New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-03-10
The INTERNAL REVENUE CRUSADE.

ASSESSOR wEBsTE's ASSAULT on TIE DELIN-
QUENT BROKERS THEIR CURIOUS RESls-
TANCE-THE IMPENDING CRISIS.
The Thirty second Internal Revenue District
is the most important district the United States Itcom
prises all the southern portion Of the Island of Manhat
tan and its boundary line from the North River up
Liberty-st, along Broadway, Parkrow and Chatham
st. and down Catharines to the East River The heart
of this district is Wast, and immense amount OF
business is done within it's limits which has paid
onehaf Of the amount Of taxes levied upon by Con
gress very brief examination Of affairs convinced
the ostlradca measures would suffice TO check the ras
caty and corruption that prevailed IN every
divide il into "a subdsrict instead Of 49, and tosht the
Assistant around in such manner as 10 ocak
M any little arrangements that might nave previously
existed. ~ w.,...- -.
much fraud and rascaty that he hardly knew where 70
strke first but finally he decided 70 begin with the tax
Of one-twenty OF one per cent on All the Sp
emnoyed in the banking business He Wased 70 TINS by
= On sD 70 letter from the previous Assessor
koin5 ~ b boTroSed money employed by bankers
their business, was capital and as sne snoecI 20
the face for months but he had not chOen or had not
dared 20 enforce IT, The Assessor however having
last calling on the brokers to make their returns and pay
their taxes in accordance with the ruling In question
This circular bOmbshen IN the Wallst, camp Is
this fellow fool Z" cried the brokers' Or does he want
to backma us or does he want TO be Assessor under
Grant, or what does he wantF me exigency was an
important Counsel were quickly retained by the
street" and 1t soon found that all TINS lenoW
wanted was taxes" And he was terribly in earnest
and to be bought of OF scared on the DloAeiS le
Webster insisted that these selfsyled brokers
really bankers and that they must pay the monthly tax
Of onetweny fourth OF one per cent on ther uhou
tai and also all the deposits MARGINS ana borrowed
money received and employed by them IN their business
No, we are not bankers Gle9 he P.oAeiS ~ S h
legal definition included them so plainly mat their
connse advised them that it would be futile 70 contest
mis- p0nt So Il was tacy conceded. Then the tax on
fixed capital ressted but here the lawyers inter
posed again, and conceded this ALSO ana the brokers'
having comparatively little fixed capital TO be taxed,
silently conceded Bat the concession OF the hTd point
the taxation of borrowed capita-!nvOlyes the pay
ment Of millions Of dollars; and here the brokers are
making desperate stand. ,
The law requires bankers TO make TO the Assessor
monthly returns the amount of capital employed In
their business and that officer bases his assessments on
these returns When these returns are not made, he Is
authorized 10 summon tho denquents, put them under
OATH and ask them any questions he deems necessary IN
order 70 the figures which TO base an arbitrary
assessment These two clauses In the law placed the
brokers between the horns Of dilemma Ihey mated 70
lcly questioned about their business consequently as
fast as they summoned they aceeded under protest
TO the Assessors demands rather than answer his cues
lions before the reporters This process was so tedious
for the sake OF making test the brokers' counsel
agreed that Clark Dodge CO., one CT the most respect
able and responsible Of the interested firms should ap
pear voluntarily and answer the Assessors questions,
and Mr. Webster agreed TO ho0dwnk the reporters by
ingy MIR John ID Maxwell one OF the partners OF the rm
made his appe aTance Thursday, Feb. 25 and again
Yesterday, after delays and attempted evas
ions answered all the questions which the Assessor
desired 70 ask This investigation. be it remembered
was designed TO ascertain the amount Of capital EN-
ployed by the firm and liable TO the tax Of l2h Of one
per cent. 1t threw much light on the way In which Wall
st. business done but az there Is hkely TO DO more re-
sistance and resistance VIII be likely 10 bring 70
public view the s curious affairs OF such firms az
Smith, Gould Martin. il Is not necessary TO 90 into the
details Ot this case 10 sufficient 70 say that Mr.
Maxwell testified that the firm OF Clark. Dodge
& Co.. during the month OF November, 1863 employed on
the average half million OF fixed capital million and
half OF borrowed capital, margins" 70 the amount OF
600 and deposits subject TO check draft amounting
to 500 OOO-makDg total taxable capital Of e. 92OO
The law requires like this that the tax shall be
assessed back for period Of 10 months This makes the
tax fveCighths OF per cent over $4,000 The law
Aso requires when arbitrary assessment Is made
per cent be added TO the regular assessment rms
raises the tax 10 over $4,000 And thirdly, the law
provides for penalty Of 500 per month for failure
10 make monthly returns This clause would ada az least
5000 more. But the assessment as made out py tne AZ
SCISSOR Yesterday afternoon did not include this second
penalty and probably will be left TO the Commissioner
TO determine hereafter whether shall be imposed OF
not This assessment will doubtless be placed IN the Col
ector's hands within few days; and unless common
sense or patriotism the fear Of investigation moves
the brokers tgye the contest ana pay her taxes
peaceaby and honestly the Will unGuestOnaDy DC
appealed TO the Commissioner at early day. His dec
SION in that contingency, will be looked Tor with great
info