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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.]
Act of July 1, 1862, ch. 119, 12 Stat. L. 433; word “entitled," was substituted for “ is” in Act of June 30, 1864, ch. 173, 13 Stat. L. the section as originally enacted by Act of 224; Act of July 12, 1870, ch. 251, 16 Stat. L. Feb. 27, 1877, ch. 69, 19 Stat. L. 248.
District of Hawaii established, see HAThe word " was” in the last line, before the WAIIAN ISLANDS.
[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 there is no authority to arrange a number of of the Act, are those districts, respectively, states into a single district for the purpose in which the internal duties and taxes im of collecting the tax on a particular composed by the law upon all the subjects of modity. (1866) 12 Op. Atty.-Gen. 55. See taxation are collected in the manner and by (1863) 10 Op. Atty.-Gen. 467. the officers designated in the statute, and
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. [R. S.]
Act of July 1, 1862, ch. 119, 12 Stat. L. As +n the power of removal, see U. S. v. 433; Act of June 30, 1864, ch. 173, 13 Stat. Avery, (1867) 1 Deady (U. S.) 204. L. 224; Act of July 14, 1870, ch. 255, 16 Stat. L. 261.
Sec. 3143. [Collector's bond. 1 Every collector, before entering uron 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. v. Morrison, (1876) 3 Colo. 43; Pickering v. 225.
Day, (1866) 3 Houst. (Del.) 474. The above provisions were substituted by Covering duties of deputies. — A bond is Act of March 1, 1879, ch. 125, 20 Stat. L. 327, one provided for by the statute although it for the section as originally enacted. The guarantees the faithful discharge of their only change therein was in the addition of duties by all the deputies appointed by the the clause as to the giving of a new bond, collector, whereas the statute only requires beginning “ And he shall execute a new bond," a bond for the faithful performance of the etc.
collector's own duties, and a faithful accountThe bond is a contract for the indemnity ing by him for all public moneys which may of the United States alone, and not for the come into his hands. Laffan v. U. S., (C. Č. indemnity of private persons who may be in A. 1903) 122 Fed. Rep. 333. See also Chadjured by the wrongs or torts of the collector wick v. U. S., (1880) 3 Fed. Rep. 750. or his deputies. Clark v. U. S., (1878) 60 Ga. “Money paid for taxes past due and re156.
ceived by the collector as such, and for which The failure of the bond to state for what he gives a receipt as collector, specifying with particular district the principal was collector precision the taxes for which it is paid, is does not render the bond void. U. S. v. Jack public money," within the meaning of the son, (1881) 104 U. S. 41.
bond. King v. U. S., (1878) 99 U. S. 232. Duties imposed by subsequent statute. - Recovery on breach assigned. - In an ac“ The sureties of an officer, upon his official tion for debt on a collector's bond, when the bond, are liable for the faithful performance breach assigned is that the collector did not of all duties imposed upon the officer, whether faithfully perform his duties as collector, but by laws enacted previous or subsequent to received as such a certain sum, which he the execution of the bond, which properly be never accounted for or paid to the United long to and come within the scope of the par. States, dereliction of duty in not making colticular office, though not for those which have lections cannot be set up at the trial in supno connection with it, and cannot be pre port of the breach alleged. U. S. v. Glenn, sumed to have been within the contempla (1872) 1 Woods (U. S.) 400. tion of the parties at the time the bond was A demurrer to a declaration on the bond executed.” U. S. v. McCartney, (1880) 1 Fed. will be sustained when there is no averment Rep. 106.
that the principal was or had ever been apNot mere bailee – Embezzlement by deputy. pointed collector of any particular district, - In an action on a collector's bond it is no and the bond does not state for what pardefense that a deputy collector had embezzled ticular district the principal was collector, the money claimed to be due and owing from though, if there be an averment in the the collector. Public officers are not mere declaration of the district for which he was bailees of public funds, to be exonerated by appointed, the declaration, with such a bond, the exercise of ordinary care and diligence; would be good, with a further averment that, their liability is fixed by their bond. Pond v. in regard to the duties of that district, the U. S., (C. C. A. 1901) iii Fed. Rep. 989. See collector has been guilty of default covered also Soule c. U. S., (1879) 100 U. S. 8; U. S. by the terms of the bond. U. S. v. Jackson, V. Adams, (1885) 24 Fed. Rep. 348; Tiffany (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 pre scribed 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. In other respects the provisions are identical. 483.
This section does not make all collectors The above provisions were substituted by of internal revenue disbursing agents, but Act of March 1, 1879, ch. 125, 20 Stat. L. only such of them as the secretary of the 328, for the section as originally enacted. treasury may direct. Stapp v. U. S., (1868) The only change was in the introductory 4 Ct. Cl. 222. words. The section as originally enacted The bond required by this section is separead: “It shall be the duty of such collectors rate from and additional to the bond as colof internal revenue as may be designated by lector, required by the preceding section. the Secretary of the Treasury to act," etc. Hall v. U. S., (1881) 17 Ct. Cl. 39.
Sec. 3145. [Collector's salary and allowances. Superseded.] This section was as follows:
used in the performance of his official duties, “ SEC. 3145. There shall be allowed to col and for postage actually paid on letters and lectors, in full compensation for their serv documents received or sent, and exclusively ices, and for those of their deputies, a salary relating to official business; but no such acof fifteen hundred dollars per annum, to be count shall be allowed unless it states the paid quarterly, and, in addition thereto, a date and the particular items of every such commission of three per centum upon the first expenditure, and is verified by the oath of the hundred thousand dollars, of one per centum collector. The Secretary of the Treasury upon all sums above one hundred thousand may make such further allowances, from time dollars and not exceeding four hundred thou to time, as may be reasonable, in cases sand dollars, and of one-half of one per where, by reason of the territorial extent of centum on all sums above four hundred the district, or the amount of internal taxes thousand dollars and not exceeding one mil collected, or other circumstances, it may lion dollars, and of one-eighth of one per seem just to make such allowances. But the centum on all sums above one million of total net compensation of a collector shall dollars; such commissions to be computed not in any case exceed four thousand five upon the amounts by them respectively col hundred dollars a year; and no collector shall lected and paid over and accounted for under be entitled to any portion of the salary perthe instructions of the Treasury Department; taining to his office unless he have been except that in determining the compensation confirmed by the Senate, except in cases of to be allowed to any collector the commis commissions to fill vacancies which happen sion shall be computed on only one half of the by death or resignation during the recess of tax received on any articles which shall have the Senate.” Act of June 30, 1864, ch. 173, been transported from his district in bond, 13 Stat. L. 231; Act of March 3, 1865, ch. and on only one-half of the tax received on 78, 13 Stat. L. 469; Act of July 13, 1866, ch. any articles received in his district in bond, 184, 14 Stat. L. 106; Act of March 2, 1867, where such transportation has been by ship ch. 169, 14 Stat. L. 473; Act of March 2, 1867, ment from one district to another. And ch. 166, 14 Stat. L. 445; Act of March 3, there shall be further paid, after the account 1873, ch. 226, 17 Stat. L. 494. thereof has been rendered to and approved The above provisions appear to be superby the proper officers of the Treasury, to each seded by the provisions in the text followcollector his necessary and reasonable charges
ing. for advertising, stationery, and blank-books
[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.]
This is from the Act of March 1, 1879, ch. be reasonable, is one vested in his discretion, 125, sec. 2, 20 Stat. L. 329, “ to amend the both as to time and amount. He may make laws relating to internal revenue," and an allowance one year, and refuse it the next, amends section 13 of the Act of Feb. 8, 1875, or he may never make it at all. Hall v. U. ch. 36, 18 Stat. L, 309, so as to read as above. S., (1875) 91 U. S. 565. See also Patton v. The only changes were in the substitution of U. S., (1871) 7 Ct. Cl. 371; Ryan v. U. S., the words " if more than one year has elapsed (1881) 17 Ct. Cl. 47. since the close of the fiscal year in which " for “ But when he has, in the exercise of that “except within one year after; ” and in the discretion, granted a ' further allowance,' and substitution of “occurring” for “which may the same has been paid to the officer, he has have happened by death or resignation.” no more legal right to exact a return of any While no mention is made in either of these portion of it than he would have if the sections of R. S. sec. 3145, the latter, as well amount had been fixed by law and paid.” as a portion of section 3147, seems to be Patton v. U. S., (1871) 7 Ct. Cl. 371. superseded by the provisions of the Acts of No appeal lies from the decision of the 1875 and 1879, as given above and as herein secretary of the treasury, as to the making after set out.
further allowances, either to the accounting A collector is an officer in a branch of the officers of the treasury or to the courts. Hall public service, with a salary fixed by law. v. U. S., (1875) 91 U. S. 565. (See section 1765, R. S.) Landram v. U. S., In Herndon v. U. S., (1879) 15 Ct. Cl. 446, (1880) 16 Ct. Cl. 84.
the court said that the fact that under secWhen compensation begins. -- It was held tion 3145, R. S., the secretary of the treasury that the title to the compensation to which
made an allowance to collectors on account a collector was entitled under section 34 of of the employment of deputies did not change the Act of July 1, 1862, accrued when he was the relation of the parties as fixed by statappointed and acted, and not from the time ute, or create any privity of contract on the of taking the oath and filing his official bond. part of the government with the collector's U. S. v. Flanders, (1884) 112 U. S. 88.
employees. This case arose before the pasThe compensation of collectors, under the sage of the Act of March 1, 1879, and the provisions of the Act of March 1, 1879, “ap
court said that the law and practice of the pears to be, first, that salaries shall be al treasury department in relation to the pay. lowed to collectors, graded according to the ment of the salaries of deputy collectors have amount of their annual collections, the mini been changed by that Act. See section 3150, mum salary being $2,000 and the maximum R. S., and Farden's Case thereunder, infra, $4,500; second, that in addition to the salary p. 564. See also Landram v. U. S. (1880) 16 a commission of one-half of one per centum
Ct. Cl. 85. on the taxes on spirits collected by sales of Effect of sections 3385 and 3386, R. S. tax-paid stamps shall be allowed collectors, As to the effect of the Act of July 20, 1868, provided that their total net compensation ch. 186, sections 73 and 74 (3385 and 3386, shall not be more than $4,500; and, third, R. S.), see U. S. v. Wilcox, (1877) 95 U. S. that the secretary of the treasury may make 661, in which case the court said that the further allowances, provided the limitation of Act of 1868 was plainly intended to throw $4,500 as the total net compensation of the around the removal of the manufactured tocollector is not exceeded." U. $. v. Landram, bacco greater security against evasion of pay(1886) 118 U. S. 85.
ment of the tax upon it than had existed beDiscretion of secretary. - The power to be fore, and in no manner attempted to deal with exercised in making such further allowances the subject of collector's commissions. to such collectors, from time to time, as may
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
between such collectors; but in no case shall a greater amount of the commissions be allowed to two or more collectors in the same district than shall have been authorized by law to be allowed to one collector, and the same rules shall apply to the salaries and commissions of assessors and collectors heretofore earned and accrued. But no payment shall be made to collectors, on account of salaries or commissions, without the certificate of the Commissioner of Internal Revenue that all reports required by law or regulation have been received, or that a satisfactory explanation has been rendered to him of the cause of delay. [R. S.]
Act of June 30, 1864, ch. 173, 13 Stat. L 232; Act of July 13, 1866, ch. 184, 14 Stat. L. 106. Part of this section is apparently superseded; see note under section 3145, supra.
Sec. 3148. [Deputy collectors.] [Superseded.] This section was as follows:
signed to him, which is by law vested in the “ SEC. 3148. Each collector shall be au collector himself; but each collector shall, in thorized to appoint, by an instrument in every respect, be responsible both to the writing, under his hand, as many deputies as United States and to individuals, as the case he may think proper, to be by him compen may be, for all moneys collected, and for sated for their services; to revoke any such every act done or neglected to be done by any appointment, giving such notice thereof as of his deputies while acting as such.” Act the Commissioner of Internal Revenue may of June 30, 1864, ch. 173, 13 Stat. L. 225. prescribe; and to require and accept bonds or It is apparently superseded by the proother securities from such deputies. Each visions in the following text. such deputy shall have the like authority, in Restrictions as to number of appointees, every respect, to collect the taxes, levied or see Act of March 3, 1885, ch. 343, infra, p. 570. assessed within the portion of the district as
[Deputy collectors - appointment, bonds, and compensation - salaries of collectors.] That each collector of internal revenue shall be authorized to appoint, by an instrument in writing under his hand, as many deputies as he may think proper, to be compensated for their services by such allowances as shall be made by the Secretary of the Treasury, upon the recommendation of the Commissioner of Internal Revenue. Allowances shall also be made in like manner for salary and office expenses of collectors, all of which shall be in lieu of the salary and commissions heretofore provided by law: Provided, however, That the salaries of collectors shall be fixed at two thousand dollars each per annum where the annual collections amount to twenty-five thousand dollars or less, and shall, by the Secretary, on the recommendation of the Commissioner, be graduated up to the maximum limit of four thousand five hundred dollars; which latter sum shall be allowed in all cases where the collections amount to one million of dollars or upward; and the collector shall have power to revoke the appointment of any such deputy, giving such notice thereof as the Commissioner of Internal Revenue may prescribe, and to require and accept bonds or, other securities from any deputy; and actions upon such bonds may be brought in any appropriate district or circuit court of the United States; which courts are hereby given jurisdiction of such actions concurrently with the courts of the several States. Each such deputy shall have the like authority in every respect to collect the taxes levied or assessed within the portion of the district assigned to him which is by law vested in the collector himself; but each collector shall, in every respect, be responsible, both to the United States and to individuals, as the case may be, for all moneys collected, and for every act done or neglected to be done, by any of his deputies while acting as such. [20 Stat. L. 329.]
This provision is from the Act of March 1, collector of internal revenue shall be author1879, ch. 125, sec. 2, 20 Stat. L. 329, “to ized to appoint, by an instrument in writing amend the laws relating to internal reve under his hand, as many deputies as he may nue," and amends section 12 of the Act of think proper, to be by him compensated for Feb. 8, 1875, ch. 36, 18 Stat. L. 309, which their services; to revoke any such appoint. latter section read as follows: That each ment, giving such notice thereof as the Com