The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-03-27
SAMUEL J. TlLDEy'S INCOME.
.rrDGE BLATCHFORD DECIDING IN Fi-
yOR OF THE GOyERNMENT
Aarm,ns the Right OF the United States to
sue for the Sums Claimed A Decision Pre-
,,m,nnry to judicial Procee dings-Mr. TIL
dem. Lawyers Objections Answered.

the RtHht OF the Nnifeu Stntes TO
sue for the Sums Ciaimed-A Decision Pre-
urinary to Judicial Proce edings-Mr TIL
dem. Lawyers objections Answered.
Judge Blatchford rendered his decision
Yesterday in tho famous suit OF the United
stntcs against Samuel J. Tildcn for the rccove-
ryof alleged unpaid taxes or duties on income.
The decision is generally against Mr.. Tiden
There ara twelve causes Of acton in the COM
rlaint The first count is n claim ior 50 900 on
Mr.. Tildens income for 1861 With respect to
this count after recitng the act. and interpreted
tons Of It. Judge Blatcbford says: :" 1t is said
hy the supreme Court in Bennett AIT. Hunter.
decided in 1869. that the income tax imposed by
the a., Of 1861 has never been collected" Mr..
Tillcn's demurrer to the first count Is, there
therefore sustained. The second count Is un-
der the act Of July /. 1862. and caimst to recover
ms due ms income tax for the year 1862 tho sum
Of !Gjl5 on an income of $3.50. 800.
The third count ia to recover 81. $50 az n duty
on au income Of $685. 900 for the year 1864. Mr..
Tnden denies receiving an income In the years
1862 and 1863 in excess OF the amount on whiNh
h. paid duty. and AYERS ~ iurthcr ieien ce IN
rrspnci 10 those two years. that nj the proper
lime he mae, "A list or return in due form 10 tho
proper assistant asseasor OF the amount Of an
uunl income for which he was liable to be as.
s,ssed: that the proper proceeding prescribed
by law wore had therein. assessing an amount
collector such amount " tax and that II was
not asr.rtaincd at any time within fifteen
months after the 18Th OF .ly, 1866. that any Of
the lists were imperfect or incomplete.
The fourth count IL bnsod on the Joint resou.
ton imposing special income duty. approved
July l. 1864, and claims to recover the sum OF
Sc $50 "a q duty of Ave per centum on All in
come Of 1925 400 for the year 1868.
The defendant. in his answer TO the com
plaint, denies that he received for the year men
toned in the fourth count any amount OF
income IN excess 9I the amour, on On which ne
paid to the United States the full amount Of
duty for which h. was liable on his income.
For further defence to the fourth count his
answer AYERS that before the 10th of July. 1864.
IA made a list or return ia due form 10 the
proper assistant assessor of tho amount of his
annual in ONE forthe year 1863 that the proper
pro 'cedings prescribed 10y law were mad. as
s4sinr an nniouut of special duty against him !:
tnt he paid To- the proper collie tor such amount
oi special duty; aud that II WIS not asc"r tinrl
at any imc within nitecn months after the 18Th
OF July. 1856. that the list on which said ASSESS
m.nt WIS entered was imperfect or incomplete.
The nth count is based on sections l i6 to 1913
of tue act Of June 80 1864, and claims to re-
cover n due on the 3Oth OF June. 1868 the sum
oi $l6.uuO rs a duty Of ten per centum on an in
come ot $3.50 600 Tor the yenr 1864.
The sixth count IN based on the same section
~ IN" at OF 1864. a. amended 10y section one
oi the act OF March 3. 1868. and claims TO re-
cover the sum OF s33.oOO as a duty of ten per
1853.
Mr. Tildcn in his answer to tho complaint
denies all the obligations OF The nth and sixth
counts. except those H. to his residence and
profession aud ownership Of certain property
For a further defence to the ilith and sixth
counts his answer ayers. IN Respect 10 cach Of
those two years. that he neglected TO make u
list or return 10 the assistant assesSOr OF the
amount Of his income; that Thereafter the
assessor made a list OF his annual income and
assessed the duty thereon and added twenty
five per centum. us "a penalty 10 the amount Of
I'll" duty assessed; and thut Mr.. rilden paid to
III" rolector the amount Of tax and penalties 80
r-sed
The seventh count is based on the seven
sections OF the act Of 1864 ns amended by see
ton one OF the act OF 1860. ana as further
amended by section nine of the at Of July l3.
1856. and claims To recover the sum Of 1880
~ q tax oi five per ccntum on an income Of
slO7 OOO for the ycar.
Tue eghthcoun Is based on the same sections
Of the act Of 1854 us amended 10y section one
OF the at of 1868 and further amended by
section nine OF the act Of 1866, and as further
amended 10y section thirteen OF the at OF
March 2 1867. and claims TO recover ~ due on
the Both Of April. 1863 the sum Of s6.2l5 as
Tux OF five per centum on an income Of 1924
800 for the year 1867.
Mr.. Tilden. in his answer to the complaint
denies ali the allegations OF the seventh and
eighth counts except those as to his residence
erty. For further defence " TO the seventh
and eighth counts. Mr.. Tden says he neglect
ed to make return. was assessed. and paid the
penalty
Tie ninth count Is for the sum Of '6,G25, tax
MIR. Tllden AYERS rs 10 this that no ursi'-vr, ~
make a return. WAS assessed, ana paid tho
penalty 10 tue collector OF the amount 50 as
The tenth count is for s35 $50. tax on an in
come Of 81 DOG for the year ls0'. MI IiIdeh
this. was assessed, and paid the amount re-
CURED by the collector. ..a,
The eleventh count - for the sum OF siS'1T1a
twelfth count is for 81. 800, tax on income sluu-
OOU Tor the year 1871. Mr.. Illden answer 10
the eleventh and twelfth counts is substantially
that he neglected to make return. was as
sessed and paid the sum assessed 10 the col
The United States demurs 10 each OF the above
rected further " defences on the ground that
they DO not any Of them constitute delnnces 10
the complaint, or to any part Ot H.. Inc ur-
inurrer T. the further deiences TO the second.
third. and fourth counts raises me question
sr,, barred by the facts that Mr.. Tlden made a
return, and an amount OF tax was asses7ed
against hun am IL, pan II; nhr no ,sGap The
United States also raises III. question rs L, III
Tnden's further dcienrrs on me MN, sINt ~
seventh eighth. and tenth counts. whether M
cnuses II action in those counts are barred uN
the TACT that Mr.. 1ilden made no return. am
an amount Of tax and penalty were asresse'
against him and he paid them; and a. 10 th'
ninth count the United States raises the ples
ton whether the cause Of action Oh that count II
barred by the facts tnat Mr.. Tild"n made no re-
turn. and an amount OF tax was assessed "sains
JuIre Blatchfori quotes the various provis
ions OF the act OF 1852 OF the Joint resolution o
lstii and the acts from 1864 10 1870. he thri
reviews Mr.. Tldens answers 70 the various
counts 40 summarized above, and continues;
~ te provisions the ssmcut In the act OF 10
me slant Assessor !, .,yy',u Tl' D~' as d1iv
tt aud TO make IL d The owner ana t" 'sie a.,
neans Power was eiNen 70 ue a''ssssf' ~ Vsi in
,.IiI- nr contained ans understatrment or undtrVn
H.D, i ier oath the party and witnes-,~, "a compel III
lrnla,uonf nonk- oi account TO enter On ue irm,"
ri tr I,rfy aud make. according 10 THE best inl9r'
u ii ulthc ic ludg that deiNed rom me eva, u,
,lti.rl HN ~, examination. ana on has own We" an
.N.f un fur -t return tor the party m pfui'it
ur. ..., lmUle 10 tax owned by him. and assess III
ats lrlfIfl
JuI-e Bat 'hfori recites the process OF M
T.,4. n.l says. further. that power 10 also give
t. u- a-a ssOr 10 recXamlne ana deteImlh
uIlii thr ,.-scss mcnts and valuation, ana rec
liy iur -tur. as snail appear Just and equtapl
Iul7 Includes the power to IN 'rease the Nhlu.
tul il-aNsSmcnt or enumeration. ON notlce I
the y lrty lnt'r, sted 10 appear and Object All,
api"a.-, and rhc collectors isl Is louhu 10
IN .omplet" there is Il provision Tor a sp'cii
Ilston WuIcn further duties may be placed an
collect a II found to De due. by the act OF lou
tlr Comm ssloncr OF Internal Revenue va
a4tlOriIYI To remit duties errOneousy or ~
gtliy sss-1.d or collected by the act oil lot
ms rounding was authorized IN the case {
rX-s paid by levy and dsShnt In u
Bye val statutory provisions ~ regard 10 VI
IL ONE tax ia the act OF 1867. IL pr.
ydid that the duty on Income slali
80 asse.sed and tollected,' In the act OF 1864 u
language s. assessed collected. and paid
In both the word estimat ng Ii used In do
at naf