then it will not go abroad, if there is any profit in keeping it here.

[Here the hammer fell.]

Mr. GARFIELD. Mr. Chairman, I desire to say a word on one feature of the amendment presented by the gentleman from Illinois. There are manifestly two evils to be avoided if possible_in_regulating the tax on distilled spirits. The Committee of Ways and Means desire to avoid if possible the evil of having whisky escape the tax fraudulently while in bond, and they have done away with, as I understand, the system of transporting in bond, except in two cases, one when it is entered in a bonded warehouse for exportation, and the other for redistillation or for manufacture into cosmetics, cordials, &c. I understand it is now the purpose of the committee to cut off the second of these, and thus allow transportation in bond for the purpose of exportation alone. Now, the gentleman from Illinois [Mr. LOGAN] proposes an amendment to avoid the danger of transporting in bond, and in his amendment he introduces a system which I regard as far more dangerous than the transportation in bond permitted in the bill. He proposes to apply to exported spirits the drawback system, which never before has been put into a whisky bill.

In order to illustrate the danger attending the drawback system, should it be applied to spirits, I will state a case recently brought to my attention. A ship bound for a foreign port was lying at the wharf not far from a bonded warehouse containing a large quantity of proof-spirits entered in bond for export. Barrels of spirits are taken out and rolled on the deck of the ship. It takes several days to load them. During the night they are dropped off on to a scow, run ashore to be sold as free whisky, and their places supplied by barrels of water. Now, if the drawback system were in operation these same barrels of spirits might be put back into the bonded warehouse, and the next day rolled out again and put on board ship. In that way the same spirits might be used half a dozen times in making up one cargo, and every time the Government would pay the money out of the Treasury as a drawback. Now, it is bad enough that the Government should be defrauded out of the tax itself, but it is far worse for us to pay the money out as a drawback when there never has been any tax paid, and especially to pay it over and over again. One danger is that by fraud we may fail to get money into the Treasury; the other is that we shall take money out of the Treasury to pay rascals for the frauds they commit. I prefer the least of necessary evils. [Here the hammer fell.]

Mr. COVODE. I desire to state a fact to show how shipping in bond gives an opportunity to parties to perpetrate frauds on the Government. My attention was called to a case by a gentleman connected with the customs for many years, Mr. Guthrie, who investigated several cases where shipments were made. In one instance a shipment was made to Melbourne, Australia, of forty thousand gallons of whisky on which the parties had secured a drawback at New York. On sending over and examining it he found it was made up of fourteen per cent. of spirits, and the balance of what is called "truck." When it got to Australia they would not pay the duty on it. Now, we should adopt the policy which is best calculated to stop these frauds, whether by shipping in bond or under the drawback system.

The CHAIRMAN. Debate is exhausted on the amendment, and it is withdrawn.

Mr. BUTLER. I renew the amendment. I want to say a few words here in order to be set right by somebody or to set somebody right, as the case may be. Now, I aver that there has not been anything like a drawback on distilled spirits as such for five years, and therefore all the stories about the immense sums the Government has been swindled out of by drawbacks on whisky are myths.

Mr. SCHENCK. There never has been any drawback on whisky.

Mr. BUTLER. Never has been any drawback at all; so says the gentleman from Ohio. I have, then, got some good by speaking, for I thereby find out, on running back through these tax bills, it turns out that there never was any drawback. So my friend from Pennsylvania [Mr. COVODE] has been misled.

Mr. COVODE. I did not say drawback, but bond.

Mr. INGERSOLL. I did not say any such thing.

Mr. BUTLER. I have not said you did. But gentlemen here have said that millions upon millions are made out of drawbacks. Now, gentlemen, I am going to talk a few minutes, if you will keep quiet.

Now, I that the drawback system may

Well, suppose you make it "alcohol and rum"

in bond, intended for exportation. Suitable buildings shall be selected for such warehouses, which shall not be of less capacity than sufficient to store five thousand barrels of distilled spirits

Or "alcohol and rum"

and shall have no opening into or connecting them with any other building, nor be within six hundred feet of any distillery or rectifying establishment, and shall be known as export bonded warehouses, and used exclusively for the storage of distilled spirits in bond

Now, see what comes next-what is said not to be in the bill

and no distilled spirits shall be withdrawn or removed from such warehouses except on an order or permit from the collector in charge of exports for immediate transfer to the vessel by which they are to be exported to a foreign country, as hereinafter provided.

Mr. JUDD. Will the gentleman allow me

vide for such a system whisky that has not paid the tax may be exported and the drawback received, and you depend only upon the honesty of the consular or other officer abroad to establish what has been exported. Water may be exported, and when it gets abroad and the consular officers certifies that so many barrels of whisky have been received the water receives the drawback from the Government. There is, therefore, a great chance for fraud. It would be for the benefit of our rum distillers at the East to have the drawback system adopted, if it were honestly administered; and vided it was dishonestly administered-yes, a it would be quite as much for our benefit, prolittle more; because we always do a thing, when we intend to do it, with a great deal of simply to save the export trade in some form. energy and success. Now, what I desire is When we come to the fifty-second section, and settle the question as to what shall be exported, of distilled spirits, alcohol and rum, so that I propose to ask the committee to adopt, instead nothing but alcohol and rum can be exported or transported in bond. Whenever any unpaid whisky is found on board the cars for transportation there will be no excuse that it is to be exported. This provision will diminish the chance of whisky being transported as alcohol. Now, rum is pretty much all made on the sea-board, because it is made from molasses, and is the distinctive name of the distillation of saccharine matter coming from the cane, and being made almost entirely on the sea-board there is but very little transportation during which it can be stolen in getting it on board ship; so that you will have another guarantee. And as almost the entire export trade is in alcohol and rum, I think all this difficulty may be relieved by the simple amendment of putting "alcohol and rum" instead of "distilled spirits," and we can meet exactly what my friend from Illinois [Mr. LOGAN] desires-for his desire and mine is the same I am certain in this matterand meet what the committee desire, and save as many chances of fraud as under any other provision.

[Here the hammer fell.]

Mr. SCHENCK. I think, following up the idea of the gentleman from Massachusetts, [Mr. BUTLER,] that this will be better understood if gentlemen, instead of taking declarations broadly made of what the bill proposes to do and what it does do, will just look forward a few lines and see what is in the bill itself. Now, the forty-ninth section which we are now considering I think ought to be stricken out entirely, not because it is not needed, but because it is just a transfer from the general bill we have prepared, and is the same now in the law, and if we take it out of this bill it remains as a general section in the law unrepealed and unaffected by this legislation. But the next section, section fifty, is an answer to a great deal that has been said here. Let me read it, for it is short:

That the Commissioner of Internal Revenue is hereby authorized to establish and designate at any port of entry in the United States bonded warehouses for the storage of distilled spirits

let me interrupt him to set him right; however, I will yield to him.

Mr. JUDD. If the gentleman intends to apply his remark to me, and convey the im. pression that I stated that provision was not in the bill, he misunderstood me. I simply stated that from the place of manufacture, the distillery, every gallon could go to the export bonded warehouse.

Mr. SCHENCK. That is if the distiller is willing either to actually take it abroad or let it be forfeited. I do not suppose any fool is going to take his whisky and throw it away. Then gentlemen say that it can be all taken there and then smuggled out in some way. How? It is to be carried on board the vessel under regulations hereinafter provided. If gentlemen will go forward to sections fifty-one, fifty-two, and fifty-three, they will find what guards and restrictions are thrown around this matter, so that no human ingenuity, it would seem, would be sufficient to get this liquor away in any other manner. And when you come to add to that the stamp system, by which, if a barrel puts its nose outside the warehouse without having the cross and earmarks it is subject to be seized, you have additional guarantees you never had before. The truth is the difficulty heretofore has been, principally, the removal from bonded warehouses for purposes of rectification. This bill closes down upon all that. There is not a scintilla, not a particle of this bill, not a word in the bill which, in the slightest degree, authorizes the removal of a gallon of distilled spirits from a bonded warehouse for purposes of rec tification. If a man wants to follow the busi ness of rectifying he must buy the tax-paid whisky in the market.

Now, submitting the question whether we shall stand by the bill, subject to the sugges tion made by the gentleman from Massachusetts, [Mr. BUTLER,] to remove an apparent difficulty or sweep it out of the way and go into a system of drawbacks hitherto untried in this country so far as whisky is concerned, but tried in regard to other matters so far as to find all manner of frauds in it, I am willing that the vote shall be taken. And as we have discussed this question fully, I propose to stop all debate on this whisky matter down to the special taxes provided for in section sixty-five.

M O'NEILL. Before the gentleman takes his seat I would like to ask him, for the purpose of information, how these sections of the bill reported by the Committee of Ways and Means will affect the act of January, 1868, "to prevent frauds in the collection of the tax on

distilled spirits?"

Mr. SCHENCK. By repealing it so far as it is inconsistent with the provisions of this bill

should it become a law.

Mr. O'NEILL. That act was passed to prevent frauds. This section, I understand, sets forth the manner in which this withdrawal from export warehouses can be made.

Mr. SCHENCK. That act was passed to shut down on frauds which have been com mitted and which will continue to be committed

if you continue the present system. I now ask || ananimous consent to close debate on this section and the succeeding sections down to section sixty-five.

Mr. BARNES. I object.

Mr. SCHENCK. I move, then, that the committee rise for the purpose of terminating debate.

The motion was agreed to.

The committee accordingly rose; and Mr. POMEROY having taken the chair as Speaker pro tempore, Mr. BLAINE reported that the Committee of the Whole on the state of the Union had, parsuant to the order of the House, had under consideration the Union generally, and particularly the special order, being House bill No. 1284, to change and more effectually secure the collection of internal taxes on distilled spirits and tobacco, and to amend the tax on banks, and had come to no resolution thereon.

Mr. SCHENCK. I now move that the rules be suspended, and the House resolve itself into Committee of the Whole on the special order. Pending that motion I move that when the consideration of this bill shall again be resumed in Committee of the Whole all debate shall terminate in ten minutes upon the pending section and all amendments thereto, and upon all the succeeding sections down to and including section sixty-four.

Mr. LOGAN. Oh, no; I hope not.

Mr. HOLMAN. I rise to a point of order. The SPEAKER pro tempore. The gentleman will state his point of order.

Mr. HOLMAN. My point of order is, that it is not competent, under the rules of the House, to direct that all debate shall terminate upon any section but the one now pending.

The SPEAKER pro tempore. The Clerk will read the proviso of the sixtieth rule which relates to that subject.

The Clerk read as follows:

"Provided further, That the House may, by a vote of a majority of the members present, at any time after the five-minutes debate has taken place upon proposed amendments to any section or paragraph of a bill, close all debate upon such section or paragraph, or at their election upon the pending amendments only."

Mr. BLAINE. I ask that the Clerk also read Rule 104.

The Clerk read as follows:

"The House may at any time, by a vote of a majority of the members present, suspend the rules and orders for the purpose of going into the Committee of the Whole House on the state of the Union; and also for providing for the discharge of the Committee of the Whole House, and the Committee of the Whole House on the state of the Union-from the further consideration of any bill referred to it, after acting without debate on all amendments pending and that may be offered."

The SPEAKER pro tempore. There is no doubt that it is in the power of the House to take action as indicated in Rule 104; but the Chair rules that where a bill is under consideration in the Committee of the Whole it must be read by sections, and that as each section is read it is competent for any member to move an amendment thereto, which may be discussed for five minutes in favor of the proposition and five minutes against it, when debate may be closed.

The Chair, therefore, sustains the

point of order.

Mr. SCHENCK. In view of that decision, which overrules the decision previously made to-day, I move that all debate upon the section under consideration, and the amendments thereto, cease in five minutes after the House shall again resolve itself into the Committee of the Whole.

Mr. BARNES. Say twenty minutes. There has been no debate on this side of the House. The motion of Mr. SCHENCK was agreed to; there being ayes sixty-seven, noes not counted.

Mr. SCHENCK. I move that the rules be suspended, and that the House resolve itself into Committee of the Whole on the state of the Union, and resume the consideration of the internal tax bill.

(Mr. BLAINE in the chair,) and resumed the consideration of the special order, being the bill (H. R. No. 1284) to change and more effectually secure the collection of internal taxes on distilled spirits and tobacco, and to amend the tax on banks.

The CHAIRMAN. By order of the House all debate on the pending section and the amendments thereto will terminate in five minutes.

Mr. BARNES. Mr. Chairman, it seems to me that this House by its action this afternoon has adequately provided for the remission of almost all duties upon distilled spirits; and now it is proposed to pay back upon the exportation of the article a specific sum of fifty cents per gallon. I am rather inclined to think that we had better allow the hoofs and horns to go with the hide, and abandon any effort to collect taxes from this article. In a section which was passed this afternoon, it is provided that in case of the disability of an inspector of a bonded warehouse, where lies the germ of the collection of the tax upon this article, the warehouse shall be placed within the control of the collector of the district. I undertake to say that any intelligent gentleman who has considered this matter is fully aware that this provision points directly to such a collusion within that district as will make it impossible to collect under this bill any larger percentage of tax than has been collected under the existing law. As to the percentage of tax that has been collected upon spirits within the last year we are without positive information. The Commissioner of Internal Revenue in his report, at the opening of this session, stated that there had been manufactured in the previous year between forty-two and forty-five million gallons of distilled spirits. The chairman of the Committee of Ways and Means, in introducing this bill, informed the House that at seventy-five cents per gallon the Government would realize between sixty and seventy million dollars, which would indicate a production of about ninety million gallons. Which of these two high authorities is correct I am unable to say. There is a wide discrepancy between the two statements. But we do know that with the tax nominally at two dollars a gallon spirits has been selling on the average at about one dollar and forty cents per gallon, and that the Government has during the past year received less than $20,000,000 from this source, while it has paid over a hundred millions to the rascals who have been accessory to the evasions of the law. The provision in this bill to which I have referred furnishes the loophole through which the law will still be evaded.

Again, sir, the provision with reference to the bonds to be given by inspectors is such as to render it impossible to get an honest inspector of those distilleries. It is provided that the bondsmen shall be responsible for the acts of the second appointed agent. What responsible man in the United States is going to become a bondsman for John Doe, although the latter may be his own brother, if in case of sickness or disability Richard Roe may be appointed to the place, the bondsmen being made responsible for his actions? Such a provision necessarily puts the revenues under the control of irresponsible men. I undertake to say that, however the system may be braced up and guarded in other respects, the Government cannot, if this provision be retained, collect twenty-five per cent. of the taxes to which it is rightfully entitled. But I do undertake to say that when the Government binds itself to pay back a specific sum of fifty cents, and does not put against it the cost of collecting the sum of fifty cents, it is assuming the guardianship of the money of the people which it has no right to ask. The law, as it will appear, is an absurdity. It is defective. If we collect fortynine cents and pay back fifty cents the Government will be the loser to that extent, and will be wronged in that proportion.

[Here the bammer fell.]

The CHAIRMAN. Debate on this section

The question was taken on Mr. INGERSOLL'S amendment; and it was rejected.

Mr. HOOPER, of Massachusetts. I move to insert after the word "appropriated" the words and no drawback shall be allowed when the amount allowed for drawback in any year has exceeded the amount of tax on distilled spirits received during that fiscal year;" so it will read:

The payment of said drawback to be made only when the evidence shall be furnished to the entire satisfaction of the Secretary of the Treasury by such person or persons who shall claim allowance of drawback that such tax has been paid, and the said rum or alcohol so exported, landed and delivered to the consignee or consignees at the foreign port to which it was exported, to be proved by the sworn testimony of responsible persons where exported from and exported to, the same to be paid by the warrant of the Secretary of the Treasury on the Treasurer of the United States out of any money arising from internal tax on distilled spirits not otherwise appropriated; and no drawback shall be allowed when the amount allowed for drawback in any year has exceeded the amount of tax on distilled spirits received during the fiscal year.

The amendment was rejected.

The committee then divided on Mr. LOGAN'S amendment; and there were-ayes 38, noes 52; no quorum voting.

Mr. LOGAN. I do not ask for a further count.

So the amendment was rejected.

Mr. LOGAN. I move to strike out the forty-ninth section.

Mr. SCHENCK. I hope that will be done. The motion was agreed to.

The Clerk read the next section, as follows: SEC. 50. And be it further enacted, That the Com missioner of Internal Revenue is hereby authorized to establish and designate at any port of entry in the United States bonded warehouses for the storage of distilled spirits in bond, intended for exportation. Suitable buildings shall be selected for such warehouses, which shall not be of less capacity than sufficient to store five thousand barrels of distilled spirits, and shall have no opening into or connecting them with any other building, nor be within six hundred feet of any distillery or rectifying establishment, and shall be known as export bonded warehouses, and used exclusively for the storage of distilled spirits in bond; and no distilled spirits shall be withdrawn or removed from such warehouses except on an order or permit from the collector in charge of exports for immediate transfer to the vessel by which they are to be exported to a foreign country, as hereinafter provided.

Mr. PRICE. I move to add the following: Provided, That no distilled spirits shall be removed from the place of distillation until the taxes provided for in this act shall be paid, anything contained in any law to the contrary notwithstanding.

Mr. Chairman, I have been endeavoring for the last three hours to get in that amendment. I was told it was unnecessary, because the fourteenth section provided for it. In reading that section I find it concludes in these words:

And the tax on the spirits stored in such warehouse shall be paid before removal from such warehouse, unless removed in pursuance of law.

My amendment provides it shall be paid before it leaves the warehouse, anything contained in this law or any other to the contrary notwithstanding. In other words, it is not to leave the distillery until it has paid the tax. That is the whole of it.

Mr. SCHENCK. I hope that amendment will not be adopted. If the House intends to sustain the provision to export spirits and to manufacture spirits into uses for exportation this will not do, because those are the only exceptions in this bill. The general provision is already adopted in the very first section that the tax which is to be paid is to be paid at the distillery, and the tax must be paid on everything except that to be exported. But by an amendment of that sort the gentleman would remove all possibility of exporting alcohol or rum, or any other form of spirits, directly, without prepayment of tax at the distillery. We have already voted down that provision when accompanied with drawbacks. Now the gentleman proposes to revive it without even the drawback.

Mr. PRICE. Yes, that is my object, as I stated once before explicitly.

The CHAIRMAN. Debate is exhausted on the amendment.

The question being taken on the amendment

vital proposition.

Mr. SCHENCK. There is no quorum present, and if the gentleman insists upon a division I will move that the committee rise. Mr. PRICE. I insist upon it.

Mr. SCHENCK. I move that the committee rise.

The motion was agreed to.

The committee accordingly rose; and the Speaker having resumed the chair, Mr. BLAINE

reported that the Committee of the Whole on the state of the Union had, pursuant to the order of the House, had under consideration the Union generally, and particularly the special order, being House bill No. 1284, to change and more effectually secure the collection of internal taxes on distilled spirits and tobacco, and to amend the tax on banks, and had come to no resolution thereon.

EXPENDITURES FOR 1866.

The SPEAKER laid before the House a communication from the Secretary of the Treasury, transmitting, in compliance with the standing order of the House of December 30, 1791, and the act of August 26, 1842, the amount of receipts and expenditures of the United States for the fiscal year ending June 30, 1866; which was laid on the table, and ordered to be printed.

INDIAN AFFAIRS IN NEW MEXICO.

The SPEAKER also laid before the House a letter from the Secretary of the Interior, transmitting a communication from S. F. Tappan, relative to Indian affairs in New Mexico, the removal of the Navajoes, Apaches, &c.; which was referred to the Committee on Indian Affairs.

CHARLES C. M'CRARY.

The SPEAKER also laid before the House a letter from the Secretary of War, transmitting a report of the Adjutant General, relative to the claim of Charles C. McCrary; which was referred to the Committee of Claims.

PAY OF ARKANSAS MEMBERS.

The SPEAKER. The Chair desires to state that he has informed the Sergeant-at-Arms that the pay of the members from Arkansas should commence from the date of their election, which was the 13th of March, which elec

tion has been held by the House to be legal, the Representatives being sworn in as having been chosen at that election. The delegates however desire the same rule applied to them as was applied to the members from Tennessee; they ask to be allowed pay for the whole Congress. If there is no objection, the subject will be referred to the Committee on the Judiciary.

No objection being made the matter was so referred.

BITUMINOUS COAL.

Mr. MOORHEAD, by unanimous consent, presented a memorial of owners of bituminous coal mines in the United States, against any reduction of the duty on coal; which was ordered to be printed, and referred to the Committee of Ways and Means.

THE FISHERIES.

Mr. BUTLER, by unanimous consent, introduced a joint resolution (H. R. No. 308) relative to the fisheries; which was read a first and second time, and referred to the Committee on Naval Affairs.

And then, on motion of Mr. SCHENCK, (at ten o'clock and twenty minutes p. m.,) the House adjourned.

PETITIONS, ETC.

The following petitions, &c., were presented under the rule, and referred to the appropriate committees:

By Mr. HOLMAN: The petition of Jacob Rief and 70 others, citizens of Lawrenceburg,

Also, the petition of C. H. W. Werneke and 21 others, citizens of Lawrenceburg, Indiana, against an increase of the tax on cigars.

By Mr. KELLEY: The petition of 158 workers in Fairmount Iron Works, Philadelphia, Pennsylvania, setting forth that, owing to foreign competition, their industry is greatly depressed and many of the trade are out of employment, and praying for additional protective duties.

Also, the petition of 50 workers in the iron and steel works of Morris, Wheeler & Co., Philadelphia, Pennsylvania, setting forth that, owing to foreign competition, their industry is greatly depressed and many of the trade are out of employment, and praying for additional protective duties.

Also, the petition of Alfred Sherratt and 41 others, workingmen of Philadelphia, Pennsylvania, praying for such increase of protective duties as will revive manufactures and restore prosperity to the country.

Also, the petition of 61 workers in the maPennsylvania, praying for additional protective chine works of Thomas Wood, Philadelphia,

duties.

Also, the petition of 105 workers in chemicals in Philadelphia, Pennsylvania, setting forth that, owing to foreign competition, their industry is greatly depressed, and many of the trade are out of employment, and praying for additional protective duties.

Also, the petition of 25 workers in Wetherill white lead works, West Philadelphia, Pennsylvania, setting forth that, owing to foreign competition, their industry is greatly depressed, and many of the trade are out of employment, and praying for additional protective duties. Also, the petition of 74 workers in Flat Rock paper-mills, Manayunk, Pennsylvania, setting forth that, owing to foreign competition, their industry is greatly depressed, and many of the trade are out of employment, and praying for additional protective duties.

Also, the petition of 40 workingmen in Carr's steel frame manufactory in the city of Philadelphia, Pennsylvania, praying for such increase of protective duties as will relieve their distress, secure a home market for the products of their industry, and aid them in their unequal contest with the underpaid labor of Europe.

Also, the petition of Thomas Shaw and 61 others, workers in iron and steel, Philadelphia, Pennsylvania, setting forth that, owing to for

eign competition, their industry is greatly depressed, and many of the trade are out of employment, and praying for additional protective duties.

Also, the petition of John Robinson and 46 | others, workers in the manufacture of cotton and woolen goods at Manayunk, Pennsylvania, setting forth that, owing to foreign competition, their industry is greatly depressed, and many of the trade are out of employment, and praying for additional protective duties.

Also, the petition of 51 operatives in papermills at Manayunk, Pennsylvania, setting forth that, owing to foreign competition, their industry is greatly depressed, and many of the trade are out of employment, and praying for additional protective duties.

Also, the petition of E. H. Radcliffe and 41 others, workingmen in Philadelphia, Pennsylvania, praying for additional protective duties.

Also, the petitions of 547 workers in manufactures of iron and steel in Philadelphia, Pennsylvania, complaining of the depression of industry, and praying for such additional protective duties as will relieve their distress and aid them in their unequal contest with the underpaid labor of Europe.

By Mr. McCLURG: A memorial and claim of Captain G. W. Short.

By Mr. MYERS: The petition of S. A. Clark and others, carpet-weavers of Philadelphia, Pennsylvania, complaining of the depression of industry, and praying for such increase of protective duties as will revive manufactures and restore prosperity to the country.

Also, the petition of Annabell Evans, widow of Morris Evans, late an employé in the quar termaster's department, who, while acting as a mounted guard at Fairfax station, Virginia, was captured by the rebels, and died a prisoner at Andersonville, Georgia, of inhuman treat

ment.

IN SENATE. THURSDAY, June 25, 1868. Prayer by Rev. E. H. GRAY, D. D. On motion of Mr. EDMUNDS, and by unani yesterday was dispensed with. mous consent, the reading of the Journal of

EXECUTIVE COMMUNICATION.

The PRESIDENT pro tempore laid before the Senate a letter of the Secretary of the Interior, transmitting a communication from Samuel F. Tappan, one of the Indian peace commissioners, in relation to Indian affairs in the Territory of New Mexico, the removal of the Navajoes, Apaches, Utes, &c.; which was referred to the Committee on Indian Affairs.

PETITIONS AND MEMORIALS.

A. Stocks for an increase of pension; which
Mr. YATES presented the petition of Nancy

was referred to the Committee on Pensions.

Mr. WILLIAMS presented a memorial of Lloyd Brooks, John F. Noble, and James V. Bumford, administrators of the estate of George C. Bumford, praying compensation for property lost in the fall of 1855 by reason of the war between the United States and the Indians in which was referred to the Committee on Claims. Walla Walla valley, Territory of Washington;

Mr. DAVIS presented additional papers in relation to the claim of Joseph Wilson, for compensation for horses and mules captured by the rebels in consequence, as is alleged, of the refusal of the pickets to allow him to within our lines on the outposts of Washpass ington, in July, 1864; which were referred to the Committee on Claims.

Mr. THAYER presented a petition of citi zens of Philadelphia, Pennsylvania, praying that pensions be granted to the soldiers and sailors and the widows of soldiers and sailors of the war of 1812; which was referred to the Committee on Pensions.

REPORTS OF COMMITTEES.

Mr. HOWE, from the Committee on Claims, to whom was referred the bill (H. R. No. 438) for the relief of Palemon John, reported it without amendment.

He, also from the same committee, to whom was referred the petition of John O'Dwyer, late captain Veteran Reserve corps, praying to be allowed three months' pay proper, asked to be discharged from its further consideration; which was agreed to.

Mr. WILLEY, from the Committee on Claims, to whom was referred the bill (H. R. No. 445) for the relief of Timothy Lyden, of Parkersburg, West Virginia, reported it with

out amendment.

He also, from the same committee, to whom was referred the petition of E. Lockwood, agent for Charles Rosefield, praying that the claim of Charles Rosefield be referred to the Com mittee on Claims, submitted an adverse report thereon; which was ordered to be printed.

He also, from the same committee, to whom was referred the petition of Jeremiah Getty, of Sears county, Minnesota, asking to be paid for certain property destroyed by United States troops in that State in the winter of 1864-65, submitted an adverse report; which was ordered to be printed.

He also, from the same committee, to whom were referred the petition of Benjamin W. Curtis, praying compensation for property taken and used by the United States Army; the peti tion of Mary Riggles praying compensation for pecuniary loss sustained by her in the death of her son, who was killed by the horses of a Government wagon on the 18th of January, 1863, asked to be discharged from their further consideration; which was agreed to.

Mr. WILLEY. I am also instructed by the

same committee to report back the petition of late officers in the volunteer service praying that all officers of volunteers below the rank of brigadier general who were in service on the 3d day of March, 1865, and who were hon. orably discharged after April 9, 1865, may be allowed the three months' pay proper. I desire to attract the attention of the chairman of the Committee on Military Affairs to this petition. It seems that it was referred to that committee and reported by them back to the Senate, and that committee was discharged from its consideration and it was sent to the Committee on Claims. Evidently it is not a subject proper for the consideration of the Committee on Claims. It proposes to incorporate a new principle into a general law. There is no special claim on the face of it; it is a question of principle whether the law should be amended in a certain particular so as to reach a class of officers everywhere, without specifying any one in particular. I therefore ask leave, being so instructed by the Committee on Claims, to report it back to the Senate, and move that it be referred again to the Committee on Military Affairs and the Militia.

The motion was agreed to.

Mr. MORRILL, of Maine, from the Committee on Appropriations, to whom was referred the bill (H. R. No. 818) making appropriations for sundry civil expenses of the Government for the year ending June 30, 1869, and for other purposes, reported it with amendments.

Mr. FRELINGHUYSEN, from the Committee on Claims, to whom was referred the bill (H. R. No. 1129) for the relief of the widow and children of Colonel James A. Mulligan, deceased, reported it without amendment, and submitted a report; which was ordered to be printed.

WAGON-ROADS IN DAKOTA TERRITORY.

Mr. FERRY. The Committee on Territories, to whom was recommitted the bill (H. R. No. 650) to amend the act of 3d March, 1865, providing for the construction of certain wagonroads in Dakota Territory, have instructed me to report it back without amendment, with a recommendation that it pass. I desire to place the bill on its passage now. I think it will create no discussion when I make a brief statement in regard to it.

Mr. EDMUNDS. What is it?

Mr. FERRY. The same bill that was before us some time ago.

The PRESIDENT pro tempore. The Senator from Connecticut asks the unanimous consent of the Senate to consider the bill just reported by him.

Mr. EDMUNDS. Let it be read for information.

The Chief Clerk read the bill, as follows: Be it enacted, &c., That the unexpended balance of an appropriation made March 3, 1865, for the construction of certain wagon-roads in the Territory of Dakota, or so much thereof as may be necessary, be, and the same is hereby, applied to the completion of the bridge over the Dakota river, on the line of the Government road leading from Sioux City, in the State of Iowa, to the mouth of the Cheyenne river, in Dakota Territory.

The PRESIDENT pro tempore. Is there any objection to the present consideration of the bill?

Mr. EDMUNDS. I think it had better lie over. That bill has been passed once with an amendment.

Mr. FERRY. If the Senator will listen to me for one moment, I think he will withdraw his objection.

Mr. RAMSEY. The bill was passed, and sent to the House, and was then brought back here again on the motion of the Senator from Connecticut.

Mr. FERRY. The bill was reported some time ago, and an amendment was made to it, on the motion of the Senator from Vermont, based upon a communication from the Secretary of the Interior, stating the expense of the projected bridge. Upon the bill going to the House it was ascertained that the Secretary of the Interior had made a mistake as to the bridge which was contemplated in this bill.

Mr. EDMUNDS. Let the bill lie over until to-morrow, and I will look into it, and then I shall have no objection to it, probably.

The PRESIDENT pro tempore. The bill will go over, objection being made to its consideration.

LOSSES OF SUPPLIES.

Mr. THAYER submitted the following resolution; which was considered by unanimous consent, and agreed to:

Resolved, That the Secretary of War be directed to inform the Senate what amount of Government supplies, in quantity and value, in the quartermaster and commissary departments, have been lost in transit by the sinking of, or by other injury to steamboats on the Missouri river, below Omaha, Nebraska, during the years 1866, 1867, and 1868.

REMOVAL OF CAUSES FROM STATE COURTS. Mr. EDMUNDS. I move that the Senate proceed to the consideration of the bill (S. No. 402) providing for the removal of certain

causes from the State courts to the United States courts, and for other purposes-a bill of a good deal of consequence practically that I hope may be taken up and passed.

The motion was agreed to; and the Senate, as in Committee of the Whole, proceeded to consider the bill.

The PRESIDENT pro tempore. The Comwith an amendment in the nature of a substi mittee on the Judiciary have reported the bill tute, and the substitute only will be read unless the reading of the original bill is called for by some Senator.

The Chief Clerk read the amendment of the

committee, which was to strike out all of the bill after the enacting clause and to insert in lieu thereof the following:

That whenever any civil or criminal suit (whether commenced before or after the passage of this act) may be pending in any court of any State against any person, in which suit such person shall intend to make any defense based upon the authority of any law of the United States, or upon the authority of any department of the Government thereof, or upon the authority of any officer acting under any such law or department, or upon any right exercised under, or title held in behalf of the United States, such person may, at any time before the final trial in such suit, in person or by his attorney, file a petition in such suit, stating the fact of such intention to make defense as aforesaid, and the general tenor thereof, verified by affidavit, and praying for the removal of such suit for trial into the circuit court of the United States for the district in which such suit may be pending; and thereupon, upon the offering by or in behalf of such person of sufficient surety for his filing in such circuit court at its then existing term, or on the first day of its next term, copies of the process and pleadings in such suit, and also for his appearing in such court and entering special bail in such suit, if special bail was originally given therein, it shall be the duty of such State court to accept the surety and proceed no further with such suit, and the bail that shall have been originally taken shall be discharged. And such copies being filed, as aforesaid, in such circuit court, the suit shall proceed therein in all things as provided in and subject to all the provisions of section five of the act of Congress approved March 3, A. D. 1863, entitled "An act relating to habeas corpus, and regulating judicial proceedings in certain cases." And if any such State court shall neglect or refuse to carry out the provisions of this act, every such suit may be removed to such circuit court by writ of certiorari issuing out of such circuit court, in the manner provided by the third section of the act of Congress approved March 2, A. D. 1833, entitled An act further to provide for the collection of duties on imports."

SEC. 2. And be it further enacted, That the provisions of said fifth section of said first-mentioned act, relating to appeals and writs of error from such State court, shall apply and extend to all cases tried in such State court in which a defense shall have been set up or relied upon based upon any of the matters mentioned in the preceding section of this act. And any suit described in the preceding section of this act, and in which final judgment shall be rendered in the circuit court of the United States, may be carried by writ of error to the Supreme Court without regard to the amount in controversy.

SEC. 3. And be it further enacted, That if any officer under the United States shall be unlawfully impeded or hindered in the performance of his official duty, or shall be unlawfully assaulted or beaten, or shall have his property unlawfully taken, injured, or destroyed while engaged in the performance of his official duty, he shall be entitled to sue therefor in the circuit court of the United States in the district in which such cause of action shall have arisen, or in which the defendant in such action shall reside or may be found: Provided, That the damages claimed therefor in good faith shall be $500 or upward.

SRC. 4. And be it further enacted, That if any person shall willfully and unlawfully impede,hinder, assault, or beat any officer under the United States, or shall willfully and unlawfully injure or destroy the property of any such officer, every such person so offend

ing shall, on conviction thereof, be punished by a fine not exceeding $5,000, and by imprisonment not exceeding five years; and if the death of any such officer shall happen from any such assault or battery the person guilty of such assault or battery shall be deemed and held guilty of murder, and shall, on conviction thereof, suffer death.

Mr. DAVIS. The bill and the amendment are important, and I move that the bill lie on the table for the present, so that members of the Senate may have an opportunity of making a careful examination of the amendment, and may know exactly what it is.

Mr. EDMUNDS. I appeal to my friend from Kentucky not to make that motion. I will assure him that there is practically nothing new in this bill, which merely consolidates the prior acts, except this: that it enables the United States officers to remove internal revenue cases, and marshals to remove cases in which they are sued, in regard to which the present laws are defective. That practically covers all the change in the law that is really made, although on the face of it this bill applies to all officers of the United States, for the purpose of consolidating into one the statutes in relation to removals. With this explanation I hope my friend will permit the bill to be considered now.

Mr. DAVIS. I ask the honorable Senator from Vermont to consent that the bill shall go over until to-morrow that we may have an opportunity of looking into it.

The PRESIDENT pro tempore. The pending motion is to lay the bill on the table, and it is not debatable.

Mr. DAVIS. No; I do not move to lay it on the table; I simply move to postpone it.

Mr. MORRILL, of Maine. If the Senator will withdraw that motion I will make a motion that perhaps the Senate will agree to, and that is to postpone all prior orders and proceed to the consideration of the unfinished business of yesterday, being House bill No. 605.

The PRESIDENT pro tempore. The question is on the motion of the Senator from Maine.

The motion was agreed to.

LEGISLATIVE, ETC., APPROPRIATION BILL. The Senate, as in Committee of the Whole, resumed the consideration of the bill (H. R. No. 605) making appropriations for the legis lative, executive, and judicial expenses of the Government for the year ending the 30th of June, 1869, the pending question being on the amendment of Mr. SHERMAN, from the Com. mittee on Finance, to insert after line five hundred and fifty-seven the following clause:

For temporary clerks in the Treasury Department, $150,000: Provided, That the Secretary of the Treasury be, and he is hereby, authorized, in his discretion, to classify the clerks according to the character of their services.

Mr. SHERMAN. I do not know that the Senate desire any further information; but I have taken pains to ascertain where these temporary clerks are assigned; and I have the written statement of the different officers among whose bureaus they are assigned that they are necessary to the public service. The general debate that occurred yesterday might, perhaps, mislead Senators, and cause them to suppose that these officers are not necessary. They are necessary. There are sixty-three of these temporary clerks in the Second Auditor's office.

presume they are all engaged on the bounty business. There are twenty-three employed in the Second Comptroller's office; four in the First Comptroller's office; fifteen in the Third Auditor's office; thirteen in the Fifth Auditor's office; twenty-five in the Sixth Auditor's office; five in the Solicitor's office; and forty-six in the Secretary's office. The total appropriation now provided for temporary clerks is $100,000 more than we have allowed. We have only allowed $150,000 instead of $250,000, the amount of the two items on the subject in the bill of last year. I am satisfied now, after examination, that to discharge any of these clerks at present would be a serious embarrassment to the public business. I do not wish to enlarge on this matter, because I

feel not the slightest interest in it. If the Senate thinks the Treasury Department can get along without these. officers they will vote down the amendment, but they will do it in the face of the statement of the heads of bureaus that they are necessary.

Mr. HOWE. I presume the Senate has no disposition to vote down any appropriation that is necessary to the conduct of that Department or in any other Department of the Government; but it has seemed to me very strange that we could not be made to understand more clearly than I have been able to understand how it is that this additional force is still necessary. Outside of the Second and Third Auditor's offices, I cannot conceive why there should be the slightest pretext for anything like a temporary force. I can understand that there may be accumulations of business in the Second and Third Auditor's offices growing out of the war, left over from the war, which it may be advisable to dispose of by the employment of temporary help, rather than by increasing the number of regular clerks; but it will be remembered that the business in those two bureaus must have reached its maximum several years ago; that is to say, the number of accounts and claims on file awaiting examination, I think, cannot be greater this year than it was two years ago or three years ago. The Senator from Ohio shakes his head. If he has any information to the con trary I should be glad to hear it.

Mr. SHERMAN. I will state to the Senator that the information I get is that the great mass of the quartermasters' and paymasters' accounts and others growing out of the war have been settled in the first instance in the War Department in the offices of the Quartermaster General and Paymaster General, but they are still pending before the accounting officers of the Treasury. Scarcely any of the great accounts in that branch of the service have yet been settled. A large number of quartermasters' and paymasters' accounts are sus. pended; the items are being reexamined and ascertained.

Mr. HOWE. My statement is this-and I wish the Senator to speak to that-that the number of accounts and claims awaiting settlement in the Second and Third Auditor's offices must have been as great three years ago as it is to-day.

Mr. SHERMAN. I will state that last year the number of clerks provided for in the appropriation bill was larger than we provide for now. Even this temporary force is decreased to the extent of $60,000.

Mr. HOWE. I understand all that, but the regular force in the Second and Third Auditor's offices, I think the Senator must agree, is more than sufficient to attend to the current business, to dispose of the claims and accounts that arise from the annual transactions of the officers who account to those bureaus. I assume that it must be more than adequate for that purpose, because it was adjusted upon the necessities of the war season when we had an Army and a Navy upon a war footing. Then we attempted to fit up the force in these two bureaus to meet that exigency. That exigency has already passed, and yet the force of these two bureaus is undiminished. My understanding has been that although they have not cleared off these accumulations in their offices yet they are every month reducing them. But outside of those two bureaus I wish the Senator from Ohio, or any one else who understands the subject, would explain to us what extra occasion there is or can be in any other of these bureaus for help. There is the regular business. Whatever they have to do this year they must have to do next year, as it seems to me. There are no accumulations of business left over from the war. They are attending to the annual and regular transactions belonging to their respective bureaus. So it seems to me; and the help necessary to dispose of that business should be provided for by law; and it seems to me they should be regular clerks.

Mr. SHERMAN. Will the Senator allow

me to read a letter from the Second Auditor on this subject?

Mr. HOWE. Certainly.

Mr. SHERMAN. Sixty-two of these clerks are employed in the Second Auditor's office. The Senate will remember that last year we appropriated $210,000 for this item, and at this session we appropriated for forty more clerks, which made the aggregate there, as the Senator from Maine [Mr. MORRILL] has it, $256,000 appropriated for the present year, the year that is now running on. Now, here is what the Second Auditor says in regard to the business in his office; the great bulk of it is there :

SECOND AUDITOR'S OFFICE, TREASURY DEPARTMENT, February 27, 1868. To the Secretary of the Treasury:

SIR: In reply to your communication of the 25th instant, calling my attention to the legislative, exceutive, and judicial appropriation bill making appropriations for the fiscal year ending 30th June, 1869, and suggesting

The Senate will see that we endeavored to reduce in all these bureaus

"first, that if it be possible to make any reduction in the estimates of this bureau prepared last summer, such reduction be made: and secondly, that if, on the contrary, this office is not adequately provided for by said bill, and my increased appropriation is necessary beyond the estimates of last summer, that the items and the reasons for the same may be given," I have the honor to state:

First, That it is not possible to make any reduction of the estimates already presented consistently with the proper transaction of the business of the office.

Second, That on the contrary the office is not adequately provided for by the bill now before the Senate Committee on Appropriations, for the reason that the increase of the business of the office has been such as to necessitate an increase of force very considerably beyond that which was contemplated at the time the estimates were made. Already thirty-three clerks have been added to the number for which provision is made by law and for which the estimate was made. To accommodate this increased force several additional rooms in Winder's building and a separate house on Eighteenth street have been obtained and occupied, involving arrangements for the interior management of the office which have rendered a partial reorganization of the same indispensable to the prompt and successful conduct of business. An additional estimate is therefore appended embracing the force now actually employed, with fresh changes in the grades of the clerkships, as are necessary to equalize the salaries of the various heads of dvisions. Very respectfully, E. B. FRENCH,

Auditor.

In conformity to this letter, and partly upon this letter, we proposed to legalize the appointment of forty clerks.

Mr. HOWE. In the pending bill?

Mr. SHERMAN. In an independent bill for this current year. Now we are appropri ating for the next year, and we have taken off the appropriations for the current year $100,000 in the face of the statements made by these officers that the present force is not too great. If the Senate think that we should go further, and take away all these temporary clerks, they

can do so.

Mr. HOWE. The Second Auditor in that communication, as I understand it, is explaining the necessity, not for an additional force, but for continuing the force allowed him already. Mr. SHERMAN. We now reduce it. Mr. HOWE. By this bill?

Mr. SHERMAN. Yes, sir; by this bill, and by this very amendment that is pending. Last year we appropriated on this letter for the current year ending the 1st of July next, $256,000the precise amount can be given by my friend from Maine, [Mr. MORRILL]-first $210,000, and then afterward an appropriation for extra clerks.

Mr. HOWE. Appropriated it for help in that bureau ?

Mr. SHERMAN. No; for this general item; and now the appropriations this year for the Second Auditor's office are less in this bill than they were last year.

Mr. HOWE. I understand the statement read here this morning to say that some sixty of these temporary clerks are employed in the bureau of the Second Auditor. I wish to call the attention of the Senate to what the Official

Register says about this. The Official Register does not say that a single temporary clerk is employed there. The last Official Register gives

the force in the Second Auditor's office as I will give it to you now.

Mr. SHERMAN. I do not know whether the temporary elerks are entered on the Register. Mr. HOWE. It contains all the help there. is employed in the Department.

Mr. SHERMAN. I do not think they are entered.

Mr. FESSENDEN. I do not think the Senator will find the temporary clerks there.

Mr. HOWE. You will find clerks put down both as "temporary" and as "additional.” Quite a number are put down as "additional" in the Secretary's office, and clerks are put down as "temporary" in other bureaus. But the Official Register gives the force in the office of the Second Auditor like this: six fourth-class clerks, and you have six fourth-class clerks in the bill; fifty-five third-class clerks, and you have fifty-four third-class clerks in the bill; one hundred and nine second-class clerks, and you have one hundred and eight second-class clerks in the bill; two hundred and nine firstclass clerks, and you have two hundred and twelve first-class clerks in the bill. That is the force in the Second Auditor's office, as stated in the Official Register. There are, in addition to that, messengers and laborers.

But I agree that there may be a propriety for extra help in two bureaus, the Second and Third Auditor's. I believe there are no temporary clerks stated to be employed in the Third Auditor's office in the Register.

Mr. SHERMAN. I read the official statement that I just received this morning, showing the number precisely in each of these offices. The Senator was not present, perhaps, but I read an official statement showing the number of clerks employed and paid out of this fund.

Mr. HOWE. I am calling the Senator's attention to the discrepancy between the official statement read this morning and the official statement contained in the Official Register. Mr. SHERMAN. In the Blue Book? Mr. HOWE. Yes, sir.

Mr. SHERMAN. I do not know whether the Blue Book contains the temporary clerks. Mr. EDMUNDS. The Blue Book never contains the temporary clerks. It only contains the four classes provided for by law.

Mr. HOWE. The Senator says that with the book in his hand, and he must be right. Mr. EDMUNDS. Here it is; you can look at it.

Mr. HOWE. I am much obliged to the Senator for letting me look it up. I say there are none in the Second Auditor's office, and none in the Third Auditor's office.

Mr. EDMUNDS. In the Blue Book.

Mr. HOWE. You say there are none any. where. I say there are none in the Blue Book in these offices. That is what I am insisting upon.

Mr. EDMUNDS. And that is what I am insisting upon.

Mr. HOWE. But I understand the Senator from Vermont to insist that in the Blue Book there are none anywhere in the Treasury Department.

Mr. EDMUNDS. I am only speaking of the point under consideration.

Mr. HOWE. Then we shall not have any dispute about that, for that is the point I make, and I make it against the statement of the Senator from Ohio, who gives us an official statement fresh from the Mint. I cannot reconcile the discrepancy. I do not know which is authentic, which is issued by "old Dr. Jacob Townsend," and which is not. [Laughter.] There are the two statements. I do not know that the fact recited here yesterday by the Senator from New Hampshire [Mr. PATTERSON] tends to explain this discrepancy. Here you have a statement that sixty odd of these temporary clerks are employed in the Second Auditor's office, and there you have a statement that not one is employed in the Second Auditor's office.

Mr. EDMUNDS. I ment.

Oh, no; not that state