, 1864-10-25
'TANT T(l
lER&.


In the United States Court for tha Eastern
district OF Pennsylvania the case Of the
! Government agninet John Gibson and Others
vas taken up on Wednesday before Judges
1flef and CadWalader- This was an amcaole
ac:lops Which CAN'T up yesterday for argument
i npon Case sgresd upon by the parties, up IN
substantially thu folio wing state of tacts. in.
! TnlVing question as to the pap 7u1ont Of Ger.
tain taxss leyitd BY acts Of Congress upon
domestic distilled spirits. The ficts agreed
nPon were: First, That the defendants ara,
| aid have been, since July !, 1862, manuta.ta
/ Fe1s of domestic distilled spirits iu West
| moreJahd county, Pa, Second, Thst In com
pliance with the act Of Contress OF Jatg /.
la'2. they had erected uear thsir places OF
manutucturlpg certain bonded warehouses,
Rhtth we're accepted as such BY proper au-
tho1l1es; and under the Inv, its terms ha7-
ing beer complied with, they had deposited
therein, from lime to time, Quantities of do
nestle castllled liquors. Third, That OF tas
Soth Of June, 1864, they had In such bonded
warehouses 13S. 127 EallobB OF proof Spirits,
man1t.ctnred ad 1 BY them after March Z, 1864,
and &c, ,037 gallons manufactured before said
date, aud which had been d4ly returned to
Uhitea statts officers as bonded spirits.
Fourth, That Cu 1i.c S0sh Of Juae. 1854, de.
teEdahts paid to the !. Collector OF In
te1nal Revenue for the United States.
e. 81 ota fae n proper district, the sun OF
said, receipt In form being for srproof
spirits manufactured and sold, or remoyed
Tor consumption or sale by them during ths
period commencing the 10th day Of Feoru.
sry, and ending the 30th day Of June, 1881,
Doth ea,s 1ncluslEe, In accordauce With ths
prcVlE1o1s Of an act approved July /, 1909 u
Eighty five Thousand dollars Of this sun was
9tpoelsea oy defendants to the credit Of the
ifsssuser Of the Uafted States, In tbs Fiat
National Bank OF Fniladelphia, on the 23s5
o1 june, 1854, and ths balknce, e2,oG3, vas
patd June 81, 1864, when the exact amonns
OF Spirits in the bonded warehouses ipon
Which no tax has been previously paid. Yta3
aecertained. Fif.h-The 1Ss, ,l27 gallons man. .
hfuctnred alter eth btarcb, 1851, and :bef,rs
July ], leG4, upon which 60 cents per gallon
duIy lat bte paid, remained in The war;
house until after July l, 1864, but was su5ss.
quently removed theretram for eale by de-
5endants without any additional duty having
oeen pad Thereon. The tlsst tax. imposed |
Congreee, Jnly, 1852, which nxed the tax at
~ ct1ts per gallon. The second tax vas IN
additional tax Of 10 centa per gallon, imposeti
o5 act Of Cobgreas, March 2, 1854, aud the
act Of Congress OF June so imposed au ad1l-
tiopal tsx Of 90 csnt5 after July 49, 1854, aud
a'.er 1he ntet OF February, 1865, still iuttnee
tax OF ~ csIts per gatlon making In r1und
numbers total tax upon such spirits, after.
February l, 1865, Of $3.50 per gallon.
Inc counsel for the Uuited States cited the
Act OF July !, 1869, sectien II Of which,
ametg aa e Other things, provides that "the dug
pm = tnS spsIlts STORED IN such warehouse shail
be paid when and as 1t Is sold or removed
rom sucn warehouse for sIe," Aud on be.
half Of the Government 1t was argued That
'hese l1qaors being in the warehouses after
NJ soto Of June, 1864, they we're charseable
WIN TIE additional duty Of 00e per ealloa,
imposed By the Act Of that data. C5uoeei l.
or tht dete ndants. on the other hand, cited
he 55th Section Of the Act Of June 80, 1854,
portion Of which reads as follows: 'sand
y spirits which may be in the possession |
+ the dissillers, or ID public Or honded ware
ouse, en- either The 1.r Of july or February /
tors sa1o, no duty having been paid thereon,
hall be helo,' ETC., and conteaded that the
uty having been paid before the PROVISIONS
+ the act were to operate, the defendants
'ere clsarly not lfablt tyr the additional 9oc
ouft ~as Of the sane opinion, mud directed
ldebent to be euiered la tavor OF the DE-
naants Ihe amount at stake In the caee
as shout s12t SIS Is, and 1t ia only one ofe
amber In which lihe questions arp nendirg