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List of papers transmitted.

No. 1. Offer of J. J. Merritt to raise the steamer Scotland.

No 2. Report of General S. Van Vliet, deputy quartermaster general, relative to the steamer Scotland.

No. 3. Report of the Quartermaster General, dated December 27, 1866, returning the memorial of the marine underwriters of the city of New York, relative to clearing the obstructions in the channel at the entrance of the harbor of New York.

No. 1.

COAST WRECKING Co., 65 WALL STREET,
New York, December 16, 1866.

DEAR SIR: In answer to your note asking me to make an examination and report to you the cost of removing the wreck of the steamship Scotland, lying at the Outer Middle, below Sandy Hook, so as to clear the channel from all obstructions of ingress and egress, I beg to report:

That I have made an examination of the said wreck; that she is an iron vessel of 430 feet long, 38 feet beam, 33 feet hold, lying on the Outer Middle, directly in the track of vessels entering the port of New York from the south and east. She is imbedded in the sand about fifteen (15) feet, and parted amidships about five (5) feet; her decks are about even with the water.

After a careful estimate, I believe that it will require about $150,000, in addition to what may be realized from the saving of the wreck, to complete the removal of the said wreck, and make the channel free from all obstructions as before, and I will agree to remove the wreck for the above sum, completing the work to the entire satisfaction of any properly appointed party, or forfeit all pay.

Yours, truly,

JOHN D. JONES, Esq, President, &c.

J. J. MERRITT.

No. 2.

QUARTERMASTER'S OFFICE,

New York, December 24, 1866.

GENERAL: In obedience to your instructions of the 21st, to ascertain and report what it will cost to remove the wreck of the steamer Scotland, now lying at the entrance of New York harbor, I have the honor to state that I have consulted with different parties in this city familiar with such business, and they inform me that it will cost $150,000 to remove any portion of the vessel. I enclose herewith a letter from the president of the Coast Wrecking Company, who offers to remove it for that sum.

My impression is that it can be removed at a cost of $100,000, and that it will be found, when thrown open to competition, that the lowest bid will not exceed this sum.

It would be well probably to ask for the larger sum, so as to secure the removal beyond all chance of failure.

The

papers forwarded are herewith returned.
I am, very respectfully, your obedient servant,

Bvt. Maj. Gen. M. C. MEIGS,

STEWART VAN VLIET, Brevet Major General and D. Q. M. G.

Quartermaster General U. S. A.

No. 3.

QUARTERMASTER GENERAL'S OFFICE,

Washington, D. C., December 27, 1866.

SIR: I have the honor to return herewith a memorial of the marine underwriters in the city of New York, asking that an appropriation of money may be made sufficient to remove the wreck of the steamer Scotland on the bar outside of Sandy Hook, which has been referred to this office for report.

In reply, I have the honor to transmit herewith the report of Brevet Major General Van Vliet, deputy quartermaster general, who states that upon consultation with different persons familiar with such matters, it will cost $150,000 to remove the obstructions; an offer to do the work for this sum is herewith enclosed.

General Van Vliet is of the opinion that the wreck can be removed at a cost of $100,000 if thrown open to competition.

The papers in the case are herewith returned.

I am, very respectfully, your obedient servant,

Hon. E. M. STANTON,

Secretary of War.

M. C. MEIGS,

Q. M. G., Bet. Maj. Gen. U. S. A.

I certify the foregoing papers to be true copies.

WM. D. WISE,

But. Brig. Gen. and A. Q. M.

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A resolution of the House of 4th January, transmitting a report of the Commissioner of Internal Revenue, relative to collections in the first district of lilinois for penalties assessed therein during 1866.

JANUARY 14, 1867.-Referred to the Committee of Ways and Means and ordered to be

printed.

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TREASURY Department,

January 12, 1867.

SIR: In reply to a resolution of the House of Representatives adopted on January 4, requesting me to communicate the amount of internal revenue collected in the first collection district of Illinois for each month in the year 1866, and the amount of penalties assessed against any one person, firm, or company in said district, with the amount remitted by the department at Washington in each case, specifying the instances where the remittance has been made upon the recommendation of any particular officer or officers in said district," I herewith transmit a communication from the Commissioner of Internal Revenue, with an accompanying schedule, embracing all the information called for which it is in the power of the department to furnish.

Respectfully yours,

Hon. SCHUYLER COLFAX,

H. McCULLOCH, Secretary of the Treasury.

Speaker of the House of Representatives.

TREASURY DEPARTMENT, OFFICE OF INTERNAL REVENUE,
Washington, January 11, 1867.

SIR: I have the honor to acknowledge the receipt of your communication of the 5th instant, transmitting a resolution of the House of Representatives, which calls for information relative to amount of internal revenue collected in the first collection district of Illinois for each month during the year 1866, the amount of penalties assessed against any one person, firm, or company, and the amount remitted by the department at Washington, during the same period, upon

recommendation of any officer, and requesting me to furnish such particulars as may be within my power to give.

I herewith transmit statement showing the amount of internal revenue collected within that district in the period named; also the amount assessed as a penalty by the assessor, or added to the tax by the collector, which, upon the application of the parties, accompanied by the evidence prescribed by regulations in such cases, showing said sums to have been erroneously or illegally assessed, have been remitted. This has been done in each instance upon the certificate and recommendation of the collector and assessor of the district.

The number of cases in which the assessor has added to the tax assessed against any one person, firm, or company, twenty-five, fifty, or one hundred per centum for fraud in the rendering of returns, or for failure to make such returns, or in which the collector had added ten per centum to the tax for failure to make payment thereof within the time prescribed by law, and the amounts of such additions, I am entirely unable to furnish, as they are assessed, collected, and deposited in the same manner and at the same time with the taxes, to which they are in addition, and no statement of such cases or amounts is required to be made to this office, and the requisite data is not, therefore, in my possession.

I also furnish statement of one case in which a portion of the amount paid in lieu of fines and penalties was refunded to the parties, as having been collected without authority and as extortionate in amount.

But one case of fraud upon the revenue, occurring in the district above mentioned, was compromised at this office during the year 1866, viz: the case of James A. Huch, a delinquent brewer, against whom an assessment of $5,272 20 was made for taxes fraudulently withheld by him. This sum, with $6,000, in lieu of penalties and forfeitures, together with the costs, was accepted in compromise of his liabilities.

Very respectfully,

E. A. ROLLINS, Commissioner.

Hon. H. MCCULLOCH, Secretary of the Treasury.

Amount of fines and penalties refunded from January 1, 1866, to December 31, 1866.

EAGLE MANUFACTURING COMPANY, 10 per cent. penalty...

Assessed for not paying the tax within the time required by law. This was incurred on account of a mistake of their cashier, whereby the payment was delayed two days; and as this was the result of a mistake, the amount was refunded.

B. LOWENTHAL, 10 per cent. penalty

The claimant was absent from the city when the tax should have been paid, and after his return was detained at home by sickness of his family, on which account the amount was refunded. HENOCH & BROTHERS, 100 per cent. penalty..

The law imposes 100 per cent. penalty for fraudulent returns upon the annual taxes, and but 50 per cent. for the monthly taxes. These parties (Henoch & Brothers) were assessed 100 per cent. penalty, when by law they were liable to 50 per cent. penalty. EINSTEIN & SCHLESINGER, 100 per cent. penalty....

$142 38

56 67

242 31

400 00

Were assessed 100 per cent. penalty, when by law they were only

liable to 50 per cent. penalty.

962 79

H. A. KOHN & BROTHER, 100 per cent. penalty.
Were assessed 100 per cent. penalty, when by law they were only
liable to 50 per cent. penalty.

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