Evening star. [volume] (Washington, D.C.) 1854-1972, 1872-02-23

ness capacity. IL may be proper TO say also in
are satisfied that Mr.. Bailey did not use for his
personal benefit the money with which he stand {,
charged on the books of the government.
DECISION IN THE NEW YORK CENTRAL
RAILROAD CAsK-The Commissioner Of Inter
nal Revenue has decided that the issue Of inter-
est certificates to the amount of S23 ,036, 900 on
the 10th OF October, 1868. by the railroad com
pany, is substantially scrip dividend, and Ia K
able under the internal revenue laws He fur
ther decides that the admission made and yet of
record, Of the company when the said certii-
Gates were issued, that they were based on
earnings of tho road, and expenditures OF the
company equal in amount TO eighty per cent. of
the stock of the company te3 ,036, 900, beng
the amount of the scrip dividend,) is binding
and not be disregarded as against the rights OF
the government, though subse quently contra
dicted by the counsel of the company; that the
commissioner in the matter OF admissions
powers Of a court to Judge OF and accept, or re-
ject the explanatory evidence; that only such
earnings, income, gains or profits as are repre-
sented after September, 1S62-the date of the
first income tax law-are liable to taxation
that the measure OF valuation for the taxation
OF scrip dividends is generally the " market
value" but that when, by this admission Of the
company, the scrip actually repre- sents dollar
for dollar of its face, then the valuation thus
solemnly given by the company will prevail in
adjusting taxation; that 80 much of the dividend
as belongs to the period from September, 1852,
to September, 1868, is to be taxed in this case:
that the dividend covering in time fifteen
years earnings, &c, six-ifteenths of the whole,
being the pTOpOrtiOnate amount between 1862
and 1853, is what must be taxed i'm this case.
Six-ffteenths amount to 9,2l4, 400, Oh which a
tax Of FIVE per cent. should be collected.
District Affairs in Congress.
The Senate Committee on the District of Co
lumba met this morning and heard an argu-
ment of Gen. Chapman in reference to the bill
for the new jail, who explained at some length
the necessity of new building; why the work
upon it was stopped; the insecure condition OF
the present enc, &c. at was suggested by some
members of the committee that the bill be 30
amended as to require the District governme mt
to make It's proportion Of the Appropriation be-
fore the work upon the new building should be
commenced. The bill was disc used at some
length, but no action was taken thereupon.
Mr.. Sumner was authorized to report an
amendment to the bill to improve the har Dor,
now before the Senate, to provide that the sur
vey shall he extended to include the entire wa
ter front of Washington and Georgetown, and
to the head of tide water.
in relation to the bill introduced by Mr.. Sum
ner on the sth instant, relating to the issue of
bonds by the authorities of the District of CO.
lumbia, and to pre- vent the increase of the de bt
OF the District, published in THE STAR at that
time. He presented a memorial of certain
members OF the Washington Board OF Trade in
bill, which disapproves of the act Of the District
Legislature authorizing the issue of $500 900 in
favor Of the Piedmont railroad, and declaring
that act null and void. The committee struck
out that section and agreed to report a bill ap-
proving of the act authorizing the suhscri ption
by the District government OF 5000, 900 to the
Piedmont railroad company, and Mr.. Sumner
subsequently reported such a bill in the Senate.
Mr.. Summers bill relative to the issue of bonds
aslaid on the table by the committee. 1t will be
remembered that the bill disapprOved the Dis
frict improvement act of July 10th appropriating
81 600 800 provided that the District debt should
increased ynf If
the people and the approval of Congress, and
prohibits the District from levying takes on any
property, or on the avsis thereof, which might
be situated outside of the district