New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-07-24

evs 10 decided ssa IN respect to the corpora
22 OF the act of July 90 iSs "a snend NV ~ e sni
Jnly ~ 1910, that no tax should be wi hIeld from
pg Se OF and coupons representing interest fall
I'VE months from August 1870 December 81 1870 and
1871 taxable at the rate Of a per ec II snch
terest accrued either prior to August .ubseqnent 10
the last Ave months OF 1870 tax wh,tcvcr IL 10 h
withheld. Acting in accordance with t- decision the
deducted from the holders Of the 6S'"s sonS SSe;
and twothirds per cent tax OILY being The pronor
ton of the half per cent aceruns in ISL on
the nth day Of May 1871 the At orneyncra 70 whom
Treasury. having decided that the interest or
coupons co pom imposed BY the 18th section Of the Al
subsequently 10 August I, 1870, ard prior ITO 10
January l., 1871, the Commissioner OF Internal
struction from the Secretary Of tie Treasury revoked
his former decision, and made ia conformity with
panies who by the 18TH section above r. crred 10 are
authorized to deduct the tax in question made return
ector of the district they informed n the revoca
ton Of the decision Of Feb. a. aud a demand wa.
Upon application TO the Comaissoler on the
2Sth OF May ult, requesting that, they com.
making return Of per cent they he permitted 70 make
such return 70 the assessor they informed that he
81 ny the Secretary Of the Treasury Upon this state on
facts my opinion asked whether the companies can he
that has occurred "a consooncnca ot - 1917 s ny
proper officer OF the Government INV
Such beng brief history Of tie quest involved in
this case have 70 say that the Comm siOner Of In
ternal Revenue Ia the recognized authority under the
law through whom decisions upon que stions arising
under the Internal Revenue laws promulgated 10
the public His decision Of the 9th of February was one
therefore, upon which the applicants this case had
right to act The Joint railway eompanie. II NewJerey
did act upon so far TO adjust the interest due upon
their coupons, and pay the the holders
thereof The companies only he regarded under the
law the agent Of the Government In Tying the tax
from the bondh0lders and paying the same into the
Treasury They acted In this untr tc direction OF
the principal In the first instance and by that
proper action have become involved in the
present controversy. II j., perhaps, fair
to assume that, owing the change
Of ownership which is constantly occurring IN this form
OF property The companies would be unable u enforce
the collection OF the rsst Of the tax held 10 be due
from those 10 whom the interest paid, and from
whom in fact the tax Ia due. and 1t could not legally be
enforced TO the INJURY OF any persons from whom the
tax not due.
deem IL unfortunate for the Government that the
question has assumed attitude where the alternative
to be 60 compel the Department to orego the col
lection Of proper tax In the simple manner pointed
out by the statute expose It to the charge Of working
greater less degree of injustice upon the companies
their bondhOders Under all the circum ances am Of
the opinion that legally and equtably, the department
under the necessity Of yielding 10 The present request
and Of desfsng from enforcing the collection OF the tax
in question from the companies who prefer the appica
ton. am, very respectfully,
L. @. BANFBLD, Solicitor OF the treasury.
To Hon. Geo. g. Boutwell, Secretary OF the Treasury.