The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-10-01

4 - .
tax on Bxokers' sales Of gold and stocks made on
their own eccount The Internal Revenue act
prescribss tax on al such sales by brokers
without qualification, while the amendatory act
passed at the last session Of Congress particu-
larly specifies whether for themselves or
others" But the brokers concerned failed to
see that the tax applied to their own speculs-
| tive transactions, although they admitted that
the tax applied to similar transactions made
on account Of their customers and they repre-
sented this view Of the case TO Mr.. Lewis, the
then Commissioner OF Internal Revenue, who
differed with them, but gave a written promise
to the effect that II the brokers would make
case and submit it to the United Ststes Circuit
Court, his department. would abide by Its
decision. So case was made and tried before
Judge Nelson, who, strange to say, rendered
q decision in favor Of the brokers and
contrary to the law. Meanwhile Mr.. Lewis,
laundering lawyer, had made way for Mr..
Orion, laundering ex-Alderman and poll
tician, at the head u the Department Of Inter-
nal Revenue, and ONE Of the first acts Of the
latter was to ignore the decision Of the United
States Circuit Court Notwithstanding the
promise made by his predecessor, and to In
struct his subordinates to collect the tax.
Hereupon the brokers waxed loud in their
complaints and spoke reproachfully of q
breach of faith on the part of the department
at Washington; but when tie promise referred
to was mentioned to Mr.. Orion he avowed his
entire ignorance of it till AFTER he had issued
his last Instructions, when he had Rad re-
publication Of II In a newspaper.
He, however, recanted nothing; 50 the
Stock Exchange and Gold Room soughtto gain
time by again appearing before the same
laundering Judge Of the Circuit Court
70 apply for protection in the form Of
an injunction. The Judge listened drowsily
during two hot days In August to the lengthy
arguments Of counsel for and against the appif-
cation, and then he slept upon tae case'fcr
about month before he made up his mind
what to say, and then finally concluded De
would do nothing. He; therefore, indited' o
very muddy decision in which about the only
clear sentence was application refused" He
probably thought he might have gone too far
in the FIRST instance, and thst, therefore, it was'
safer not to 60 any further.
The brokers, great and small, were chap
fallen over the result of this long protracted'
labor Of the judicial mountain which brought
forth 50 small mouse. They had fondly hoped
that the Judge who had done them such good
turn in the beginning would support his i
own decision by granting the Injunction. But,
alas for the vanity of human hopes! he had left
them to tina tender mercies'of the tax gatherers,
who might at any time bear down upon them
like plague Of locusts and idevour their sub
stance by ievying upon their Office furniture
and whatever else they could find.
Seriously speaking, however, this brokers' tax
middle is nojoke in Wall street. tits mot incor-
rectly estimated that some Of the large houses
owe taxes TO- the government TO the amount
Of more than hundred thousand dollars
each, while every broker is indebted in the
same mannerto an extent which bears large |
proportion tonhis capital, and it Is believed by
judges that not fewof the brokers |
are pecuniarily unable to meet the claims upon |
them for taxes alone, these being 80 far in ar |
rear az to have aggregated am enormous sum,
and the ordinary fine Of ten per cent for the
failure to pay, promptly being added to the |
grand total
The Stock Exchange and he-Gold Room have,
however, united to resist the collection of the
tax, and the result remains to. be seen. Those
Of the brokers who could least afford to pay
the accumulated taxes declare that they will
not attempt to pay them, and some 60 so far
as to say, Here are our desks and'chairs-let
Them levy."' The Internal Revenue officers are
meanwhile considering what to do and how to
do It, and ere willing to receive thetaxes under
protest pending the decision of the Supreme
Court OF the United States on the question
But the brokers, some of whom could
have paid the taxes monthly according
to the law, although they may be unable to do
so conveniently now that there is the accu-
mutation u many months TO liqufistc, are ex-
ceedingly svcrse to this. The Internal Reve-
nue. officers are also exceedingly averse to
waiting, having an impression that stock
and that therefore the taxes and the collectors
commission are at STAKE And. these appre-
hensions ore not il-founded, and therefore those
who lave margins" with weak houses had bet
ter talce. warning accordingly. This muddle
will doubtless be carried into the Supreme
Court; where the blrnders Of the original law,
Juoge Nelson and the Internal Revenue De-
partnent will be reviewed and: set ct rest, per-
haps by another blunder. What viii be done.
in. the interim is the great question that troubles
Wall street
TAXING SouNDNos.-It isireporeed that Hon.
II. j Raymond has written Letter to Hon.
Schuyler Colfax, Speaker Of the last Congress,
| ia favor of his reelection. Now, If Mr. Colfax
will only return the compliment, Thurlow Weed
will know how to use it to Raymond's advan-