New-York tribune., 1873-06-20
ANOTHER TREASURY LEAK.
SPECIAL ALLOWANCES TO REVENUE COL
JECTORS.


A SIGNIFICANT EXHIBIT.
lFR0M THE REGULAR CORRESPONDENT OF THE TRIBUhl
WASHINGTON, May 22-At the last session
OF Congress unsuccessful attempt was made to ascer
tain OF the collectors OF internal revenue OF the
country who paid for their services by "specla
allowances" and what the amount or those speclal
allowances" The compensation of collectors OF
Internal revenue as fixed by law Is "a follows: FrSt'
salary Of $500 per annum; second, commission OF
three per cent the first 100000 collected one per cent
the next 100000 collected oneha OF one per cent on
the next 100000 and onoeghth Of one cent on all
above $l,OOOOOO. But the law contains also this
provso: That the Secretary of the Treasury be au
horized to make such further allowances, from time to
me az may be reasonable, In cases In which, from the
territorial extent of the district the amount Of
internal duties collected from other circumstances,
it may seem just TO make such allowances" This
proviso was intended to extreme cases Of
hardship when the extent OF the district large
the amount OF taxes collected small that, without the
Especial allowances" the collector would have to pay
the greater part OF the expenses OF his office from tho
$1,000 allowed him for salary But the fact is, the habit
Of paying collectors by especial allowances" altogether.
even in districts where large amount OF tax has been
collected. has gradually grown up until many Members
of Congress and others who have looked into the matter
are convinced that 10 has become great abuse. And
even II this extraordinary power thus given to the Sec
retary OF the Treasury TO fix at will the salary OF any
collector in the country without requiring mm 10
report 10 Congress how he has exercised it. Is not
abused, II is, to say the least, a dangerous one.
The laws on the subject OF Internal Revenue are very
dlffuse a compilation Of them filling volume of over
900 pages Since the organic law Of August g. 1851 there
have been SO acts OF Congress relating to this subject
not including appropriation acts nor private acts ana
ia easy to see how the administrative part OF the bureau
NAV have been overlooked by Congress but It Is not
easy to see how Secretary OF the Treasury has year
after year allowed the gradual concentration OF power
which because OF its extent to fall into the
hands OF the Commissioners To such degree has this
power increased that it is quite certain TO call for the
action OF Congress at the next session. In order to have
the proper information which to base action, Con-
ress directed the Secretary Of the Treasury to revise
carefully the revenue laws in force with amendments
and all the facts relating to the subject at hand.
This report will be sent to Congress in December One OF
the most dangerous OF the powers alluded TO is that now
under discussion IL confined to the Secretary OF the
Treasury but his administration OF it Is merely nominal
as the Commissioner OF Internal Revenue has the regu
ation Of all such matters the Secretary merely adding
his approval in most without question. IL is
shown that during the past year more than 100 collectors
were granted additional compensation, and this course
of necessity fixes the amount Of their compensation ana
stipulates how much they shall eIpend for deputies
clerks &c The law OF last Winter by abohshng the
offices of Assessor and Assistant Assessor throws ad
tona labor upon the collectors and leads 70 the sahh8
NJ speoial allowances to ALL AS proof OF this II is only
necessary insert portion Of circular Issued 10 COZ
ectors the Revenue office on the Sth lnstp as loi
lows:
collectors will forward to this office, on OF before
Tune 10 1879 an estimate OF their necessary expenses Or
the period from July 1873 10 june 80 1874 Dot S
deputies and clerks, the amount PAID 10 eacn tne pO
ton Of the district assigned to each deputy ana us oo
tion therein and the number and aggregate average
product OF the dstieries, breWeres t0DaocO su % au
cigar manufactures IN each OF such ISL
Ila,t Ia from
fiscal yearas well as any other facts throwing igho Oh
the amount OF work 10 9e done oud ND also contain
statement OF the amount that VIII De fequlreu Iot
~ t6e etimate collectors should base the estimate
asked for herein on the specia estimate oI iay an
June, 1873 recently made by them The expenses OF
those months not considered as fair basis ior an es
innate OF expenses for the next fiscal year copy Oi
the estimate made In pursuance OF this circular shOuu
be sent to the Supervisor OF the District who wl advise
this Office the necessity Of incurrng the expenses
referred 10 therein
The facts lead to the inevitable conclusion that after
the lst July there will not be officer engaged in the
collection Of Internal Revenue whose pay will be fixed
by law The power OF prescribing the pay OF more than
1000 officers and clerks of the Government in the vari-
ous portions the country too great for one man 10
administer honest experienced, and careful though ne
may be- The law fortunately has fixed limit but the
regulation OF the pay to that limit Is within the bands OF
the Commissioner subject TO the casual approval or the
Secretary OF the Treasury who has no time TO devote 70
the duty. Collectors are limited IN compensation 10
a. 500 per year and supervisors 5000 with such
penses and force as the Commissioner may allow Inc
many collectors deputies, and clerks WILL after July
from the Indications OF the above circular be dependent
upon him. to say nothing Of supervisors, detectives.
storekeepers, &C. The compensation paid out at the
Commissioners discretion Will amount W the ehofmOuS
sum of s. 100000 year.
An examination Of the last report OF the Fifth Auditor
shows that the districts where the Collectors are paid
by special allowances, the.cost OF administering the
Collectors office Is much greater than in those districts
where they are paid out OF the legal commissions
vili1 line frata in STR NO
manner The Collector in the Ist District OF New-York
collected during the last fiscal year. sil27slO 80 the
expense OF administering his office was s7,375 In the
Hid District OF New-York, the amount collected was
s3Osi59T SO, and the cost Of administering the
Collectors Office sls,592 40. In both OF these
districts the Collector and the expenses OF
his office are paid by special allowance In
the lid District OF New-York the amount collected
was 49, and the cost of running the Collectors
Office only O3 IT, paid out OF the commissions. In the
Ivth District OF the same State the amount collected
was 43 80 and the cost OF administering the Col
lectors Office $3.50 95 also paid from the commissions
The striking differences will be found all over the
country II the Collector pays the expense OF running
his Office out Of the commissions, he will OF course be
economical as every extra cerkIhe employs reduces his
pay But the Secretary OF the Treasury nKes the
collection salary IL must OF course be at least much
the latter could under any circumstances realize from
the commissions and them as the Collector mas no lneeh
tive economy, he employs many clerks and deputies
rs he can make the United states pay for.
No one can ever tell where this special allowance"
abuse will stop IL a collector gets special allow
ance" iii district where 1t has not been gwen before
his predecessor be discontened ana TO think
that he was underpad The Secretary Of the Treasury
cannot such refuse TO go back ana give the
last man special allowance and l once heard OF
whore this giving OF special allowances ran back
for six years who never knew that he had Deen
underpad until he heard that his successor had got
extra remuneration, and then he asked the Government
give him another thousand dollars, although ne had
already received than he collected III tue speoa
allowance system must continue and grow the secretary
OF the Treasury ought at least To be required 10 report
To Congress every how many OF These he mas mauo
and the amount Of each. -,
The following table shows the amount OF money cor cor