Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-04-03
The General Government ana e
New York Central.

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trail and Hudson River railroad coIhpa-
MES. Commodore Vanderbilt, and the
other managers thereof, are placing
themselves not only in ridiculous, but In
a bad position. What is their positlonF
A large internal revenue tax was assess
ed against these corporations some TWO
or three years ago, which they refused
70 nav. on the ground of its alleged ille-
gality. They therefore appealed to the
commissioner of internal revenue ana
the authorities at Washington. This
they had the undoubted right to do, and
took the same course which would,
nrobably. have been taken by any other
corporation, or by individuals, under the
same circumstances. After pursuing
every remedy known to the law, and be-
ing beaten at every step, they still re-
fuse to yield. The taxes have been as
sessed, they have been pronounced legal,
lust and proper there is and can be no
abatement therefrom. In word, they
must be paid. The corporation, or its
managers, still refuse to pay. They
ought to know that, as a matter OF
power, they have no chance in con-
flict with the United States government,
especially when the law, authority and
courts, as well as the right of the mat
ter, are ranged on the side of the general
government. Justice to the stockhold-
ers, it would seem, would induce the
managers to render the expenses as light
as possible. But no, the collection OF
taxes Is to be made as difficult as posi-
BILE to the United States, and the ex-
penses are to be increased by every
means known to the law, to be ultimate
ly, of course, reimbursed by the stock
holders, and to be felt in the way of les
sened dividends. There has been moth
ing in the course of the general govern
ments, or its officers, which the railroad
company can complain of as hasty, OPP
pressive or unusual unless it may be
unusual lenity. When a seizure of prop
erty became necessary, seventeen loco
motives were taken and advertised for
sale. In order that there might be nc
ground for complaint of hardship, they
were allowed to remain in the possession
of the company and in constant use.
The day of sale arrived, and the officers
Of the government, suspecting no trick,
had no buyers present. The sale COM
menced, and the several locomotives
were sold to the treasurer of the railroad
company for one thousand dollars each.
barely sufficient to pay the expenses, anc
leaving the tax still unpaid. We judge
from our telegraphic dispatches, pub
lished yesterday morning, that no more
favors will be shown; that the govern.
ment will proceed and collect the tax in
the same manner they would be com
PEELED 70 in the case of an irresponsible
debtor. Heretofore, perhaps, the govern
ment has made mistake. All persons
and corporations are the same in the eye
of the law and should be treated alike.
1t is not, however, customary to resort
to extreme measures in the collection OF
taxes or other liabilities, in the cases OF
parties who are, or who are supposed tC
be, ready, willing and able to pay at any
and all times. Commodore Vanderbilt will
find the power of the United States a diff
ferent matter to contend with and con-
troll than has been the case with some OF
''the little one horse" railroads that have
hitherto stood in his way. 1t is now to
be ga word and blow" not ON his part,
but by the general government. The
government will not, as Vanderbilt un-
doubtedly hoped, levy on real estate,
and thus give another year in which tc
pay the tax. The Commodore and his
advisers probably forgot to examine the
law. If they had studied the internal
revenue law little more thoroughly,
they would not have run against the
present snag. The tax must be paid,
and that shortly. Either they must raise
the money before or after a sale Of theil
property. The difference in time will
be but a few days. The law requires
that the personal property shall be ex
hausted before recourse is had to real es-
tate. The locomotives, cars, ETC., of the
corporation are sufficient to pay the tax
dozen times over, ever if they are solo
at ten cents on the dollar of their actual
value. The managers or advisers of the
railroads have commenced the conflict,
and they must take the consequences.
The internal revenue officials will see to
it that there are no more sham sales,
neither will they be over anxious about
accommodating. We should think that
people would begin to be heartily tired
of conflicts with the general govern
ment. Not one has ever succeeded, and,
so long as the United States is in the
right, none can be successful.
reconciliation.