The New York herald., 1869-01-30
INTERNAL REVENUE.


INTERNAL REVENUE.
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Wall street Brokers and the Tax on Call
Loans Employed as CapitaI--The Present
Attitude Of the Controversy With the REEVE.
nue Officials.
The internal revenue assessor OF the Thirtysecond
district Mr. e. D. Webster Is still acting in Wall
street the part OF the bull in the china shop Not
being the kind OF bull they are accustomed to in
that grand financial centre ono mas yet been able
to get him by the horns, though plans are being
devised through which there is hope OF getting rid
Of this audacious and dismaying visitor Everybody
win understand that refer to the excitement pro-
duced by the eattempt-heretofore alluded to in the
HERALD-being made TO enforce the law imposing a
tax Of one twentyourth OF per cent on all capi
tai employed by dealers in stocks ana &C.
curites. Heretofore these parties have been exempt
rom taxation. 1t is proposed that they shall be ex
empt no longer, that the alleged system Of fraud
practised upon the government shall be sufnmarily
stopped and that they not only be compelled to pay
the taxes regularly accruing from this Iime, but The
arearages in default OF past payments due the gov
Revenue act as amended July Is, 1885, ana appiica-
bic to their special cases. When ~ is con-
sidered tnat the e. Tnirty,second district the
enforce what we have stated. takes in
oil our great moneyed mart, It is not to be won-
Indignation; that they would meet in caucnses; that
they would appoint committees and lobby agents TO
SO to washington to see what can be done there;
and, last and least OF ALL that they should pratc or
appeals TO the courts to test the constutionaty OF
TO make the matter clear we quote the
following clauses from the two sections
July Is, 1896, upon which Mr.. webster bases
hs present procedure. Sec. 70. %* or
bonds, bullion, bills OF exchange, or promissory
notes are received for discount for SALE shall be
Ana az Of % ons sf %
one per centum each month as aforesaid upon the
capital OF any bank. association, company or corpo
ration and on the capital employed by any person
the business OF banking beyond the average amount
invested In United States bonds.
1t will be seen that the first section we have quoted
defines what banker Is as Interpreted In the In
ternal Revenue law. The second section merely
Of one per cent on capital employed in banking.
With the exception OF course specified. Here the
whole case is in nutshell. The assessor has the
law on his side. The brokers have greenbacks
on their side. 1t remains to he seen
which win come or victorious. Meantime the COM
az firmly erect and mistaken
Lashed by the ocean waves.
On the part OF the brokers It is rutored that they
threaten to raise 50 0O0 900 to effect at the national
capital their Interpretation OF the law or repeal
4 is hardly necessary 70 explain how brokers in
through their present mode OF doing business and
are, therefore, amenable to mpost OF the tax placed
on bankers. Their plea is that they are handling
the same money over and over again; that they arc
borrowing large sums to-day aud lending large
100000 they are doing the business OF s1,oo0.oO5
IL Ii alleged that BY the enforcement OF this law
taxes indeilnate,y duplicated VIII be paid on the
that no two or more men can be operating with the
same money at the same time, or to use the language
poycd capital simultaneously by different parties
ana that oach was q separate and dis
as the law compes the transactions OF
tobacconats and liquor dealers to be kept daily
Transaction OF the broker inyoiyng the emniovmeni
by himself OF capital should likewise be kept with
view TO the came result The brokers insist that in
some transactions they lose, but this objection Is
is.es in the n,odus cperalds Of adiusting tax on
p'TT 10 show what the government has been losing
through lack OF enforcement of those portions OF the
tax law TO which we have referred Is impossible and
in fact can Only be guessed a. The slnount how
ever Is very large. Ine Assessors book, OF the dis
irlctshow only feturn {: sle,oocooo, one half
q winch y ~ United states goyernmcu. ..-~ aha
therefore not liable to taxation. Some c.iimate that
there IS on the contrary in this district $500 600
some $3.50 900 and others 900 OF capital
in active use One thing Is certain that u the capital
thus in was properly and leetimately taxed the
100000 sSooo.coo to 5000 o6o per annum. ANY mum.
Der OF instances might be o quoted aea q returns
capital Of hundreds OF millions Of dollars.
While many have made returns though much smaller
than the capital used, there areso Mr.. Webster as
serts-10o bankers In Wall, Broad aud con-
tiguous streets who have made no returns
whatever, All the bankers have admitted the fact OF
being bankers through taking out bankers license
ouItc number OF prominent brokers have already
in their conversations with Mr.. Webster, conceded
that his Interpretation OF law Is correct.
Lcsacies and Successions.
The following Is a list Of the largest legacy and
succession returns which were returned to Homer
Franklin, assessor OF the Ninth district. Up TO
January 1868, little or no. tax had been collected
from this source owing 70 the difficulties the differ.
ent assistant assessors met with In reading that por
on OF the law which relates to legncles and success
sions. About that time, however, Assistant Assessor
Coughln, or the Ninth district ana Assistant A.
SCISSOR Livingston, OF the Sixth ietrct, were desg
mated to work the matter up and the result very
satisfactory increase OF revenue from source which
had heretofore rendered nothing 20 the government
Messrs. CoughlIn and Livingston, VINO are acting
under Assessor John r. Cleveland, have since been