The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-01-16
TAKES ISSUE WITH Mr.. CRANE
ACTING COMMISSIONER WILSON mn
PLIES TO ATTORNEY GENERAL.
Collectors Are Instructed IN Enforce
Tax ON Oficial Bonds-Tcxt Of
the Decision.

Dallas. Texas January 15.-C Colonel p.
B. Hunt, collector Of Internal revenue
has given out an important and Interesting
decision Of the internal revenue commits
sioner III answer to the argument OF Attor-
ney General NJ. NJ. Crane. The decision is
as follows:
Hen. M. NJ. Crane. Attorney General OF
Texas, Austin. Texas.
Washington January 10.-Sir: / have
the honor to acknowledge the receipt OF
your letter OF December 10. 1898, to Hon.
John w. Griggs, United States attorney
general, which has been referred to this
Office FOR ancwer.
Your letter is devoted to an argument
intending to show that the taxation by the
Enited States of the bonds of State officers
is unconstitutional.
In reply you are advised that the ruling
of the Office, made or the advice of tie
honorable attorney general. is that bonds
given by public officers such as sheriffs,
clerks, registers or recorders of DEEDS,
treasurers of counties, cities or towns. or
other public officers OF like character are
required to lie stamped
This ruling was made under the authori-
ty OF that paragraph of schedule A of the
act of June H. 1898, which is headed:
"Bond-For indemnffyfng any person or
persons, firm OF corporation who shall
have becomo borrd or engaged as surety
for the payment OF any sum of money, or
for the due execution or performance of
the duties of an Office or position and to
account for money received by virtue
thereof and all other bonds Of any de-
scription, except such as may be required
In legal proceedings not otherwise pro-
vided for in this schedule, SO cents
1t is not claimed that the bonds OF State
officers come under the indemnifying
clause of the above paragraph, but are in
cluded in the phrase .'all bonds of any de-
scription, except such as may. be required
in legal proceedings not otherwise provided
Tor in this schedule"
The only portion of the law which would
exclude or exempt these bonds from taxa
tion is contained In the first proviso OF
section II OF the stamp act which states:
THAT 1t is the intent hereby to exempt
from the stamp taxes imposed by this act
such State, county. town or other munic-
ipal corporation In the exercise only OF
functions strictly belonging to them In
their ordinary governmental, taxing or
municipal capacity" Ii
OF course it could not be maintained that
pOhuS required IRON peTSouS pelofe &tueS
can be qualified as State officers coma
within this exemption.
In your argument. you cite the only de-
cision of a court which hes ever ruled that
the official bonds of State officers are
not taxable by the United States govern
ment. This was given by the supreme
court of Indiana in the case of the State
VS.. Gordon, % Indiana, l.
This opinion OF single State court can
k.,,, trA11 linz tv,Ht 10 "a e.
ecutive department of the United States
government. ! This Office Is aware that the
United States supreme court has decided
that the United States can not tax the
salaries of state officers, but it has never
decided that 1t can not tax their bonds.
The same tax was in force from July !,
1862, to June 6, 1872, and so far as known
to this office this question was never tested
In any Federal tribunal. In the face of II
plain. unequivocal legislative mandate. the
executive department of the government
would not be justified in changing the rul-
ing above stated in regard TO these bonds
without all express decision upon the sub
iect by the supreme court OF the United
States.
This office declines to enter upon the
constitutional argument so ably set forth
in your letter. 1t entertains the opinion,
however that the tax upon bond given
by a citizen OF State before he enters
Upon the duties of State office, can not
be considered as tax uron the functions
of State government. The citizens or
State are also citizens of the United
States and owe paramount allegiance to
the latter.
The collectors OF internal revenue OF the
state Of Texas will be instructed TO col
lect this tax In case of the failure to
stamp the bonds of state officers by as
sessment and distraint, II necessary ana
| II any person wishes to contest the same
In the courts he can do after payment OF
the tax and application for refunding has
been made in the way pointed out in the
statutes. Respectfully G. w. Wilson.
Acting Commissioner.