Time: Wed Aug 20 07:57:23 1997
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Date: Wed, 20 Aug 1997 07:55:10 -0700
To: (Recipient list suppressed)
From: Paul Andrew Mitchell [address in tool bar]
Subject: SLS: source of "trust" #62  found (fwd)

<snip>
>
>jcdh@juno.com
>August 15, 1997
>Puerto Rico Special fund (Internal Revenue) 
>
>It has been pointed out that in 31 USC 1318,  number 62 in the listing of
>trusts, is "Puerto Rico Special fund (Internal Revenue)." The specific
>act of Congress that created this trust has never been cited by anyone to
>my knowledge.  Some have said that it dates back to around 1904-but no
>specific cite.  
> I assume that others, like I,  have looked in the Congressional statute
>books of 1904 and later, seeking the act that created this trust , and
>like me, have not  found it .  That it has not been found is evidenced by
>the usual statement that this trust dates back to around 1904.  I believe
>this is as the Philippine trust is of this approximate date.  They can be
>found so a  trust fund that cannot be found, and has a similar form of
>name and character as the Phillippine trust, is given the same
>generalized date.    The "Puerto Rico Special fund (Internal Revenue)"
>was created by  an act in 1900, specifically the fifty-sixth  Congress, 
>Chapter 191 section  4.   This section provides that duties and taxes
>collected in Puerto Rico be
>held as a separate fund from the general treasury.  It also states that
>these funds will later revert to the government of Puerto Rico .
>The revised statutes, index volume, 1874-1931 lists funds held in the
>"Treasury of the United States".  The "Puerto Rico Special fund (Internal
>Revenue)" is not listed .   Note the wording "Held in the Treasury of the
>United States." It is not listed as it was not, in 1931, being held by
>The Treasury of the United States. It was a "government " fund, but not
>held by the Treasury AT THIS TIME.  
>
>Chapter 756, June 26, 1934 says:  [20(a)]  "The funds appearing on the
>books of the government and listed in subsection  b and c shall be
>classified on the books of the Treasury as trust funds."  This Act did
>two things: 1)  all Funds held by the government  were assigned to the
>Treasury, and,  2)   it changed the name of  FUNDS to TRUSTS.  The list
>of Treasury-held Trusts is on PPS. 1223-4, includes, as #62,  Puerto Rico
>special  fund  (Internal Revenue). This 1934 Act trasferred the Puerto
>Rico special fund (Internal Revenue) from the category of a 
>government-held 
>fund to a Treasury-held trust.
>Note that it said they shall be "classified " as trust funds.  The trust
>is a contract between the maker and the trustees, singular or plural. 
>Saying that funds shall be classified as trusts does not make them into
>trusts.   The last portion of Section 4 of the 1900 Act,  provides that
>the moneys collected into this separate fund shall be later transferred
>into the Treasury of Puerto Rico.  When all the funds were transferred,
>it left a fund with a zero balance.  A trust normally goes out of
>existence when it has nothing to administer.  This is a "trust" in name
>only.  A fund with nothing to administer simply has a zero balance and
>may continue in existence as the Act forming it did not provide that it
>should go out of existance.   
>
>It appears that his is how trust fund No. 62, Puerto Rico special fund
>(Internal Revenue) came to  exist. No one  has found an act specifically
>creating this trust, because it is only a fund that was renamed and 
>transferred from "government" to "Treasury" control in 1934. 
>
>Additional information and other interpretations of this information are
>invited.  If you want photocopies of these documents, please let me know.
>   I know that in  certain definitions of title 27, Agents, etc. are " of
>Puerto Rico ", however I do not recall having seen any definitive
>information that shows that what we know as the IRS is, in fact, related
>to, or an operating front of  trust fund No. 62, Puerto Rico special fund
>( Internal Revenue)  If anyone has this information kindly let me know
>citations. Or where to look. 
>.
>Rusty,  please share with Eddie.                                         
>             jc 

========================================================================
Paul Andrew Mitchell                 : Counselor at Law, federal witness
B.A., Political Science, UCLA;  M.S., Public Administration, U.C. Irvine

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