the duty duc corresponds in many respects with the provis. ll day of May, and be due and payable on or bofore the

ous.

30th day of June, in each year, until and including effect the purpose without having the offensive return which the wealthy man makes, so that the year 1870, and no longer; and to any sum or sums feature. I am desirous of making the laws as the poor man shall not see it, though the burannually duo and unpaid after the 30th of June, as aforesaid, and for ten days after notice and demand efficient as possible without making them odi- den will fall upon him if the rich man does not thereof by the collector, there shall be levied in addi

I believe the feature I am now discuss.

pay.

his full share, then let him say so. But if tion thereto the sum of ten per cent. on the amount

ing is unnecessarily odious. I think my amend. || he is willing that the public, if they go to the of duties unpaid, as a penalty, except from the estates of deceased and insolvent persons.

ment will take away that odious feature. I trouble to have it copied, shall have this record

withdraw the amendment to the amendment. Mr. GARFIELD. With the consent of the

published, then hope he will accept my amend

Mr. HALE. I move to strike out the last ment to his amendment, as it will still leave all committee, I desire to offer an amendment to the previous paragraph.

word, simply to say in response to the gentle- || of his amendment that is valuable, and will

man from Iowa, [Mr. Price,] who thinks no The CHAIRMAN. The Chair hears no

give the public an opportunity to know what is honest man can have any objection to his going on. objection. Mr. GARFIELD. I move to amend. by

affairs being published to the world, it strikes Mr. MORRILL. There are just two poli

me there are two classes of honest men who cies to be adopted in this matter: one is to inserting at the end of line twenty-five hundred and ninety-six the following:

may have objection to the publication in the provide that these lists shall not be published

newspapers of their incomes: the one class in the newspapers; the other is to allow them Provided further, That the list of incomes in the

being those who have large incomes and the to be so published. If the amendment of the office of tho assessor and collector shall be open to the inspection of the public; but neither the assessor other those who have not. [Laughter.]

gentleman from Pennsylvania [Mr. SCOFIELD] nor collector shall furnish such list or any portion Mr. PRICE. I trust the committee will ob- prevails, of course these lists are to be pubthereof for publication, nor permit the same to be copied for publication. serve the argument used for the purpose of lished as they have been hitherto. I think

there have been few instances, when they have Mr. Chairman, one feature of the internal | keeping this information out of the papers.

The first class, those who have large incomes, been heretofore published, that the collector revenue law which has made it very odious

the gentleman says will object to have them or the assessor has been at the trouble and indeed in many parts of the country, and per- | published in the papers. He does not say labor of furnishing a copy of the list. But the haps justly so, is that provision under which

why they will object. We have only his ipse oflicer has permitted the newspaper reporter the business of every man has been dragged dixit. He says the other class who have small to take a copy. I must say that I feel someinto public view through the newspapers. This incomes will object to it; he does not tell us what indifferent in regard to this subject. But has very much disturbed the relations of busiwhy. It is a matter of opinion.

the argument upon the question has not been ness men toward each other. It has subjected

The gentleman from Ohio [Mr. GARFIELD] fully stated. There is no question that the men's affairs to what no man would willingly

says a man who is in a failing business does publication of these lists has a tendency to inWe all know that the reason why consent to.

not want the world to know it. If he is in crease the revenue. But is is an inconvenin the present law facilities were afforded for

a failing condition his creditors will know it ience, and causes a great deal of complaint, not the publication of these lists was the apprehen- || without publication in the papers. But that is only among the wealthy, but among those who sion that there might otherwise be in many an extreme case, and when the gentleman has have moderate incomes. If a man has been cases a failure to make the proper return of

to resort to that sort of argument to bolster up doing a disastrous business, either in a merincome. But, sir, it is believed that the same his amendment he has a bad case. If you pass cantile or a manufacturing line of business, he object can be secured by providing that these

the amendment you will lose millions of dollars does not quite like to have the fact immedilists shall be open to the inspection of the pub

on that one item. I repeat, that an honest man ately published to the world. If, on the conlic, so that any man who desires to ascertain what income return his neighbor has made can

has no objection to the world seeing his affairs trary, he has been doing a very prosperous

at any time. If he is in a bad condition he has business, he does not like to have that fact have access to the list, but that the list shall

only to make the best of it. If the man is dis- published, because it might lead to serious not be furnished systematically for publication, honest the world should know it.

competition. and be paraded in the press simply to gratify Mr. HALE, by unanimous consent, withdrew Now, if we are to have any change at all, it public curiosity. his amendment to the amendment.

should go at least as far as the amendment Mr. PRICE. Mr. Chairman, I am inclined Mr. SCOFIELD. I move to strike out the proposed by the gentleman from Ohio, [Mr. to the opinion that the amendment ought not words “nor permit the same to be copied for GARFIELD.) If we are to have no change, then to pass, and for the very good reason that in publication,'' so that the amendment shall we can vote down the amendment of the genmy mind the publication of the amount given simply provide that the officer shall not fur- tleman from Ohio or adopt the amendment in by persons upon which they pay income nish lists for publication, I would be glad if proposed to thatamendment by the gentleman tax has been increased from the fact that they || the gentleman from Ohio [Mr. GARFIELD] from Pennsylvania, [Mr. SCOFIELD.) knew it would be published. If a man makes would accept that amendment. It seems that The question was upon the amendment to a fair and honest return he has no objection there is nobody on the other side to-night to the amendment, to strike out the words "nor to its being made known. If he does not raise the constitutional question. When any- permit the same to be copied for publication." make a fair and honest return then everybody || thing good is to be done, or anything bad is to The amendment to the amendinent was not ought to know it. It is different in allowing be stopped, we always hear from the other side agreed to. it to be published in the newspapers and in that it is not constitutional. And I had looked The question recurred on Mr. GARFIELD'S allowing men to go and see it. Not one man in for some gentleman over there to raise that amendment. five hundred will go into the oflice to see what question in regard to the amendment offered Mr. SPALDING. Is it in order to move the returns are. It will be poking his nose by the gentleman from Ohio, to say that all to amend the amendment by striking, out into every man's business. If it is in the the proceedings of this Government, except the "neither” and “nor" and inserting either" newspapers every man will see it. Men will secret sessions of the Senate, are public. The and "or'' in lieu thereof? put in a larger income if they know it is to

newspapers of the country are the eyes of the The CHAIRMAN, It is. be published in the newspapers. An honest country. And if the editors and their corre- Mr. SPALDING. Then I make that moman has no objection to the world seeing what | spondents are to be denied access to these rec- tion. he does. A dishonest man may not want his ords for the purpose of giving them publicity The amendment to the amendment was not return to be made public.

the public can have no real information upon agreed to. Mr. GARFIELD. I move to strike out the the subject.

Mr. SLOAN. I move to amend by insertlast word.

Take a district like the one I have the honor

ing the words "but shall not prevent the same Mr. Chairman, the gentleman from Iowa is to represent, two hundred miles in length, with mistaken when he says an honest man has no

from being copied for publication." the office of the assessor at one end of the dis

The question was put; and there were-ayes, objection to the public understanding about trict and the office of the collector at the other.

30, noes 45 ; no quorum voting. his private affairs. Suppose a man has had How are the people to know who of their neigh- Mr. SLOAN. I withdraw the amendmont serious losses during the year, so that his bors are returning proper incomes, when their

to the amendment. income would be smaller than people expect returns have been given in and sent off one The question recurred on Mr. GARFIELD'S it to be. Now, he would not want to let that hundred and fifty or two hundred miles? Are amendment. be known so as to alarm his creditors and they all to go that distance and examine the

Tellers were ordered ; and Messrs. GARFIELD bring them all down upon him when other- records, for the purpose of ascertaining whether and Spalding were appointed. wise he would come out safely. There is no their neighbors are cheating the Government

The committee divided; and the tellers rereason in the world, unless the public inter- and compelling them to pay too much? Or

ported-ayes fifty-six, noes not counted. ests require, that the private affairs of indi- are their neighbors who wish to guard them in So the amendment was agreed to. viduals should be brought out and paraded in the same respect to travel two hundred miles

Mr. BERGEN. I move to insert at the end the public papers. I admit that some sort of to look over the records ? Let the editor publicity is necessary to act as a pressure upon who resides in the town where the assessor has

of the paragraph the following: men to bring out their full incomes, but if the his office, send his clerk if he chooses or go

No passport shall be issued from the State Depart

ment, or by any minister, chargé, or consul, to any lists are left open for public inspection it will himself and copy from the records. That I person unless he produces the receipt or other su thi be an ample pressure upon them. I do not think is constitutional; it is free speech and cient proof thereof for the payment of all income agree with the gentleman from Iowa that not nothing else.

taxes imposed upon him from 1862 to the date of bis one in five hundred would go to look at the

application. Nor shall any passport be renewed or

Now, if the gentleman from Ohio [Mr. Gar- viséed by any minister; chargé, or consul abroad, lists. I know they do go now. If a man

FIELD] wants to place a padlock on the records, unless the same condition be complied with. comes up to the county seat he is sure to in- I warrant you that every wealthy man in the Mr. MORRILL. I make the point of order quire what is the income of his neighbors. I House will vote with him on this subject. If that that amendment has once been offered am satisfied it is all the publicity necessary to ll the gentleman wants to put a padlock on the and voted down.

66

one.

Mr. BERGEN. Not as an amendment to the Commissioner of Internal Revenue: Provided, tutions are known in certain parts of the this section. That payments of prize money shall be regarded as

country. income from salaries, and the duty thereon shall be Mr. MORRILL. I would say to the gentleadjusted and collected in like manner.

The CHAIRMAN. Is there objection to man that his amendment is entirely impracticable, because one half of the people do not

Mr. MORRILL. On page 115, in line twenty

the offering of such an amendment ?

There was no objection. have any income at all.

six hundred and thirty-one, I move to strike Mr. THAYER. I move, then, to amend by The CHAIRMAN. The Chair overrules the out the word "and" and insert in lieu thereof

inserting after the word "banks," in line point of order. The amendment is now offered

the word “or." to another section of the bill.

The amendment was agreed to.

twenty-four hundred and forty-two, the words

“or savings institutions." Mr. BERGEN. The object of this section Mr. MORRILL. In line twenty-six hun- The amendment was agreed to. is to catch dodgers. (Laughter.] I hold that dred and thirty-two, I move to strike out the

Mr. WILSON, of Iowa. I move to amend every American citizen ought to pay his fair word "and" before "persons” and to insert

by inserting the words or savings institutions” share toward the support of the Government. Now, many go to Europe and remain there to The amendment was agreed to.

after the words "savings banks' in line

twenty-six hundred and seventeen. evade paying their share of the expenses of the Mr. MORRILL. In line twenty-six hun. The amendment was agreed to. Government. They claim the protection of dred and thirty-four, after the word "and" I

Mr. GARFIELD. the Government while they are there. When

I move to amend by move to insert the word “they."

striking out the word “duty,'' in line twentythey are compelled to travel from place to The amendment was agreed to.

six hundred and twenty-seven, and inserting place they call upon our ministers and other

Mr. MORRILL. At the end of the para- lieu thereof the word "tax;'' also, by inagents for passports. They then ask the assist

serting after the word "dollars," in line ance of our Government. The only way that graph I move to add the following additional proviso:

twenty-six hundred and twenty-eight, the I can see in which we can catch these parties and make them pay their share of our taxation

Provided further, That this section shall not apply words "and a tax of ten per cent on the

to payments made to mechanics and laborers emis to refuse them passports until they have paid || ployed upon the public works.

excess above $5,000."

The amendment was agreed to. their share of our taxes. If my amendment The amendment was agreed to. would not reach such parties, I hope some

Mr. BERGEN. I more to amend by adding member of the committee who is more conver

Mr. GARFIELD. In line twenty*six hun- at the end of the paragraph the following: sant with the matter than I am will so amend dred and forty-eight I move to insert after the

It shall not be lawful for the State Department, or word “revenue' the words " or other officer it as to put the matter in such condition that

any minister. chargé, or consul, to issue a passport to authorized to receive the same."

any party, unless he produces receipts, or other satthey will be reached.

The amendment was agreed to.

isfactory evidence of the payment of all incomo taxes Mr. MORRILL. I hardly think that we

imposed on him from 1863 to the date of his applicashould gather any very great increase of rev

Mr. ANCONA. I move to amend the para- tion; nor shall any passport be renewed or viséed by

any minister, chargó, or consul abroad, unless tho enue from the provision of the gentleman if it graph by striking out all after the word “clause”:

samo conditions are complied with. should be adopted, and I think it is wholly

in line twenty-six hundred and twenty down impracticable. A passport is not so essential to the end of the paragraph. The effect of the

I think, Mr. Chairman, that if members of in visiting foreign countries that every person amendment would be to so amend the law as it

the House fully understand this matter, they needs one.

will determine that this proposition should, in I do not think that one half of now stands as to strike out the section that re

some shape or other, be adopted, so that perthe persons going abroad stop to think of the quires the tax to be deducted from the pay of necessity of taking a passport; and it will be officers in the employment of the Government

sons may not go abroad to avoid the payment noticed that this amendment applies to every and give them the privilege of making the

of the income tax, but that all may be comWhether the party pays an income tax deductions that persons not in the employ of | pelled to contribute their just share to the sup

the Government are entitled to: or not, he must show a receipt that he has

I cannot

port of the Government. This is the object

of the amendment. It seems to me obviously paid one every year for the past four years. see the propriety of making a discrimination Mr. BERGEN. I call for tellers on my

against persons in the employ of the Govern- proper, and I hope it will be adopted. amendment. ment.

On agreeing to the amendment there wereTellers were not ordered.

Mr. MORRILL. I am delighted to see the

ayes twenty-one, noes not counted.

Mr. BERGEN called for tellers. The amendment was disagreed to.

gentleman from Pennsylvania showing such a Mr. MORRILL. On page 114, in line twenty

Tellers were ordered; and Messrs. BERGEN kindly disposition toward office holders, but I

trust we shall not adopt his motion. There is, six hundred and eight, I move to strike out

and Price were appointed.

The committee divided; and the tellers rethe word and” and insert (i or in lieu

perhaps, no dass better able to pay this tax thereof; so that it will read:

than the office-holders of the country. Until | ported—ayes thirty-one, noes not counted. there is less ambition to accept of public sta

So the amendment was not agreed to. And to any sum or sums annually due and unpaid after the 30th of June, as aforesaid, and for ten days tion, with all the duties and costs of office, I

The Clerk read as follows: after notice and demand thereof hy the collector, think we may very well retain this tax.

That section one hundred and twenty-four be there shall be levied in addition thereto the sum of The amendment was disagreed to.

amended by inserting after the words “duty or tax ten per cent. on the amount of duties unpaid, as a

where they first occur in said scotton, the words penalty, except from the estates of deceased or insolv- Mr. WILSON, of Iowa. I wish to call the "whenever the party interested in such legacy or ent persons.

attention of the committee to an amendment distributive share or property or interest aforesaid The amendment was agreed to. which I think should be made in the para

shall become entitled to the possession or enjoyment

thereof, or to the beneficial interest in the profits The Clerk read as follows: graph which we have just passed.

accruing therefrom, such duty or tax." 107 an amendment was made to insert the That section one hundred and twenty be amended

Mr. ALLISON. With a view of having a þy striking out the proviso to said section and insertwords or savings'' after “provident."

similar provision inserted in the next section, I ing in lieu thereof the following: Prorided, That The CHAIRMAN. That amendment was tho tax or duty upon the dividends of life insuranco | rejected.

move to amend by striking out this paragraph. companies shall not be deemed duc until such divi

The amendment was agreed to. dends are payable; norshall the portion of premiums Mr. WILSON, of Iowa. I understood that returned by mutuallife insurancocompanies to their

Mr. HOLMES. I desire to move an amendit was adopted. policy holders, nor the annual or semi-annual interest allowed or paid to the dopositors in savings banks

The CHAIRMAN. The Chair is informed

ment to section one hundred and twenty-four be considered as dividends. that it was not.

of the present law. The portion of the section That section one hundred and twenty-three be Mr. MORRILL. With a view to make the

which I wish to have amended is not incorpo. amended by striking out all after the enacting clause

rated in the bill before us, and I shall there. and inserting in lieu thereof the following: that

provisions identical, I move to insert in line thero shall be levied, collected, and paid on all sal- twenty-six hundred and seventeen, after the

fore be compelled to refer to the pamphlet

edition of the amended tax law, as passed aries of officers, or payments for scrvices to persons word “in,'' the words “provident institutions in the civil, military, naval, or other employment or

March 3, 1865. Members who have this pamservice of the United States, including Senators and Representatives and Delegates in Congress, when

Mr. THAYER. I ask the gentleman to

phlet before them will find the section on pages exceeding the rate of $1.000 per annum, a duty of five insert the words "savings institutions" also.

86 and 87. For the information of those who per cent. on the excess above the said $1,000; and it shall be the duty of all paymasters and all disburs

have not the section before them I will state Mr. MORRILL. That amendment was

that it provides for the taxation of legacies and ing officers under tho Government of the United rejected when the other section was under States, or in the employ thereof, when making any consideration, and I must object to it.

distributive shares of personal property. The payments to officers and persons as aforesaid, or upon

taxation is not uniform, but the more remote

Mr. THAYER. settling and adjusting the accounts of such officers

I would inquire if the and persons, to deduct and withhold the aforesaid amendment was not adopted on page 107. The

or distant the relationship of the party receive duty of five per cent., and shall, at the same time. Clerk states that according to his recollectioning the property to the party whose estate is to make a certificate stating the name of the officer or it was adopted.

be distributed, the higher is the rate of taxaperson from whom such deduction was made, and the amount thereof, which shall be transmitted to

The CHAIRMAN. The Clerks state that

tion. There is no exemption from this taxation the office of the Commissioner of Internal Revenue, the amendment was not adopted.

where the whole estate to be distributed amounts and entered as part of the internal duties; and the

Mr. THAYER. pay-roll, receipts, or account of officers or persons

It ought to have been

to $1,000, except that contained in the proviso adopted: paying such duty as aforesaid, shall be made to ex

to the section, which I will read : hibit the fact of such payment. And it shall be the The CHAIRMAN. Is any motion made in

Provided. That all legacies or property passing by duty of the several Auditors of the Treasury Depart

will, or by the laws of any State or Territory, to liusment, when auditing the accounts of any paymaster reference to the matter?

band or wife of the person who died possessed, ils or disbursing officer, or any officer withholding his

Mr. THAYER. I will ask unanimous con- aforesaid, shall be exempt from tax or duty. salary from moneyy received by him, or wben set- sent to move that those words be inserted. The exemption here in favor of the wife is tling or adjusting the accounts of any such officer, to require evidence that the duties or taxes mentioned They will not alter, in any respect, the sense ; just and humane; that in favor of the husband, in this scction have been deducted and paid over to they simply adopt a term by which these insti- || who is suposed to have sufficient ability to take

On page

or.'

that the tax

care of and support not only himself but the it out and inserting in lieu thereof the follow- words, “and every administrator, exccutor, or entire family, is, in my opinion, of very ques. || ing:

trustee, having in charge or trust any legacy or

distributive share, as aforesaid, shall give notice. tionable propriety. But there is another class

That section one hundred and twenty-four be thereof in writing to the assessor or assistant asof persons liable to taxation under this section amended by striking out from the first subdivision sessor of the district where thg deceased, grantor, whose claim to exemption is at least as strong

thereof the words "lineal issue or;" also by inserting or bargainer last resided, within thirty days after as that of the wifeand mother, and much stronger

in the proviso, at the end of said section, after the he shall have taken charge of such trust;" and by

words "husband or wife," the words" or lineal issuc." inserting after the words "shall make out such lists than that of the husband and father; I refer to

The effect of this substitute is to abolish en

and valuation as in other cases of neglect or refusal, the minor children of a deceased party. I have | tirely the inheritance of legacy tax in the case

and shall assess the duty thereon,” the words "and

in case of willful neglect, refusal, or false statement been troubled in my own mind to find any rea

of lineal descendants. I conceive that this is by such exccutor, administrator, or trustee, as aforeson which will justify the exemption of the

said, he shall be liable to a penalty of not exceeding father while the property of the children is subthe just and true policy. I do not believe that

$1,000, to be recovered with costs of suit." jected to taxation. It appears to me a suffi- | legacies in the line of lineal inheritance should

Mr. ALLISON moved the following amendbe made the subject of taxation. I do not cient calamity for a child of that age to be de

ment: think that a tax of this sort is levied in the prived of a parent without being subjected to

Strike ont line twenty-six hundred and fifty-nine, taxation by the Government for the privilege

manner in which taxes ought to be levied so and insert in lieu thereof, the following: of becoming an orphan. I think I am justified as to produce the least oppression. On the

That section one hundred and twenty-five be

amended by inserting after the words in saying that in a large majority of cases where I contrary, I believe that these taxes are felt to

or duty aforesaid,"the following: “shall be due and the father dies the children are left with a propbe more oppressive than all others. This sub- payable whenever the party interested in such legacy

or distributive share, or property, or interest aforeerty insufficient to provide for their education stitute, if adopted, will leave subject to taxaand for their support until they attain the period except legacies to lineal descendants, who will tion all collateral inheritances and all legacies,

said, shall become entitled to the possession or enjoy

ment thereof, or to the beneficial interest in the of their majority. I do not speak of estates

profits accruing therefrom, and the same;" and. where the parent dies insolvent, but where

receive their legacies free from tax precisely The amendment was adopted.

as does the husband or wife of the deceased small estates, amounting to from $1,000 to

Mr. WILSON, of Iowa. Does that affect $5,000, are left for distribution between the

person.

Mr. MORRILL. widow and the children. Where no will is

I hope the amendment of

the phraseology of the one hundred and twenty

fourth section of the original act? made, the widow generally receives one third, the gentleman from New York will not be

Mr. ALLISON. Yes, sir. while the remainder is equally divided among adopted. The tax imposed upon lineal dethe children. The portion belonging to the scendants or ascendants is only one per cent.

Mr. WILSON, of Iowa. If it changes the minor children passes into the hands of trusThere are many large estates where all the language of section one hundred and twenty

five by being made an amendment to that sectees, executors, or guardians, the pay for whose heirs, though lineal descendants, are not mere children but full-grown men.

tion, it leaves the language of section one hunservices comes out of the children's share of the estate.

Mr. WILLIAMS. Mr. Chairman, I move

dred and twenty-four in the original act still to strike out the last word to make a remark

remaining as the law, so that the two provisNow, sir, if there is a class of persons in the

ions make nonsense. or two on this subject. I agree entirely with community who have a stronger claim than any

Mr. ALLISON. The original act does not the remarks of my learned friend from New others upon the justice and humanity of the Government; if there is any class on whom the

York [Mr. Hale) in support of the amend provide when this tax shall be due and payahand of the Government should be laid only for ment he has just offered. It seems to me the

ble. There is no provision in the law when it

becomes due and payable. the purpose of protection and not for the pur. | [Mr. Holmes,) is applicable to the whole sub

Mr. HALE. I move to strike out the last pose of taxation, it is the class of persons to

word of the amendment for the purpose of sugwhom I have just referred. is that this class of persons should be entirely || I have been at a loss to understand why the My wn opinion | Clusive reason why it should not be adopted: | gesting to the gentleman who made the motion

that it seems to me it requires some modificaexempted from taxation; but I find that such a

tion. Under the rule now held at the Commisproposition will encounter the opposition of

catastrophe of death should be singled out as the Committee of Ways and Means; and knowthe opportune occasion for the exercise of the

sioner's office, if a person is entitled to an an

nuity of $100 for life, the tax is assessed on the ing how difficult it is to pass any amendment

governmental power of taxation. I know the
idea comes from the old feudal law, from the

present value of that annuity and deducted by which that committee oppose, I have concluded system of relief, one of the oppressive append. || annuity. Now, that is palpably wrong and

the executor from the first payment of the to modify the proposition which I intended to

ages of that system, which rested upon the idea unjust. For instance, a widow has left to her offer and to submit an amendment which shall

that the tenure of the individual was a tenure exempt from taxation the legacy or share of a for life, and the fee was the ultimate property | depends upon. Under the construction now

an annuity for her support. It is what she minor child to the amount of $1,000. Believ

of the suzerain, so that when the ancestor died it ing that in this shape the proposition will re

adopted at the office of the Commissioner the ceive the concurrence of the committee, as well

was necessary the estate should be “ lifted up as the assent and support of every member of again. Hence the word “relief," from the

whole tax on the present value of the annuity

is deducted from the first installment of the inLatin relevo. the House, I move to amend by inserting the

Gentlemen propose to reënact these oppress

terest. It is all wrong. It should only come following: ive incidents of the feudal tenure. I do not

out pro ratâ year by year. That section one hundred and twenty-four be

Mr. ALLISON. I do not know what the know why it is we should avail ourselves of amended by adding thereto the following proviso: And provided further, That any legacy or share of the most deplorable catastrophe which can

gentleman from New York (Mr. HALE] pro

poses. personal property passing as aforesaid to a minor occur to a family—the loss of its head-to strip

We do not change the existing law child of the person who died possessed as aforesaid, the children and those who are helpless of the

except as to the time when this tax shall be. shall be exempt from taxation or duty under this patrimony which would otherwise descend to

come due and payable. section, unless such legacy shall exceed the sum of

Now, it should be $1,000, in which case the excess only above that sum them. I suppose there is no case where the

payable, it seems to me, at the time when the shall beliable to such taxation or duty. life of the founder of the family is not worth

party comes into possession of the annuity. If Mr. MORRILL. I am very much gratified more to those who depend upon him for sup

the gentleman desires to change the law in that

respect, any amendment that he will suggest to be able to approve the proposition of the || port than the property he has, and where the

to the committee will of course be considered. gentleman from New York ; but I am pained || family would not exchange the one for the to inform him that he is simply proposing to other. This is certainly not in accordance

But I do not see why, if this tax is to be paid reenact the existing law. To satisfy him on with the humane theory announced by the

at once, it should not be paid upon the value this point let me read from the commence- gentleman from Vermont when he opened the

of the estate at the time the beneficiary comes ment of section one hundred and twenty-four: debate. He said:

into possession or is entitled to receive the

enjoyment of the property, whether in the That any person or persons having in charge or

“If a horse runs away with a carriage, or a locomotrust as administrators, executors, or trustees, any tive gets smashed, it scems oppressive for the Gov

shape of an annuity or of actual possession of lcgacies or distributive shares arising from personal ernment to seize the opportunity of such misfortune

the property. property, where the wholo amount of such personal for levying a fresh tax.

[Here the hammer fell.] property, as aforesaid, shall exceed the sum of $1,000 This is also taxing calamity. It is no more Mr. HALE. I withdraw my amendment in actual value, &c.

than reviving one of the oppressive append- || and substitute another, to insert after the word Mr. HOLMES. The language there is where ages of the feudal ages.

“thereof” in the amendment proposed by the the whole amount of such personal property, as [Here the hammer fell.)

gentleman from Iowa the words "or, in case aforesaid, shall exceed the sum of $1,000,'' and Mr. BOUTWELL. If we exempt the prop- of an annuity, payable on each installment of under that provision there is no exemption || erty of minor children it is as far as we need go. the said annuity as the same shall be due." I where the amount of the whole estate exceeds I'he amendment to the amendment was think the gentleman misapprehends what the that sum. My amendment provides for an rejected.

ruling in this case is. A widow or any other exemption to the amount of $1,000 for each Mr. Holmes's amendment was adopted. person who is dependent upon an annuity for child. The law, as it now is, exempts the Mr. HOLMES. I move to insert the words support, and who requires the payment of the estate where the aggregate amount before

“personal property.' As it now reads it first installment, is subjected to a deduction division does not exceed $1,000. If it exceeds covers all kinds of property, real as well as

therefrom of the tax on the computed present that sum there is no exemption. personal.

value of the whole annuity. In other words, Mr. MORRILL. ' If that is the distinction The amendment was agreed to.

when a widow is to receive this year $500 for which the gentleman makes I do not see any

The Clerk read as follows:

her support, and next year $500, the whole objection to the amendment.

$500 for the first year is wiped out by the tax Mr. HALE. I move to amend the amend- That section one hundred and twenty-fivc bo mended by inserting after the words " United

on the present value of the whole annuity, ment of my colleague [Mr. HOLMES] by striking | Statis," in the first sentence of said section, the II leaving her destitute.

Mr. ALLISON. I suggest that the amend- pass. The Government of the United States argues as if it was meant to impose a penalty ment proposed now does not meet what the ought not to be required to levy this tax, make on a man for neglect, when made in ignorance gentleman desires to remedy, because it would the collection, and then have a mortgagee or of the law. The last clause says that -- for then subject the annuity to an annual tax owner of the land come in two, three, or five willful neglect or refusal so to do he shall be equivalent to the whole value of the property, years afterward and assert his title.

liable to a penalty,' &c. Therefore it seems which certainly ought not to be. It would take The amendment was not agreed to.

to me that his amendment is unnecessary. it out every year, whereas by the existing law

Mr. WRIGHT. I move to amend by strik

The amendment of Mr. WRIGHT was not the property of the estate is valued, and one tax is taken out, and that is the end of it. But ing out the words "shall give notice thereof in agreed to.

writing to” in line twenty-six hundred and The Clerk read as follows: the gentleman proposes to take this out every eighty-two and inserting who shall receive

That section one hundred and forty-five be amended year.

notice thereof in writing from;'' so that it will by inserting after the word "years' the words from Mr. HALE. My proposition will take the read:

the time when such tax or duty shall have become tax of $500 out whenever $500 is payable; no

due and payable."

And every such person having in charge or trust more and no less. any disposition of real estate or interest therein, sub

No amendment being offered, The amendment to the amendment was not ject to tax or duty under this act, who shall recoive

The Clerk read as follows: agreed to.

notice thereof in writing from the assessor or assist-
ant assessor of the district where the estate is situate,

That section one hundred and fifty be, and the The question recurred on the amendment of within thirty days from the time when he shall have

same is hereby, repcaled. Mr. ALLISON, and it was agreed to.

taken charge of such trust, and prior to any distribu- No amendment being offered, The Clerk read as follows:

tion of said real estate, together with a description The Clerk read as follows:

theroof. That section one hundred and thirty-seven be

That soction one hundred and fifty-two beamended amended by inserting after the words imposed by

I think when we employ and pay an officer by striking out all after the enaeting clause and this act" the words "shall be assessed in the col- of the Government it is his bounden duty either inserting in lieu thereof the following: that it shall lection district where the estate is situate, and.”

not be lawful to record any instrument, document, or to take less pay or discharge his whole duty. No amendment being offered,

paper required by law to be stamped unless & stamp How would it operate where an administrator orstampg ofthe proper amount shall have been affixed The Clerk read as follows: of an estate with a very limited knowledge of

and canceled in the manner required by law; and That section one hundred and thirty-eight be the law shall have been selected? As soon as

the record of any such instrument, upon which the amended by adding thereto the words, “and every

proper stamp or stamps aforesaid shall not have been administrator, executor, or trustee, having in charge

the thirty days expire the officers of the law alfixed and canceled as aforesaid shall be attorly void or trust any disposition of real estate or interest will go and complain of him, and he is at once

and shall not be used in evidence, theroin, subject to tax or duty under this act, shall give notice thereof in writing to the assessor or assubjected to the payment of the penalty of $500

Mr. DAVIS. I desire to ask the chairman sistant assessor of the district wlicre the estate issit- named in the section, a part of which I have of the Committee of Ways and Means (Vr uate, within thirty days from the time when he shall just read. We ought to use some caution in MORRILL] whether there is any provision il havo taken charge of such trust, and prior to any a matter of this kind, and I simply propose by this bill in relation to a title deed which may distribution of said real estate, together with a statement of the character and value thereof; and for my amendment to change it from devolving | have been left unstamped or have been improp willful neglect or refusal to do so, shall beliable to a the duty upon the administrator, who may be erly stamped through inadvertence. penalty of not exceeding $500, to be recovered with

ignorant of the law, and transfer it to the offi- Mr. MORRILL. There is a provision elsecosts of suit." Mr. ALLISON. I move to strike out the

cer of the law, whose duty it is to see that no where in this bill providing that the deed may words "every administrator, executor, or

man escapes the performance of the duty which be stamped within a year.
is required by law.

Mr. DAVIS. Is there any provision by trustee,” in the first part of the paragraph, A word more and I have done. A year or which the record of the deed in such case may and insert in lien thereof " such persons. The amendment was agreed to.

two ago, when we had the Army bill up, I vent- be used in evidence for the purpose of substan

ured to make the remark that there were too tiating the title? According.to this paragraph, Mr. ALLISON. I move to strike out the

many tinkers about it. Now, it seems to me if the deed shonld be destroyed, the original words "statement of the character in the

that that remark will apply in some measure paper destroyed, the record cannot be used, latter part of the paragraph, and insert in lieu

to this bill. I fear me much that proper con: because it does not appear from the record thereof description;' also, to insert after the

sideration has not been given to the various that the original paper was stamped in the prewords "' value thereof the words and the provisions of this bill. While I have the high- cise manner required by law. Therefore, there person interested therein." The amendments were agreed to.

est respect for the amiable chairman, and the is no mode of deducing title through a defective

competent committee who have had this mat- record. I think that point ought to be proMr. HOLMES. I move to amend the para- ter in charge, it seems to me that in going over vided for, if it is not now. graph by inserting at the close the following: | what we supposed to be the plain provisions Mr. MORRILL. If the gentleman will look

That section forty-one be amended by striking out of a just law, we have turned it by proposed | at the paragraph on page 122 of this bill, I the following proviso: "Provided. That if the estato of the successor shall be defeated in whole or in part

amendments into a sort of metaphysical dis- think he will find that ample provision has by its application to the payment of the debts of the quisition. And the Scotchman's definition of been made upon the point to which he refers. predecessor, the executor, administrator, or trustco metaphysics, I think, will apply here: “When The Clerk read as follows: 80 applying it shall pay out of the proceeds of the sales so made the amount so refunded."

the mon that's listening dinna ken what the That section one hundred and fifty-four beamended The provision which I propose to strike out

speaker means, and the mon that's speaking by striking out all after the enacting clause and in; dinna ken what he means himsel, that's meta

serting in lieu thereof the following: tbat all oflicia) amounts to this: that if a party who has re

instruments, documents, and papers used by the officeived real estate as heir or devisee and paid pheesies.

cers of the United States Government, or by the offi

Mr. SPALDING. I offer the following as the taxes upon it, by this act shall find himself

cers of any State, county, town, or other municipal dispossessed of the whole or any portion of a substitute for the amendment of the gentle

corporation, shalí be, and hereby are, exempt from

tax or duty: Provided, That it is the intent hereby to such estate by reason of the executor or adman from New Jersey, (Mr. Wright:]

exempt from liability to taxation only such State, ministrator selling the same to pay the debts

It shall not be lawful for the State Department nor

county, town, or other municipal, corporations, in any embassador, minister, chargé, or consul, to issue

the exercise of functions strictly belonging to them of the "predecessor,'' that the executor or ada passport to any party unless he produces reccipts or

in their ordinary governmental and municipal capaministrator shall pay out of the proceeds of other satisfactory evidence of the payment of all in

city, and not to any special exemption to individuals the sale so much of the tax as is to be refunded como taxes imposed on him from 1863 to the date of

dealing with such corporations. under the provisions of this act. Now, sir, the

his application. Nor shall any passport be renewed Mr. MORRILL. I move to amend the sen

or viseed by any embassador, minister, chargé, or Government has received this tax, and this is consul abroad, unless the same conditions are com

tence that all official instruments, documents, the proposition: either to take it again from plied with.

and papers used by the ofhcers of the United the pocket of the party who has paid it once, Mr. MORRILL. While I know the resources

States,' &c., by striking ont the word "used" or from the creditor whose debts are to be of wit in that corner of the House to be ample,

and inserting the word issued." paid. I do not see any propriety or justice in I shall regret to see the poverty of resources

The amendment was agreed to. either of the provisions. It is simply in one which will be displayed in the columns of the

Mr. MORRILL. I move to amend the procase selling the property of the person who has Daily Globe to-morrow; and therefore I must

viso by striking out the word "only" after the paid the tax for the purpose of refunding it to raise the point of order on the amendment of

word "taxation,'' and by inserting the word him instead of making the Government repay the gentleman from Ohio, [Mr. SPALDING,] that only'' before the words in the exercise of it, and in the other of making the creditor it has already been voted down three or four functions strictly belonging to them,”: &c. whose debts are to be paid contribute to the || times, and besides, it is not germane to any.

The amendment was agreed to. payment of the tax, as a punishment, I sup- thing now under consideration.

Mr. MORRILL. I move to amend by strikpose, for collecting his debt from the estate of The CHAIRMAN. The Chair sustains the ing ont the words “and not to any special the "predecessor. The Government having || point of order on the ground last stated by the exemption to individuals dealing with such corsecured the tax ought to refund it, instead of gentleman from Vermont, [Mr. MORRILL.]

porations. collecting it again from the successor" or Mr. SPALDING. Will my amendment be The amendment was agreed to compelling an innocent creditor to pay it. in order at another stage of this bill?

The Clerk read as follows: Mr. ALLISON. I do not think this amend- The CHAIRMAN. The Chair cannot tell

That section one hundred and fifty-five be amended ment ought to be adopted. The provision as when it will be in order.

by striking out all after the enacting clause, and init now stands is that if a party delays asserting The question recurred on the amendment serting in lieu thereof the following: that if any perhis title, whether it be that of mortgagee or of Mr. Wright.

son shall forge or counterfeit, or cause or procure to owner, until after the succession has passed, Mr. UPSON. I think the objection raised

be forged or counterfeited, any stamp, dic, plate, or

other instrument, or any part of any stamp, die, plate, then that party shall refund to the beneficiary to this paragraph by the gentleman from New or other instrument, which shall bave been provided, the amount of tax thus paid. Now, I think Jersey (Mr. WRIGHT) is fully obviated by read

or may hercafter bo provided, made, or used in pur

suance of this act, or shall forge, counterfeit, or rethat is a just provision and that it ought to lling the closing sentence. The gentleman li semble, or cause or procure to be forged, counter