Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1865-02-24
The Tax on Freights.

i
ing the law in regard to taxing lilo gross
receipts on freights of vessels. Our Repre-
sentative, Mr.. Pike, and Mr.. Blaine of the
Sd district, discussed the propositions, and
demonstrated by citing cases in point, the
inequality and injustice of the law of last
July imposing the 'ay.
We learn that the bill passed the House
on Saturday, with an amendment taxing
coasting vessels 2 10 per cent. on the net
earnings, instead Of the gross as before
For this desirable act of justice to an im-
portant and suffering interest. much praise
is du@Mr. Pike. We give below the re-
marks of Mr.. Pike -
Mr. Pike. ] appeal to the gentleman
from Wisconsin tMr Brown) to withdraw
his amendment until We can take vote
on the amendment of the gentleman from
PENNSYLVANIA. tAIr Sirousc,) and then |
will offer proposition repeating the duty
on gross receipts altogether.
Mr. Brown of Wisconsin. | will with
draw my amendment for that purpose.
The question now being on Dir. strouse's
amendment.
Mr. Ancona demanded tcllers.
Tellcrs were ordered and Messrs. Nor
rill and Strouse were appointed.
The committee divided; and the tcllers
reportcd-ayes 81, noes ~.
So the amendment was agreed to.
Mr. Pike. | now move to insert after
the words ''lorcign ports" in line sos, the
l.,
subject to tonnage duty" The act Of
July last provided for a fax of two and Il
half per cent. on the gross receipts Of
coasting vessels. l am told that the
amendment of the gentleman from Penn
sylvania (Alr Stronsc) embraces my amend
mcnt. would like to have the clause
read rs it now stands.
The Clerk read the clause as amended.
Mr. Pike. That does not answer my
purpose. My proposition is entirely diff
erent. The proposition which has been
adopted by the committee is to tax the net
receipts. My proposition is to exempt
coasting vessels altogether from the taxa
ton of two and half per cent, in order
to have the tax placed upon tonnage as a
tonnage duty. The present. tax of two
and a half per cent. upon the earnings Of
coastng vessels does not apply to foreign
vessels. The provincial vessels which
come into our markets with similar carSocs
to our csastng vessels do not pay the two
and half per cent. while our vessels run
ming alongside of them have to pay the =
| 9 per cent. On the river upon the banks
Of which l live, a vessel casts off from the
wharf on one side of the river and carries
her cargo to Boston or New York. aud she
pays duty Of two and half per cent.
upno her freight but vessel Which casts
off from the other side of the river does
not pay it. 1t is consequently bounty to
provincial vessels. A large amount Of
foreign shipping, made so by transferring
American shipping to the amount of five
hundred thousand tons. is, by the act of
July last. exempt from taxation. My
proposition is that it shall pay tonnage
tax, and in that way we shall obtain more
revenue than under the present system,
and lay the tax upon foreign as well As
upon domestic tonnage.
OF course in this bin we cannot Law a
tonnage tax j: but the Committee of WAYS
and Means propose TO bring in bill to re
wise the tariff, and in that way we can lay
a tonnage tax. 1t is matter of consider
able moment. 4 tonnage tax of 30 cents
ton would yield s3.500,000 annually. /
am not satisfied Of the amount that this
two ard a half per cent. tax will yield ;
but have no idea that it will yield one
third that amount. for. according to the
decision of the Commissioner, this result
comes to pass il :: man owns the vessel
and cargo he pays no freight tax, because
the Commissioner decides that the vesstl
docs not earn money separately from the
ownership. and that consequently she is
not liable to be taxed. But if man doe.
not happen to own both vessel and cargo.
and he sends his vessel abroad for hire, he
is obliged to pay "A freight tax.
Mr. Spalding. Mr. Chairman. am OPP
posed to the amendment, and for this real
son an act was passed at the last session
of Congress regulating the admeasureme,!t
of vessels, and the effect of it has been
been that many of our screw propeller
freight vessels on the lakes, that would
carry perhaps $50 tons of freight, are made
to measure eighteen hundred or two thou
sand tons and now, if this tax he laid Oh
the tonnage. we shall be dumping from
the frying pan into the fire.
N'dit NV p',btCt " tiiC LA vi
if the tonnage were made up under the old
law. | believe that the evils under Which
transportation companies labor are rene
died by the amendment proposed by the
gentleman from Pennsylvania, Mr. Strouse)
and, as representing the commercial inter-
csts of the lakes. am content with that,
Mr. Blaine. desire to add q single
word, Mr. Chairman, in support of the
pending amendment, and shall consume
the brief time allowed me in illustrating
the point at issue by practical example,
the details of which are personally known
to me.
During the past summer slip-owncr
in my district-a highly responsible and
intelligent gentleman chartered to Gov
eminent vessel of four hundred and
fifty tons to carry q cargo OF coal from
Philadelphia to New Orleans, for the gross
sum of $4,000. For the vessels disburse-
ments in Philadelphia for painting. cauk-
ing. repair of sails. panning, provisions,
and port charges. the captain drew on the
owners for $3,055 35. For the vessel
disbursements in New Orleans for various
charges the captain drew ior a further sum
of Sl,4lO 20. Procuring no business in
new orleans she was Competed 10 proceed
to Boston in ballast, where to pay off her
crew and meet ether expenses there was a
further disbursement of $l,l76. AT Bos-
ton the vessel chartered to go to Philadel
phia in ballast for cargo, and at Philadel-
phia, before dollar of the new charter
was available or even earned the captain
again drew for $3.50. Total disbursements
from time of leaving Philadelphia to re-
turn for another cargo, S6,23S Us.
At this OOint the Govarument maid thn