The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1869-07-31
Judge 0lcott is in Washington.

INroRTAHr REVENUE DECIsIoN.-The
Commissioner Of Internal Revenue has de-
cidcd that the Shaker community at New Lee
banou, Montgomery county, Ohio, is such 8
person" as is required to pay tax upon
annual gains, profits, and incomes, and that
il is entitled to only one exemption of o
thousand dollars.
This, so far as the exemption is con-
ccrncd, is q reversal of the previous ruling
Of the Office, under which there was al
lowed an exemption of one thousand dollars
for and on account of each and every cove
narting male member Of the Society; and
go far as the rest is concerned, it is o rcver-
sol Of the ruling that the word "person,"
rs used in section ll6 Of the internal reve-
nue. laws applies to natural persons only,
and in no case to what are known in law as
artificial ones.
The decision of Commissioner Delano is
one affecting not only the interests Of the
Shaker community of Ohio, but corporate
Societies throughout the United States
whose income is indivisiblc, according to
TIE objects of their organization or the
terms Of their charter. The opinion of the
Commissioner covers twenty-five pages of
letter-paper closely written. 1t is an ex-
haustive review of the whole question, and
will undoubtedly take many by surprise,
since it is subject that has never been dis
cuSscd.
The previous rulings of the Department
were supposed to be final, but the State
Supreme Court of Ohio hos recently de-
ciied against the very claim Of the Shaker
community, and upon which the opinion Of
the Commissioner is based.
According to the laws of Ohio. whenever
majority Of persons residing II county
desire the construction of n turnpike, the
county commissioner is authorized to do the
work. 1t appears that certain residents of
New Lebanon petitioned for the construc-
ton OF road through the grounds of the
Shaker settlement, and TO defeat the petit
ton each of the members Of the community
signed rcmonstrancc against it. The
question was then raised whether the indiA
yidual members Ind a right 10 sign the re-
monstrGncc; as they were not frceholders,
ard could not claim any share in the pro-
rcrtY Of the mmunity-evcrything being
held in common. The State Supreme Court
Of Ohio decided that the community was
clearly within the meaning Of what is
known as an 'artifcial person." and
therefore entitled TO but one represeiita-
tive,
In making annual returns they have
been represented by one Peter Boyd, who
reported their income for 1868 1T $50, 1862,
and the amount of their exemption at
$50. GG3.57. This included SAG, 900, the ex-
emrticn claimed by the forty-si2 covenant
ing male members of the Society.
According TO section IA Of the internal
revenue laws, it provides: "And any
word or words iE any and all parts Of this
act, and of all acts to which this
act is additional, indicating or referring to
person or persons, shall he taken to include
partnerships, firms, associations, bodies cor
rorate or polite, or any other party what
eoever, when not otherwise designated OIL
maniicstly incompatible with the intent
thereof"
The Commissioner maintains that the
Shaker Society is in this sense al artificial
person, and the only one who can claim e1'
cmption is the representative of the Society
The same ruling will also apply, 1t is pre-
sumed. to all communities holding property
in common, as we'll as to all corporate bo-
dies whose annual income exceeds the
amount exempted By law. There arc q
large number, and prominent among those
mentioned is the Trinity Church corpora
ton in New York, and the board Of trus'
tees of Harvard College.