The Plymouth Democrat. (Plymouth, Ind.) 1869-1941, 1870-12-08

force, and the difficulties likely to arise in
the collection of these taxes, and asked for
legislation upon the subject. This request
was repeated Feb. 8, April Z and 25, and
May 26 following, and was repeated orally
and in person at several other times. The
legislation was finally enacted July IA, but
has been declared by the Circuit Court of
Pennsylvania TO have been too late to
serve the purpose desired. 1t is provided
in section Is that when any dividend is
made or interest paid, which includes any
part of the surplus or contingent fund of
any corporation which has been assessed
and the tax paid thereon, or which in
cludes any part of the dividends, interest,
or coupons received from other corpora
tiOns, whose officers are authorized by
law to withhold per csntum on the same,
the amount of tax so paid on that portion
of the surplus or contingent fund, and the
amount of tax which has been withheld,
and paid on dividends, interest, or coupons
so received, may be deducted from the tax
on such dividends or interest Owing to
a change in the rate of taxation from per
cent to 212 Der cent, taxes properly paid
upon surplus prior TO August 1 may now
be again appropriated to the payment of
taxes upon earnings since that date, so that
in some cases these later earnings escape
valuation entirely. 1t would have resulted
differently if the Law had provided for a
deduction of tax from tax.
BY my direction, the collection of taxes
on shipbuilders, assessed under the fourth
section of the act of March 81, 1868, was
ordered to be suspended. l would recon-
mend that Congress provide for the remis-
sion of all such taxes assessed but not col
lected on the sales OF ship-builders.
BY act of Congress, approved August s.
1861, a direct tax of twenty millions pei
annum was apportioned to all Of the then
existing States and Territories and the Dis
trict of Columbia This act provided
that each State, Territory, and the District
of Columbia, might pay its own quota, il
notice of the intention thereof should be
properly given on or before the second
Tuesday of February next thereafter
Under this provision of law all the States
Territories, and the District of Columbia
formally assumed the payment of the tax
except Delaware the Territory of Colora-
do and the eleven inSurrectonary States
Provisions were made for the collections
to be made in Delaware and Colorado 10y
internal revenue officers, and in the eleven
insurrectionary States by the appointment
of United States direct tax Commission
ers under an act of Congress approved
June Z, 1862
BY act of Congress approved July 1,
1862, the operations of the act of Aug. s.
1861, were suspended until April 1, 1863
except SO far as related to the collection OF
the first annual tax of $40, 0000o9, and by
act Of June 80, 1864, it was further sus-
pended until additional legislation by Con
gress was had The following States and
Territories appear to have satisfied their
quotas in full: Maine, New Hampshire,
Vermont, Massachusetts,, Rhode Island,
Connecticut, New Jersey, Pennsylvania,
Maryland, West Virginia, Ohio, Kentucky
Indiana, Illinois, Missouri, Michigan, Iowa
Minnesota, Nevada Nebraska, New Mex
leo, Dakota and the District Of Columbia
Against New York, Wisconsin, Kansas
California, Delaware, Colorado, and Wash.
ington Territory, there are balances unsat-
isfied amounting to about 1872, 900. Ore
gon and Utah have paid no part Of their
quotas.
The seizure by internal revenue officers
of property for frauds practiced in viola
ton Of law, and the evasion Of tax, fol
the year ending June 30, 1870, were as fol
lows