The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1869-12-29
LATEST FROM WASHINGTON.
pecial kilograms to the Dispatch.
WASHINGTON. December %, 1869.
Important Internal Revenue
Decisions.


Some interesting legal questions have
grown out of seizures recently made by ST.
peryiSors of internal revenue. The general
notion of the western people is that the
general laws of the United States are inopc-
ratiye within Indian territory, and there
fore internal revenue taxes cannot be
collected on tobacco. whiskey. &c., man.
ufactured or sold within that terri
tory. Accordingly, numbers Of diStiI-
lerics and tobacco factories have been
built in clusters along the lines DIV
| ding Arkansas and Kansas from the Indian
territory. Some are within the bounds of
| the two States named. just borderin" the
territory, and the whiSkey and tobacco
there manufactured is run oycr the lines
into the Indian territory to be sold. Other
costly and extensive establishments are
| within the lines of the Indian territory.
lust bordering upon the lines Of the States.
II is claimed by these whiskcy and tobacco
dealers and manufacturers that revenue
taxes cannot be collected legally on articles
| thus manufactured or sold because the re-
venue laws of the United States do not cN-
tend to Indian territory.
The seizure reported to-day was n dis
tiIlery situated a few miles west of Fort
Smith, Arkansas, but within the bounds of
the Indian territory. The details Of the
ease present some novel questions for de-
termination. but for the present it is con-
sidfred by Commissioner Dclano that the
act of July 90, 1868, covers the main points
involved. That act provides that the inter-
nal revenue laws imposing taxes on dis
titled spirits, tobacco, ETC., shall be held
and construed TO extend TO such articles
produced anywhere within the exterior
boundaries of the United States, whether
the Same shall be within a collection dis
trict or not. To avoid any further contro-
versv, articles will be seized as they come
within the lines of the States. So the very
lucrative business Of making whiskcv and
tobacco in the Indian territory and selling
it to the trade in the States without tax is
at an end.
Two other questions of interest came up
to-day. First :. Certain improved real
estate in New OrlcanS.is owned by foreign
ers. who claim that they are not liable to
pay internal revenue taxes. The decision
is. that the property is liable to any direct
tax BY the laws of the United States, but
income tax cannot b, collected Of the OWL
ers because the act only provides for the
assessment of that tax upon citizens of the
United States. The second case is whore
the collector asks to force the owner Of Il
| piece OF real estate to pay the income tax
Notwithstanding the wner does not receive
rent for the Same. but makes the tenant Il
present of it. The decision i, that there
is no income in such case, and the tax cam
not lie collected.
TI,c Public Debt Statement.
My telegram last night relative to tn"
public debt was in part erroneous. From
IN examination of tho h""h.' "-~1...%"" ." ~
promulgated on the first Of January VIII
| show but little over 3, 1000, coo decrease III
| Government indebtedness.
Draftso on the War Department this month
have been very heavy.
The rccciptS from customs and Internal
revenue are comparatively small now, owing
70 the sort of broken month 10y the coming
of the holidays.
Judge IEoar Will Remain in Inc
Cabines.
4 day or two before the Senate TOOK linaI
| action upon the nomination OF Judge Hoar
that gentleman called upon Senator wilson
10 request him 10 urge the immediate ai'-
D~osition of the matter, because he Ss'oulu
know nj once whether he was 10 70 on pre-
narine himself. rs AttoIn"y-Gcncrai, Tor
the trial of cases pcndin" in the supreme
Court, or whether he should he relieved
from such labor. as would be the case II lie
should be confirmed as Associate justice.
From this and other circumstances 1t l.
considered conclusive that the judge VIII,
of his own motion, continue in the Cabinet,
and espcciallv rs the President said to-day
he nrefcrred that Hoar should remain as
Acknowledgement.
Stnuton-President Grant.
ON Wednesday last Edwin NJ. stanton,
.Jr., bore a note from his father to the IRE
sidcnt acknowledging the latter's kindness
and gratefully noticing his confirmation as
Associate Justice by the Senate. 10 tlli>
the President sent Il verbal reply. trusting
that Stanton would be entirely recovered
and ready to enter upon his official duties
on the first Of February, when justice
Gricr's term expires.
Husiness Suspended az the Whiit
House.
There was no Cabinet meeting to-day,
nor is there to be one next Friday. Gene
raj executive business is also suspended
at the White House for the week.
Arrival Of the Statue Of Major Greene
The marble statue of Major Greene, o
Revolutionary fame, presented by the STATE
of Rhode Island to the United states, nay
ing reached this city, is placed III the nall o
the old House of Representatives. there Il
remain until Congress determines where l
shall be permanently placed.
About Cuban Matters.
The statement sent hence that che Adj
ministration is contemplating a change o
policy as to Cuban matters, and according
bellicerent rights to insurgents, brough
several prominent members OF the Junt;
here TO ascertain what foundation there l
in the report. After making close lnqulr,
in the proper direction they find that tlit
Administration has not changed, nor init
mated any change. from the position a.
s1,mcd in the Presidents annual message.
Senator Pratt will Resign.
Senator Pratt, Of Indiana, has tired o
senatorial labors and become indifferent L
the honors, and longs for 4 return 10 prac
tice at the bar. He will, therefore, SEM
his resignation to the Governor OF hi
state. to take effect 10th January.
Judge Richardson will Resign.
Indnn Richardson Assistant Secretary Q