Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1872-08-29
WASHINGTON.
The Tobacco Tax.

WASHINGTON, August 2S.-The AttOr-
ney General has decided that all tobacco
stored in bonded warehouses and with
drawn for sale or consumption before the
lst of July, 1872, is subject to the taxes
prescribed by the act of July, 1868. and
that all tobacco in bonded warehouses on
the said 1st of July, withdrawn after that
date for the same purposes, is subject to
the tax prescribed by the act of June, 1872
President Grant has returned.
The acting assistant Secretary of the
Treasury, Richardson, recently SUBJ
mitted for the opinion of the Attorney
General the following question AT what
rate, in view of the amendments of June
8, 1872, should Internal Revenue taxes be
required upon tobacco which was stored in
an export bonded warehouse, on or since
June 6, 1872, when it was withdrawn for
consumption or sale in this country?
After reviewing the law upon the SUBJ
Ject, the Attorney General says in cOnclu-
sion:
Assuming that the word now means the
9Th of June, and it follows that there is no
way in which tobacco stored in bonded
warehouse between said date and the first
of July, can, after the latter date, be with
drawn for exhibition without prepayment
of the tax, for, on the first of July the old
law was repealed, and the right to with
draw tobacco after that date for exporta-
ton with respect to the time it was stored,
Is precisely the same as the right to with
draw tobacco for consumption or sale.
lido not see what difference it makes to
the government whether tobacco is taken
from bonded warehouse or manufactory
after the LIST of July upon the payment of
the new tax unless, possibly, the payment
may be little longer DELAYED in the one
IMAM In the other case. On the 9Th of June.
1t Is said, there were large ouanti-
ties of tobacco in transitu from the
mandatory to bonded warehouses
and it certainly seems inevitable that ~.
bacco which reached the warehouse ON tLe
5th of June, and was withdrawn after the
1st of July, should pay a tax of only TWEEN
ty cents per pound, while the same kind O
tobacco that reached the warehouse tw,
days afterwards and withdrawn at tn
same time is compelled to pay tax Q
thirty-twO cents a pound.
Congress, with a view to the injustic
that might be worked by change in tn
law before it could be known to thOs
whose interests were to be affected there
by, provided that section 81 should go into
effect on the lst of July, and the residue
of the act, with a few exceptions, Of
that no harm could result, the act, in
few instances, and where it is expressl.
provided, takes effect upon its passage
One OF the evils of our legislation is tn,
frequent changes in the revenue system O
the country, and unless it clearly appear
that the intent of Congress is otherwise
tney ought to be construed so as to effect
with equal justice, all those upon whom
they are intended to operate.
My opinion is that all tobacco re
stored in bonded warehouses and with
Drawn for sale or consumption before tn
Isl OF July, 1872, is subject to the take
prescribed by the act of July I'd, 1868, an
mat all tobacco in bonded warehouses o.
Sne SAID LIST of July withdrawn after tina
tSte ior the same purposes is subject to tn
Tax prescribed by the act of July 9Th, 49,.
The Cabinet meets tomorrow.
boutwell, and Robson are absent.
warrants for the pardon of David Col
SSns, VIM. Neal, Amos Owen and VIM
"cfuggs, who were convicted under tn