The Anaconda standard., 1895-04-18
YE OLDEN TIME SYSTEM
The Way Income Taxes We're Collected
in Early Days Here
JUDGE WOODY TELLsA TALE
His Salary In Creenbacks Was
Small. But the Amount He Paid
for Drawing II Was Big
l Gold for Paper Money.

MIssoULA, April 17.-Local bondholders
and corporations have filed out and sent
in the inquisitorial blanks which are nee
essary in making returns for the levyiug
Of the income tax and this probably is the
flrst time that any of them wished that
the income of the business represented
were less than 1t is. There is some con.
ISOLATION In being poor, even IL there arc
discomforts incident to poverty. and tho
fact that poor man Is not liable TO tho
income tax payment is one of the advan-
tages of . scanty purse. 1t is not known
just how much Mlssoula will contribute
toward making good Mr.. Carlisle's deficit
but the amount illindicate that this is a
fairly prosperous community, despite tho
nard times.
In speaking of the income tax to a
STANDARD reporter the other day, Judge
Woody remarked, II believe that am
the only man in Montana who has ever
paid an income tax. But paid one once
and paid big one, much bigger than it
ought to have been. have made some
inquiry and have never discovered any
body else who fell victim to the rapa-
cious greed of the revenue collectors who
operated In this section during war time,
which was the limo that / was forced to
contribute to the national treasury by
paying n tax upon my meager income"
Upon being asked to tell the story,
Judge Woody continued as follows: at
was in the spring Of 1865 and l was in the
employ of Worden & Co. as clerk in their
store at the old town of He'll Gate, down
the river. / was at work in the store one
day, when an internal revenue collector
entered and, without beating about the
bush at all, informed me that he had
come to assess my income of the previous
year. During the last three years of the
war we people cf Montana had come to
have a very wholesome respect for the
revenue collectors and the United States
marshals, as we were absolutely i'm their
power, and our courts were in such n
crude condition that redress was impossi-
BILE to obtain without the loss OF consid-
erably time and money. When these fell
lows saw a good thing and were in need of
a little money, they went after it, and all
that a man could do was to obey them.
There are numerous instances of gross
wrongs perpetrated by these government
officers and more than one innocent and
honest man was made to suffer to satisfy
them.
consequently, l was somewhat alarmed
when this collector, whose name was
Romulus G. Percy, said Il want to assess
you for your income of last year, put
on bold front and replied that there
wasn't much to assess, as my income was
pretty small.
"'How much did you get month last
year. was his next question. He was evil
IDENTIFY determined to form his own opin-
ion of the size of my income.
II replied. My wages are $40 a month,
but worked only 10 months last year,
"'That makes 500 for the year?' said
the collector, and agreed that his reckon
ing was correct.
"At that time 5000 was exempt in COM
putting the income tax and the remainder
was levied upon at the rate of five per
cent. / thought that, even IL was COM
PEELED to pay n tax it would be small, as
five per cent. of $50 was not very much.
At that time. greenbacks were worth out
here only 33H cents on the dollar and
there were but few of them to be OBJ
tanned anyway. This rascally collector
took advantage of that fact and when he
asked his next question I knew that I
was done for.
"'What have you been getting your pay
in p was the query.
"'In gold DUST l answered.
".At what rate?'
"'Eighteen dollars an ounce
"Then the villain sat down and figured
out my wages in greenbacks at 33K cents
on the dollar and calmly informed me
that my income was really $3.50 and /
would have to pay tax on that sum less
5000. This brought IL down to 81, $50 and,
figuring per cent. of that, the smooth
rascal told me without a quiver, that he
would let me of with $3.50.
II argued with him and pleaded with
him, but without making any impression
upon him and finally saw that it was no
use and told him that 1 would pay il.
Then tried TO find some greenbacks to
pay him with, but there was not one in
town and, after vain search, said, Il
will have to pay in gold dust
"'All right was the reply.
II then proceeded to convert the gold
dust into greenback value and was PLAN
ming to pay him $3.50 on the same basis
that he had assessed my income. He
wouldn't have 1t that way at all. He could
estimate my income in greenbacks, but
must pay dollar in dust for dollar in
greenbacks. That was the decision of
Romulus c. Percy and from that decision
there was no appeal. / was obliged to
weigh out $3.50 in clean American gold
dust. And that is the way paid income
tax. $3.50 on an income of $3.50.
II doubt very much 10 the nation al
treasury ever saw any OF this money, but
il it did, it is safe to say that il was in
greenbacks and that Romulus c. Percy
put s55 into his inside pocket. But Jared
much easier than did some of the resi-
dents of this section who were pounced
upon by the United States marshals on
trumped-up charges. More than ono
man was made penniless by their extor-
tions."