The daily Evansville journal. (Evansville, Ind.) 1862-1863, 1862-11-08
A Letter to Commissioner Boutwell,,
CHICAGO. October 90. 1862.

CHICAGO, October 90, 1862.
DEAR SIR: At meeting of the Manu-
facturers of this City, held last evening,
the following Report and Resolution was
adopted:
Hon. George s. Boutrell, Commission
er Of Internal Rercnue, Washington,
ID. c.
SIR:-At a meeting of the manufac-
turers of this city, held on the Oath inst,
at which Mr.. Phillip Wadsworth, United
States Assessor for this District, was pres
ent, the undersigned were appointed a
$ssmmittee to address you on the subject
of the Tax Law passed at the last ses-
sion of Congress, in so far as the same
relates to the business of manufacturers;
and also to submit certain questions as
to the Interpretation of the Law, accom-
panied with illustrations of the measure
and effect of its operation, in particular
instances, provided given construction
be placed upon it. Perhaps a single in
terrrogatory could be so framed as to
cover the main ground of discussion
among us, but, that we may be clearly
understood, and, at the same time, the
subject be placed in different lights, we
respectfully ask your consideration of the
following questions:
Are all manufactured articles subject
to an dd valorem tax, irrespective of their
having been made directly from the raw
materials in their simple state, or from
materials which have severally gone
through one or more prior stages of man
ufacture? Or, to put substantially 4 the
same question in a different form:
Are manufacturers obliged to pay the
three per cent tax on the gross amount
of their sales, irrespective of the ques-
ton whether ALL or any, of the compo.
nent parts of given article of manufac-
ture, have been previously subjected tc
taxation?
We are not unaware that the answers
to these questions involve weighty con
siderations-in short, the principles on
which taxation itself is based. But it is
of the first Importance that some rule o.
interpreting the Law be early adopted
and uniformly acted on, by the Govern
ment, and of no less consequence thai
the same be made generally public, il
order, in the first place, that the manu-
facturers of the countrv-on whose &C
tive enterprise depends the welfare, and
indeed, the daily bread, ofso large por
ton of our laboring population-may be
fully advised of the extent of their liabil
ity to taxation, and its consequent effect
upon their business; as also, secondly
that the tax may be economically collec
ted without occasioning disconten
among the people, and the defects of the
present Law, if any, be soon discovered
and speedily remedied by legislative &C
| ton.
1t seems to be the general impression
that both of the foregoing question
must, as the Law stands, elicit an al
frmative answer; or, in other words
that each specific article manufac
tured is subject to the ad valoren
tax, Notwithstanding the materials whicl
enter into its composition have been sey
orally subjected to the same tax, wher
ever, and as often as, they have under
gone change from the raw material t
the condition of manufactured article
or from an article of comparatively sin
pie to one of more refined and compli
Gated manufacture
Assuming this to be the true construC
ton of the Act, and that which the Gol
ernment will adopt, it will then follo7
that, in great variety of cases, thing
representing the same values, and onl
so far altered in form or substance as t
adapt them for use in articles of compl
Gated manufacture, will be subject t
double, treble, or even quadruple rate
of taxation.
To illustrate: A, who has a machine
shop simply, manufactures Portabi
Steam Engines, and obtains a licens
from the Government authorizing him t
carry on that business. Of course, he
obliged to buy materials in such an az
vanced stage of manufacture as ths
their proper combination will produc
the engine fit for use. He buys tt
boiler of one, the castings of anothe
But the boiler-maker must go to the rol
ing-mills for his sheet iron, and to ii
coppersmith for his flues, and the Latte
again has to purchase his sheet coppC
from the manufacturer. The cope
used in the completed engine may thu
be, not untruly, said to have passe
through four distinct stages of manufa
ture, and to have been subjected to Il
like number of separate taxes; as, frs
in the hands of the manufacturer
sheet copper; second, in the hands
, the coppersmith; third, in the hands
! the boiler-maker; and fourth, as it
finally incorporated into the engine ]
, like manner, the boiler would be su
| iected to three, and the castings to tw
distinct taxes. Now suppose A to ha,
capital sufficient to enable him to bl
the raw material, and to carry it throug
these several stages of manufacture, u
til it appears in the form of the perfectt
? machine, would he pay an ad raloreni tt
i on the latter only? If so, manufacture
of limited capital must cease to do bus
a ness. This accumulation of taxes wou
g effectually prevent all attempts at col
q petition on their part
Again: B obtains license to man
o facture clothing He buys the clot
4 button thread, and trimmings, on all
which articles a tax has already be,
levied Are they subject to second t;
when made into coat or cloak?
= Still further, c secures license as
manufacturer respectively of wool
Z, cloth, cotton cloth, buttons, thread, al