The Burlington weekly hawk-eye. [volume] (Burlington [Iowa]) 1860-1876, 1862-11-08


seat that you will soon fill, and it had been ne
cessary to talk to him as We have to you to save
such Union as this, for one should talk te
him as We have to you" Hear, hear That
closed the conversation.
Manufacturer on the Tax Law.
j CHICAGO, October 20, 1852.
Dear Sir:
At - Meeting of the Manufacturers of this City
held last evening" the following Report and Re-
solution was adopted:
HON. GEORGE s. BOUTWELL,,
Con'r of Internal Revenue, Wash;ngton, D. c.
SIE-At q meeting of the manufacturers Of
this city, held on the Gath inst, at which Mr..
Philip Wadsworth, United States Assessor for
this District, was present, the undersigned were
appointed committee to address you on the sub
Ject OF the Tax Law passed at the last session 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, accompanied with illustrations of the mea
sure anu effect of its Operation, in particular in
stances, provided given construction be placed
upon it. Perhaps single interrogatory could
be go framed as to cover the main ground OF
discussion among US, but, that we may be clearly
understood, and, at the same time, the suhjec,
be placed in different lights, we respectfully ask
your consideration Of the following questions.
| Are all manufactured articles subject to an ad
rdtorem tar, 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 manufacture? Or, to put substantially the
same questionin different form: }a
Are manufacturers obliged to pay the three
per cent tax on the gross amount OF their sales,
! irrespective Of the question whether all or any,
Of the component parts Of given article of man
ufsctuie, have been previously subjected to tax.
alton? 'a Esa
We are not unaware that the answers to these
questions involve weighty considerations
short, the principles on which taxation itself is
based. But it is of the first Importance that
some rule Of interpreting theLaw be early adopt.
ed, and uniformly acted on, by the Government,
and of no less consequence that the same be
made generally publican order, in the first place,
that the manufacturer of the country-on whose
active enterprise depends the welfare, and, in
deed, the daily bread, of 90 large proportion
Of our iaboring population-may be fully advised
Of the extent of their liability to taxation, and
its consequent effect upon their business; as
also, secondly, that the tax may be economical.
ly collected, without occasioning discomfort
among the people, and the defects Of the present
Law, if any, be soon discovered and speedily
remeded by legislative action. 1t seems to be
the general impression that both OF the forego-
ing questions must, as the Law stands, elicit an
| fhrmative answer; or, in other words, that each
specific article manufactured is subject to the
ad oalorem tax, notwithstanding the materials
which enter into its composition have been
severally subjected to the same tax, whenever,
and as often as, they have undergone change
from the raw material to the condition of a man.
ufactured article, or from an article Of compare
/ lively simple to one of more refined and CON-
plicated manufacture.
/ Assuming this to be the true construction of
the Act, and that which the Government will
adopt it will then follow that, in great variety
OF cases, things representing the same values,
and only SO far altered in form or substance as
to adapt them for use in articles of complicated
manufacture, will be subject to double, treble,
and even quad,uple, rates ofts1ation.
To illustrate: A, who has machine shop sim
ply manufactures Portable Steam Engines, and
obtains license from the Government anthor-
izing him to carry on that business. Of course,
he is obliged to buy materials in such an advapc.
ed stage of manufacture as that their proper
combination will produce the engine fit for USE
He buys the boiler of one, the castings of anoth-
err But the boiler maker must 20 to the rolling
mills for his sheet iron, and to the copper smith
for bis ues, and the latter again has to purchase
bis sheet copper from the manufacturer. The
copper used in the completed engine may thus
be, not untruly, said to have passed through four
distinct stages OF manufacture and to have been
subjected to the like number of separate taxes:
as, hrst, in the hands Of the manufacturer of
sheet copper; second, in the hands of the copper.
smith; third, in the hands of the boiler-maker:
and fourth, as it is finally incorporated into the
engine. In like manner the boiler would be
subjected to three, and the castings to two, dis
tlnct taxes. Now suppose A to have capital
sufficient to enable him to buy the raw material,
and to carry it through these several stages of
manufacture, until it appears in the form of the
perfected machine, would he pay an ad yaloren.
tax on the latter only? If 80, manufacturers of
limited capital must cease to do business. This
accumulation of taxes would effectually prevent
ali attempts at competition on their part. <a1
Again, b. obtains license to manufacture
clothing. He buys the cloth, buttons, thread
and trimmings on all of which articles a tax has
already been levied. Are they subject to q Sc
cond tax when made into a coat or cloak?
Still further, G secures license as MANN
facturer respectively of wooden cloth, cotton
cloth, buttons thread, and whatsoever else en-
ters into the composition of garment Having
all the means at command, he proceeds to manu-.
factureH clothing. Does Government lew the
tax first on the separate materials, and second.
On the garment when made, or is the tax confined
to the latter only?
Agsir, is a licensed pipe filter, of gas, water
or otherwise. He buys his pipe, which is manu-
featured in pieces OF uniform length, with the
thread, cut on either END, and the coupling
fitted To execute a given order, he is
obliged to use fractional part of one of
these pieces Of pipe, and, of course. to cut
threads omit Does he Thereby become manu-.
! facturer Of and nav a tag on all tho MIN. ,soas