Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1865-01-20
The Tax on .Freights.


dcns gficY0ls to be borne just now, il
shape aE taxes. First is the tonnage tas
tAcn ii, tx Oh repairs, and nov there i
levied Il tax Of : l2 per cent on the gros
receipts for freight. \ new vessel has t
pay , per cent on the cost of the hull
This is rather hard on an industrial inter
est that has TO strive so hard for an exist
ence. Bat the reason for the creates
complaint, just now, is the levy of , l.
per cent on the gross receipts Of freiga
money. This is found to be impractical
and onerous, by those whose duty it is I:
put the law in execution. The custoi
which prevails here, is for the master o
captain to sail vessel on shares. Nov
the decision is that the term .gr0ss re
ceipts'' is the total amonnt Of earnings
that which belongs to the captain an(
that which belongs to the owners. Thu
law has been in force since July; and i
many instances there ha4 been a change @
masterS,-tie voyage, or voyages all set
tied, the captain taking his share; anJ
perhaps lie takes another vessel, and may
b. now, or was when the assessor called on
the owncrs, in California or Europe. The
vessel may have changed Owners, and may
be at sch, or the owners do not know what
are the gross receipts" because the cap
tain has never made formal settlement,
ouy sending a draft from Boston or New
York for what he says is the vessels share.
But we will not enumerate the difficulties
which attend this vexatious and impracti-
cal act. Those familiar with the custom
obtaining in tlis locality in regard to sail
ing vessels on shares, and their general
management, viii readily perceive the
difficulties attending this law.
Ona of the inequalities of the tax, or
one Of It's abgur(lities, as demonstrated by
the Interpretation Of the Commissioner, is
that those owning vessels and employing
them in their own business, are exempt
fro,n its operation. Vessels employed in
any business for HIRE shall pay tax of
IL per cent on the gross receipts for
freight. In answer to inquiries PROFOUND
ed by Il gentleman Of this village. the
Commissioner decides that a Rachlanl
merchant manufacturing lime, or an Els
worth merchant manufacturing lumber,
and owning vessels. may transport that
Lumber or that lime to Boston and sell the
cargo, and not be liable for tie tax, Le-
eause he does not transport for htte.
1t would seem tilat the principle upon
which this tax IS founded is wrong. twill
defeat itself, because CT its ahsurdities. \
tax on tonnage is a practical master. /.
Is definite, and leaves 10 chance for gGesses
or average Judgment" or making up a
case upon which to assess Il tax. If fur
ther tax must be levied on navigation, ly
all means put it on tie tonnage. This i,
the fa;rest, sdrest sid most equitable meth
Cd yet devised.
But If a tax on receipts for freights il
PERSISTED il, let ii be on the net earning
Of the vessel. Those immediately inter
estcd Will not, perhaps, complain of this
and besides, a tax of this kind could h,
collected, because the parties to pay coul;
be found, and the amount readily ascer
tanned. Not so on the gross receipts"
We are glad to perceive that our Repre-
sentative has promptly taken hold Of th
matter. We copy the following from til,
Congressional Globe:
Mr.; Boaman. call for the regulg or
Mr.. Pike. ask the gentleman to with
draw that call for a moment, that | ma,
offer a resolution.
Mr.. Beaman. yield to the gentleman
TAXATION OF CoASTING VESSELS.
Mr.. Pike, by unanimous consent. offer
ed the following resolution, which wa.
read, considered, and agreed to:
ResoLre3. That the Committee of WAYS
and Means be instructed to inquire into
the eXpediency of amending See. 1913 O.
t'ie h'tNihui iSNNiuc att ~ iuhJ CUdsllHS
vessels which shall pay an annual tonnage
tax shall be exempt from the tax of 2 ::
per cent. upon freight SC, and thus placed
opon the same footing as provincial. yes.
sells bringing cargoes so our ports.
The patriotism of our ship owners i,
equal to most any reasonable draft tina
can be made upon it, but they 90 complain
of this last tax, and ask in all seriousness
if the Government will not "hold up ant
give this great interest chance to suryiy,
the rebellion.
| We heard it stated the other day, by !
gentleman pretty well versed in the mat
ter that the total value of vessel property
destroyed in this Representative District
since the commencement of the rebellion
wonld amount to more than all the take
collected in the district, under the Interna
Revenue law, since its passage.
The timely action of Mr.. Pike, and thu
willingness of the House to hear him, an,
TO do justice in all these matters, give II
"a reasonable expectation that this wron.
will soon be righted.
--Congress has passed the resolution
to give the six months notice to terminals
the Reciprocity Treaty. We can congratu