be employed under the direction of the Secretary of the Treasury:

Two deputy commissioners, at a salary of three thousand dollars a year each.

Seven heads of divisions, at a salary of two thousand five hundred dollars a year each. [R. S.]

The balance of this section will be found under TREASURY DEPARTMENT.

[Office of deputy commissioner abolished.] That the office of Deputy Commissioner of Internal Revenue, made vacant by the death of General B. J. Sweet, be, and the same is hereby, abolished; and that the Secretary of the Treasury may, upon the recommendation of the Commissioner of Internal Revenue, designate one of the two remaining deputy commissioners as First Deputy Commissioner, who shall perform the duties and be paid only the salary prescribed for the office of deputy commissioner hereby abolished. [18 Stat. L. 6.]

This is the Act of Jan. 29, 1874, ch. 18, entitled "An act to abolish the office of Deputy Commissioner of Internal Revenue."

66

The above Act contemplated the existence of three deputy commissioners prior to the recent death of one incumbent, and appropriations had been made for this number, one at $3,500 a year and two at $3,000, for several preceding years (16 Stat. L. 238, 482; 17 Stat. L. 68, 494). In two subsequent years appropriation was made for one at $3,500 and one at $3,000, neither being designated as "First Deputy Commissioner" in the appropriation acts (18 Stat. L. 92, 351). By Act of March 3, 1875, ch. 130, § 2, 18 Stat. L. 398, appropriation is made for a deputy commissioner " at $3,500, and one deputy commissioner " at $3,000. But in 1876, Aug. 15, ch. 287 (19 Stat. L. 151), appropriation was made for but one deputy commissioner at $3,200. This continued up to 1898 (Act March 15, ch. 68, 30 Stat. L. 290). In 1899 (Act Feb. 24, ch. 189, 30 Stat. L. 861) appropriation was made for a deputy commissioner at $4,000. In each of the subsequent appropriation acts, appropriation is made for a 'deputy commissioner" at $4,000 and an additional deputy commissioner," during the following fiscal year at $3,600. Act April 17, 1900, ch. 192, 31 Stat. L. 103; Act March 3, 1901, ch. 830, 31 Stat. L. 979; Act April 28, 1902, ch. 594, 32 Stat. L. 139; Act Feb. 25, 1903, ch. 755, 32 Stat. L. 873.

66

Sec. 323. [Duties of Deputy Commissioner of Internal Revenue.] The Deputy Commissioner of Internal Revenue shall be charged with such duties in the office of the Commissioner of Internal Revenue as may be prescribed by the Secretary of the Treasury, or by law, and shall act as Commissioner of Internal Revenue in case of the absence of that officer. [R. S.]

Act of March 3, 1863, ch. 74, 12 Stat. L. 725; Act of June 30, 1864, ch. 173, 13 Stat. L. 224: Act of July 13, 1866, ch. 184, 14 Stat. L. 170.

By temporary appointment to perform the commissioner's duties, the first deputy commissioner does not acquire the office of com

66

missioner and vacate his own office, though by special provision of the Tenure of Office Act he becomes entitled to the salary and emoluments of the commissioner while he performs the duties of that office. (1871) 13 Op. Atty.-Gen. 512.

Sec. 3140. [Definition of words "State" and " Person."] The word State," when used in this Title, shall be construed to include the Territories and the District of Columbia, where such construction is necessary to carry out its provisions. And where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, the word " person," as used in this title, shall be construed to mean and include a partnership, association, company, or corporation, as well as a natural person.

Act of June 30, 1864, ch. 173, 13 Stat. L 306.

The last sentence of this section beginning with "And where," etc., was added by Act of Feb. 27, 1877, ch. 69, 19 Stat. L. 248.

[R. S.]

Sections 3140-3171 constitute chapter 1 of title XXXV. of the Revised Statutes," Officers of Internal Revenue."

Sec. 3141. [Collection districts.] For the purpose of assessing, levying, and collecting the taxes provided by the internal-revenue laws, the President may establish convenient collection-districts, and for that purpose he may subdivide any State, Territory, or the District of Columbia, or may unite two or more States or Territories into one district, and may from time to time alter said districts: Provided, That the number of districts in any State shall not exceed the number of Representatives in Congress to which such State was entitled in the Thirty-seventh Congress, except in such States as were entitled to an increased representation in the Thirty-eighth Congress, in which States the number of districts shall not exceed the number of Representatives to which any such State was so entitled: And provided further, That in the State of California the President may establish a number of districts not exceeding the number of Senators and Representatives to which said State was entitled, in the Thirty-seventh Congress. [R. S.]

[Reduction of revenue districts.] And it shall be the duty of the President, and he is hereby authorized and directed, to reduce the number of internal revenue districts to not exceeding one hundred and thirtyone in the manner heretofore provided by law, which reduction shall take effect on the first day of September, eighteen hundred and seventy-six or as soon thereafter as may be practicable. [19 Stat. L. 152.]

This is from the Legislative, Executive, and Judicial Appropriation Act of Aug. 15, 1876, ch. 287.

[Idem.] From and after the thirtieth day of June next there shall be no more than one hundred and twenty-six collection districts; and it shall be the duty of the President, and he is hereby authorized and directed, to reduce the internal-revenue districts to not exceeding the number aforesaid, in the manner heretofore provided by law. [19 Stat. L. 303.]

This is from the Legislative, Executive, and Judicial Appropriation Act of March 3, 1877, ch. 102.

"Collection districts," within the meaning of the Act, are those districts, respectively, in which the internal duties and taxes imposed by the law upon all the subjects of taxation are collected in the manner and by the officers designated in the statute, and

there is no authority to arrange a number of states into a single district for the purpose of collecting the tax on a particular commodity. (1866) 12 Op. Atty. Gen. 55. See (1863) 10 Op. Atty.-Gen. 467.

Sec. 3142. [Collectors.] The President, by and with the advice and consent of the Senate, shall appoint for each collection-district a collector, who shall be a resident of the same. When two or more collection-districts are united by him, he may designate from among the existing officers of such districts one. collector for the new district, or, at his discretion, he may make a new appointment of such officer for said district.

Act of July 1, 1862. ch. 119, 12 Stat. L. 433; Act of June 30, 1864, ch. 173, 13 Stat. L. 224; Act of July 14, 1870, ch. 255, 16 Stat. L. 261.

[R. S.]

As the power of removal, see U. S. v. Avery, (1867) 1 Deady (U. S.) 204.

Sec. 3143. [Collector's bond.] Every collector, before entering upon the duties of his office, shall execute a bond for such amount as may be prescribed by

the Commissioner of Internal Revenue, under the direction of the Secretary of the Treasury, with not less than five sureties, to be approved by the Solicitor of the Treasury, conditioned that said collector shall faithfully perform the duties of his office according to law, and shall justly and faithfully account for and pay over to the United States, in compliance with the order or regulations of the Secretary of the Treasury, all public moneys which may come into his hands or possession; and he shall, from time to time, renew, strengthen, and increase his official bond, as the Secretary of the Treasury may direct, with such further conditions as the said commissioner shall prescribe; and he shall execute a new bond whenever required so to do by the Secretary of the Treasury, with such conditions as may be required by law or prescribed by the Commissioner of Internal Revenue, with not less than five sureties; which new bond shall be in lieu of any former bond or bonds of such collector in respect to all liabilities accruing after the date of its approval by the Solicitor of the Treasury. Said bonds shall be filed in the office of the First Comptroller of the Treasury. [R. S.]

Act of June 30, 1864, ch. 173, 13 Stat. L. 225.

The above provisions were substituted by Act of March 1, 1879, ch. 125, 20 Stat. L. 327, for the section as originally enacted. The only change therein was in the addition of the clause as to the giving of a new bond, beginning" And he shall execute a new bond," etc.

The bond is a contract for the indemnity of the United States alone, and not for the indemnity of private persons who may be injured by the wrongs or torts of the collector or his deputies. Clark v. U. S., (1878) 60 Ga.

156.

The failure of the bond to state for what particular district the principal was collector does not render the bond void. U. S. v. Jackson, (1881) 104 U. S. 41.

Duties imposed by subsequent statute. "The sureties of an officer, upon his official bond, are liable for the faithful performance of all duties imposed upon the officer, whether by laws enacted previous or subsequent to the execution of the bond, which properly belong to and come within the scope of the particular office, though not for those which have no connection with it, and cannot be presumed to have been within the contemplation of the parties at the time the bond was executed." U. S. v. McCartney, (1880) 1 Fed. Rep. 106.

Not mere bailee - Embezzlement by deputy. - In an action on a collector's bond it is no defense that a deputy collector had embezzled the money claimed to be due and owing from the collector. Public officers are not mere bailees of public funds, to be exonerated by the exercise of ordinary care and diligence; their liability is fixed by their bond. Pond v. U. S., (C. C. A. 1901) 111 Fed. Rep. 989. See also Soule v. U. S., (1879) 100 U. S. 8; U. S. v. Adams, (1885) 24 Fed. Rep. 348; Tiffany

v. Morrison, (1876) 3 Colo. 43; Pickering v. Day, (1866) 3 Houst. (Del.) 474.

Covering duties of deputies. - A bond is one provided for by the statute although it guarantees the faithful discharge of their duties by all the deputies appointed by the collector, whereas the statute only requires a bond for the faithful performance of the collector's own duties, and a faithful accounting by him for all public moneys which may come into his hands. Laffan v. U. S., (C. Č. A. 1903) 122 Fed. Rep. 333. See also Chadwick v. U. S., (1880) 3 Fed. Rep. 750.

"Money paid for taxes past due and received by the collector as such, and for which he gives a receipt as collector, specifying with precision the taxes for which it is paid, is public money," within the meaning of the bond. King v. U. S., (1878) 99 U. S. 232.

-

Recovery on breach assigned. In an action for debt on a collector's bond, when the breach assigned is that the collector did not faithfully perform his duties as collector, but received as such a certain sum, which he never accounted for or paid to the United States, dereliction of duty in not making collections cannot be set up at the trial in support of the breach alleged. U. S. v. Glenn, (1872) 1 Woods (U. S.) 400.

A demurrer to a declaration on the bond will be sustained when there is no averment that the principal was or had ever been appointed collector of any particular district, and the bond does not state for what particular district the principal was collector, though, if there be an averment in the declaration of the district for which he was appointed, the declaration, with such a bond, would be good, with a further averment that, in regard to the duties of that district, the collector has been guilty of default covered by the terms of the bond. U. S. v. Jackson, (1881) 104 U. S. 41.

Sec. 3144. [Collectors to be disbursing agents.] It shall be the duty of collectors of internal revenue to act as disbursing agents of the Treasury for the payment of all expenses of collection of taxes and other expenditures for the internal-revenue service within their respective districts, under regulations and

instructions from the Secretary of the Treasury, on giving good and sufficient bond, with such sureties, in such form, and in such penal sum, as shall be prescribed by the First Comptroller of the Treasury, and approved by the Secretary of the Treasury, for the faithful performance of their duties as such disbursing agents; but no additional compensation shall be paid to collectors for such services. [R. S.]

Act of March 3, 1865, ch. 78, 13 Stat. L. 483.

The above provisions were substituted by Act of March 1, 1879, ch. 125, 20 Stat. L. 328, for the section as originally enacted. The only change was in the introductory words. The section as originally enacted read: "It shall be the duty of such collectors of internal revenue as may be designated by the Secretary of the Treasury to act," etc.

In other respects the provisions are identical. This section does not make all collectors of internal revenue disbursing agents, but only such of them as the secretary of the treasury may direct. Stapp v. U. S., (1868) 4 Ct. Cl. 222.

The bond required by this section is separate from and additional to the bond as collector, required by the preceding section. Hall v. U. S., (1881) 17 Ct. Cl. 39.

Sec. 3145. [Collector's salary and allowances.

This section was as follows:

"SEC. 3145. There shall be allowed to collectors, in full compensation for their services, and for those of their deputies, a salary of fifteen hundred dollars per annum, to be paid quarterly, and, in addition thereto, a commission of three per centum upon the first hundred thousand dollars, of one per centum upon all sums above one hundred thousand dollars and not exceeding four hundred thousand dollars, and of one-half of one per centum on all sums above four hundred thousand dollars and not exceeding one million dollars, and of one-eighth of one per centum on all sums above one million of dollars; such commissions to be computed upon the amounts by them respectively collected and paid over and accounted for under the instructions of the Treasury Department; except that in determining the compensation to be allowed to any collector the commission shall be computed on only one half of the tax received on any articles which shall have been transported from his district in bond, and on only one-half of the tax received on any articles received in his district in bond, where such transportation has been by shipment from one district to another. And there shall be further paid, after the account thereof has been rendered to and approved by the proper officers of the Treasury, to each collector his necessary and reasonable charges for advertising, stationery, and blank-books

Superseded.]

used in the performance of his official duties, and for postage actually paid on letters and documents received or sent, and exclusively relating to official business; but no such account shall be allowed unless it states the date and the particular items of every such expenditure, and is verified by the oath of the collector. The Secretary of the Treasury may make such further allowances, from time to time, as may be reasonable, in cases where, by reason of the territorial extent of the district, or the amount of internal taxes collected, or other circumstances, it may seem just to make such allowances. But the total net compensation of a collector shall not in any case exceed four thousand five hundred dollars a year; and no collector shall be entitled to any portion of the salary pertaining to his office unless he shall have been confirmed by the Senate, except in cases of commissions to fill vacancies which happen by death or resignation during the recess of the Senate." Act of June 30, 1864, ch. 173, 13 Stat. L. 231; Act of March 3, 1865, ch. 78, 13 Stat. L. 469; Act of July 13, 1866, ch. 184, 14 Stat. L. 106; Act of March 2, 1867, ch. 169, 14 Stat. L. 473; Act of March 2, 1867, ch. 166, 14 Stat. L. 445; Act of March 3, 1873, ch. 226, 17 Stat. L. 494.

The above provisions appear to be superseded by the provisions in the text following.

[Compensation and allowances of collectors.] That there shall be further paid, after the account thereof has been rendered to and approved by the proper officers of the Treasury, to each collector, his necessary and reasonable charges for advertising, stationery, and blank books used in the performance of his official duties, and for postage actually paid on letters and documents received or sent and exclusively relating to official business, but no such account shall be approved or allowed unless it states the date and the particular items of every such expenditure, and shall be verified by the oath of the collector; Provided, That the Secretary of the Treasury, on the recommendation of the Commissioner of Internal Revenue, be authorized to make such further allowances, from time to time, as may be reasonable, in cases in which, from the territorial extent of the district, or from the amount of internal duties collected, it

may seem just to make such allowances; but no such allowance shall be made if more than one year has elapsed since the close of the fiscal year in which the services were rendered. But the total net compensation of a collector shall not in any case exceed four thousand five hundred dollars a year; and no collector shall be entitled to any portion of the salary pertaining to the office unless such collector shall have been confirmed by the Senate, except in cases of commissions to fill vacancies occurring during the recess of the Senate. [20 Stat. L. 330.]

Sec. 3146. [Accounts of collectors adjusted according to fiscal year.] In adjusting the accounts of collectors, accruing after June thirtieth, eighteen hundred and sixty-four, and in the payment of their compensation for services, the fiscal year of the Treasury shall be observed. [R. S.]

Act of July 13, 1866, ch. 184, 14 Stat. L. 106.

Sec. 3147. [Apportionment of compensation of collectors.] When any part of the compensation of the collector of any district is by commission upon assessments of collections, and, in consequence of a new appointment, is due to more than one collector within the same year, such commissions shall be apportioned