The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-06-10
The Bankers and Brokers and tho Gov
ernment Tax.

The Bankers and Brokers and tho Gov
crnment Tax.
number of the Wall street bankers are SKILL
directing their efforts TO evade the payment OF
their government tax under the provisions OF
the Internal Revenue law. Three or four DIFF
ferent cases were argued few days since De-
fore Judge Nelson, in the United States Circuit
Court, on application for an injunction restrain
ing the internal revenue collector from en-
forcing the law. Nearly week has elapsed
since the cases were argued, but the Judge
still withholds his decision. The Wall street
bankers In the meantime are making common
cause, not only refusing to pay the tax on their
own transactions, but also refusing to pay to
the government the amount Of tax collected Of
their customers for that purpose. Ajoint fund
il also being raised, and it is reported that
from thirty to fifty thousand dollars have been
subscribed to . general fund to be used in
some way to secure exemption from the rev.
enue tax. 1t is understood that there Is due
the government from the bankers and brokers
about one and half million Of dollars, and if
they can retain that amount by the expendi-
ture of fifty thousand dollars it will be profit
able speculation for them. Another very re-
markable fact connected with this is that they
are using the money which they collected from
their customers ON the plea that they were
obliged to pay it to the government in the
shape of tax to secure an injunction against
paying it into the United States revenue. This
is one of the clearest cases Of obtaining money
under false pretences on record. Yet we sup
pose that many of the bankers resorting to
these lodges are church members, who go
into the sanctuary with long faces, stand up
and thank the Almighty that they are not like
the publicans who pay taxes.
The query is, what is to be done with this
large fund now being raised to secure an exemp-
ton from the revenue tax! Isit intended to pur-
chase Judge or the revenue officers, or is the
business of defending parties who are trying to
evade their government tax becoming SO dis
reputable that no lawyer will undertake it
without an enormously large fee, sufficient to
overcome the scruples Of his conscience
in thus working against the interest of the
government? 1t Is reported that some of the
most prominent lawyers whom the bankers
and brokers have heretofore depended upon
to argue their cases have declared that they
will have nothing more TO do with cases Of
that kind. They declare that the principles in
volyed in the just and equal enforcement OF the
law are too great for them to be lending their
influence to assist its evasion The result of the
litigation now pending is Of far more import
ance than generally supposed. Every honest
taxpayer has deep interest in the decision; for
upon that decision rests the question whether
he, after paying his tax, is to be pro-
tected by the legal tribunals and the govern
ment. If the courts decide that the bankers
and brokers shall not pay tho ir revenue tax
then the door is open for every business inter-
est to combine and secure an injunction
against the enforcement of the Revenue law.
The tax is just as binding upon the bankers
and brokers % on any other class, and
if one escapes by litigation the other interests
can also, and the result will be that those per-
sons who cannot subscribe sufficient to fee
their lawyers will have to pay the entire tar.
Thus the burden will fall upon the middle
classes, and those best able t0 bear It will 60
scot free Lot 1t be once understood that oil
that is necessary TO evade the payment Of the
government tax ia to apply for an injunction
in court and raise large fund to fee some
body and the government win very soon find
itself minus Of the great bulk Of Its revenue.
In no instance il the tax morally and legally
more binding than upon the banker and
broker, who charges the government tax TO his
customer on every transaction. If they are not
required to pay the tax under such crcum-
stances then We would like to know who is
liable under the law.