senger, one assistant messenger, and three laborers, $101,800.

Mr. SHERMAN. With the leave of the Senator from Maine, I wish to move, on behalf of the Committee on Finance, to amend the bill by inserting in line four hundred: "For one chief clerk, $2,000." This is to provide for the chief clerk of the Construction Bureau of the Treasury Department. It is to supply an omission.

The amendment was agreed to.

The next amendment of the Committee on Appropriations was in lines four hundred and eight and four hundred and nine, to strike out the words "declared to continue" and insert "continued."

The amendment was agreed to.

The next amendment was to insert after "chief clerk," in line four hundred and twelve, the words "six clerks of class four;" after the word laborers," in line four hundred and fifteen, to insert "and for temporary clerks, $4,500; and in lines four hundred and fifteen and four hundred and sixteen, to strike out "in all, $32,940," and insert in all, $48,200;" so as to make the clause read:

For First Comptroller of the Treasury, chief clerk, six clerks of class four, eight clerks of class three, seven clerks of class two, (three of them transferred from Third's Auditor's office,) two clerks of class one, one messenger, and two laborers, and for temporary clerks, $4,500, in all, $48,200.

Mr. SHERMAN. I move to amend the amendment by inserting $9,000 instead of $4,500, in line four hundred and sixteen.

Mr. MORRILL, of Maine. I hope my friend will allow me to go on.

Mr. SHERMAN. This is the proper time to amend the amendment. It is the only time I can do it. I propose to make the appropriation for temporary clerks in the First Comptroller's office $9,000 instead of $4,500. I desire to state that there are some amendments necessary in regard to these bureaus. I have carefully examined the matter, and I am satisfied that the amount of force allowed by the bill is entirely too low. The House of Representatives, in making the appropriations for the bureaus in the Treasury Department, did not allow the amounts estimated for, nor the amounts fixed by law, but took the old basis before the war. Our Committee on Appropriations has very properly, in nearly every case, increased the clerical force as fixed by the House of Representatives. Since the bill has been reported I have received communications in great number showing that in certain bureaus, where there can be no possibility of mistake about it, the force allowed is not sufficient to carry on the service.

The Committee on Finance, therefore, propose certain amendments to raise the amount so as to give them a force barely sufficient to carry on the business. In many cases we propose to allow less than they ask for. In regard to the office of the First Comptroller of the Treasury no one doubts that the statement of Mr. Taylor can be relied on. He says, in an official communication, that with the assistance given in here he cannot carry on his office. I think what I propose to allow will barely allow him to discharge the duties. The business of the Treasury Department now cannot be carried on with the force before the because that Department is now settling war, up the business of the war; the war accounts are passing through the Auditor's and Comptroller's offices, and the war has occasioned a very large increase in the business of the Department. It will be necessary for me to offer several amendments in regard to the Treasury Department. The first one is in this amendment of the Committee on Appropriations to increase the allowance for temporary clerks in the First Comptroller's office from $4,500 to $9,000.

The amendment to the amendment was agreed to.

Mr. MORRILL, of Maine. Now, the gross amount of the appropriation should be increased by adding $4,500, so as to make the

total $52,700. I move that amendment to the amendment.

The amendment to the amendment was agreed to.

66

The amendment, as amended, was agreed to. The next amendment was in line four hundred and nineteen, to strike out "seven" and insert twelve;" in the same line to strike out "fourteen" and insert "twenty;" in line four hundred and twenty to strike out "fifteen" and insert twenty-eight;" in line four hundred and twenty-one to strike out "six" and insert "twenty-one;" after "one," in line four hundred and twenty-two, to insert "twelve copy. ists;" and in lines four hundred and twentythree and four hundred and twenty-four, to strike out "$71,480' and insert "$137,000;" so as to make the clause from line four hundred and eighteen to line four hundred and twenty-five read :

For Second Comptroller of the Treasury, chief clerk, twelve clerks of class four, twenty clerks of class three, twenty-eight clerks of class two, (one of them transferred from the Third Auditor's office,) twenty-one clerks of class one, twelve copyists, one messenger, one assistant messenger, and two laborers, in all $137,000.

The amendment was agreed to.

The next amendment was in line four hundred and twenty-six, after "chief clerk" to insert three clerks of class four" in the clause relating to the office of the Commissioner of Customs.

Mr. SHERMAN. I am instructed by the Committee on Finance to move an amendment to that amendment, to strike out "two" and insert three," so as to provide for three clerks of class four in the office of the Commissioner of Customs. The Commissioner asks for five, and we have cut it down to three. I have a letter from the Commissioner on the subject.

Mr. MORRILL, of Maine. The Senator now proposes to provide for a new clerk.

Mr. SHERMAN. If the Senator desires fuller information on the subject, I will send up the letter of the Commissioner of Customs to be read. He makes a very strong showing in favor of a larger number of clerks than we propose to allow him.

The Chief Clerk read the following letter: TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF CUSTOMS, June 16, 1863. SIR: Ibeg leave to call your attention to the classification of the clerks in this bureau, first premising that it is one of the three revising bureaus of the Department. By House bill No. 605, as reported with amendments by the Committee on Appropriations of the Senate, this bureau is allowed two clerks of the fourth class only.

As my chief clerk has been absent on account of sickness a good deal during the last eighteen months, and is now confined to his bed with inflammatory rheumatism, one of my fourth-class clerks acts as chief clerk.

I ask to be allowed three more fourth-class clerks, to be taken from my third class, for the following reasons: one of my third-class clerks is in charge of the captured and abandoned property division, an important and perplexing business. The clerk having charge of this in the First Auditor's office, whose doings are revised here, is a fourth-class clerk.

Within the past year the whole warehouse business has been sent from the Secretary's office to this. It became necessary to devise and carry into effect a new system of keeping the warehouse accounts, which had got into inextricable confusion. Judge Thurman, a man of good legal mind and accustomed to customs affairs-a third-class clerk in this officewas assigned the task of reorganizing this branch of accounts. With diligent labor he has accomplished it, and now has it in charge. These accounts now, pro forma, pass through the First Auditor's office and then come to this. At once a fourth-class clerk was assigned to the duty of passing them in the Auditor's office, but being entirely ignorant of the business was instructed how to perform his duties by Judge Thurman, his inferior in pay and grade. Is it right that these two clerks and valuable ones they are who revise the business of their respective divisions in this office should receive less pay and stand agrade lower than the clerks in the Auditor's office having charge of the same business, but who know that this office is responsible for errors and not that?

Again, I have a clerk of the third class, Mr. Weed, a good lawyer and most invaluable clerk, in charge of the New York accounts. He is indefatigable, and saves the Government, I will not say a hundred, but certainly more than ten times the amount of his salary every year in scrutinizing these accounts as they were never before scrutinized. I think he is justly entitled to the grade and compensation of a fourth-class clerk: indeed, he does more than double the labor of some pretty good clerks.

Judge Thurman and Mr. Weed are about fifty

years of age. Mr. Fletcher, in charge of captured and abandoned property accounts, about forty years of age. He is also an indefatigable laborer.

In recommending, or rather asking, that the number of my fourth-class clerks be increased, I beg lenvo to say that I do not think the number of the third class should be diminished, nor that of the second class. I greatly need two additional clerks, say of the first class. If these should be allowed that class might then be diminished by one.

I have been obliged to write this very hastily, and I beg you to eruse its crudeness. Very respectfully, your obedient servant, N. SARGENT, Commissioner. Hon. JOHN SHERMAN, Chairman Finance Committee. The amendment to the amendment was agreed to.

The amendment, as amended, was agreed to. The next amendment was in line four hundred and twenty-seven, to strike out "four" and to insert "six;" in the same line to strike out "seven" and insert "nine;" and in line four hundred and twenty-nine to strike out "thirty-one thousand and three" and to insert "forty thousand nine;" so that the clause will read:

For Commissioner of Customs, chief clerk, three clerks of class four, six clerks of class three, nine clerks of class two, seven clerks of class one, one messenger, and one laborer, in all, $40,920.

Mr. MORRILL, of Vermont. I suggest to the chairman of the Committee on Appropriations that now having inserted one additional clerk, it is necessary to increase the amount of the appropriation.

The PRESIDENT pro tempore. The appropriation will be changed to $42,720, if there be no objection.

The amendment, as amended, was agreed to. The next amendment was in line four hundred and thirty-one, in the clause making provision for the clerical force of the First Auditor of the Treasury, to strike out "two" and insert "four," so as to allow four clerks of class four.

Mr. SHERMAN. In regard to the office of the First Auditor of the Treasury, I am assured by him, and by the Secretary of the Treasury, that he cannot get along with the number of clerks appropriated for. The Committee on Appropriations have proposed to amend this clause somewhat, but not so that I can offer my amendments. I suggest, therefore, that all the amendments in the clause relative to the First Auditor's office, be passed over informally for the present, and I will at a later stage of the bill offer a substitute for that whole clause.

The PRESIDENT pro tempore. If there be no objection the amendments in the clause from line four hundred and thirty-one, to line four hundred and thirty-eight, will be passed over. The reading of the bill will proceed.

The next amendment was in the clause providing for the Second Auditor's office, to strike out lines four hundred and forty-six to four hundred and fifty-two, as follows:

And the clause of the act of March 14, 1864, authorizing fifteen clerks of class three, fifty clerks of class two, and one hundred and forty clerks of class one. in the office of the Second Auditor of the Treasury, is hereby continued in force until the 30th day of June, 1869, and no longer,

The amendment was agreed to.

The next amendment was after line four hundred and seventy, to insert "also one clerk of class four, four clerks of class two, four clerks of class one, one copyist, and two laborers, to be employed as a temporary force;" and in line four hundred and seventy-three, to strike out the words "6 'forty-nine thousand nine" and to insert "sixty-four thousand two;" so as to make the clause read:

For compensation of the Fifth Auditor, chief clerk, two clerks of class four, four clerks of class three, seven clerks of class two, fifteen clerks of class one, six copyists, one messenger, and one laborer, employed in his office; also one clerk of class four, four élerks of class two, four clerks of class one, one copyist, and two laborers, to be employed as a temporary force, in all, $64,220.

The amendment was agreed to.

The next amendment was on page 23, line five hundred and forty-six, to strike out "one" and to insert "two" before hundred thousand;" so that the clause will read;

For detecting and bringing to trial and punishment persons guilty of violating the internal revenue laws,

or conniving at the same, in cases where such expenses are not otherwise provided for by law, $200,000. The amendment was agreed to.

The next amendment was in line five hundred and seventy-nine, after the words "public lands" to insert the words "private land claims and surveys.'

The amendment was agreed to.

The next amendment was in line five hundred and eighty-nine, to strike out "twenty and insert " forty;" and in line five hundred and ninety, to strike out "thirty-four" and insert " 'fifty-eight;" so that the clause will read:

For compensation of additional clerks in the General Land Office under the act of March 3, 1855; for one principal clerk as director, one clerk of class three, four clerks of class two, forty clerks of class one, and two laborers, $53,640.

The amendment was agreed to.

The next amendment was in lines six hundred and fifty-eight and six hundred and fiftynine, to strike out the words "two thousand five and to insert "six thousand three," and also after the word "dollars," in line six hundred and fifty-nine, to strike out "$4,500 ;" so that the clause will read:

For compensation of the surveyor general of Minnesota, $2,000, and the clerks in his office, $6,300. The amendment was agreed to.

The next amendment was in line six hundred and sixty-five, to strike out the word "four" before thousand" and to insert "six," and also after the word "thousand " to insert "three thousand," and in line six hundred and sixty-six to strike out "$6,000;" so that the clause will read:

For surveyor general of Kansas, $2,000, and the clerks in his office, $6,300.

The amendment was agreed to.

The next amendment was in line six hundred and sixty-nine, to strike out $7,000" after "dollars;" so that the clause will read : For surveyor general of Colorado and Utah, $3,000, and for the clerks in his office, $4,000.

The amendment was agreed to.

The next amendment was in lines six hundred and seventy-three and six hundred and seventy-four, to strike out "$4,500" and to insert$11,000;" and also, in lines six hundred and seventy-four and six hundred and seventy-five, to strike out "$7,500;" so that the clause will read :

For surveyor general of California and Arizona, $3,000, and for clerks in his office, $11,000.

Mr. POMEROY. I want to call the attention of the chairman of the Committee on Appropriations to this clause. I do not understand why the $4,500 should be stricken out in lines six hundred and seventy-three and six hundred and seventy-four and $11,000 inserted.

Mr. MORRILL, of Maine. The $4,500 and the $7,500 are put together.

Mr. EDMUNDS. The clause now reads, as amended, "For surveyor general of California and Arizona, $3,000, and for clerks in his office, $11,000," which makes the appropriation $14,000.

Mr. POMEROY. was about to make. Mr. MORRILL, of Maine. That is evidently

That is the criticism I

an error.

Mr. COLE. No, sir; it is not an error. Mr. MORRILL, of Maine. It seems to be an error as it stands.

Mr. COLE. Eleven thousand dollars for the clerks in the surveyor general's office in California is the amount of the estimate for that service. The usual amount of appropriation for the survey of the land in that State is, I believe, $50,000, and that is the amount estimated for this year. The fact is there is a great necessity for surveying the public lands in that State. The tide of population setting in that direction is very great; so great, indeed, that last month six thousand emigrants went to that State. It will be borne in mind that it is a very large State, comprising about two hundred thousand square miles, and the tendency of the population now is not to the mines, but to the agricultural regions, as will be ob

served from the fact that the exports of grain there have been very great; and there is very great distress and annoyance among those settling in the agricultural regions for the want of ability to get titles to their lands.

Mr. MORRILL, of Maine. My friend from California will pardon me for interposing, but I think I can now say to the Senator from Vermont that the apparent mistake is not a real one, and that the clause is all right. I will read it as amended:

For surveyor general of California and Arizona, $3,000, and for clerks in his office, $11,000.

We intended to make an appropriation of $14,000, and if the Senator will refer to the book of estimates he will see that it is precisely what was estimated for, and the appropriation is in the form estimated for. The estimate is: For the surveyor general of California and Arizona, $3,000.

Clerks in his office as per act, &c., $11,000.

Our information on that subject, which the Senator from California was communicating, satisfied us that the estimate was not too much.

Mr. COLE. I will only add, that so great is the necessity of which I was speaking of permitting the people settling in the agricultural portions of the State to acquire a title to their property that the Legislature of the State passed a resolution asking for a much larger appropriation for the survey of the public lands than has been accorded by the committee, and larger than will be accorded by the Senate or the House of Representatives. The reasonable amount that is asked here is certainly not extravagant by any means. It will not come up to the emergency.

The amendment was agreed to.

The next amendment was in lines six hundred and seventy-seven and six hundred and seventy-eight, to strike out "$7,000;" so that the clause will read :

For surveyor general of Idaho, $3,000, and for clerks in his office, $4,000.

The amendment was agreed to.

The next amendment was in line six hundred and eighty, after the word "hundred" to insert "and two;" and after the word "dollars" to insert "and seventy-two cents;" and in lines six hundred and eighty-one and six hundred and eighty-two to strike out $6,500;" so that the clause will read:

66

For surveyor general of Nevada, $2,502 72, and the clerks in his office, $4,000.

The amendment was agreed to. The next amendment was in line six hundred and eighty-five, to strike out "$6,500;" so that the clause will read :

For the surveyor general of Oregon, $2,500, and for the clerks in his office $4,000.

The amendment was agreed to.

The next amendment was in line six hundred and eighty-eight, to strike out "$6,500;" so that the clause will read:

For surveyor general of Washington Territory, $2,500, and for the clerks in his office, $4,000.

The amendment was agreed to.

The next amendment was in line six hundred and ninety, to strike out four" and insert "six;" and after the word "thousand" to insert "three hundred ;" and in line six hundred and ninety-one, to strike out " $600;" so that the clause will read:

For surveyor general of Nebraska and Iowa, $2,000, and the clerks in his office, $6,300.

The amendment was agreed to.

The next amendment was in line six hundred and ninety-three, to strike out "three" and to insert "four ;" and in line six hundred and ninety-four to strike out "$6,000;" so that the clause will read:

For surveyor general of Montana, $3,000, and for the clerks in his office, $4,000.

The amendment was agreed to.

Mr. TRUMBULL. As it is very clear that we cannot finish this bill to-day, and there is a necessity for an executive session, I move that the Senate proceed to the consideration of executive business.

Mr. MORRILL, of Maine. on a little longer with the bill.

Suppose we go

Mr. TRUMBULL. It is half past four now, and we have but half an hour for an executive session if we adjourn at five. I insist on my motion.

The motion was agreed to; and after some time spent in executive session the doors were reopened, and the Senate adjourned.

HOUSE OF REPRESENTATIVES.
TUESDAY, June 23, 1868.

The House met at twelve o'clock m. Prayer by the Chaplain, Rev. C. B. BOYNTON.

The reading of yesterday's Journal was, on motion of Mr. MAYNARD, by unanimous consent, dispensed with.

REPRESENTATIVES-ELECT FROM ARKANSAS.

Mr. PAINE. Mr. Speaker, I rise to a question of privilege. I send up the credentials of the Representatives-elect from the State of Arkansas, together with a resolution on which I demand the previous question.

The Clerk read the resolution, as follows: Resolved, That the oath of office be now administered by the Speaker to Hon. Logan H. Roots, Hon. James Hinds, and Hon. Thomas Boles, Representatives-elect from the State of Arkansas.

Mr. MAYNARD. I suggest to the gentleman from Wisconsin to take the course pursued in the case of Tennessee. The credentials of the Representatives-elect from Tennessee were formally referred to the Committee of Elections. The gentleman will see that is a wise and prudent proceeding. We had a report from the Committee of Elections almost immediately. I think it is the best course for us to pursue now.

Mr. PAINE. I withdraw the demand for the previous question. I wish to say a word by way of explanation and in reply to the gen tleman from Tennessee. Having examined the credentials myself, having found them correct, and having heard of no contest of the claim of these gentlemen to their seats in this House, although they have been here for weeks and months waiting for admission, I do not see any good reason why we should refer their credentials to the Committee of Elections in the first instance any more than in ordinary cases of credentials presented where there is no notice of contest. If there is any contest, if there is any question in reference to the election of these gentlemen, if there is any doubt of their right to represent the State of Arkansas in this House, then I will admit it is proper to refer these credentials to the Committee of Elections, although even in that case the rights of contestants would not be concluded or prejudiced by the administration of the oath. If any gentleman will state that he has heard of any charge against either of these gentlemen of disloyalty or of any irregularity in the election at which they were chosen I will consent to this reference. Unless this is done I do not see why in this case we should depart from the ordinary procedure in like cases.

Mr. MAYNARD. If the gentleman will allow me, I will say a word. He was a member of the last Congress and will remember what I am about to say. At the commencement of that Congress the credentials of the Tennessee delegation were referred by the House to the Committee on Reconstruction. That committee reported substantially with regard to Tennessee the action that has been taken in regard to Arkansas. When that had been perfected into law the House then referred the credentials to the Committee of Elections. That committee reported them back, and the members from Tennessee were then sworn in. I think the same prudent course should be pursued in this instance.

Mr. PAINE. Mr. Speaker, as the gentleman seems in earnest in this matter, and other gentlemen near me express the same opinion, I will modify my resolution as follows:

Resolved, That the credentials of the Representstives-elect from the State of Arkansas be referred to the Committee of Elections.

The resolution, as modified, was agreed to.

DRAWBACK ON SHIP-BUILDING MATERIAL.

On motion of Mr. LYNCH, by unanimous consent, the bill (H. R. No. 1286) to allow drawback on articles used in the construction of vessels, which was yesterday referred to the Committee on Commerce, was ordered to be printed.

ADMISSION OF ARKANSAS.

Mr. STEVENS, of Pennsylvania, offered the following resolution; which was read, considered, and agreed to:

་་

Resolved. That the Clerk of the House of Representatives be directed to present to the Secretary of State the act entitled An act to admit the State of Arkansas to representation in Congress," together with the certificate of the Clerk of the House of Representatives and Secretary of the Senate, showing that the said act was passed by a vote of two thirds of both Houses of Congress after the objections of the President thereto had been received, and after the reconsideration of said act by both Houses in accordance with the Constitution.

REPORT OF CHIEF OF ORDNANCE.

Mr. BUTLER, by unanimous consent, presented a report of the Chief of Ordnance; which was ordered to be printed, and referred to the Committee on Ordnance.

PENSIONS TO EX-OFFICERS.

Mr. O'NEILL, by unanimous consent, introduced a bill (H. R. No. 1310) to provide for the granting of pensions to those ex-officers of the United States Army, according to their rank at date of final muster out, who were wounded while serving as enlisted men and who are not now drawing pensions as officers; which was read a first and second time, and referred to the Committee on Invalid Pensions.

BRAZIL MAIL STEAMSHIP COMPANY.

The SPEAKER, by unanimous consent, laid before the House a communication from the Secretary of the Treasury, transmitting statement of the sums paid without protest during the years 1865, 1866, and 1867, on the vessels of the United States and Brazil Mail Steamship Company at the port of New York, amounting to $7,611 10; which was referred to the Committee on Appropriations.

ADMISSION OF ARKANSAS.

Mr. MILLER. I ask unanimous consent to record my vote on the bill for the admission of Arkansas. The Chair cannot ask

The SPEAKER. unanimous consent.

Mr. MILLER. Then I wish to say if I had been here I would have voted in favor of the bill, notwithstanding the veto of the President.

CONTRACTS PAYABLE IN GOLD.

Mr. BROOKS. If there is no objectionand if there is I would instantly withdraw it—I move to take up from the Speaker's table the bill of the Senate allowing contracts to be made in gold. It is pretty important that it should pass.

Mr. HOLMAN and Mr. ALLISON objected.

SALE OF HOT SPRINGS RESERVATION. Mr. JULIAN. Iintroduced a bill the other day providing for the sale of Hot Springs reservation in Arkansas. I ask unanimous consent that it be printed.

The bill was ordered to be printed.

R. P. PARROTT.

On motion of Mr. ROBERTSON, by unanimous consent, the bill (S. No. 303) for the relief of R. P. Parrott was taken from the Speaker's table, read a first and second time, and referred to the Committee on Commerce.

REMOVAL OF DISABILITIES.

Mr. CULLOM. I desire to correct the Journal. I am recorded as not voting on the bill for the removal of disabilities yesterday. I voted against the bill.

MILLIGAN CASE.

On motion of Mr. ARNELL, by unanimous consent, the report of the Secretary of War in regard to the Milligan case was taken from the Speaker's table, ordered to be printed, and referred to the Committee on the Judiciary.

Mr. WASHBURNE, of Illinois, moved to

reconsider the various votes by which bills had been referred this morning; and also moved that the motion to reconsider be laid on the table.

The latter motion was agreed to.

PRINTING OF A REPORT.

Mr. JENCKES, by unanimous consent, submitted the following resolution; which was read and referred, under the law, to the Committee on Printing:

Resolved, That three thousand extra copies of the report of the Committee on Retrenchment on the civil service of the United States be printed for the use of the House.

HAMPTON THOMPSON.

On motion of Mr. LAWRENCE, of Pennsylvania, by unanimous consent, the amendment of the Senate to the bill (H. R. No. 822) granting a pension to Hampton Thompson was taken from the Speaker's table.

The amendment of the Senate was to insert in line five, after the word "volunteers," the words and to pay him a pension at the rate of twenty-five dollars per annum."

Mr. LAWRENCE, of Pennsylvania. I move that the amendment of the Senate be concurred in.

Mr. MILLER. I think the amendment had better be referred to the Committee on Pensions.

Mr. LAWRENCE, of Pennsylvania. The amendment does not increase the pension allowed by the House bill. It only specifies the amount, which the House bill did not.

The amendment was concurred in.

Mr. LAWRENCE, of Pennsylvania, moved to reconsider the vote by which the amendment was concurred in; and also moved that the motion to reconsider be laid on the table. The latter motion was agreed to.

ORDER OF BUSINESS.

Mr. COBB. That can be presented under the rules. I object.

The SPEAKER. It will be referred by the Journal clerk.

INTERNAL TAX BILL.

Mr. SCHENCK. I call for the regular order of business.

The House, under the order heretofore made, resolved itself into the Committee of the Whole on the state of the Union, (Mr. BLAINE in the chair,) and resumed the consideration of the bill (H. R. No. 1284) to change and more effectually secure the collection of internal taxes on distilled spirits and tobacco, and to amend the tax on banks.

The section under consideration was the following:

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That there shall be levied and collected on all distilled spirits on which the tax prescribed by law has not been paid, a tax of sixty cents on each and every proof gallon, to be paid by the distiller, owner, or any person having possession thereof; and the tax on such spirits shall be collected on the whole number of gauge or wine gallons when below proof, and

shall be increased in proportion for any greater

strength than the strength of proof spirit as defined in this act and any fractional part of a gallon in excess of the number of gallons in a cask or package shall be taxed as a gallon. Every proprietor or possessor of a still, distillery, or distilling apparatus, and every person in any manner interested in the use of any such still, distillery, or distilling apparatus, shall be jointly and severally liable for the taxes imposed by law on the distilled spirits produced therefrom, and the tax shall be a first lien on the spirits distilled, the distillery used for distilling the same, the stills, vessels, fixtures, and tools therein, and on the lot or tract of land whereon the said distillery is situated, together with any building thereon, from the time said spirits are distilled until the said tax shall be paid.

The pending amendment was the one moved by Mr. VAN WYCK, to reduce the tax on whisky to fifty cents per gallon, instead of sixty cents, as reported by the Committee of Ways and Means.

Mr. VAN WYCK. Mr. Chairman, the country, with great unanimity, are demanding the reduction of the tax on whisky, and the committee in its proposition have bat yielded to that demand. Some weeks ago, when I submitted a report exposing the machinations and

Mr. WASHBURNE, of Illinois. No business to be done?

Mr. SCHENCK. No business to be done. Mr. FARNSWORTH. I would like to know what subject the gentleman is going to speak upon.

Mr. ELDRIDGE. Would it not answer quite as well for the gentleman from Maine to have the use of the Hall for this purpose for some evening? [Laughter.]

The SPEAKER. Is there objection to the proposition of the gentleman from Ohio, [Mr. SCHENCK?]

No objection was made.

IMPROVEMENT OF WESTERN RIVERS.

Mr. EGGLESTON. I ask unanimous consent to present the resolution which I send to the Clerk's desk, and that it be referred to the Committee on Commerce.

The Clerk read as follows:

CINCINNATI, OHIO, June 22, 1868. The Cincinnati Chamber of Commerce, on the 20th instant, una mously adopted the following: Resolved, That in the opinion of this Chamber it is of vital importance to the commerce of the Ohio valley, and of the West generally, that the appropriations named in the river and harbor bill now before Congress for the works at the falls of the Ohio river and at the rapids in the Mississippi river, as well as for the general improvement of navigation in those rivers, should be granted at the present session; and that we earnestly request our Senators and Representatives to give these features of the bill prompt and efficient support.

JOHN A. GANO, President Chamber of Commerce.

Hon. BENJAMIN EGGLESTON.

almost incredible. Examinations since then made show its power still more incredible. It has stalked through the antechambers of this Hall, through the corridors of the Senate, and controlled the avenues to the Executive Mansion. While it directed the action it defied the power of the Government. I then believed that the only way to destroy the ring and check the immense frauds and demoralization permeating that branch of the service was to reduce the tax to fifty cents per gallon; to take away its wealth by depriving it of the source of its ill-gotten gains, and that the tax be collected at the worm of the still, thereby dispensing with that great means of fraud-bonded warehouses. Everything I then stated has been more than vindicated, and conclusions then formed fully justified by subsequent facts. The whisky ring then opened its batteries and honored me with its denunciations through every channel they could reach. At that time it was announced the Ways and Means would. oppose any reduction and that the temperance sentiment of the country would insist upon a high tax. Feeling, therefore, confident of the retention of power the ring became more insolent, stole larger sums from the revenue, commanded thousands unblushingly and almost publicly to manipulate legislation. So bold and arrogant had it become in this last act that the people every where demanded that this power should be destroyed, and as it could only be destroyed by being impoverished that the tax must necessarily be reduced. Such was my position when I made the report as a member of the Committee on Retrenchment, and such is my position to-day.

The tax as proposed by the Committee of Ways and Means, at sixty cents per gallon, in my judgment, will fail to drive out illicit dis tillers of molasses. I think, therefore, it is necessary to reduce that tax to fifty cents per

warn members against the danger of going to another extreme. Some members seem disposed to put the tax down to twenty or twentyfive cents a gallon on distilled spirits. Now, the gentleman from Massachusetts [Mr. BUTLER] is mistaken in his calculation as to the amount of revenue we can raise out of distilled spirits by this bill. I take it for granted the Committee of Ways and Means have adopted all the incidental taxation that it is possible to impose upon distilled spirits, to wit: a special tax on the distillery, a special per diem tax, and a tax on sales. Now, the chairman of the committee has presented an estimate of the incidental tax upon this article. I believe the chairman is too high in this estimate. Indirect taxes, before the spirits are put upon the market, will not exceed six cents per gallon, so that if the proposition of the gentleman from Illinois or the gentleman from Massachusetts should prevail it will make the tax less than forty cents per gallon, which, taking the very highest possible estimate of the quantity, would only amount to $30,000,000 per annum or less.

Now, Mr. Chairman, the amount of tax that we ought to realize on distilled spirits should not be less than $50,000,000. The people of this country will not rest satisfied with a less amount raised from that source. But it is impossible to realize more than from twentyfive to thirty million dollars if you put your tax at twenty five cents or less per gallon. Now, gentlemen say they desire to reduce this tax to a point so low that we can dispense with all transportation in bond. I wish to call the attention of the committee to this question of transportation in bond. The bill as presented to the House prohibits transportation in bond except for exportation, and the exportation of disulled spirits is necessarily confined to two distinct articles, namely, alcohol and rum, one being exported almost entirely from the city of Boston and the other from New York. Gentlemen seem to forget that we have in this bill a provision which, while it is intended to protect, and must in a very great degree protect, honest and fair men who are engaged in the business of distilling, requires this tax to be collected at the distillery warehouse, and that at the warehouse there shall be put on each barrel or package a stamp indicating the number of gallons contained in it and that the tax has been paid thereon. So I apprehend that the honest distiller can have no difficulty in securing from his banker, or from those who advance him money, the amount of money required upon that barrel or package when he exhibits it with the revenue stamp placed there by the collector of the district, showing that the tax has been paid.

Now the cost of producing a gallon of spirits from corn is twenty-five cents, which makes the barrel cost about ten dollars. Now, a tax of sixty cents will make about twenty-four dollars a barrel.

[Here the hammer fell.]

Mr. GARFIELD. I rise to oppose the amendment. I wish to say in the outset that I have, for three years, been of the opinion, as I am to-day, that it is folly for Congress to attempt to collect a tax of two dollars a gallon on distilled spirits. Whenever I have had an opportunity to vote on this question, whether in the Committee of Ways and Means or in this House, I believe my vote will be found recorded in favor of the reduction of the tax. But at this time I suppose at least a majority of the people agree that the hope of collecting two dollars is gone. The only question, then, is where we ought to put the rate. The Committee of Ways and Means propose to reduce it on the direct tax to sixty cents per gallon, but let it be understood that the committee have raised the tax in the various forms of special, per cent., and per diem taxes to the amount of sixteen and a quarter cents per gallon. All the special taxes now collected on spirits under the law will not amount to more than one quarter of one cent per gallon. Therefore, the sixteen and a quarter cents

which the committee have added in the way of special taxes may be considered, with the exception of the quarter of a cent, as a clear addition to the tax on whisky. In other words, while they have reduced the direct tax from two dollars a gallon to sixty cents, they have increased the indirect taxes sixteen cents a gallon, making a tax of seventy-six and a quarter cents per gallon, according to the bill before us. The prevailing reason in the minds of all members here why we should reduce the tax is the necessity of breaking up the great power of the whisky ring; that combination which defrauds the revenue and prevents us from getting revenue on more than one gallon in ten. The only practical question of statesmanship for us to consider is whether seventy-six and a quarter cents is too high a tax to enable us completely and effectually to break up the combination.

millions and tens of millions, and I fear that the difference between forty and fifty cents would operate to that effect.

Now, let us, while we are correcting this evil, do it effectually. Do not let us follow the unwise philosophy of a humane man, who was too kind-hearted to take all the dog's tail off at one swoop and took a little piece off each day. Do not for the next year leave the morals and the revenues of the country a prey to the men who hold them both at their mercy under the patronage of the Administration, but let us strike a point which will give us revenue enough for the Government, as forty cents per gallon, with the additional sixteen and a quarter cents, will do. The last day I was in the House I learned from a member from New York that he had the day before, in the ordinary course of business, shipped alcohol from New York to the western part of Kansas. Now, let us make this so that nature will have some influence in regulating this important branch of trade, so that the West may produce whisky where the corn is grown. [Here the hammer fell.]

I believe it is too high, and I am in favor of putting the direct tax down to fifty cents, but not lower. Now, I am aware that the precise amount of tax which will best meet the necessities of this case cannot be determined with the certainty with which we settle questions Mr. PRUYN. When I was a member of that depend on general principles. Without a the Committee of Ways and Means in the full exhibit of the minute details, I am of the Thirty-Eighth Congress, with two or three of opinion that fifty cents direct tax can be col- my associates on that committee, I urged very lected without much fraud. I may not be warmly the propriety of reducing the then proable to give sufficient reasons to satisfy gentle-posed tax of two dollars per gallon to one dolmen why that is my faith; certainly I cannot do it in five minutes. But I am persuaded that a tax of seventy-six and a quarter cents on whisky, with all the opportunities that have been so long enjoyed, and the skill that has been acquired by experts in fraud, will be too much. As my colleague suggests, they have diffused the direct tax. That is wise, and we are pretty certain to get the sixteen and a quarter cents, and I would not disturb a single item of those special taxes so far as I have yet considered them. But I believe that if the committee will take fifty cents as the rate, and so far reduce the incentives to fraud and the temptation to rascality, with the additional guards thrown around the revenue in this bill in the machinery for collecting it, we shall be reasonably safe.

[Here the hammer fell.]

Mr. ALLISON. I withdraw the amendment to the amendment.

Mr. KELLEY. Imove to amend the amendment by striking out "fifty cents" and inserting "forty cents." I do so because I believe that at that figure we will collect more revenue than at any other that can be inserted. I believe that with the tax direct and indirect, amounting to nearly eighty cents on the gal lon, the frauds will be almost as large in gallons as it is with the present tax. The question put by the gentleman from Iowa [Mr. PRICE] to his colleague [Mr. ALLISON] during my absence involved the whole gist of the matter. I read it at my home. He interrogated his colleague as to whether the thing he was driving at was not to get grain whisky at such a price that it and the tax would be less than the price of molasses whisky without the tax, and there he hit the nail upon the head. The gentleman from Ohio [Mr. SCHENCK] says it hit Philadelphia. Not Philadelphia, but the Scoundrels of the country who have been poured into Philadelphia to drive her old business men of integrity out of it. It hits New York; it hits Chicago; it hits the unconvicted felons, who, as I had occasion to say in quoting the language of an officer of the revenue, are creatures who would be committing burglary and highway robbery, or expiating their crimes in the penitentiary, if they did not find it more profitable and safe to be cheating the Government and the community in illicit distillation. Now, a reduction of the tax to sixty cents would diminish to some extent the price of molasses, and would consequently diminish the price at which molasses whisky can be produced. Ten cents above fifty cents is a mere bonus to fraud; a mere payment of millions to scoundrels to cheat the Government of other

lar. We failed in our efforts to do so, yet the result has proved just what was predicted at that time by the opponents of a large and heavy tax. No Government ever offered a greater bounty to fraud, perjury, and all kinds of iniquity than this Government did when it established the whisky tax at two dollars per gallon. It was a tax that all persons, looking at the value of the article, had told us never could be collected, never would be paid, but would be evaded at all times and under all circumstances. It was a tax that broke down honest distilleries and encouraged those who were dishonest in the illicit distillation of spirits.

I am glad that the Committee of Ways and Means have yielded at last to the acknowledged sentiment of the House and of the country, and have proposed to make this tax sixty cents instead of two dollars per gallon. And under a code of the most extraordinary character, such as is now contained in this bill, imposing fines and penalties and requisitions such as a man can hardly comply with, the tax is increased. as the chairman of the Committee of Ways and Means [Mr. SCHENCK] says, about sixteen or seventeen cents per gallon; making the whole tax some seventy-six or seventyseven cents per gallon.

Now, the whole amount of whisky manufactured in the country at the present time, as I am assured by those well informed upon the subject, is about one hundred million gallons per year; perhaps a little more, and perhaps a little less. With the proposed tax we should receive a revenue from whisky of about seventy-five million dollars per annum.

Y

Now, it is very difficult to decide just where the point is to which we can go with safety and collect the tax, and find that it will not be evaded by the distillers. My own impression is that the gentleman from New York, [Mr. VAN WYCK,] who has moved to reduce this tax to fifty cents per gallon, has just about hit the right point. And for one I am prepared, with the information I now possess upon the subject, to vote for fifty cents per gallon, believing that to be a tax which can be collected. If to that amount you add the other taxes of seventeen cents per gallon, you will have a tax of sixtyseven cents per gallon, yielding a revenue of about sixty-seven million dollars per annum ; a very large revenue when contrasted with the ten, twelve, or fifteen million dollars per year now collected, an amount which will do very much, indeed, to strengthen the Treasury and the resources, character, and financial condi tion of this country.

I should therefore be very glad to give my vote to fix the tax upon distilled spirits at nity