The daily state chronicle. [volume] (Raleigh, N.C.) 188?-1891, 1891-04-05
TIE UlhECT LAND TAX.
HISTORY OF ITS COLLECTION
AID PLAN OF DISTRIBUTION.

Interesting hcpOft OF tti, Services
Tine Governor appointed L. Ii BUsBEE.
ESQ TO represent the State in prose.
cutting the claias OF the citizens of
North Carolina for the direct taxes
Yesterday Mr.. BusBGE made his report
as tae Governor. AS the PAYMENT of
tlis tax interests 50 many of the people
of the State, The CHRONICLE presents
ta, report in full. 1t is as follows:
RALEIGH, n. @ April 8, 81.
To llIs EXcELLENCY DANIEL. G.. FowLE
GovEaNoR OF NORTH CAROLINA:
Sir: In obedience to Your commits.
s.JI and instruction, | have the honor to
report that have been engaged since
the adj )utumeut of the General AS
s2mD.y IN prosecuting the claims of the
state Tor the direct taxes, which Con-
srtss has ~ law provided should be re.
tayued 10 he parsons from whom thew
were collected
Ii mly 9a Ae! 70 rr faae the report
by the brief statement Of q legislation
oJt ut which the claims OF citiz9ns have
arisen.
shortly after the outbreak of the civil
wr the Congress OF the United States
passed an 'act ID provide increased 1e-
venue rom imports to pay interest on
the public debt and for other purposes"
which was ratified August oh 1861 This
act provided for direct tax upon the
ltul IN all the states, apportioned as re
qiIred by the Constitution of the United
States Art. Section 8. Chapter 1, ac
c'rding to the population of the various
safes The amount of the tax assessed
against North Carolina was $576, 1871 81.
Ia June 1862 another act was passed
providing the method and machinery for
collecting this tax III the inSurrecti0nary
districts
b. this act it was provided that the
tax vas 20 be assessed upon the land at
the valuation given 1t in the year 1860
ia the State. In addition TO the tax a
penalty II % per cent. as added but
this. IS lar as | have been able 70 ascer-
ta'1, does not appear to have been gen
erally collected. By the terms Of the
act Of 1861, the States were allowed tc
assume the amount Of the tax against its
ctizsus, and upon paving the whol,
amount directly TO the United States,
credit of ID per cent. was allowed TO th'
state. This course was generally pur
suel by the Northera States, but, o
course not by the Southern insurrection
ary states.
The coffee ion Of these taxes in th
South began Immediately after the wal
IN June 1855 and probably earlier i
those parts OF Eastern North Carolina q
which the Federal troops had possessio
in 1862 aud thereafter. The coilectio
Of the taxes continued until July 28tt
1866, At which time Congress passed q
act suspending tho collection of the ia
10 the insurrectionary States. On Jul
33td, 1858, another act was passed su
pending the collection until January Is
1869 after which time no effort vi
made TO collect the tax, bat the unco
lected balances (n n. q. amounting
Sl9S,7i2 o6) rem in on the books of tt
Treasury Department as charge again
the State.
An act was passed by both houses
Congress during the administration
President Cleveland directing the repa
meut of this tax, but the act N
with veto at the hands of t
Presideat at the recent sessit
of Congress an act was pass
(raHf1i March ?, 1891 which proyid
that the b4lince of unc)liected tax
bIhuQlU8 OH tue DDDhS Ol IIS lLCdoU
Department should be credited to t
respective States and clear balan
struck 1t was also provided that whe
the State had paid the tax directly to
United States The amount should be
funded to the States respectively a
that where the money was collected fr'
the citizens tas in North Carolna)
amount Should be refunded to the Ok
IS n. 20 10 10, halN nv bin1n n
trust fluid to be paid to the perst
from whom it was collected Before
morey could be paid it was necessi
that the General Assembly should b
Joint resolution accept the money un
the trust and in fu,l satisfaction OF
demands. Tnis was doue by the q
erAl Assembly of North Carolina Ia jo
resolution ratified March, 1891. No
Carolina was the first State to apply
the refunding of this tax on behalf OF
persons who had paid it and nearly all
questions arising upon the construct
OF the act Of March 2. 1901, were lnvol
in It's application. The first quest
was whether the penalties collected
to be refunded with the tax lne
altie3 appear on the books or the |
sury to be $40 2l7, 78. After full IN
tigation OF the SUI CT and examna
of the debates IN Congress ana
amounts reported by the committee
careful consideration OF the langl
Of the statnte itself, the counting ON
OF the treasury, especially Judge
thews, the first comptroller, dec
that the United States was require
refund the tax only, not the penal
In addition to the amount reported
Congress 1897 1872 Gil there was
item Of 1888 80 q isi1g from oi1fer
mount reported ted, IN ~ =!
book and the am amount oun rsd apI
e :; s's; 6 6 s f. f; !: s.:
an@ouns OF nn'eallccted 'ss &l9s nH4 6as, saa ,Ge i
enqanffo o. for this this amount ",1' % 90
Companies co 'n'' havins ss1i"a been rseels is,
ID, g G verpG1, tSg on, to he persooG,s c., s1
,'c.o be Pals ere are II ,s,ry tv' man ian"
to It ..r of the I..aIu;ats .1 1;sts, upon Il