The New York herald., 1868-03-29
THE FORTIETH CONGRESS.
~~~~>>~~~~~No~~~~>~~~~~<N~o
Second Session.


WASHINGTON, March 2S, 1868.
THE ALLEGIANCE OF NATURALIzED CITIZENS.
The CHAIR laid before the Senate resolution of
the Legislature OF Ohio asking Congress to declare
that naturaized citizens allegiance to foreign
Powers, which was referred to the Committee on
Foreign Affairs.
MILWAUKEE HARBoR.
Mr.. HOWE, (rep.) Of Wis.,, presented a memorial
from the Chamber Of Commerce OF Milwaukee, Wis,
praying that the money expended on the harbor be
refunded, which was referred to the Committee on
Commerce.
Mr.. EDxUNDs rep.l Of Vt, from the committee of
proceeds Of captured and abandoned property, pre-
sented their report, which was agreed TO.
DISTRICT BILLS.
tee on the District Of Columbia reported fav0rably
bill to incorporate the Ererirag star newspaper.
Also bill to incorporate the National Life Insurance
Company.
RESOLUTIONS OF INQUIRY.
Mr.. EDMUNDs offered the following resolution
which was adopted- =
Resolved That the President Of the UNITED States be
quested communicate the Senate whether he has eab
ssd or G The e. M Of any new military de-
auhortyy
Mr.. DAVIS, (dem.) OF KY, offered resolution In
qurng Of the Secretary OF the Treasury what amount
s0f United States bonds is outstanding OF each class
with the rate OF interest," and what each class was
worth In gold at the time they were issued.
would be Impossible to give that Information at a
TIE BILL TO EXEMPT CERTAIN MANUFACTURES FROM
INTERNAL TAX.
On motion OF Mr.. SHERMAN the Senate took up the
report of the committee OF conference on the bill to
relieve certain manufactures from internal tax. Mr..
sherman explained the amendment
amendment Tor furnishing whlskey frauds He Oh.
jected to the price being taken prind dcie evi-
dence Of guilt on the part OF all dstillers, the nno-
anil I'm nxftr.sr
whiskey and selling II less than the tax could thus
suspend all the dlstlers in the district after ten
days Dstns was was a, pasness as nnn "
hypothesis that oil distillers were rascas whereas
the onus OF proof should be thrown on the accuscr
until the guilt were shown. He denied the right Of
Congress to stop legitimate business without eyi-
dence. 1t would not withstand the scrutiny Of the
judiciary for one moment.
Mr. FRELINGHUYsEN (rep.) OF N. j., said the effect
OF the bill would be to close up every dstlery in the
country, and asked If such was the intention OF the
committee.
Mr. SHERMAN said the intention Of the committee
was to enable the Internal Revenue Commissioner TO
close up every dlstillery In the cities.
Mr.. NYE said the effect would be to deprive the
government Of any revenue whatever from whiskey
and perhaps to fill the penitentaries with revenue
officials. The remedy lay in another direction He
understood that a law was in preparation to cover
the whole subject, and he submitted that II would
be better TO leave the matter until then, instead OF
establishing system OF spies upon legitimate busi-
ness. The bill was oppressive and unjust
Mr. MORRILL,, rep.l Of W, said not one-eighth OF
the WnlSkcy patO uuIy, Wnile sdcCOmpICeS received
more than the government. II was not altogether
uncalled for TO suppose that all disters were in
league in the fraud. The bill, however, was too
stringent. He suggested an amendment leaving it
90 the discretion OF the Internal Revenue Commits
sioner to close up distileres instead OF mandatory
upon him.
other committee OF conference. The bill had been
fully considered.
Mr. MORTON, lrep.) OF Ind objected to the punish.
ment provided for these frauds, as there were exist
ing laws on the subject The trouble was they were
Revenue Department on the 9th OF January
and found that there had not been over a
dozen persons punished for these crimes up to
that time. They might multiply penalties,
to commit such frauds they could not collect the
tax. The cases usually result In compromise and
the payment Of fines less In amount than the tax
The evil would never be corrected until fifty or one
hundred OF them had been sent to the penitentiary
instead OF being allowed to settle the matter BY
compromise with the district attorney. They should
deprive the Internal Revenue Commissioner, the
Secretary or the Treasury and, above ALL the district
attorney, OF the power to compromise. The district
attorneys were tempted by the law giving them only
$50 for every conviction, but allowing them two per
cent II they obtained q confession Of judp.
ment for $4,000 or $4,000. This evil COM
planned Of would be increased by the proposition
OF the committee. He imputed no corruption to the
secretary or the Treasury or the Internal Revenue
Commissioner; but they had not proper opportuni-
ties away from the scene OF action to make nvest-
cations. II the power OF compromise were taken
away however, and a few OF those committing
frauds sent to the penitentiary different state OF
things would soon be manifest lie read n Joint
resolution read by him In January last, removing
this power Of compromise and making 1t compulsory
that criminal proceedings be carried forward.
Mr. FEssENDEN, trcp.) OF Me-, conceded In the
opinion OF the senator In regard to compromise.
In addition to that the Commissioner OF
Internal Revenue had not tho means at Lis