upon their shares, deducting the amount so paid from their earnings, thus reducing the amount subject to the tax of five per cent., under sections 120 and 121 of the Internal Revenue Act of June 30, amended July 13, 1866. The decision of the Supreme Court is to the effect that said "taxes may be imposed upon the shares of National Banks, as being the personal property of the shareholders, and they cannot, therefore, be deducted by the Bank as an expense of the Bank, as if the taxes were assessed upon the Corporation. Assessors will instruct the banks that taxes paid for the shareholders, cannot be deducted in ascertaining the amount of net gains. It also appears that some National Banks withhold from their returns of dividends and surplus profits, the amounts carried to surplus fund, as required by the National Currency Act. This is erroneous, as the law requires the tax to be paid upon the entire net earnings, including amounts paid stockholders, and "all undistributed sums, or sums made or added during the year, to their surplus or contingent fund." (See sections 120 and 121 aforesaid.) This tax upon the additions to the surplus, should not be confounded with that once required to be paid upon surplus as a part of the Banks capital, it being a tax upon the profits of the business, without regard to the disposition made of the same. Very respectfully, E. A. ROLLINS, Commissioner. C. N. EMERSON, ESQ, U. S. Assessor 10th Dist., Pittsfield, Mass. 167. Concerning Seizures of Property in the Custody of Transportation Companies. TREASURY DEPARTMENT, Office of Internal Revenue, } Washington, Feb. 5, 1867. In order to avoid giving cause of complaint to transportation companies, collectors and deputy collectors are instructed, when they seize property in the custody of an agent of any transportation company, to address and deliver to such agent a written statement, giving, for the purpose of fully identifying the property seized, an inventory of the different articles, mentioning the brands, numbers, and marks thereon, including, when it is known, the name and residence of the ostensible owners. They should also, in the same statement, specify in general terms that the property is seized for violation of the internal revenue laws. If the property is removed from the custody of the company, that fact should be stated in the paper, that the company may be able to show that the property has properly passed from their possession. This statement should be signed by the seizing officer as collector or deputy collector, giving his full address. Where it is required, the seizing officer should show that he is an officer authorized by law to make seizures. When the property is forfeited, the collector should inform the company. If, however, it is released upon compromise or otherwise, it should be returned to the company, unless the company consent that it be given up directly to the claimant. E. A. ROLLINS, Commissioner. Miscellaneous Rulings, Decisions and Correspondence upon Manufactures. Assessors and others desirous of obtaining a thorough and intelligent knowledge of the various decisions under former laws, many of which are fully applicable to the present act, will not fail to consult the following numbered decisions of the Internal Revenue Department to be found collected in Boutwell's Manual, Ed. 1863, viz. : No. 36. Manufacture of clothing, (referred to in the note on the No. 55. No. 56. No. 69. Manufacturers of cabinet ware and furniture. Manufacturers of stone, marble and slate. Taxable value of articles sold at places other than the place of manufacture. No. 71. Definition of manufactures, "commercial value." No. 77. "Manufacture of patented articles." (This decision has been essentially modified.) No. 81. No. 83. Tanned leather when curried or finished. No. 85. Mode of ascertaining "increased values." Also No. 164, Nov. 9, 1865, same subject. No. 118. Manufactures of stone, marble and slate. No. 119. Manufactures made under contract prior to July 1, 1862 Also series 1, No. 5, Boutwell 177, "Manufacturers' returns. No. 132. July 9, 1864: Liability of manufacturers to license and to pay excise duties. No. 133. July 9, 1864: Articles taxable under act of June 30, 1864. No. 142. No. 143. No. 144. 1864. No. 147. Manufactures and place of manufacture. (Oct. 18, 1864.) Oct. 20, 1864: "Thread, yarn and warps," and fabrics made therefrom. Circular No. 24. Oct. 26, 1864 : "Goods made for the United States from materials furnished by Government. Circular 25. Day on which manufacturers' duties shall be payable. (December 1, 1864.) No. 154. May 9, 1865: Manufactured soda water sold from fountains. No. 157. July 26, 1865: Photographs and sun pictures. No. 163. Nov. 6, 1865: Liability of manufacturer and producer of exempt articles from duty under section 96. (This is an important decision and in view of the largely increased list of the exempt articles, it is printed in full, infra.) Special" No. 31, February 3, 1866. 'Taxation of articles manufactured in the States lately in insurrection, remaining in the possession of the manufacturers or producers," and Decision No. 168, of February 26, explaining Special No. 31. Also special No. 16, of June 23, 1865, and Regulations of Treasury of June 27, 1865, in Appendix. The above decisions, &c., made since the early part of the year 1864, (and not contained in Mr. Boutwell's Manual of 1863,) should be on the files of every officer of the law, to be studied carefully in connection with the present act. The assessor especially should be intimately familiar with them, that he may intelligently perform his important duties, and save the Department from continual annoyance, and himself from the just reproach of incompetency and ignorance. We also append the following rulings, instructions, and correspondence, drawn from various sources, and well worthy of the attentive examination of all officers of the internal revenue law, and persons liable to duty. Many of them are of course, now inapplicable, but all are important as part of the history of the revenue law. The soldering together of tin plate for roofing is not held to be a manufacture. (Boutwell, No. 118.) Sheet iron stoves are a manufacture, and subject to duty, on entire value when complete, of six per cent. ad valorem. (Ibidem, No. 120.) A manufacturer must make his returns to the assessor of the district where his place of manufacture is located, though he may reside and make his sales in another district. When the manufacturer effects his own sales by himself or his authorized agent the tax does not accrue on removal from the place of manufacture to the place. of sale, but only when sales of the goods are actually made. 121.) (Ibidem, No. The manufacturer of farina is subject to a duty of six per cent. ad valorem. (Ibidem, No. 122.) Cotton lines or ropes, made from taxed yarn are only liable to tax on their increased value. (Ibidem, No. 147.) Every distinct shop used by a railroad company for making or repairing of machinery or apparatus for its own use is regarded as a manufactory. (Ibidem, No. 148.) Hides prepared by tanners for saddle-tree covers are held to be a manufacture and subject to duties. (Ibidem, No. 151.) Cordage is a manufacture, and subject to an ad valorem duty of six per cent. (Ibidem, No. 154.) Balusters are taxable as a distinct manufacture. (Ibidem, No. 156.) The grinding of dye woods is not considered a manufacture. (Ibidem, No. 161.) Boot tops and uppers of shoes, manufactured as such, (independent of the finished boot or shoe,) are held subject to duty. (Ibidem, No. 163, also 169.) Watch cases are taxable on their full value as a manufacture when made or sold as a separate part of the business of making watches. (Ibidem, No. 164.) Stereotype plates are held to be manufactures, and the duties must be collected in the district where manufactured. (Ibidem, No. 165.) Grinding and preparing salt for table use is taxable on increased value. (Ibidem, No. 166.) Ribbons made for general use are regarded as fabrics of the nature of cloth, and when a tax has been paid on the thread or yarn or warp, the ribbons are to be assessed only on the increased value. (Ibidem, No. 175.) The owners and cutters of clothing, shirts and shirt-fronts are to be regarded as the manufacturers, and not the mere operatives who make them up and return them. (I. Int. Rev. Rec., 67.-II. Ibidem, 186.-Letter of Commissioner, Nov. 28, 1865.) A change in the character of a manufacture may change its liability to duty, as a change from soured wine, &c., to vinegar. (I. Int. Rev. Rec., 100.) A builder's or contractor's license covers his business if he makes no articles subject to duty as manufactures; but if he makes such articles to an amount exceeding $1,000 annually, he must also have license as a manufacturer; in such case the amount of business covered by the manufacturer's license may be deducted from the amount of his contracts. (I. Int. Rev. Rec. 45.) As to the mode of returning manufactures and products, consult particularly Decision No. 144 and Circular No. 44. As to who are liable to pay the tax on manufactures and deductions, see the United States vs. Stevens, and als. (II. Int. Rev. Rec., 54. Letter of Commissioner to Smith & Wesson. Assessor's Circular, cited II. Int. Rev. Rec., 130. Letter of Commissioner, Oct. 23, 1865, cited II. Int. Rev. Rec., 156.) The producers of articles exempt from tax, are to be licensed as manufacturers and not as dealers. (Decision No. 163.) The following rulings and decisions in Vol. III. of Int. Rev. Rec. in relation to specific matters, may be consulted: stoves, 3; cheese, 3, 12, 140; harness, 3; artificial eyes, 12; shoddy, 13, 124; flasks, 13, 117; shooks, 13; tax paid materials, 14, 94, 140; wheels, &c., 14, 94; horse blankets, 14, 124; white lead, 36; hoop skirt wire, 36, 53; increased values, 38, 94, 100, 102, 117; horse shoes, 44; carriages, 45; belts and buckles, 52; tape, 53; matches, 60; work on ships, 70, 100; wood mouldings, 93; flax and thread, 94; fire arms, 94; (matter of parts of pistols) modified, 145; piano actions, 94. "In answer to your letter of the 28th ult., asking for a ruling from this office in relation to shirts woven in a continuous web, and then cut into suitable lengths and finished; also in relation to balmoral skirts woven in a similar manner with appropriate stripes at proper intervals; and shawls and blankets woven in the same manner, I have to say that the proper mode of taxing in all these cases will be to assess a tax on the thread or yarn, whether sold for such purposes or used by the manufacturer who spins it and afterwards consumes or uses it in weaving shirt, balmoral skirt, shawl or blanket webs. "The webs or rather the shirts, skirts, shawls and blankets, are then to be taxed on their entire value, according to the 7th paragraph of Decision No. 147. If such webs are sold before the shirts, skirts, shawls, and blankets are cut and bound or otherwise finished more completely, and fitted for use, the additional tax.for such finishing, &c., should be only on their increased value. "This ruling is on the supposition that these webs are not mere fabrics, but are woven expressly for these articles, and are mainly, if not entirely, unfitted for any other use. (Letter of Commissioner, December 3, 1864.) "From this examination I am satisfied that, when Piano Cases and other parts of the Piano have been assessed, and a duty paid thereon, the finished articles into which such previously taxed parts enter are correctly assessed on their increased value, under the proviso relative to furniture previously taxed in the rough or unfinished state, section 94. Whenever, therefore, the assessor or assistant assessor of the district, where such parts were increased in value by being more completely finished, or fitted for use or for sale, is satisfied that the same have been returned for a revenue tax, you will assess such Pianos a duty of five per centum, ad valorem, upon the increased value only. That value can be ascertained by deducting from the value of the finished Pianos, when sold or removed for sale, &c., the cost prior to the last manufac ture of the part or parts so previously returned. When piano cases, or other parts of pianos are made in your dis |