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.
Departure OF President Grant.

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 tins 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 TO be assessed divi-
dends declared during the last i've months OF the
year 1870. 1t Will be remembered that the Attorney
General overru,ed the decision OF the Commissioner
that ne tax was 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,
and they nave now no way OF securing themselves
with the shareholders il the collection Is enforced.
The same applies to all corporations VINO have paid
their dividends without deducting the two and one
half per cent for the last hve months of 1870. The
question has been referred to the Secretary of the
Treasury. who Will DOUBTLESS enforce the collection
OF the tax aud recommend the companies TO appeal
TO Congress for relief.
Troa Coueernina the Nanaaemert of Indian
Affairs.
George II. Stuart, Of Philadelphia, and John "
Farwe, OF Chicago, members OF the Indian om-
mission, had interview to-day with the Pfesl-
dent with reference TO statements recently pub
lished rejecting upon the conduct OF the Commits
sion, which they suppose emanated from The Indian
Bureau. II Is known that the Board ana the Com
missioner Parker, are not in accord on several
subjects relating TO the management OF the finances
OF the Indian department. The result Of the inter-
view is not vet known.
The New York scrip Dividend Case.
The Secretary OF the Treasury to-day received the
opinion OF Solicitor Banheld upon the question OF
the right OF appeal OF the New York Central Ran.
road Company from the decision or the Commits
sloner OF Internal Revenue. which was to the effect
that II was purely discretionary matter with the
Secretary. The secretary informed Caleb Cushing.
counsel for the railroad company that he clearly
of the opinion that the Company was liable 10
pay tax on all scrip issued for dividends earned
since the passage of the act, but that he did not
think they were liable on scrip for earnings made
prior to the act, even if the scrip Itself issued
subsequently TO the passage OF the act. The Secre
tary advised the adjustment OF the 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, ~
the government in that case would feel bound 10
levy upon their property. Mr.. Gushing said that
there was a serious question as to the legality OF
the assessment made by the internal revenue on
GERS. The Secretary, III reply said that the gov
eminent would have to look out for Itself In that
matter, and with that the conversation ended. MIR.
Cushing is not advised as to the course he viii be
instructed to carry out.
Practical Reyvard or Diplomatic Services.
SIR Edward Thornton, the British Minister win
le'Fe "aSniiigtun tuc zou i..,. luinuy.
and sail from New York the cath for London. 1t
Is rumored in diplomatic circles thar he VIII be ele
waited to higher position and receive an Ambas-
sador's appointment as a 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
ton, Hon. Francis ]. Pakenham, First Secretary,
VIII be Charge dAffaIres 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 Tor him. with view to procure the pardon of
Bowen
A search After Counterfeit Bonds.
The Secretary of the treasury has designated two
OF the best engrrvers employed in the Bureau OF En-
craving and Printing 10 carefully examine the $780,
900, 600 Of bonds purchased for the sinking FUND,
and which about to be destroyed. for the pur.
pose OF ascertaining II any counterfeit bonds
have been bought by the New York Sub
Treasury. The committee OF experts COM
menced their iabors to-day, and carefully scrutinzed
every bond AS yet they have not discovered any
counterfeits. Tue Secretary has ordered the con-
struction Of several improved machines for the
more thorough cancellation Of the bonds. one or
winch VIII be sent 10 the sub treasury III New
YORK
Personal.
The health or General Smith, Second Assistant
Postmaster General, is little improved ana he has
not HAD an hemorrhage Tor several days. He
declines TO accept the position OF Governor OF New
Mexico, preterrng 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-
parture from Washington until tomorrow night
or early next weeK. Tic will be absent at Grotou
about ten days.
General 5. 5. Fry, who was deposed from the SUI
pervisorship OF Kentucky, was to-day reapponted
and Supervisor Emery transferred.
A. f. Cunningham, just deceased, was seventy-one
years OF age. He was an ex-Clerk 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 further The claims OF
Judge White the Presidency.