The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-08-21
BROOKLYN CITY.
TEE COURTS.
UNITED STATES DISTINCT COURT.


TEE COURTS.
~-~>->>.o-~J.N>~-~.~0><4>~
UNITED STATES DISTINCT COURT.
The Recent Cuban ExpedisIons-The Amuni-
ton Wagons, &C., CONFERENCE.-The Tug.
boats Sue for Their Charter Money.
Before Judge Benedict
Jacob HeITiona Peter Hammond and Cdthdriae
A. Franklin u.s. Igaatt0 Alt0r0 and others, COM
posing TIE so-caled cuban Jttata.-Y Yesterday
Judge Benedict Of the United States District
Court, granted stay OF proceedings In re-
gard TO the disposition Of ammunition wagons
&C., which Marshal Dallon was about 10
sell 10 satisfy the judgments which had been OBJ
tanned against the property. The plaintiffs nave
brought suits recover the charter money for the
use Of the tug BOATS Jonathan Chase, Hiram NJ
Cool and X. L. Mabey, which were chartered to take
quantity Of warllke stores to the isle Of Cuba but
wSa snes to tne second the
amount, and the third Sd, QUO.
The case will be brought up for trial at the first
session OF the District Court ..~
The Internal Revenue and the Brokers'
Nearly 100000 IN Penalties to he Coll
Iectcd-Opinion Of Judge ,James. 81.
Nearly 1870 brokers' residing IN BROOKLYN and doing
business IN New York. having refused to pay the
government a& upon the capital used in their bust
ness on the ground that they were not bankers,
have been prosecuted for the tax and penalty. The
majority have failed to make any re-
turns to the Internal Revenue Depart.
ment for the past fifteen months and the
penalty for such failure is 5000 per month ndepend
ant of the tax. Yhe payment for arrears Of penalty
VIII amount to nearly $780, 900 indeRendant Of the
tax on their capital Ex-Assessor Webster, Of the
the business Of bankers and brokers was investi.
gated, and after his removal II was continued BY
district. Alter thoroughly sitting the mat.
ter MIR. Cleveland became SATISFIED that 9
government, and Mr. John j. Alien the United States
Assistant District Attorney was directed TO proceed
against the Ysr the sued
tons can be brought against them IN the United
States courts OF the district in which any member OF
ing firms have one or more Of their members resid.
ing in the Eastern district. which comprises this
should take place in Brooklyn. The defendants
were represented by thirty eminent lawyers, and II
is expected some fine legal points will be brought
The brokers against whom motions were issued in
the Circuit Court put IN an appearance last Friday,
appear In the District Court filed their answers, and
IN both cases the defendants took exception to the
jurisdiction Of the United states Court for the East
| ern district
The following opinion BY Judge James has just
OPINION OF JUDGE JAMES.
In the matter Of Wood and Rich and others claim
| ing TO be brokers and not bankers.
Hon. COLUMBUS DELANo, Commissioner Of Internal Revs-
The application of Wood Rich and others bankers and
IN bTocslyn,s set: forth that suits have been
h hi ss sGl na
legged TO be due from them a. bsnker under section no Of
ana
business was % purchase ana se stocks. bonds bullion
article nns section seventy II he
is
without completing the contract py and resev
yknowS that sueh startling claims NV You'd
aa they s a the
Of buying and selling stocks bonds, &c., has always
2: q he they :s u 4. :s
e
neglect make correct returns, until csion the
he
aa M c Ss H Ike
provisions which require construction in this matter
Of section 7s Of the &C. Of June CO. 1884, provides
Ss
S
The section nreyss: s
or" sales SoHd sseSsnss bullion:
o. sr S
having the &c. banker shall
section 81 q he same &C. provides there shall be
following taxes that sayUpon OIL sales and copsreSsi
omse OF Or tax the rate
s 1 $ 51 q :ss
Ss By ~ on Soi
YER bullion COIN promssory notes. stocks, bonds othe
nS' cents Sanarsd dollars
amount OF such sales or contract.."
tie s %oS
and Il
ally that ssions IN question have be.n commenced ba
&c nm '.'
fu ot eseae s popular definitions q yocsSas wSsi
s IF BY %hGS ssas 70 Re
~ nSs
ss ss every S wAs tsp aS
other and equivalent words makes il his business recev
sS f ST s
We
,jnction thus the very section between the bus
s.e {; Of sCs s , to that
s s9.. s. who sss g.
IL and :ssss sss
sellers snf ss q &c gas
%sv 10 n,sSs sssy as By
rcec III or delivery S Of property. '.,.-",,,
rnsnateria CLASSIFIED In New YORK
they are classified in the Revenue The
that there IL such regular broker WIFI
purchases sells stocks, receiving and delivering th
same" Nor are there two meanings Of the word negot
a,nn IL used In this statute constrained 10 den
entirely tho that to negotiate be merely mai
ing contract may actually complete the ,rnnsactto
by the reeeigt delivery ol the property When the
tract IA made negotiation s ended The receipt OF stoc
delivery of stock sold IL merely the
lion OF the contract aud in this negotiation takes par
The negotator OF contract be authorized by bs
! piovnr II, but In doing 30 he q
capacity and he cannot capacity In the other
nsccraey describing his subsequent proceedings oni
| completing bs transaction.
The negotator sae for another II bargain maker
who handles neither property proceeds and has oppo
make profit funds arising from the