No. 240.

Mr. Hartley to Mr. Fish

Sir: I have to acknowledge the receipt of your letter of August 28, inclosing a copy of the opinion of the Attorney General on the question [Page 540] of the amount of taxes due from the sum appropriated for the payment of an award to the Puget Sound Agricultural Company. You ask to be informed whether any tax for the use of the United States, as imposed by any act of Congress, has been legally assessed upon any of the property of that company covered by the award in question.

I herewith transmit in reply a copy of a letter from the Commissioner of Internal Revenue, to whom the subject was referred for report.

In view of the result of the Commissioner’s investigation, I am enabled to state that this Department is not informed of any unpaid assessment of tax due the United States, against the property of the Puget Sound Agricultural Company.

Respectfully, &c.,

J. F. HARTLEY, Acting Secretary of the Treasury.

Mr. Douglass to Mr. Boutwell

Sir: Yours of the 28th instant, inclosing letter of the honorable Secretary of State with the opinion of the Attorney General upon the question “what taxes if any are to be withheld by this Government from the sum appropriated for the payment of an award to the Puget Sound Agricultural Company, by the act of February 21, 1871, required by the treaty with Great Britain of July 1, 1863,” is acknowledged.

You request me to state whether any such taxes have been legally assessed and remain unpaid to the United States. I perceive by reference to the second page of the “opinion of the Attorney General,” that your inquiry relates to taxes assessed before the “award” was made. It not appearing at what time the award was made, I have caused investigation to be made with reference to the entire period covered by the operations of the internal revenue system, and find that no taxes have been assessed during that period on the property of the Puget Sound Agricultural Company which remain unpaid at the present date.

Respectfully,

J. W. DOUGLASS, Commissioner.

Memorandum.—For the correspondence of the consul of the United States at Hong-Kong, see China.]