, 1881-11-30
BANK TAKES.

EXPLOITATION.
Special Dispalch 10 The Chicago Tribune. :
WASHINGTON, D. G., Nov. 2Q.-Conmfs-
siouer 1.alslu, III hts annual report, has the
following ralatlve to bank taxcs In Chicago
md easewI,ero: =
Lust htnrrh certain facts cnmc to tho knowl-.
es.ge Of tho Collector Of informal itcvenuc at
Chicago, which led hIn to hellovo TINT one Of the
hunks OF that ctty hsd fatletl 10 make full ro-
turns nr It's enn!tal and deposits for tnxHton.fAt
tho Collectors request sent d competent roye-
nuo nGent to mnke htl examination Of tito books,
which, wns tlonD uIl1nr tho supervision ct tho
Collector, and It was round that Il largo atnount
Of tqxcs was tle tho Goyern1ncnt+ Tho books
OF ali the hunks IN tho City of Chicago mixing
returns to thls oll!co wor1 ntso examined, nnd in
,nust cases It was fnund TINT etrors Ind boeIa
tnado In rendering ihor returns, though IN n
number Of instances the nsno1nts unva1uca
woro not lnrge* III the easo Of certnin foreign
bnnks doing business tn TINT city large anounta'
Of taxcs wele found duo NIL capital brought into
tho United States and actually employed in tho
business Of banking. -.
!,,,.. TILE, 1!EsuIr ,,;.,-..- ,.,.'.
Of tho examination In Chion9o sco,nctl to mako
It necessary to Horlltinizo the roturIs or tho
bankers Of other clt!cs. / therefore lutallcd n
number Of royonup auenta to report to tAo Col.
leotors Of 1ntorla Ieoyeniso IN tho Cities OF fa-
tIrnprg, Philadelphia, Now York, and '1l0ston,
and tho books Of many Of tho banka Wcrn TX
am[notl. a number Of now and Interesting
questions OF law aroso upon tho application OF
Tho statute to tho vnricd and Intricate buBueas
operations OF bnnkors. 1t wns found that, whtto
The returns of sono banks had l1ccn neotlrlte to
tho Inst cent, tho returns Of Uthora hnl peen
fnRdo With dcluotlons nj TO both capital md do
posIts, which. In tho oplnlon OF this u1llce, wcre
mt admissible under tho law. Afnny bankers
have submitted tbe!r books for examination
Without tho necessity Of invoking legal proceod-
ings, aud lnv0 shown willingness that their on
tire iIahIitty for tnxes shnll bo aAcertn1ned,
Aiauy other baukess huyo nHrccl to carefully
examine their bucks and nuke full Rtntcmenta
under tho decision recently rendered 3y this Of
iico OF such additional tnxcs III t3ioy may be tn
bio for, such statements to DO subject to tho
rcrltlcnuou OF thu uflicera OF tho Internal row.
enuc. .
OTHER BANKEns,
questioning tic right Of tntornal.revcnuu oE-
cors to examno. taGtr looks, tlayu refused to
either pr0t(uco them or to answer fntcrroRntn.
res in regard to liability for additional taxes.
:trhere bns beun hlraady asoortalucl to bo duo
tho sum OF $iiaess 705 fran seventy banks In tho
cities Ut Chlengo, New York. Baltimore, llostou,
md PHILADELPHIA, a considerable portion 0l
which hus been co!!ectul aud patl Into tho
| Treasury. Tho other Collectors have boon til
;structel to examine tho banks Of their re.
dt@HEL]A2 ~ 4sAp1I+k@ lux
'nttIlhonul ta1es. nm satisfied that largo aldt-
tIonni autna aro duo tho Government From this
source. Considerable irritation hus bean folt by
many Of tho bankers In respect to tho onforce-
mont OF tho lou por cent pet,alty Imposel for
rendering II "fa!so OF fraudulent rctNra,", It be.
Ing contpndod TINT tito penaIty waa intended to
be en'orcod ony when tho return 1nado was
| willtully lalsu. ~
| 4 CASE
III which this question was involved was rcgontl,
tried bosora tho United Stutes circuit Cnurt 10,
tho Southern District Of New. lork-sho Oor,
| man Savings IlanK W.. Joseph ,Archlold. Col
leetos-anfl tho Court deedcd t4at 1t ia not
prerequisite to tho usltlltion at tho penalty thu
tho return Hha,l bo Wlllfuy fAiaa, hut that II ttt
| return IL not In faot truu, tho C0MinlssIuner u
authorized To al1x tho penalty> Tho exnot lan
Runeo Ut the statuto isco. .AtSs} Ia, "Author
tzed ana roqurod.,, This casa has beon appeala.
10 tho uniscd States Supreme Court, md, ut IN,
,re1uese, tho AttornoY. .usloral tns had II I'd
vnlleed tlls docket, aud 1t is act down TOR ur
Yumunt on tho 10Th Of Januury .hoxt, TensituI
tho decision Ut. tho Hupremo Court upon tht
polnt, hnyo consented, In scverai (ulpurtna
cnses, that tho oolleuon OF tho 100 por con
penalty atseaity asaossed ahall 10 hc!d fn abby
anco to await tho dcoIslon ot tho court