, 1870-05-31
FEES OF REVENUE OFFICERS

sfotn Secretary R@atwe31.
"esa"'g''" tsay - despatch 10 Tie yfc Fort Tfes.
ane secIetasE n Ut the Treasure, to -iay. trans-
mitsed TO tongless the sollowip. imnortant
revenue to anticipate in tile nrnccs. -, - go
penalties, and forfeitures and uoie,;ea sn';
also propoeDg general reyisio: ~ ~, .Y
aries Of Customs officers: >-' os4@
1REAsrRr DETARrAENT, Nav a5,-oo
Hon. James G. E:asne, S~attr Ho4st n Rtprsssn-
sm: The following resolution Was aloptea
by the House Of Representatives on March IL:
:. Rsse!1ed. That The Secretary t The Treasury
and the Commissioner Of Internal Revenue each
be required to communicate ro the House his
views and oplui"n in regard 10 the advantage or
the collection Of drties anu The collection Of Inter
nal retenue taxes, al! allowances of mofe.tes or
shares OF penalties, nne, forfetnres, recorer.cs
to cfncers OF the rerenue, or !nto.ners: anti also
any statement Of facts or practices u1t!er existing
opinion"
a. understand this resolution, my views
are desired only in regard to that portion Of it
which relates to Customs duties. Ii ms an
nual report OF December las. expressed the
opinion that tue system which allows to rsve-
nue. officers and oilers shares Of fines, penal
ties, and foEfeitures, VISA accompanied with
evils greater than the benefit derived
from it. then stated that it often
occurs that revenue officers arc led to
assert claims in behalf Of the govern
ment which have no just foundation IN Law or
TACT, and then, when :eal Claims exist, It ID
often the object Of tile intormars and oficezs
who shafe the penalties, to misrepresent
the case to the department, SO a. to SECURE the
greatest advantage to themselves. Ny opiu-
ion ~ to-&ae existence Of these evils, II well
IN the customs service as in that Of tho Inter-
nal Revenue, Il unchanged. The shares a.
loved BY Law to Collectors, Surveyors, and Nj
yell n f11NfCYCl hrAE q r1..-
Of New York, to swell tho incomes Of thoae of-
fcets far beyond the value Of any seEyica
which they render to the government During
the fiscal year ending June 80, 1859, thcso OH
GERS received II the aggregate the sum OF
Ss1 ,o91.9 80, in addition to the salaries SLOWED
by law: In the same city, during previou.
year, Deputy Surveyor received nearly 5000
as an informer. In other cities persons have
received, a. officers or informers, very lasge
Sums Of money, although not Of sufficient
amount to attract notice when compared WITH
the Sums received by officers and informers ia
New York
These, however, arc only the lesser evils Of
the present system The interest of inform
erB. and Of othcials receiving shares, Is largely
in the continuance Of Practices from w6ich
they derive pecuniafy advantages, wm1c tho
interest Of tho government Ii in breaking up
the system, and Furnishing ths parties who
have been concerned in frauds upon the reve-
nue. It is noticeable fact, that nearly all
the proceedings in the courts are against
the property, and very few against persons.
while the interest Of the. government
is much lar8eE in conyieting criminals than it
is in securing any portion Of the property
smuGg1ed. The officers Of the customs, under
the law, are entitled to share Of al fines,
penalties, and forfeiturea, AMI this whether
they hare officially or personally contributed TO
the result or not a case is now Rauling in
the Department in which former Collector.
Surveyor, and Naval Officer have received one
fourth the penalty Of 375,809 exacted by the
government in a case instituted lv the De-
partment itself. B: = letter addressed to .
special agent Of the department, and which ap-
pears to have bean prosecuted to final coz
clusion without the Intervention or aid OF the
Customs officers named under the existing
laws. the iufo1He1s in this case are entitled to
another fourth of tho ~, ,e0o Three persons
preferred claims for the informe1s' share.
Upon the rejection BY the depart
ment OF the claims OF two of these
ms s yev ths ok Officers WIN OF b,a hs sss ca
received s1s,7-o, gaye notice that. upon the
failure Of the reformers 10 establish their
claim. another quarter would be claimed py the
Collector, Surveyor, and Naval Officer, under
he act Of 17s9- Although the practice OF
slloW1ng shares to informezs afterward for
ions incident to the allowance Of Official
:hares, it is, nevertheless, in 3 large
iegree, demota1izing to the service and
nln1loua to the public. In majority
u cases the informer IS m otlicer
rhich the fact is otherwise the revenue officers
re notoHoualy rewarded for their services bv
he infozmcr. It is to be feared, also. that
hey often make this reward a condition, WITH
nut NhL.h their active assistance will not be
Generally admitted to participate IN these re-
saz1s. the officers would still continue to share
Il manner less legitimate. and, for that rea-
%, far more Objectionable
Should Congress repeal the laws allowing
eitu1es, it Ni be proper to raise ther IL ssIa- ala,
lew York. 1t may be wise to plsee in
he hands Of the Secretary OF the
treasury . sum Of money to be dis
t!buted to persons who may furnish
,aluable information to the government. Il
sould be better, however, to rely exclusively
lp6n the integrity and zeal Of the public Off
:ers properly compensated upon Fixed saIarie8
ban to continue the present system. In the
7e5y nature OF the case the department Is COM
acts OF case, and the expetliepcg
II making compromise, upon the repra-
entations made BY District ATTORNEYS and
.ftice1s Of the Customs; and those ropreaeuta-
IONS can never be regarded as entirely trust
7orthy while the persons making them hnva
n interest in the adjustment Of suits or in The
ontinuance OF proceedings which are por-
ona1 and altogether distinct from the interest
1 the governnent The statements made by
Interested officials are sometimes corruot,
onetimes partial, and always open to the sua
iclon that they are untruatwortLy.
have the honor to transmit hercmith bill
King the salaries Of the officers Of the cus-
oms throughout the United States, based
pom the recommendation contained in this
The bill also coptaiua
section repeating all laws allowing
'ares in fnes,- penalties, and forfeit.
res, to officers Of the customs and to in
'ruerB. submit i table showing the com
ensation received By Collectors, Naval or
rs, and Surveyors, for the year ending June
), 1855, including salaries and shares Of PEN
ties, fines aud forfeitures, and also the
mount Of compensation proposed. It will b.
en- from this table that tho cost Of the ser
ce is not materially affected bv the
opposed change, but, however, that
ere is 8 sight reduction in az
nse. think it my duty to state that l am
~ satisfied that the laws allowing sh11es to
6cers and intormers in internal revenue
ses should be repealed, and that the Dis
let Attorney should be deprived OF ali pecu-
ary interest in the cases Of the government
iginating in or on behalf OF the Treasury
apartment. am very reypectfullv.