Stat. at Large, CHAP. LXXX. Vol. XIII. p. 491. An Act amendatory of certain Acts imposing Duties upon foreign Importations. 1864, ch. 171. Receipts of SEC. 4. That the receipts of vessels paying tonnage duty shall not be vessels paying subject to the tax provided in section one hundred and three of "An act tonnage duty exempt from tax to provide internal revenue to support the government, to pay interest on of § 103 of act of the public debt, and for other purposes," approved June thirtieth, eighteen hundred and sixty-four, nor by any act amendatory thereof. 1864. Stat. at Large, CHAP. V. Vol. XIV. p. 2. - Assistant as No. 12. JANUARY 15, 1866. -An Act authorizing the Secretary of the Treasury to appoint Assistant Be it enacted, &c. That the Secretary of the Treasury is hereby authorsessors of inter- ized to appoint any assistant assessors of internal revenue now provided by law. nal revenue. No. 13.- JULY 13, 1866. Stat. at Large, Vol. XIV. p. 98. Unmanufac tured cotton to pay a tax of three cents a pound. 169, § 1. CHAP. CLXXXIV. An Act to reduce Internal Taxation and to amend an Act entitled "An Act to provide Internal Revenue to support the Government, to pay Interest on the Public Debt, and for other Purposes," approved June thirtieth, eighteen hundred and sixty-four, and Acts amendatory thereof. Be it enacted, &c. That on and after the first day of August, eighteen hundred and sixty-six, in lieu of the taxes on unmanufactured cotton, as provided in "An act to provide internal revenue to support the government, to pay interest on the public debt, and for other purposes," approved See 1867, ch. June thirtieth, eighteen hundred and sixty-four, as amended by the act of By whom to March third, eighteen hundred and sixty-five, there shall be paid by the be paid. producer, owner, or holder, upon all cotton produced within the United States, and upon which no tax has been levied, paid, or collected, a tax of Weight, how three cents per pound, as hereinafter provided; and the weight of such cotton shall be ascertained by deducting four per centum for tare from the gross weight of each bale or package; and such tax shall be and remain a lien thereon, in the possession of any person whomsoever from the time when this law takes effect, or such cotton is produced as aforesaid, until the same shall have been paid; and no drawback shall, in any case, be allowed on raw or unmanufactured cotton of any tax paid thereon when exported in the raw or unmanufactured condition. But no tax shall be imposed upon any cotton imported from other countries, and on which an import duty shall have been paid. ascertained. Tax a lien. No drawback when, &c. No tax upon cotton imported. Tax, how levied and paid. Collector to mark bales on which tax is SEC. 2. That the aforesaid tax upon cotton shall be levied by the assessor on the producer, owner, or holder thereof. And said tax shall be paid to the collector of internal revenue within and for the collection district in which said cotton shall have been produced, and before the same shall have been removed therefrom, except where otherwise provided in this act; and every collector to whom any tax upon cotton shall be paid shall mark the bales or other packages upon which the tax shall have paid, and give been paid, in such manner as may clearly indicate the payment thereof, permit for re- and shall give to the owner or other person having charge of such cotton moval. Permit to state a permit for the removal of the same, stating therein the amount and payment of the tax, the time and place of payment, and the weight and marks upon the bales and packages, so that the same may be fully identified; and it shall be the duty of every such collector to keep clear and sufficient records of all such cotton inspected or marked, and of all marks and identifications thereof, and of all permits for the removal of the same, and of all his transactions relating thereto, and he shall make full returns thereof, monthly, to the commissioner of internal revenue. what. Collector to keep records of inspections and permits, and to make returns monthly. marked. expenses are SEC. 3. That the commissioner of internal revenue is hereby author- Place to be designated where ized to designate one or more places in each collection district where an cotton may be assessor or an assistant assessor and a collector or deputy collector shall brought to be be located, and where cotton may be brought for the purpose of being weighed and weighed and appropriately marked: Provided, That it shall be the duty Revenue offiof the assessor or assistant assessor and the collector or deputy collector cers may go to mark cotton, if to assess and cause to be properly marked the cotton, wherever it may be, in said district, provided their necessary travelling expenses to and from paid. said designated place, for that purpose, be paid by the owners thereof. SEC. 4. That all cotton having been weighed and marked as herein Cotton weighed and marked, &c. provided, and for which permits shall have been duly obtained of the asmay be removed sessor, may be removed from the district in which it has been produced to to another disany one other district, without prepayment of the tax due thereon, upon ton of transportrict upon executhe execution of such transportation bonds or other security, and in ac- tation bonds, &c. cordance with such regulations as shall be prescribed by the commissioner of internal revenue, subject to the approval of the Secretary of the Treasury. The said cotton so removed shall be delivered to the collector of internal revenue or his deputy forthwith upon its arrival at its point of des- delivered to tination, and shall remain subject to his control until the taxes thereon, arrival and kept and any necessary charges of custody thereof, shall have been paid, but until tax is paid, nothing herein contained shall authorize any delay of the payment of said which must be in ninety days. taxes for more than ninety days from the date of the permits; and when cotton shall have been weighed and marked for which a permit shall have been granted without prepayment of the tax, it shall be the duty of the assessor granting such permit to give immediate notice of such permit to Assessor to the collector of internal revenue for the district to which said cotton is to of permits grantnotify collector be transported, and he shall also transmit therewith a statement of the ed when tax is taxes due thereon, and of the bonds or other securities for the payment not paid, &c. thereof, and he shall make full returns and statements of the same to the commissioner of internal revenue. Cotton to be collector on of cotton from bidden; SEC. 5. That it shall be unlawful, from and after the first day of Sep- Transportation tember eighteen hundred and sixty-six, for the owner, master, supercargo, place of producagent, or other person having charge of any vessel, or for any railroad tion, unless company, or other transportation company, or for any common carrier, or marked, &c. forother person, to convey, or attempt to convey, or transport any cotton, the growth or produce of the United States, from any point in the district from any State in which it shall have been produced, unless each bale or package thereof in which cotton is produced to shall have attached to or accompanying it the proper marks or evidence any other place of the payment of the revenue tax and a permit of the collector for such without certifiremoval, or the permit of the assessor, as hereinbefore provided, under cate, &c. regulations of the commissioner of internal revenue, subject to the approval of the Secretary of the Treasury, or to convey or transport any cotton from any State in which cotton is produced to any port or place in the United States without a certificate from the collector of internal revenue of the district from which it was brought, and such other evidence as the commissioner of internal revenue, subject to the approval of the Secretary of the Treasury, may prescribe, that the tax has been paid thereon, or the permit of the assessor as hereinbefore provided, and such certificate and evidence as aforesaid shall be furnished to the collector of the district to which it is transported, and his permit obtained before landing, discharging, or delivering such cotton at the place to which it is transported as aforesaid. And any person or persons who shall violate the provisions of this act in this respect, or who shall convey or attempt to convey from any State in which cotton is produced to any port or place without the United States any cotton upon which the tax has not been paid, shall be liable to a penalty of one hundred dollars for each bale of cotton so conveyed or transported, or attempted to be conveyed or transported, or to imprisonment for not more than one year, or both; and all vessels and vehicles employed in such conveyance or transportation shall be liable to Penalty. Fine. Imprisonment. ton forfeited. vehicles and cot- seizure and forfeiture, by proceedings in any court of the United States having competent jurisdiction. And all cotton so shipped or attempted to be shipped or transported without payment of the tax, or the execution of such transportation bonds or other security, as provided in this act, shall be forfeited to the United States, and the proceeds thereof distributed according to the statute in like cases provided. Drawback upon manufactures exclusively of cotton. Amount of drawback; SEC. 6. That upon articles manufactured exclusively from cotton, when exported, there shall be allowed as a drawback an amount equal to the internal tax which shall have been assessed and paid upon such articles in their finished condition, and in addition thereto a drawback or allowance of as many cents per pound upon the pound of cotton cloth, yarn, thread, or knit fabrics, manufactured exclusively from cotton and exported, as shall have been assessed and paid in the form of an internal tax upon the raw cotton entering into the manufacture of said cloth or other article, how to be as the amount of such allowance or drawback to be ascertained in such mancertained. ner as may be prescribed by the commissioner of internal revenue, under the direction of the Secretary of the Treasury; and so much of section Repeal of part one hundred and seventy-one of the act of June thirty, eighteen hundred of 1864, ch. 173, and sixty-four, " To provide internal revenue to support the government, § 171. to pay interest on the public debt, and for other purposes," as now provides for a drawback on manufactured cotton, is hereby repealed. Manufacturers of cotton in dis tion to make monthly statement to assessor under oath. when to be made and what to state. Subsequent statements. Books to be made therein; SEC. 7. That it shall be the duty of every person, firm, or corporation, trict of produc- manufacturing cotton for any purpose whatever, in any district where cotton is produced, to return to the assessor or assistant assessor of the district in which such manufacture is carried on, a true statement in writing, signed by him, and verified by his oath or affirmation, on or before First statement the tenth day of each month; and the first statement so rendered shall be on or before the tenth day of August, eighteen hundred and sixty-six, and shall state the quantity of cotton which such manufacturer had on hand and unmanufactured, or in process of manufacture, on the first day of said month; and each subsequent statement shall show the whole quantity in pounds, gross weight, of cotton purchased or obtained, and the whole quantity consumed by him in any business or process of manufacture during the last preceding calendar month, and the quantity and character of the goods manufactured therefrom; and every such manufacturer or consumer kept and entries shall keep a book, in which he shall enter the quantity, in pounds, of cotton which he has on hand on the first day of August, eighteen hundred and sixty-six, and each quantity or lot purchased or obtained by him thereafter; the time when and the party or parties from whom the same was obtained; the quantity of said cotton, if any, which is the growth of the collection district where the same is manufactured; the quantity, if any, which has not been weighed and marked by any officer herein authorized to weigh and mark the same; the quantity, if any, upon which the tax had not been paid, so far as can be ascertained, before the manufacture thereof; and also the quantities used or disposed of by to be open to him from time to time in any process of manufacture or otherwise, and the inspection of the quantity and character of the product thereof, which book shall, at all revenue officers. times during business hours, be open to the inspection of the assessor, Tax to be paid assistant assessors, collector or deputy collectors of the district, inspectors, monthly. or of revenue agents; and such manufacturer shall pay monthly to the collector, within the time prescribed by law, the tax herein specified, subject to no deductions, on all cotton so consumed by him in any manufacture, and on which no excise tax has previously been paid; and every such manufacturer or person whose duty it is so to do, who shall neglect or refuse to make such returns to the assessor, or to keep such book, or who shall make false or fraudulent returns, or make false entries in such book, or procure the same to be so done, in addition to the payment of the tax to be assessed thereon, shall forfeit to the United States all cotton and all products of cotton in his possession, and shall be liable to a penalty of not Penalty for neglecting to make returns or keep books, or making false returns, &c.; cotton, &c. to be forfeited; fine, or impris onment. False oath, &c. in this matter to be perjury. Tax on manu less than one thousand nor more than five thousand dollars, to be recovered with costs of suit, or to imprisonment not exceeding two years, in the discretion of the court; and any person or persons who shall make any false oath or affirmation in relation to any matter or thing herein required shall be guilty of perjury, and shall be subject to the punishment prescribed by factured goods existing statutes for that offence: Provided, That nothing herein contained shall be construed in any manner to affect the liability of any person for any tax imposed by law on the goods manufactured from such cotton. not affected. tax on cotton, Rules and reg Provisions of law concerning SEC. 8. That the provisions of the act of June thirty, eighteen hundred the collection, and sixty-four, as amended by the act of March third, eighteen hundred &c. of taxes, &c. and sixty-five, relating to the assessment of taxes and enforcing the col- applicable to the lection of the same, and all proceedings and remedies relating thereto, &c. shall apply to the assessment and collection of the tax, fines, and penalties imposed by, and not inconsistent with, the provisions of the preceding sections of this act; and the commissioner of internal revenue, subject to the approval of the Secretary of the Treasury, shall make all necessary rules ulations. and regulations for ascertaining the weight of all cotton to be assessed, and for appropriately marking the same, and generally for carrying into effect the foregoing provisions. And the Secretary of the Treasury is Appointment of inspectors, authorized to appoint all necessary inspectors, weighers, and markers of cot- weighers, and ton, whose compensation shall be determined by the commissioner of inter- markers, &c. nal revenue, and paid in the same manner as inspectors of tobacco are paid. SEC. 9. That the act entitled "An act to provide internal revenue to support the government, to pay interest on the public debt, and for other to act of 1864, purposes," approved June thirty, eighteen hundred and sixty-four, as amended by the act of March third, eighteen hundred and sixty-five, be, and the same is hereby, amended as follows, viz: Amendments ch. 173. Section 5. That section five be amended by adding thereto the following: And any inspector, or revenue agent, or any special agent appointed by the Penalty upon inspectors, &c. Secretary of the Treasury, who shall demand or receive any compensa- for extortion or tion, fee, or reward, other than such as are provided by law for, or in re- oppression. gard to, the performance of his official duties, or shall be guilty of any extortion or wilful oppression in the discharge of such duties, shall, upon conviction thereof in any circuit or district court of the United States having jurisdiction thereof, be subject to a fine of not exceeding one thou- Fine; imprissand dollars, or to imprisonment for not exceeding one year, or both, at the onment; dismisdiscretion of the court, and shall be dismissed from office, and shall be disqualification, forever disqualified from holding any office under the government of the &c. United States. And one half of the fine so imposed shall be for the use of the United States, and the other half for the use of the person, to be to the United ascertained by the judgment of the court, who shall first give the information whereby any such fine may be imposed. sal from office; One half of fine States and one half to informer. Section 8. Assistant as That section eight be amended by striking out of said section all after the words "until an appointment filling the vacancy shall be made." That section fourteen be amended by striking out all after the enacting Section 14. clause, and inserting in lieu thereof the following: That in case any person shall be absent from his or her residence or place of business at the time an assistant assessor shall call for the annual list or return, and no annual list or return has been rendered by such person to the assistant sessors when to notify persons to assessor as required by law, it shall be the duty of such assistant assessor render lists. to leave at such place of residence or business, with some one of suitable age and discretion, if such be present, otherwise to deposit in the nearest post office, a note or memorandum, addressed to such person, requiring him or her to render to such assistant assessor the list or return required by law within ten days from the date of such note or memorandum, verified by oath or affirmation. And if any person, on being notified or required as aforesaid, shall refuse or neglect to render such list or return lists, or render within the time required as aforesaid, or if any person without notice, as false lists, assesaforesaid, shall not deliver a monthly or other list or return at the time sor may summon If persons neglect to render them to appear, produce books, &c. summon wit nesses. If persons do not reside, &c. in State, assessor may enter any district where, &c. and make examination. served. service to be evidence. Description of books. Penalty for neglecting, &c. required by law, or if any person shall deliver or disclose to any assessor or assistant assessor any list, statement, or return which, in the opinion of the assessor, is false or fraudulent, or contains any understatement or undervaluation, it shall be lawful for the assessor to summon such person, his agent, or other person having possession, custody, or care of books of account containing entries relating to the trade or business of such person, or any other person he may deem proper, to appear before such assessor and produce such book, at a time and place therein named, and to give testimony or answer interrogatories under oath or affirmation respecting any objects liable to tax as aforesaid, or the lists, statements, or returns thereof, or any trade, business, or profession liable to any tax as aforesaid. And Assessor may the assessor may summon, as aforesaid, any person residing or found within the State in which his district is situated. And when the person intended to be summoned does not reside and cannot be found within such State, the assessor may enter any collection district where such person may be found, and there make the examination hereinbefore authorized. And to this end he shall there have and may exercise all the power and authority he has or may lawfully exercise in the district for which he is comSummons how missioned. The summons authorized by this section shall in all cases be served by an assistant assessor of the district where the person to whom it is directed may be found, by an attested copy delivered to such person in hand or left at his last and usual place of abode, allowing such person at the rate of one day for each twenty-five miles he may be required to travel, computed from the place of service to the place of examination; Certificate of and the certificate of service signed by such assistant assessor shall be evidence of the facts it states on the hearing of an application for an attachment; and when the summons requires the production of books, it shall be sufficient if such books are described with reasonable certainty. In case any person so summoned shall neglect or refuse to obey such summons, or to give testimony, or to answer interrogatories as required, it shall be lawful for the assessor to apply to the judge of the district court or to a commissioner of the circuit court of the United States for the district within which the person so summoned resides for an attachment against such person as for a contempt. It shall be the duty of such judge or commissioner to hear such application, and, if satisfactory proof be made, to issue an attachment, directed to some proper officer, for the arrest of such person, and upon his being brought before him to proceed to a hearing of the case; and upon such hearing the judge or commissioner shall have power to make such order as he shall deem proper, not inconsistent with the provisions of existing laws for the punishment of contempts, to enforce obedience to the requirements of the summons and punish such person for his default or disobedience. It shall be the duty of the assessor or assistant assessor of the district within which such person shall have taxable property to enter into and upon the premises, if it be necessary, of such person so refusing or neglecting, or rendering a false or fraudulent list or return, and to make, according to the best information which he can obtain, including that derived from the evidence elicited by the examination of the assessor, and on his own view and information, such list or return, according to the form prescribed, of the property, goods, wares, and merchandise, and all articles or objects liable to tax, owned or possessed or under the care or management of such person, and assess the tax thereon, including the amount, if any, due for special or income tax; and in case of the return of a false or fraudulent list or valuation, he shall add one hundred per centum to such tax; and in case of a refusal or neglect, except in cases of sickness or absence, to make a list or return, or to verify the same as aforesaid, he shall add fifty per centum to such tax; and in case of neglect occasioned by sickness or absence as aforesaid, the assessor may allow such Further time. further time for making and delivering such list or return as he may judge Amount added, necessary, not exceeding thirty days; and the amount so added to the tax to obey summons, &c. Attachment for contempt, &c. Assessors to enter premises, take views, and make up lists. 100 per cent to be added to tax for false lists, and 50 per cent for neglect, &c. |