upon it, and I regarded that as good authority. I still believe, notwithstanding that letter and the precise and specific statements it contains, that it is not a true reflex of the condition of things in his court, and I feel sufficient interest to follow it up and ascertain exactly the condition of business at the time stated in the letter that has been read here.

The southern part of the State of California is crying out by constant petitions sent to us here for the creation of a new judicial district that they may have a term of court at Los Angeles. Many cases there arise under the internal revenue laws, and the people are compelled to go more than five hundred miles to attend to the most trivial cases. Suits are brought against them, instituted very often for malicious purposes, and they must travel that extreme distance or submit to be beaten in the case. I am surprised, to say the least, at the statements contained in the letter of Judge | Hoffman.

Mr. HENDRICKS. Will the Senator allow me to ask him a question?

Mr. CONNESS. Certainly.

Mr. HENDRICKS. There was an impression in the Committee on the Judiciary that there was but very little business from the region of Los Angeles and of southern California that came into the United States court; that the business which occupied the attention of that court was mainly from the neighborhood of San Francisco, where the commerce of the State concentrates. Is the Senator prepared to change our information on that subject?

inasmuch as I understand his business pursuits have not led him into contact with the courts of California, I must be permitted to say that I think the insinuations which he has made against Judge Hoffman and his veracity are the more extraordinary. Having introduced this letter and read it, I feel bound to say this much that those who know, as I know, Judge Hoffman, and who knew his father and his mother before him, will understand, without remark from me, that he needs no vindication in respect of bis veracity, his manhood, or his character, from any member of this body. I shall be greatly amazed, no matter under what impulse he saw fit to drop a letter to me, his acquaintance and his friend, if in that letter he has made a statement of facts under his personal view, which statement is even inaccurate, much less open to the sort of criticism which has been bestowed upon it. I have no doubt of its correctness, and I feel that he needs no vindication or support from me; and there I leave it.

Mr. CONNESS. I do not know, Mr. President, just exactly the words that the reporter has got down as coming from myself when last up, but I do know that there was nothing which should justify this very nearly malicious imputation made by the honorable Senator from New York in that connection. I made no insinuations, Mr. President, but stated plainly and boldly that from the information that I had had, stating the source of that information, and the further effort I made to obtain information, it was exceedingly strange, as I now repeat, if the statements contained in that letter were exactly correct. I went further then, and said that in the face of these precise statements I could say nothing more, but would further investigate as I wished to do as to the facts of the case.

Mr. CONNESS. I will answer the question by stating that undoubtedly the great mass of the United States district and circuit court business occurs at and near San Francisco, which is the center of population of the State. All the admiralty business originates there, and that is a very heavy business. A very large portion of the land business of the State originates at or about San Francisco. The cases under the Mexican land-grant system are in the main disposed of; it would be perhaps safe to say that there are not more than twenty pending in the State; but there are constant causes arising in the district court involving contests for property in and about San Francisco, where many small grants were made. Those cases are constantly arising and are pending. In the main, the statement the Senator from Indiana makes is correct; but under the internal revenue laws there are many suits, and that is a great pressure and a great hard-perhaps they would have strengthened his case; ship upon the interests of the people in the southern part of the State.

But, Mr. President, the statements I now make are so thoroughly met by the precise statements of that letter that I cannot press them any further until further investigation, and I promise to make that. But in regard to the statement made by the Senator from Oregon, it is clearly a correct one. If it be necessary for Judge Deady, as Judge Hoffman states, to come down to San Francisco to hold the circuit court there, there ought to be liberal and fair provision made for his payment. Prior to Judge Deady's coming the district judge from the State of Nevada was invited there to hold the circuit court by Judge Field; but Judge Deady has been chosen by Judge Field in preference to the Nevada judge, as I understand, because there were many mining suits pending in which the judge of the Nevada district had more or less interest, and Judge Deady, separated from all interest connected with those cases was preferred by the bar, and he was invited to come. That was one of the main reasons of his selection, and if it be necessary for him to come there, certainly provision ought to be made for his payment. Mr. CONKLING. I should have listened with some surprise to the line of remark, consisting of a thinly-covered imputation upon Judge Hoffman from the Senator from California had he been a member of the bar and able to speak with so much personal knowledge as his membership would have given him; but

Now, Mr. President, the honorable Senator from New York may boast here his acquaintance with Judge Hoffman; he may also boast his connection with what is regarded as a learned profession. I will say nothing of either, not feeling that either could depress or elevate me in the estimation of anybody; nor will I undertake to make any remark as to the peculiar knowledge that the Senator has attained touching the present life and character of the eminent judge of whom he has spoken, by reason of his knowledge of his father and mother. If his investigations had been carried further and gone to the preceding generation

but not in my opinion.

With these remarks I leave the subject, as well as the judge of the Senator from New York.

The PRESIDENT pro tempore. The morning hour having expired the unfinished business of yesterday is regularly before the Senate.

Mr. CORBETT. I trust we may have a vote on this question.

Mr. TRUMBULL. I presume the Senator from Ohio will allow the vote to be taken on

this bill. I imagine no one will say anything

more about it.

Mr. SHERMAN. If the vote can be taken without debate I shall not object. Mr. ANTHONY. Is the amendment withdrawn?

Mr. WILLIAMS.

No, sir.

Mr. ANTHONY. I wish to amend that

amendment.

Mr. TRUMBULL. If it is to be discussed, let the bill go over.

Mr. ANTHONY. I only wish to make it general. I do not know why the judge of Oregon should have this additional compensation if the other judges are not to be included. I am in favor of the proposition, but I think the other judges should have the same.

Mr. SHERMAN. If we are to go into an increase of the salaries of all the judges I call for the regular order of business.

Mr. ANTHONY. Senators say that this amendment will be voted down. If that be so I will withdraw my amendment. I do not

want to impede the bill; but if this amendment prevails, I shall then move to add the other judges also.

Mr. TRUMBULL. I hope we shall now have a vote. The Senator from Rhode Island withdraws his motion.

The PRESIDENT pro tempore. The question is on the amendment of the Senator from Oregon [Mr. WILLIAMS] to the amendment of the Committee on the Judiciary.

The amendment to the amendment was rejected--ayes seven, noes not counted.

The PRESIDENT pro tempore. The question now is on the amendment of the committee striking out the original bill and inserting a substitute.

The amendment was agreed to.

The bill was reported to the Senate as amended, and the amendment was concurred in.

The bill was ordered to be engrossed for a third reading, was read the third time, and passed.

MESSAGE FROM THE HOUSE.

A message from the House of Representatives, by Mr. MCPHERSON, its Clerk, announced that the House had passed the bill (S. No. 352) to authorize the temporary supplying of vacancies in the Executive Departments, with an amendment, in which it requested the concurrence of the Senate.

The message further announced that the House had passed the following bills, in which it requested the concurrence of the Senate:

A bill (H. R. No. 284) for the relief of N. A. Shuttleworth, of Harrison county, West Virginia;

A bill (H. R. No. 255) for the relief of the heirs of James S. Porter, late of Hancock county, West Virginia;

A bill (H. R. No. 1365) for the relief of Captain Thomas W. Miller; and

A bill (H. R. No. 1367) for the relief of George Kaiser.

ENROLLED BILLS SIGNED.

The message also announced that the Speaker of the House had signed the following enrolled bills and joint resolutions; and they were thereupon signed by the President pro tempore of the Senate:

A bill (S. No. 436) for the relief of James Hooper;

A bill (H. R. No. 445) for the relief of Timothy Lyden, of Parkersburg, West Virginia; A bill (H. R. No. 453) increasing the pension of Nancy Weeks, widow of Francis Weeks, an ensign in the revolutionary war;

A bill (H. R. No. 1069) for the relief of Charles B. Tanner, late first lieutenant sixtyninth Pennsylvania volunteers;

A bill (H. R. No. 1325) for the relief of Benjamin B. French, late Commissioner of Public Buildings;

A bill (H. R. No. 366) to incorporate the National Hotel Company of Washington city;

A bill (H. R. No. 869) prescribing an oath of office to be taken by persons from whom legal disabilities shall have been removed;

A joint resolution (H. R. No. 154) in relation to the settlement of the accounts of certain officers and agents who have disbursed public money under the direction of the chief of engineers; and

A joint resolution (H. R. No. 324) to extend the time for the completion of the West Wisconsin railroad.

PRESIDENTIAL APPROVAL OF BILLS.

A message from the President of the United States, by Mr. W. G. MOORE, his Secretary, announced that the President had approved and signed, on the 3d instant, the following acts and joint resolutions:

An act (S. No. 251) for the relief of Captain Charles N. Goulding, late quartermaster of volunteers;

An act (S. No. 367) for the relief of Albert Grant;

An act (S. No. 452) for the relief of Parker Quince ;

An act (S. No. 474) for the relief of Captain Dan. Ellis;

An act (S. No. 522) to authorize the proper accounting officers of the Treasury to settle the accounts of Andrew S. Care;

A joint resolution (S. R. No. 129) donating certain captured ordnance for the completion of a monument to the memory of the late Major General John Sedgwick; and

A joint resolution (S. R. No. 143) for the relief of George W. Doty, a commander in the United States Navy on the retired list.

And that on the 4th instant he approved and signed the following acts:

An act (S. No. 166) for the relief of the owners of the land within the United States survey No. 3217, in the State of Missouri ;

An act (S. No. 347) to confirm the title of Ethan Ray Clarke and Samuel Ward Clarke to certain lands in the State of Florida, claimed under a grant from the Spanish Government;

An act (S. No. 469) confirming the title to a tract of land in Burlington, Iowa.

And also that on the 7th instant he approved and signed the act (S. No. 505) to amend section five of an act entitled "An act concerning the registering and recording of ships or vessels," approved December 31, 1792.

HOUSE BILLS REFERRED.

The following bills received from the House of Representatives were severally read twice by their titles, and referred to the Committee on Military Affairs and the Militia:

A bill (H. R. No. 284) for the relief of N. A. Shuttleworth, of Harrison county, West Virginia;

A bill (H. R. No. 255) for the relief of the heirs of James S. Porter, late of Hancock county, West Virginia; and

A bill (H. R. No. 1365) for the relief of Captain W. Muller.

The bill (H. R. No. 1367) for the relief of George Kaiser was read twice by its title, and referred to the Committee on Claims.

DEPARTMENTAL VACANCIES.

The amendment of the House of Representatives to the bill (S. No. 352) to authorize the temporary supplying of vacancies in the Executive Departments was referred to the Committee on the Judicary, and ordered to be printed.

COMMITTEE SERVICE.

Mr. POMEROY. Some vacancies have occurred in the standing committees that ought to be filled. There is a vacancy in the Committee on Public Lands, and there are, I believe, vacancies on other committees. There are some new Senators who have not been assigned to committees. I move that the Chair be authorized to fill any vacancies that exist in the standing committees of the Senate.

The PRESIDENT pro tempore. The motion may be entertained by unanimous consent. The motion was agreed to.

INTERNAL TAXES.

The Senate, as in Committee of the Whole, resumed the consideration of 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 PRESIDENT pro tempore. The Clerk will now resume the reading of the bill at the point where he left off last evening.

The Chief Clerk resumed the reading of the bill, as follows:

Cigars:

SEC. [81] 80. And be it further enacted, That upon cigars which shall be manufactured and sold, or removed for consumption or use, there shall be assessed and collected the following taxes, to be paid by the manufacturer thereof:

On cigarettes, cigars, and cheroots of all descriptions, made of tobacco or any substitute therefor, five dollars per thousand. And the Commissioner of Internal Revenue may prescribe such regulations for the inspection of cigars, cheroots, and cigarettes, and the collection of the tax thereon, as shall, in his judgment, be most effective for the prevention of frauds in the payment of such tax.

The Committee on Finance proposed two amendments to this section. The first was in

line six, to strike out the word ". cigarettes" before 66 cigars."

The amendment was agreed to.

The next amendment was in line eight, after the word "thousand," to insert "on cigarettes weighing not exceeding three pounds per thousand, $1 50 per thousand."

The amendment was agreed to.

The Chief Clerk read the following sections, to which no amendment was proposed:

SEC.[82]81. And be it further enacted, That every person before commencing, or, if already commenced, before continuing the manufacture of cigars shall furnish, without previous demand therefor, to the assistant assessor of the division a statement in duplicate, subscribed under oath or affirmation, accurately setting forth the place, and, it in a city, the street and number of the street, where the manufacture is to be carried on; and if the same shall be manufactured for, or to be sold and delivered to, any other person, the name and residence and business or occupation of the person for whom the cigars are to be manufactured or to whom to be delivered; and shall give a bond in conformity with the provisions of this act, in such penal sum as the assessor of the district may require, not less than $500, with an addition of $100 for each person proposed to be employed by him in making cigars, conditioned that he will not employ any person to manufacture cigars who has not been duly registered as a cigar-maker; that he will not engage in any attempt, by himself or by collusion with others, to defraud the Government of any tax on his manufactures: that he will render truly and correctly all the returns, statements, and inventories prescribed; that whenever he shall add to the number of cigarmakers employed by him, he will immediately give notice thereof to the collector of the district; that he will stamp, in accordance with law, all cigars manufactured by him before he offers the same or any part thereof for sale, and before he removes any part thereof from the place of manufacture; that he will not knowingly sell, purchase, expose, or receive for sale any cigars which have not been stamped as required by law; and that he will comply with all the requirements of law relating to the manufacture of cigars. The sum of said bond may be increased from time to time, and additional sureties required at the discretion of the assessor, or under the instructions of the Commissioner of Internal Revenue. Every cigar manufacturer shall obtain from the collector of the district, who is hereby required to issue the same, a certificate setting forth the number of cigarmakers for which the bond has been given, which certificate shall be posted in a conspicuous place within the manufactory; and any cigar manufacturer who shall neglect or refuse to obtain such certificate, or to keep the same posted as herein before provided, shall, on conviction, be fined $100. Any person manufac turing cigars of any description without first giving bond as herein required, shall, on conviction, be fined not less than $100 nor more than $5,000, and imprisoned not less than three months nor more than five years. Cigarettes and cheroots shall be held to be cigars under the meaning of this act.

SEC. [83] 82. And be it further enacted, That within thirty days after the passage of this act every cigar manufacturer shall place and keep on the side or end of the building within which his business is carried on, so that it can be distinctly scen, a sign with letters thereon not less than three inches in length, painted in oil colors or gilded, giving his full name and business. Any person neglecting to comply with the requirements of this section shall, on conviction, be fined not less than $100, nor more than $500.

SEC. [84] 83. And be it further enacted, That it shall be the duty of every assistant assessor to keep a record, in a book to be provided for the purpose, to be open to the inspection of any person, of the name and residence of every person engaged in the manufacture of cigars in his division, the place where such manufacture is carried on, and the number of the manufactory, together with the names and residences of every cigar-maker employed in his division; and the assistant assessor shall enter in said record, under the name of each manufacturer, an abstract of his inventories and monthly returns; and each assessor shall keep a similar record for the district, and shall cause the several manufactories of cigars in the district to be numbered consecutively, which number shall not thereafter be changed.

Section [eighty-five] eighty-four was read as follows:

SEC. [85] 84. And be it further enacted, That from and after the passage of this act all cigars shall be packed in boxes, not before used for that purpose, containing respectively, twenty-five, fifty, one hundred, two hundred and fifty, or five hundred cigars each; and any person who shall sell or offer for sale, or deliver or offer to deliver, any cigars in any other form than in new boxes as above described, or who shall pack in any box any cigars in excess of the number provided by law to be put in each box, respectively, or who shall falsely brand any box, or who shall affix a stamp on any box denoting a less amount of tax than that required by law, shall, upon conviction, for any of the above described offenses, be fined for each such offense, respectively, not less than $100 nor more than $1,000, and be imprisoned not less than six months nor more than two years.

The Committee on Finance reported two amendments to this section. The first was in line thirteen, after the word "offense," to strike out the word "respectively."

The amendment was agreed to.

The next amendment was to insert at the end of the section the following proviso:

Provided, That nothing in this section shall be construed as preventing the sale of cigars at retail by retail dealers who have paid the special tax as such from boxes packed, stamped, and branded in the manner prescribed by law.

The amendment was agreed to.

The following sections, to which no amendments were proposed, were read:

SEC. [86] 85. And be it further enacted, That every person now or hereafter engaged in the manufacture of cigars, shall make and deliver to the assistant assessor of the division a true inventory, in form prescribed by the Commissioner of Internal Revenue, of the quantity of leaf tobacco, cigars, stems, scraps, clippings, and waste, and the number of cigar-boxes and the capacity of each box, held or owned by him on the 1st day of January of each year, or at the time of commencing and at the time of concluding business, if before or after the 1st of January, setting forth what portion of said goods, and what kinds, were manufactured or produced by him, and what were purchased from others, which inventory shall be verified by his oath or affirmation indorsed on said inventory; and the assistant assessor shall make personal examination of the stock sufficient to satisfy himself as to the correctness of the inventory, and shall verify the fact of such examination by oath or affirmation taken before the assessor, also to be indorsed on the inventory; and every such person shall enter daily in a book, the form of which shall be prescribed by the Commissioner of Internal Revenue, an accurate account of all the articles aforesaid purchased by him, the quantity of leaf tobacco, cigars, stems, or cigar-boxes, of whatever description, inanufactured, sold, consumed, or removed for consumption or sale, or removed from the place of manufacture; and shall, on or before the 10th day of each and every month, furnish to the assistant assessor of the division a true and accurate abstract from such book of all such purchases, sales, and removals made during the month next preceding, which abstract shall be verified by his oath or atrination; and in case of refusal or willful neglect to deliver the inventory, or keep the account, or furnish the abstract aforesaid, he shall, on conviction, be fined not less than $500 nor more than $5,000, and imprisoned not less than six months nor more than three years. It shall be the duty of any dealer in leaf tobacco or material used in manufacturing cigars, on demand of any officer of internal revenue authorized by law, to render to such officer a true and correct statement, verified by oath or affirmation, of the quantity and amount of such leaf tobacco or materials sold or delivered to any person or persons named in such demand; and in case of refusal or neglect to render such statement, or if there is cause to believe such statement to be incorrect or fraudulent, the assessor shall make an examination of persons, books, and papers in the same manner as provided in this act in relation to frauds and evasions.

SEC. [87] 86. And be it further enacted, That the Commissioner of Internal Revenue shall cause to be prepared, for payment of the tax upon cigars, suitable stamps denoting the tax thereon; and all eigars shall be packed in quantities of twenty-five, titty, one hundred, two hundred and fifty, and five hundred, and all such stamps shall be furnished to collectors requiring the same, who shall, if there be any cigar manufacturers within their respective districts, keep on hand at all times a supply equal in amount to two months' sales thereof, and shall sell the same only to the cigar manufacturers who have given bonds and paid the special tax, as required by law, in their districts respectively, and to importers of cigars who are required to affix the same to imported cigars in the custody of customs officers and to persons required by law to affix the same to cigars on hand on the 1st day of January, A. D. 1869; and every collector shall keep an account of the number, amount, and denominate values of the stamps sold by him to each cigar manufacturer, and to other persons above described: Provided, That from and after the passage of this act the duty on all cigars imported into the United States from foreign countries shall be $250 per pound, and twenty-five per cent. ad valorem.

SEC. [88] 87. And be it further enacted, That every manufacturer of cigars shall securely affix, by pasting on each box containing cigars manufactured by or for him, a label on which shall be printed, together with the manufacturer's name, the number of his manufactory, and the district and State in which it is situated, these words:

"NOTICE.-The manufacturer of the cigars herein contained has complied with all the requirements of law. Every person is cautioned, under the penalties of law, not to use this box for cigars again.”

Any manufacturer of cigars who shall neglect to affix such label to any box containing cigars made by or for him, or sold or offered for sale by or for him, or any person who shall remove any such label, so affixed, from any such box, shall, upon conviction thereof, be fined fifty dollars for each box in respect to which such offense shall be committed.

Section [eighty-nine] eighty-eight was next read, as follows:

SEC. [89] 88. And be it further enacted, That all cigars which shall be removed from any manufactory or place where cigars are made without the same being packed in boxes as required by this act, or without the proper stamp thereon denoting the tax, or without burning into each box with a branding-iron the number of the cigars contained therein, and the name of the manufacturer, and the number of the district and the State, or without the stamp denoting

the tax thereon being properly affixed and canceled, or which shall be sold or offered for sale not properly boxed and stamped, shall be forfeited to the United States. And any person who shall commit any of the above-described offenses shall, on conviction, be fined for each such offense, respectively, not less than $100 nor more than $1,000, and imprisoned not less than Eix months nor more than two years. And any person who shall pack cigars in any box bearing a false or fraudulent or counterfeit stamp, or who shall reDove or cause to be removed any stamp denoting the tax on cigars from any box, with intent to use the same, or who shall use or permit any other person to use any stamp so removed, or who shall receive. buy, sell, give away, or have in his possession any scamp so reinoved, or who shall make any other fraudulent use of any stamp or stamped box, intended - for cigars, or who shall remove from the place of mauufacture any cigars not properly taxed and stamped as required by law, shall be deemed guilty of a felony, and, on conviction, shall be fined not less than $100 nor more than $1,000, and imprisoned not less than six months nor more than three years.

The Committee on Finance reported amendments to this section. The first was in line thirteen, after the word "offense" to strike out the word "respectively."

The amendment was agreed to.

The next amendment was in line twentyfive, to strike out "taxed" and to insert "boxed."

The amendment was agreed to.

The following sections, to which no amendments were proposed, were read:

SEC. [90] 89. And be it further enacted, That the absence of the proper revenue stamp on any box of cigars sold, or offered for sale, or kept for sale, shall be notice to all persons that the tax has not been paid thereon, and shall be conclusive evidence of the non-payment thereof; and such cigars shall be forfeited to the United States.

SEC. [91] 90. And be it further enacted, That in all cases where cigars of any description are manufactured, in whole or in part, upon commission or shares, or where the material is furnished by one party and manufactured by another, or where the material is furnished or sold by one party with an understanding or agreement with another that the cigars are to be received in payment therefor, or for any part thereof, the stamps required by law shall be affixed by the actual maker before the cigars are removed from the place of manufacturing. And in case of fraud on the part of either of said parties in respect to said manufacture, or of any collusion on their part with intent to defraud the revenue, such material and cigars shall be forfeited to the United States, and every person engaged in such fraud or collusion shall, on conviction, be fined not less than $100 nor more than $5,000, and imprisoned for not less than six months nor more than three years.

SEC. [92] 91. And be it further enacted, That any manufacturer of cigars who shall remove or sell any cigars without payment of the special tax as a cigar manufacturer, or without having given bond as such, or without the proper stamps denoting the tax thereon, or who shall make false or fraudulent entries of manufactures or sales of any cigars, or who shall make false or fraudulent entries of the purchase or sale of leaf tobacco, tobacco stems, or other material used in the manufacture of cigars, or who shall affix any false, forged, spurious, fraudulent, or counterfeit stamp, or imitation of any stamp, required by law to any box containing any cigars, shall, in addition to the penalties elsewhere provided in this act for such offenses, forfeit to the United States all raw material and manufactured or partly manufactured tobacco and cigars, and all machinery, tools, implements, apparatus, fixtures, boxes, barrels, and all other materials, which shall be found in the possession of such person, or in his manufactory, and used in his business as such manufacturer, together with his estate or interest in the building or factory and the lot or tract of ground on which such building or factory is located, and all appurtenances thereunto belonging.

SEC. [93] 92. And be it further enacted, That all cigars imported from foreign countries after the passage of this act shall, in addition to the import duties imposed on the same, pay the tax prescribed in this act for cigars manufactured in the United States, and have the same stamps affixed. Such stamps shall be affixed and canceled by the owner or importer of cigars while they are in the custody of the proper custom-house officers; and such cigars shall not pass out of the custody of such officers until the stamps have been so affixed and canceled; but shall be put up in boxes containing quantities as prescribed in this act for cigars manufactured in the United States before such stamps are affixed. And the owner or importer of such cigars shall be liable to all the penal provisions of this act prescribed for manufacturers of cigars manufactured in the United States. Where it shall be necessary to take any of such cigars, so imported, to any place, for the purpose of affixing and canceling such stamps, other than the public stores of the United States, the collector of customs of the port where such cigars shall be entered shall designate a bonded warehouse to which they shall be taken, under the control of such customs officer as such collector may direct. And any officer of customs who shall permit any such cigars to pass out of his custody or control without compliance by the owner or importer thereof with the provisions of this section relating thereto shall be deemed guilty of a misdemeanor, and shall, on conviction thereof, be fined not less than $1,000 nor

more than $5,000, and imprisoned not less than six months nor more than three years.

Section [ninety-four] ninety-three was next read, as follows:

SEC. [94] 93. And be it further enacted, That from and after the passage of this act it shall be the duty of every dealer in cigars, either of foreign or domestic manufacture, having on hand more than five thousand thereof, imported or manufactured, or purporting or claimed to have been imported or manufactured, prior to the passage of this act, to immediately make a true and correct inventory of the quantity of such cigars in his possession, under oath or affirmation, and to deposit such inventory with the assistant assessor of the proper division, who shall immediately return the same to the assessor of the district, who shall immediately thereafter make an abstract of the several such inventories filed in his office, and transmit the same to the Commissioner of Internal Revenue; and a like inventory and return shall be made on the first day of every month thereafter, and a like abstract of inventories shall be transmitted, while any such dealer has any such cigars remaining on hand, until the 1st day of January, 1869. After the 1st day of January, 1869, all cigars of every description shall be taken to have been either manufactured or imported after the passage of this act, and shall be stamped accordingly; and any person who shall sell, or offer for sale, after the 1st day of January, 1869, any imported cigars, or cigars purporting or claimed to have been imported, not so put up in packages and stamped by this act, shall, on conviction thereof, be fined not less than $500 or more than $5,000, and imprisoned not less than six months nor more than two years.

The committee reported two amendments to this section. The first was to strike out " January," wherever it occurs, and insert "April." The amendment was agreed to. The next amendment was in line twenty-six, after the word "stamped" to insert as provided."

66

The amendment was agreed to. The following sections, to which no amendments were proposed, were read:

SEC.[95] 94. And be it further enacted, That any person who shall, after the passage of this act, sell, or offer for sale, any cigars, representing the same to have been manufactured and the tax paid thereon prior to the passage of this act, when the same were not so manufactured and the tax not so paid, shall be liable to a penalty of $500 for each offense, and shall be deemed guilty of a misdemeanor, and, on conviction, shall be fined not less than $500 nor more than $5,000, and imprisoned not less than six months nor more than three years.

SEC. [96] 95. And be it further enacted. That if any distiller, rectifier, wholesale liquor dealer, compounder of liquors, or manufacturer of tobacco or cigars, shall knowingly and willfully omit, neglect, or refuse to do or cause to be done any of the things required by law in the carrying on or conducting of his business, or shall do anything by this act prohibited, if there be no specific penalty or punishment imposed by any other section of this act for the neglecting, omitting, or refusing to do, or for the doing or causing to be done the thing required or prohibited, he shall pay a penalty of $1,000; and if the person so offending be a distiller, rectifier, wholesale liquor dealer, or compounder of liquors, all distilled spirits or liquors owned by him, or in which he has any interest as owner, and if he be a manufacturer of tobacco or cigars, all tobacco or cigars found in his manufactory shall be forfeited to the United States.

SEC. [97] 96. And be it further enacted, That any internal revenue officer who shall be or become interested, directly or indirectly, in the manufacture of tobacco, snuff, or cigars, or in the production, rectification, or redistillation of distilled spirits, shall be dismissed from office; and any such officer who shall become so interested in any such manufacture or production, rectification, or redistillation, shall, on conviction, be fined not less than $500 nor more than $5,000.

Section [ninety-eight] ninety-seven was next read, as follows:

SEC. [98] 97. And be it further enacted. That if any officer or agent appointed or acting under the authority of any revenue law of the United States shall be guilty of any extortion or willful oppression, under color of law, or shall knowingly demand other or greater sums than shall be authorized by law; or shall receive for fee, compensation, or reward for the performance of any duty except as by law prescribed; or shall willfully neglect to perform any of the duties enjoined on him by law; or shall conspire to collude with any other person to defraud the United States; or shall make opportunity for any person to defraud the United States; or shall do, or omit to do, auy act with intent to enable any other person to defraud the United States; or shall negligently or designedly permit any violation of the law by any other person; or shall make or sign any false entry in any book, or make or sign any false certificate or return in any case where he is by law or regulation required to make an entry, certificate, or return; or having knowledge or information of the violation of any revenue law by any person, or of fraud committed by any person against the United States under any revenue law of the United States, shall fail to report in writing such knowledge or information to his next superior officer, and to the Commissioner of Internal Revenue; or shall demand or accept, or attempt to

collect, directly or indirectly, as payment or gift or otherwise, any sum of money or other thing of value for the compromise, adjustment, or settlement of any charge or complaint for any violation or alleged violation of law, except as expressly authorized by law so to do, he shall be dismissed from office, and shall be held to be guilty of a misdemeanor, and shall, on conviction, be fined not less than $1,000 nor more than $5,000, and imprisoned not less than six months nor more than three years. 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 informer, who shall be ascertained by the judgment of the court; and the said court shall also render judgment against the said assessor or assistant assessor for the amount of damages sustained in favor of the party injured. to be collected by execution.

The Committee on Finance proposed to amend this section in lines thirty-six and thirtyseven by striking out the words "assessor or assistant assessor" and inserting "officer or agent.

The amendment was agreed to.

The following sections, to which no amendments were proposed, were read:

SEC. [99] 98. And be it further enacted, That any person who shall simulate or falsely or fraudulently execute or sign any bond, permit, entry, or other document required by the provisions of this act, or by any regulation made in pursuance thereof, or who shall procure the same to be falsely or fraudulently executed; or who shall advise, aid in, or connive at the execution thereof, shall, on conviction, be imprisoned for a term not less than one year nor more than five years; and the property to which such false or fraudulent instrument relates shall be forfeited.

SEC. [100] 99. And be it further enacted. That every collector having charge of any warehouse in which distilled spirits, tobacco, or other articles, are stored in bond, shall render a monthly account of all such articles to the Commissioner of Internal Revenue, which account shall be examined and adjusted monthly by him, so as to exhibit a true statement of the liability and responsibility of every such collector on such account. In adjusting such account the collector shall be charged with all the articles which may have been deposited or received under the provisions of law in any warehouse in his district and under his control, and shall be credited with all such articles shown to have been removed therefrom according to law, including transfers to other collectors and to his successor in office, and also whatover allowances may have been made in accordance with law to any owner of such goods or articles for leakage or other losses.

The committee proposed to insert as section one hundred, the following:

SEC. 100. And be it further enacted, That the Secretary of the Treasury and Commissioner of Internal Revenue are authorized and empowered to alter, renew, or change the form, style, and device of any stamp, mark, or label used under any provision of the laws relating to distilled spirits, tobacco, when, in their judgment, necessary for the collection of revenue tax, or the prevention or detection of frauds thereon, and to make and publish such regulations for the use of such mark, stamp, or label as they may find requisite.

Mr. SHERMAN. I move to amend that section by inserting after " 'tobacco," in the sixth line, the words "snuff and cigars."

The amendment to the amendment was agreed to.

The amendment, as amended, was adopted. Section one hundred and one was next read, as follows:

SEC. 101. And be it further enacted, That in all cases arising under the internal revenue laws where, instead of commencing or proceeding with a suit in court, it may appear to the Commissioner of Internal Revenue to be for the interest of the United States to compromise the same, he is empowered and authorized to make such compromise with the advice and consent of the solicitor of internal revenue. whose opinion in the case, with the reasons therefor, shall be given in writing and delivered to the Commissioner; and in every case where a compromise is made there shall be placed on file in the office of the Commissioner the opinion of the solicitor, together with a statement of the amount of tax assessed, the amount of additional tax or penalty imposed by law in consequence of the neglect or delinquency of the person against whom the tax is assessed, and the amount actually paid in accordance with the terms of the compromise; but no such compromise shall be made of any case after a suit or proceeding in court has been commenced, without the recommendation also of the district attorney for the judicial district in which the suit or proceeding is pending. or of such other counsel as may be employed to conduct or prosecute the same on the part of the United States: Provided, That it shall be lawful for the court at any stage of such suit or criminal proceedings to continue the same for good cause shown on motion of the district attorney.

The committee reported various amendments to this section, the first of which was in line seven, to strike out the words "solicitor of internal revenue " and insert "Secretary of the Treasury."

Mr. TRUMBULL. It is one of the objectionable features of the internal revenue system that the officers have been permitted to compromise suits; and it has been chargedI do not say whether truly or not-that officers and persons who are vested with this discretionary power have abused it very often in the settlement of cases. I believe that we passed some law on the subject, that suits should not be compromised without the consent, perhaps, of the judge of the court. I see the House of Representatives provided in this section that no compromise should take place without the advice and consent of the solicitor of internal revenue. I was not aware that we had such an office as that, unless this bill creates it.

Mr. SHERMAN. There is such an office provided for by law, but the President and the Senate have never been able to agree upon a proper person to hold it.

Mr. FESSENDEN. There has never been a nomination for it.

Mr. SHERMAN. Probably there has never been a nomination, as the Senator from Maine reminds me. The duties of that office are now performed by a clerk really. The bill, as it came from the House, proposed to vest the solicitor of internal revenue with the power of controlling the Commissioner of Internal Revenue, and we thought that wrong. We have required by a clause of the bill the opinion of the solicitor of internal revenue to be filed; but the approval of settlement must be by the Secretary of the Treasury.

Mr. TRUMBULL. If there is such an officer, what is the objection to having the safeguard of his opinion and the reasons for it before the settlement is made?

Mr. SHERMAN. The Senator will see that that is provided for.

Mr. TRUMBULL. I see you have stricken out the words "whose opinion in the case, with the reasons therefor, shall be given in writing and delivered to the Commissioner."

Mr. SHERMAN. The Senator will find that it goes on below. We do not limit the power of the Commissioner of Internal Revenue to make a settlement, by the opinion of the solicitor of internal revenue, but of the Secretary of the Treasury; but we require that in every case where a compromise is made there shall be placed on file in the office of the Commissioner, the opinion of the solicitor of internal revenue, together with a statement of the amount of tax assessed, the amount of additional tax or penalty imposed by law, &c.

Mr. TRUMBULL. It seems to me that this is a very strange proceeding. You authorize the Commissioner of Internal Revenue to make a compromise, with the assent of the Secretary of the Treasury-just such a compromise as he pleases-and then you require the solicitor of the Commissioner or of the internal revenue department to put on file his opinion in writing. His opinion may be directly the reverse of that of the Commissioner. For what object do you require this solicitor to file an opinion after the case is decided and when it is to have no influence in the decision at all?

Mr. SHERMAN. The question is whether we shall make the opinion of the solicitor of internal revenue a final bar to a settlement. In the first place there is no such officer now. Mr. TRUMBULL. But you have provided for the filing of the opinion of such an officer.

Mr. SHERMAN. If one is provided by law, as there ought to be one appointed by the President and confirmed by the Senate, then the Commissioner of Internal Revenue is bound to take the opinion of the solicitor of internal revenue, and that must be filed before a compromise can be made; but the opinion

of the Commissioner of Internal Revenue and the opinion of the solicitor of internal revenue must be submitted to the Secretary of the Treasury, who alone, under the checks contained in this provision, has the power to make a compromise. The Senator, if he will look at the present law, will find that this is a great restriction on the powers conferred by it.

Mr. TRUMBULL. I know that there has been great complaint of the exercise of this power under the present law.

Mr. SHERMAN. This section is a very great, and, as they think in the office, almost an oppressive restriction upon their power to control the matter of internal revenue. The last clause of the section I think ought to be changed somewhat, and I have a substitute for it, in regard to the compromise of suits now pending in court. But at present the section as it now stands is a very great restraint upon any compromise whatever. No compromise can be made without the opinion of the solicitor of internal revenue, which must be filed in the case, and then the case thus made up, with the opinion of the Commissioner of Internal Revenue, is submitted to the Secretary of the Treasury, who must give his approval and must make the final settlement. That is the proper way.

Mr. TRUMBULL. I inquire of the Senator from Ohio if he has before him the last act that we passed on this subject, I think during the present Congress, restraining the power of officers to make these compromises? Mr. SHERMAN. I do not think any law has been passed during this session. It was proposed by the Senator from Indiana, [Mr. MORTON,] but it was not passed. I will read the present law as it now stands:

"That the Commissioner of Internal Revenue shall be, and is hereby, authorized and empowered to compromise, under such regulations as the Secretary of the Treasury shall prescribe, any case arising under the internal revenue laws, whether pending in court or otherwise."

This is the broad power conferred upon the Commissioner of Internal Revenue; and, as the Senator says, great complaints have been made. This section limits to a very great degree, perhaps to a dangerous degree, the power of the Commissioner of Internal Revenue to make compromises, and certainly it goes as far as we ought to go. There must be some power in some one to compromise cases pending in court, and cases as they arise.

Mr. TRUMBULL. I know we once had this subject up, and I thought we passed an act; but probably it failed between the two Houses. It seems to me that this section is somewhat incongruous the way the committee. have amended it. The section as it stands authorizes the Commissioner of Internal Revenue, with the assent of the Secretary of the Treasury, to make a compromise; and then it provides:

And in every case where a compromise is made there shall be placed on file in the office of the Commissioner the opinion of the solicitor.

I do not see the object of that. The opinion

of the solicitor is to have no effect whatever upon the decision. It is a requirement that seems to me to be useless, unless you require it to be given in advance. It seems to me that the word "where," in the tenth line, should be stricken out and the word "before" inserted; so as to read:

And in every case before a compromise is made there shall be placed on file in the office of the Coinmissioner the opinion of the solicitor.

Certainly there is no object in placing the opinion on file after the compromise is made. Mr. SHERMAN. That is a mere point of phraseology. The present words mean that. I have no objection to it. If the Senator would prefer the word "before,"

Mr. TRUMBULL. It does not mean that as it now stands. He may file the opinion after the thing is all over, and I think there can be no object in filing it unless it is to have some influence.

Mr. SHERMAN. As that is merely a ques tion about words, I will not waste time upon it. It now reads:

And in every case where a compromise is made there shall be placed on file, in the office of the Commissioner, the opinion of the solicitor, together with a statement of the amount of tax assessed, &c.

The purpose of this is, that the Commissioner of Internal Revenue shall never make a compromise until after a full and fair investigation.

Mr. FESSENDEN. Perhaps you had better substitute the word "before.

Mr. SHERMAN. I say I will not stand upon a point of words. That is the object, to see that the Commissioner, has all the facts before him, prepared by an officer who is supposed to be a lawyer. The facts of the case are to be submitted to the Commissioner of Internal Revenue, and then the Secretary upon the particular case is to make the compromise. Under the present law, the Secretary of the Treasury has nothing to do but prescribe regulations to control and govern the conduct of the Commissioner of Internal Revenue, without any check.

Mr. FESSENDEN. The Senator will allow me to say that if they are the same as they were made under my direction when I was in the Department, they prescribe that no settlements shall be made without the approval of the Secretary of the Treasury.

Mr. TRUMBULL. I should like to see a check from some other source upon these compromises than the internal revenue officers. They make up a case; they report it to the Com

missioner of Internal Revenue and the Secre tary of the Treasury, and it all goes through one channel, and the Secretary will generally approve what the officers recommend. Now, it would be very desirable, if it is practicable, to have a check from another source not connected with these internal revenue officers. For instance, if a suit is pending, let it be compromised only with the assent of the judge or on the recommendation of the district attorney.

Mr. SHERMAN. That is provided for. The Senator is talking about the section before reading it through. It goes on and provides that where a case is pending in court, the compromise shall have the assent of the district attorney, and in certain cases of the judge.

Mr. TRUMBULL. If it is not pending in court I would still have it by the assent of the district attorney or somebody else, for as it stands it virtually amounts to a compromise by the collector and the assessor, and the Secretary of the Treasury will know nothing about it from any other source. If you require the case to be laid before the district attorney aud get his opinion, you have the opinion of a local officer who might know something in regard to the transaction that would not come through these officers. It is charged all over the country, whether truly or not I do not undertake to say, that many of these revenue officers are corrupt.

Mr. FESSENDEN. I will ask my friend whether it is any greater injury as a general rule to adopt the opinion of the assessor and collector than of the district attorney?

Mr. TRUMBULL. No, I do not say that it is. The Senator from Maine will not understand me to say that it is, but this will give the advantage of an additional check. It is more difficult to corrupt the assessor and collector and district attorney than to corrupt either one.

Mr. EDMUNDS. Mr. President, some little stability and adherence to one line of policy or another has generally been supposed to be a good thing in legislation. No longer ago than the 31st of March we supposed, all of us, at least that is the legal presumption, that we had found a panacea for this evil of unregulated compromises. We passed a bill to exempt certain manufactures from internal tax, which also provided for regulating whisky, and so on, and in that bill we passed a section of this character:

"That no compromise or discontinuance, or nolle prosequi of any prosecution under this act, shall be allowed without the permission, in writing, of the Secretary of the Treasury and the Attorney General."

I was quite sure when the matter was broached that we had at some stage of this session solemnly declared that the true check, upon the theory that the Senator from Illinois has named of having some extraneous person who was not in the line of promotion, so to speak

Mr. SHERMAN. That provision is in the cases of suits pending; and the latter part of