Year: 1866


sble tax from this traffic. The events OF the
past show conclusively that four or five mil
lions of dollars will be expended for lottery
tickets by portion of our people, law or no
law. Under these circumstances It is the duty
of Congress to secure for the government the
largest possible revenue from this source. The
States which charter the lotteries do It for the
purpose of obtaining revenue. In this light
Congress should treat the subject If at all (; but
In doing so great care should be taken not to
create monopoly for tho special benefit Of
few managers


We notice that another effort Is being made
by some of the Wall street bankers to evsde
the payment Of the government tax on their
sales of stocks. This movement has become
periodical and as regular as the appearance of
strawberries. Last year, as Judge Nelson was
returning from Washington to his summer resi-
dence at Cooperstown, the bankers and brokers
waited upon him and secured an order 10 stay
the enforcement Of the collection Of the reve-
nue. tax ON their sales made on their own ac-
count The government officials were then
required to appear at Cooperstown, few
months later, to show why permanent injunc-
ton should not be granted This they did; but
Judge Nelson decided in favor Of the bankers
and brokers and thus deprived the government
OF q large amount Of revenue. The case was
appealed to the Supreme Court at Washington,
where the decision of Judge Nelson was re-
versed. This decree of the court was not rem
dered until just before the adjournment Of the
court, and in the meantime the bankers and
brokers had accomplished their object. Sew
eral Of the firms had by that time gone out Of
the business or formed new copartnerships,
while others had failed. The Department at
Washington, Immediately upon the decree of
the Supreme Court, directed the revenue Off
GERS To enforce the collection Of the tax on
brokers' sales made on their own account as
well as on commission.


In accordance with this order the bankers
and brokers were notified to make out their
returns for the tax on sales made on
their own account A majority of the
brokers readily complied with this order;
the returns were being promptly made
and the revenue of the government largely
increased as the result. For once there
seemed to be prospect that Wall street specu-
lation would be compelled to pay Its proper
ton Of the revenue tax and not be able to
escape and throw the burden upon the indus
trial interests. But just at this stage Judge
Nelson again turns up, journeying from Wash
ington to his summer resort at Cooperstown.
No sooner Is bis arrival known here than
Clark, Dodge d Go. apply to him for an injunc-
ton restraining the internal revenue collectors
from collecting tax upon their sales Of stocks
and other securities, whether made on their
own account or on account Of Others on the
ground that they are doing business under
bankers license and therefore are not required
to pay tax on such transactions. Judge Mel
son forthwith granted an order staying pro-
ceedings and notified the revenue oflcials, ~
In the former case, to appear at Coopertown
toshow why permanent injunction should not
be issued, and then resumed his journey TO his
summer residence. The brokers having thus
secured another years exemption from tho
tax are perfectly content If upon argument
Of the case Judge Nelson grants permanent
Injunction, then all that the brokers In Wall
street will have to do is to throw up their
licenses as brokers and take out bankers
license, and they can all escape the revenue
tax. Thus 1t will be seen that there is an i'm
portant question involved in this matter-one
which largely affects the revenue of the gov
ernment


We understand that there Is at the present
time nearly one and q half million Of dollars
| Of tax held back by bankers, on one pretext
or another, which they expect to retain
as their own profits, If this injunction
is finally granted. This, as matter Of course


is sum worth contending for, and with that
amount back of them an extraordinary pres
sure will be made 10 secure decision. The
law on this subject is very plain and IL was


clearly the intention of its trainers that ell sales
| of stocks should pay tax The decision ol


the Supreme Court has removed every quibble
on the part Of the licensed brokers. But now


the bankers come in with another excuse, with


the evident intention Of getting rid Of the pay.


mcnt Of the tax. This being the case we call


upon Congress to 30 arrange the phraseology
| Of the new internal revenue law, before 1t Is


finally passed, that there can be no doubt as


10 its meaning and remove all plea or excuse
| for an Injunction In the future.


But there is another very important phase te


this question. The present law specially stipu


lates that all brokers and bankers shall pay


upon oil sales Of stocks and bonds one TWEEN


tieth Of one per cent, and on sales Of gold


silver, bullion and coin one-tenth Of one pei


cent. Now II is the established custom Of the


bankers and brokers to charge all their Gus


TONERS the government tax, In addition to theil


own fees. This II the universal rule There