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SIMON SCHLOSSMAN, 100 per cent. penalty...

Was assessed 100 per cent. penalty, when by law he was only

$916 67

liable to 50 per cent. penalty.

KUH & LEOPOLD, 100 per cent. penalty..

790 36

Were assessed 100 per cent. penalty, when by law they were only liable to 50 per cent. penalty.

KOHN, CLAYBURG & EINSTEIN, 100 per cent. penalty...
Were assessed 100 per cent. penalty, when by law they were only
liable to 50 per cent. penalty.

831 83

FURST & BRADLEY, penalty on manufactures.

Incurred by oversight, and was refunded because the party was
free from fault.

EINSTEIN & SCHLESINGER, fines and penalties...
These parties were manufacturers. They had made insufficient
returns. The aggregate of their deficiency of tax was $890.
This amount was assessed by the assessor with the additional
penalty of $800, a total amount of $1,690.

The assessor had reported the case to the United States district
attorney, with a statement that $7,000 fine, he believed, to be
sufficient. The district attorney, it was represented, con-
sented to waive proceedings upon the payment of that sum.
No legal proceedings were instituted against the parties, and no
compromise was made by the commissioner.

It was represented that the fine was extortionate; it was certainly regarded as very excessive, and $3,000, of the penalty of $3,500, deposited to the order of the honorable Secretary of the Treasury, was refunded.

36 70

3,000 00

7,379 71

All the foregoing claims were recommended by the assessor and collector of the district, excepting the last, which was allowed by the Secretary and Commissioner.

Statement of the amount of internal revenue collected in the first collection district of Illinois during the year 1866.

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MEXICO.

MESSAGE

FROM THE

PRESIDENT OF THE UNITED STATES,

IN ANSWER TO

A resolution of the House of 19th ultimo, relative to the occupation of Mexico by the American forces.

JANUARY 14, 1867.- Referred to the Committee on Foreign Affairs and ordered to be printed.

To the House of Representatives :

In compliance with the resolution of the House of Representatives of the 19th ultimo, requesting information regarding the occupation of Mexican territory by the troops of the United States, I transmit a report of the Secretary of State and one of the Secretary of War, and the documents by which they were accompanied.

EXECUTIVE MANSION,

Washington, January 14, 1867.

ANDREW JOHNSON.

DEPARTMENT OF STATE,

Washington, January 4, 1867.

The Secretary of State, to whom was referred the resolution of the House of Representatives of the 19th ultimo, requesting the President to furnish the House, "if in his opinion not inconsistent with the public interest, any further information in regard to the occupation of Mexican territory by the troops of the United States, which he may have received since he sent to this house his message of the 8th instant," has the honor to lay before the President the papers containing the information desired, as specified in the subjoined list. Respectfully submitted:

The PRESIDent.

WILLIAM H. SEWARD.

Mr. Romero to Mr. Seward.
[Translation.]

MEXICAN LEGATION TO THE United States of America,

Washington, 13th of December, 1866.

Mr. SECRETARY: For some days past the public press of this country have been publishing the report of a strange act, attributed to General Sedgwick,

commanding in chief the United States forces at Brownsville, State of Texas. It has been said that the general referred to sent troops of the United States, who occupied Matamoras, at the moment when that city was attacked by General Escobedo, to carry out the orders he had from the government of the Mexican republic; the necessary result of such occupation being, under the circumstances in which that garrison stood, to interpose great difficulty to its capture by General Escobedo, whose forces were, in consequence, repulsed with serious and lamentable losses. This narrative, with more or less details, has been confirmed by private letters. Besides, I hoped to have before me the official report of such occurrences in order to recur to you in presenting the complaints which the case should require.

Notwithstanding, I have not yet been able to obtain the official report which I wished for, and as I have no doubt that the facts treated of have substantially taken place, as the press has related them, I think myself obliged to call to them your attention, transmitting to you herewith the annexed extracts from the "Tribune," and the "World," of New York-correspondent with the 6th day of this month. Convinced, as I am, through various trustworthy reports, that the occupation of Matamoras, to which I allude, did not emanate from orders and instructions from the President of the United States, my object now is only to express the pain caused to me by this uncalled for occurrence, through the mischief it occasioned to the loyal forces of my government, no less than for the sinister constructions which the enemies of the Mexican republic might put upon it, by attributing it to a direct intervention of the United States in the domestic affairs of that republic.

I should assure you that I entertain well-founded confidence that the goverument of the United States will take the measures necessary to chastise all who are responsible for the acts to which I confine myself, and to avoid in future the repetition of the like.

I avail of this occasion to repeat to you, Mr. Secretary, the assurances of my most distinguished consideration.

Hon. WILLIAM H. SEWARD, &c., &c., &c.

M. ROMERO.

Mr. Seward to Mr. Romero.

DEPARTMENT OF STATE,

Washington, December 17, 1866.

SIR: I have the honor to acknowledge the receipt of your note of the 13th of December, in which you allude to a late proceeding of General Sedgwick, in taking possession of Matamoras and holding it for a few hours. I have to inform you in reply, that the proceeding of General Sedgwick was not only without authority from this government, but is understood by this department to have been in violation of the orders of his military superiors; that as soon as it came to their knowledge the proceeding was disallowed and countermanded, and that General Sedgwick was thereupon suspended from command and subjected to discipline. I am unable to write with precision upon the subject for want of full information; but I think there is sufficient ground for believing that General Sedgwick's error was committed under pressing importunities from persons residing in Matamoras, amenable to the government of Mexico, and that his indiscreet proceeding was regarded by him as favorable to that government, instead of being injurious to it, or likely to give offence.

I avail myself of this opportunity to renew to you my assurances of the highest consideration.

Señor Don MATIAS ROMERO, &c., &c., &c.

WILLIAM H. SEWARD.

WAR DEPARTMENT,

Washington City, December 27, 1866.

Mr. PRESIDENT: In reply to the resolution of the House of Representatives, dated December 19, 1866, respecting the occupation of Mexican territory by United States troops, hereto annexed, I have the honor to send herewith General Grant's report of this date, with three communications from General Sheridan, which contains all the information on the subject in possession of the department.

Very respectfully, your obedient servant,

The PRESIDENT.

EDWIN M. STANTON,

Secretary of War.

HEADQUARTERS ARMIES OF THE UNITED STATES,
Washington, December 27, 1866.

SIR: I have the honor to return herewith the resolution of the House of Representatives, Congress of the United States, calling for further information in regard to the occupation of Mexican territory by United States troops, &c., referred to me for report.

The only information on this subject, received at these headquarters since my report of the 8th instant, is contained in the enclosed copies of a report and telegrams from Major General Sheridan, of date December 10th and 11th

instant.

Very respectfully, your obedient servant, Hon. E. M. STANTON,

U. S. GRANT, General.

Secretary of War.

NEW ORLEANS, LOUISIANA, December 10, 1866. GENERAL: I have the honor to notify you of my return from the Rio Grande frontier. I have the honor to report affairs there in very good condition. On the 28th of November, General Sedgwick demanded and obtained the surrender of the city of Matamoras from General Canales, occupying it with about one hundred men. On the 30th he received my orders disapproving his action, and withdrew his men to our side of the river. The object of the occupation was for the alleged purpose of protecting American citizens, but the real facts are that he was made the cat's-paw of shrewd merchants of Matamoras, who wanted to secure the liabilities which were due to them from Canales before he was obliged to give up the city to liberal forces. General Sedgwick's action was without authority and in violation of written instructions as to the manner in which the grievances of American citizens in Matamoras should be redressed. I have relieved him from his command, in obedience to orders from the Secretary of War, and placed him in arrest, subject to further orders from the President. Matamoras passed into the hands of Escobedo on the 30th of November, and a better condition of affairs now exists on the Rio Grande frontier than has for the last eighteen months. A detailed report will be forwarded by to-morrow's mail.

General U. S. GRANT, Washington.

Official:

P. H. SHERIDAN,
Major General.

GEO. K. LEET, Assistant Adjutant General.

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