The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-08-29

.e..AS anu 0HVA0EU W. 100 AaSVk&es
Revenue Act.
UNITED STATES CIRCUIT COURr-M EQUITY.
Before Judge Nelson.
The romanticaly situated and tassfully built little
town OF Coopersown county seat Of Osego county was
last week the Of legal and forensic dis
play new 10 its quiet and retired preciocts There Was
ruled by high behest that the whilom contested legal
oust between the certain wealthy bankers and brokers
of this city and the Assessor Collector Of Internal
Revenue Of the Thirty second DISSATISFACTION Shook
and g. p. Glbert-should b decided and brought
TO hnA ISSUE In so far as can DO
said that any legal point Of controversy can
ever be settled There then amid the scenes OF lake aud
wood Of mountain peak and secluded gIen whence our
national novelist drew the inspiration that gave 70 the
world the first volume of the series Of his beautiful
works The Pionees the which, at this later day
in the march of civilization abstracts the bankers and
brokers Of Wall street. and In support Of which the
sent to the contest able counsel 70
be decided There was "Ieather Stocking there
with noble heart and unerng rifle, to oppose Indian
guile and Indian tomahawk but there leather bound
books enough on other sde and guile enough, disguised
under the designation Of legal oratory and legal acumen
70 do a. efectusl war on opposing interests.
the CASE.
The case was brought up on an application for in
junction to restrain the and the Collector OF the
Thirty second district the one from issuing and the
other from collecting certain internal in certain
cases, the compliments resting upon decision given
previously in their favor supposed test submit
ted for the purpose by Judge Nelson before whom the
case again came up on motion for injunction
THE APPLICATION INJUNCTION.
The bills in this state substantially that the
planans brokers aud bankers for the selling of
curities &C., on their account as well COM
mission; that the compliments appear for themselves
and for all other brokers and bankers OF the city who
desire to come in and thus contest the point Al issue
that the question having arisen az TO the
construction Of the Internal Revenue act-to
wit, as TO whether securities sold by bankers
and brokers for themselves aud not for commission,
were taxable The application further set forth that
same were previously submitted to the two pro-
posed cases IN which the United States plaintiffs
and Messrs Fisk Hatch Cutting the defendants,
and that after arguments on the submission OF the
supposed in the Circuit Court Of the United States
Judge Nelson who As now presided, decided that the
sales made by bankers and brokers of securities for
themselves and on their own account and not for
mission not taxable under the ninety ninth section
of the Internal Revenue other act. That notwith
standing such decision the defendants in this cause.-the
Assessor and Collector Of the Thirty second distrct
der the Internal Revenue law insisted going
assessing and Letting duties for securities sold by
bankers and brokers' not for commission but for them
selves. That complanants therefore ask for innc
ton against their proceeding to and to collect
THE ANSWER.
The answer OF the defendants denied all the equities
OF the bill of complaint and set that the companants
are citizens of the city Of New York that such they
have adequate remedies under the internal law
in OF wrongful collection also adequate remedies
at law. II denies the jurisdiction Of the court in the
premises and also that the defendants acting under
the orders OF the Secretary of the Treasury and COmms
soner Of Internal Revenue; also that judgment has
been rendered favor Of the defendants the pre-.
viOusy submitted test question cases. that IL such had
been rendcsed anu unfavorsblc to the defendants that
the United States intended 10 appeal against the
The aDplicatOn for Injunction in this case was made
before Judge Nelson at C0operstown Friday morning
last, and the questions involved in the were til
argued, occupying the court two days.
ARGUMENT INJUNCTION.
Mr. John f. Burrll, for the compa'nanis. opened the
provision under the Internal Revenue or other act
by which moneys once wrongfuly collected from the
bankers and brokers' IN case Of securities sold their
own account could he refunded repaid 10 them.
He discussed at some length the several provs-
ions of the act bearing upon that point, and,
that Judge Nelson having decided principle involved
the question: and the internal revenue officers having
that decision was the duty OF the court
restrain them Counsel went 70 show that the
amount OF revenue which would be illegally collected
according to the decision OF Judge Nelson between this
million OF dollars In the city Of New York alone
Counsel argued at great length on the equities OF the
CASE and claimed that II the duty OF the court 70
grant an injunction as applied for ..s9ShM
ARGUMENT AGAINST CRAVING THE MJUscnoy
Mr.. Samuel g. Courtney followed On the part of the
Defendants w slan'sda the outset that The court had
the court has could have in any case
must depend granted provisions IN terms BY act OF
o. the state o. New York excludes these eases from the
operation of the Judiciary act OF 1882 and unless urs
tcon il conferred by the Internal Revenue itself the
court has no power in the premises Mr. Courtney read
from the Internal Revenue OF 1884 and 1866 showing
that the jurisdiction of Circuit Court OF the United
States shall extend TO all in law or equity arising
under the Revenue laws Of the United States for which
other provisions not made. Mr. Courtney further
argued that, by the 18th and Goth sections Of the Inter-
this class Of cases, and by the 4th section OF the
net the Commissioner OF Internal Revenue
horized on appeal being made to him, to remit
ected or excessive in amount, or in any man
ner illegally collected He claimed that ample
provisions for any illegal erroneous
collection had already been provided for by the Internal
Revenue act in that class o cases. That therefore, this
court had jurisdiction Of the subject matter or
remedy. He discuss d this point al great length, aud
'itcd various authorities to sustain HIS post on He
claimed, also that these defendants being executive of
rers OF tn United States the court had power to
control them In the discharge OF their oica duties
md cited cases and authorities TO show that wa the
fuiy o! each branch Of the ACKNOWLEDGEMENTS and
udicia-t0 abstain from croachments on the other
ic claimed, In continuation, that the complainanls
iad full and complete remedies AT law, and therefore
,ould not resort 70 court OF equity for relief sup
port thereof he iurher argued that the compliments
we're obliged to pursue:firs The various provisions
Ind remedies provided for by the Internal Revenue act
by petition to the Court of Claims Third That they
rad remedy by action law for respass or 10 recover
moneys paid under protest. and that having avaled
Of OF these remedies the defendants had
10 claim in court Of equity and further claimed that
my injunction IN RESTRAIN collection OF tsyee illegally
,s.eessed c9gd NJ! BE- granted. he cited various
authorities Ia support OF his proposition, claiming also
hat all the material allegations Of the bill having
denied there nothing To show the part OF tho
that the defendants had done proposed
10 any act from which injury bad resulted could result
them. Mr. Courtney denied that there any iudg
ncnt entered in the supposed case previously sdjnd
ated upon; and whenever such judgment should be
inferred 10 the United States the g0s rnmenl 10
ended 10 appeal that far the there
nothing TO take cognxance Of. Mr.. Courtney the
lose OF his able and elaborate argument briefly touched
pom the public policy Of granting injunction To re-
train the collection Of the revenue At such time
his.
The argument against the application followed by
dr. John H. Reynolds, and for the compiansnts by
Judge Allen Mr. Reynolds reviewing, by consent Of
Judge Nelson, his Honors opinion given the supposed
est case.
On the conclusion of elaborate arguments either
ide occupying two days Judge Nelson took the papers
nd said he would render decision In the case in very
ew days
Arrivals and Departures.