The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-06-17
WASHING ON.
Dividend Taxes Of New Jersey Rail-
read Companies.
Trouble Concerning the Manage.
ment of the Indian Bureau.
The New York Scrip Dividend Case Decided
Against The Company.
WASHINGTON, June 10, 1871

WAsnsSGToN, June 10, 1871.
Departure OF President Grant.
TIE President left the city tonight, in company
with General Porter, for Long Branch and VIII re-
turn to Washington toward the close OF this month.
Dividend Taxes of Jersey Railroads.
The New Jersey railroads have fled claims with
the Commissioner OF Internal Revenue for the re-
mission Of the TAX ordered 10 be assessed on diyi-
dends declared during the last five months Of the
year 1870. 1t viii be remembered that the Attorney
General overruled the decision OF the Commissioner
that ne tax cue for that period, as Congress
had not provided for its collection. The rail-
road companies say that in accordance with the
decision Of the Commissioner, dividends were paid
ana they nave now no way OF securing themselves
with the shareholders if the collection Is enforced
The same applies to all corporations VINO have paid
their dividends without deducting the two and
half per cent for the last tve months of 1870. The
question has been referred to the Secretary OF the
Treasury, who will DOUBTLESS enforce the collection
of the tax and recommend the companies TO appeal
TO Congress for relief.
Tro able Concerning she management of Indian
Affairs.
George II. Stuart, OF Philadelphia, ana John V.
| Farwell OF Chicago members or the Indian ON.
mission had an interview to-day with the Presi-
dent with reference to statements recently pub
lshed rejecting upon the conduct OF the Commits
Bureau. II is known that the Board ana the Com
missioner tParkerl are not in accord several
subjects relating to the manag cement OF the finances
of the Indian department. The result Of the inter-
view is not yet known.
The New York scrip Dividend Case.
The Secretary OF the Treasury to-day received the
opinion OF Solicitor Banhcld upon the question OF
the right OF appeal OF the New York Central Rail
road Company from the decision OF the Commits
II
that II was purely discretionary matter with the
Secretary. The secretary informed Caleb Cushing.
counsel for the railroad company, that he was clearly
of the opinion that the Company was liable To
pay tax on all scrip issued for dividends earned
since the passage of the act but that he ala not
THINK they were liable on scrip for earnings made
prior to the act If the scrip Itself was Issued
subsequently TO the passage of the act. The Secre.
tary advised the adjustment OF the accounts OF the
company on that basis. If they did not admit the
liability to pay any tax on this scrip, they
must take the question into the courts as
the government in that world feel bound 10
levy upon their property. Mr.. Cushing said that
there was serious question as to the legality OF
the assessment made by the internal revenue Off
GERS. The Secretary, IN reply said that the gov
eminent would have to look out for Itself in that
matter, ana with that the conversation ended Mir.
Cushing is not advised as TO the course he will be
instructed to carry out.
Practical xteyvard or Diplomatic Services.
SIR Edward Thornton, the British Minister, will
ieaVe WasnIiy,on on inc zou i.s,, WIZ. Iu,ur,.
and sail from New York on the cath for London. IL
Is rumored in diplomatic circles that he Will be ee-
waited to higher position and receive an Ambas.
sador's appointment as recognition OF his dis
tinguished services in the Joint High Commission
Lord Alfred Paget is spoken of his successor in
Washington. During the absence of Minister Thorn
Il aEanh Etruf
VIII be Charge dAfrares Of the British Legation.
Application Tor the Pardon of Bowen.
Mr.. Riddle, counsel for Bowen, recently convicted
OF bigamy, called at the Executive Mansion to-day,
but did not see the President. He, however, left
letter for him. with view to procure the pardon of
Bowen.
search After Counterfeit Bonds.
The Secretary OF the treasury has des grated two
OF the best engrrvers employed in the Bureau OF En-
craving and Printing TO carefully examine the 500.
700, 600 Of bonds purchased for the sinking fund,
and which are about to be destroyed for the pur
pose OF ascertaining If any counterfeit bonds
have been bought by the New York SUBJ
Treasury. The committee Of experts COM
menced their iabors to-day, and carefully scrutnized
every bond As yet they have not discovered any
counterfeits. The Secretary has ordered the con-
struction of several improved machines for the
more thorough cancellation Of the bonds. one OF
which VIII be sent to the sub-Treasury in New
York.
Personal.
The health or General Smith, Second Assistant
Postmaster General. is q little improved ana he has
not had hemorrhage for several days. He
declines to accept the position OF Governor OF New
Mexico preferrng to take his chances for recover
Ing his health in this part OF the country. His friends
consider this doubtful experiment.
secretary Boutwell, says he has postponed his de-
parure from Washington until tomorrow night
or early next wees, Tic will be absent at Groton
about ten days.
General s. S. Fry, who was deposed from the SUI
pervisorship OF Kentucky, was to-day reappointed
and Supervisor Emery transferred.
A. T. Cunningham, Just deceased, was seventy-onc
years OF age. He was an exCerk OF the Treasury
Department and was one OF the Oldest printers In
Washington. In 1884 ne was the publisher in this
city OF the organ designed TO further The claims of
Judge White to the Presidency.