PRINCIPLES OF TAXATION. 153 



manner, upon the brass runners, the tips, the ribs, the cloth com- 

 posing the cover, the elastic band which fastened the cover when 

 closed, the rubber of which the band was composed,, the button to 

 which it was attached ; and finally upon the umbrella itself, when 

 the separate parts were aggregated, and thereby converted into a 

 finished product. And if any of the constituents of the umbrella 

 as the ivory, the silk, or the metal were of foreign production, 

 the same were subjected on coming into the country to an import 

 duty in addition. 



In the case of books and pamphlets, it was proved by the New 

 York Publishers' Association that, including the license and in- 

 come taxes, the finished book and its constituent materials paid 

 from fifteen to twenty separate and distinct taxes before it 

 came to the reader the paper and its constituents, the cloth, the 

 glue, the starch, the leather, the slaughtered animal whence the 

 hide furnishing the leather was obtained, the dyes with which 

 the cloth or leather was colored or stained, the thread, the gold 

 leaf, the type metal, the type, and the printing machinery ; and 

 then, when the whole was combined, the finished book paid an 

 additional tax of six per cent, which was levied not upon the cost 

 of manufacture but upon the price at which the book was sold. 

 In addition to all these taxes, the manufacturer or publisher paid 

 for the privilege of doing business an annual license tax, and an in- 

 come tax of from five to ten per cent on his profits, if he had any. 



In short, it was as if a frontier line had been drawn about each 

 individual article or product in the nation, across which nothing 

 could pass without being submitted to an exaction. 



Besides these taxes on manufactured products of the character 

 specified, a tax of from three to six per cent was imposed on re- 

 pairs when the value of the article repaired was increased by the 

 reason of the repairs to the extent of ten per cent ; and a further 

 tax of six per cent on what was termed " increased values," or the 

 additional value given to any article, which had either paid an 

 import or internal tax, by being "polished, painted, varnished, 

 waxed, gilded, oiled, electrotyped, galvanized, plated, framed, 

 ground, pressed, colored, dyed, trimmed, or ornamented." 



The examples of difficult and nice adjudication experienced 

 in enforcing these two classes of taxes are so curious as to justify 

 somewhat more than a passing notice. Thus, if a worker in tin 

 or iron made a stove at one hour and in the next hour repaired a 

 stove to the extent of more than ten per cent of its value, he paid 

 on the product of his first hour's work a tax of six per cent, and 

 on his second three per cent. In like manner, a blacksmith making 

 a taxable article, and then repairing one exactly like it, was liable 

 to the payment of the two classes of taxes ; and the theory of the 

 law, furthermore, was that both the tinsmith and the blacksmith 



VOL. XLVIIl. 11 



