, 1881-06-28
WASHINGTON: :: :: !:
! -: - +,
Bank Of: Montreal. Argument
'. Before the Internal Rev.: =:
enue Officers.
Tho Aggregate Of Moneys to Be or lot to !:
Do Taxed Il About Stytnty !,
Millions >.
Statement Of MI. Bentley; the Out
going Commissioner Of "
Penaona. ....
News from Capt. Hooper, Of: tho
Steamer Corwin, Exploring
the Arctic Regions. -
The Attorney-GeneraI Decides that In. :
truders Must Leave the In. :
dian Territory.
A Deadlock in the Spaniabk
American Claims Com.
mission. -,
The Bondhoiders Number Lese !,
than 100000 Out Of 5o,-
100000 People. =. -:
Tie Canvass for the Next speakarship+
Now In Full Blast at the:
( Capital.
Nsw congressman Being Towsd Around
the Departments by the Banipaat
Candidates,
The Bondhoiders Number Less ,
than 100000 Out Of 5o,-
100000 People. =:
Tie Canvass for the Next Speakarship>
Now In Full Dlast ut. the
( Capital.
Nsw Congressman Being Towed Around
the Departments by the Benipaut :
Candidates..

ARGUMENTS OF THE HANKS.
8pfefdt Dtspateh to III Chtfa3o Tkthtr1t

5pfetdt utspaeeh to 1h1 Chtea7o 2sthts1&s
WASHINGTON. u. c., June 27.-Mr. Houtelle, i
the attorney for the Bank Of Montreal, made d
protracted argument to-day before tho COM
missioner or Internal Revenue and the:
Solicitor Of that Bureau; In the matter Of the
claim Of the Goyernmant upon TINT bank
In this case therc Ia no. claim OF false ro-
turns made BY the Government, and no claim
for penalties. The question Is simply one Of
law which has never been passed upon by
the courts Of the Department. ,1twns claimed
for the bank that there never had been any
concealment; that the books had alway been
open; md Tint, to this time, no demand for
payment has been matle..: 49,
=, >:S REvENuE:AaEST>K KENNEDY = -,
claimed that The :1ndsaoy (which lier reported
allQt#a lsa rasa low
tnE is:nn outline Of the sarGuinent: :lnnslo ly
the attorney for the bank: Tho fundamental
error Of tho position MS first taken by. the
Government Is that a bank is Liable for alt
the money that it uses, III, sonln slsnpo or
othor, for taxation. The bank answers that
It Is only liable to tho taxatton which Inns
been imposed. BY the iaw OF 1861 there was a
tax OH circulation, OH deposits and capital, but
tie law of 1870 repealed the tAx. on SURPLUS.
Ths matter Of circulation performs no part
III this bank. The only question Is whether
It Is liable for tax OIL capital and deposits
The Court has decided these twu questions:
First, that =.
SURPLUS Is NOT CAPITAL; : !.
second, that money borrowed by q bank Tor |
lis temporary Use is not capital. The bankt
says, iu reply to the first claim, that tho1
brunch or agency at Chicago Is simply part3
Of tho Bank OF Montreal, and that the money!
Is Its own money, al,d is not liable to tax AL
T. nj in for~ s,nl
tho ban k does not borrow of itself; tint T.
deposit Is money which 4 bank receives, and
Which It Is liable TO pay, upon check, but'|
whatever is furnished q branch bank BY NJ
amounts cannot be considered dcposl1
THE ONLY OTHER QUESTION
Is whether tho money is capital. The reply
OF the bank to that Ii that the term "cap!tal' !,
1neans q fixed sum. permanently employed
M y ths ss. eSssss s, u they nc eauot be-
lone OF the elements Of flxlty or pernianeucy-{
They aro borrowed of tho surplus money OF
s ga5eat 1a9k S sd j. 5sas ssb b & cSsS aSs
entirely - j,
LOANS ON CALL ON PRODUCE. -
As showing that these banks could not b6:
regarded as Independent, banks, all their
profits are credited TO tie head office, aud all
deposits aro sums which at any tlme iha banlc}
n,0y legally Withdraw, whereas capital IL II
ilxea and permanent quantity, md is liable to1
orders rs a trust fund. which surplus funtts1
liann takes tlle case. undcr consideration anA
will dcc!tle this week. - =.
THE AaaHEaATE AMOUNT
Of moneys returned by 1!eyeiae-Age Kin
.ey IL " l,ls H. seF9tt cn tue BH,k ct Montreal "
itall' and deposits. or. whatsysr It may - >
eRlIed, TINT Inns been In the bank since 1870,