Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1876-09-29


Court. so that II would seem as ii there
might be general overhaulng of ae-
counts between the government and its
citizens in the interest of the former.
The circumstances of the case may be
briefly stated. The Hon. r. G.. Hazard of
Newport made no return Of his income to
the United States assessor for the year
| 1868, and the assessors assessed him as the
recipient of an income on which the legal
tax was 1859 so. To this fifty per cent
was added as the penalty for not making
return of his income under oath as the
law required. and Mr. Hazard paid the
whole sum, 81. 339 %, and probably con-
sidered that he and the government were
quits on that score. So the case stood I'M
til some time last year. when the United
Treasury department instituted suit
against Mr.. Hazard for the recovery Of
the difference between what he actually
paid as an income tax for 1868 and the
amount he should have paid on his aclua
income for that year. 1t is so alleged that
his income was so much in excess of the
assessment that he still owed the govern
ment Sl7,451.05.
Learned counsel were employed on
either side and it was recognized that the
suit was a test case The defence was, of
course, that the government having fixed
the assessment by proper officer and i'm
posed and collected the penalty for the
neglect to make return, was debarred
from recovery of anything more. There
was no dispute as far as the record shows.
of the fact that Mr.. Hazards income for
that year was such that the full tax would
have been over SIS 900; but it was main
tanned that the defendant had elected not
to make return, and had forfeited and
paid the penalty of that neglect. which
was an end of the matter, conclusive so
far as the government was concerned. On
the other hand, the government, main
tanned that the decision of the United
States Supreme Court in the case of the
Dollar Savings Bank against the United
States affirmed the right of action ia such
cases, Notwithstanding the action of the
penalty, and this view is sustained by the
circuit court. Judges Clifford and Knowles
presiding.
1t may then be presumed to be settled
that the government is not debarred from
investigating any case in which its officers
assessed the income of citizen during
the term when the income tax was laid, or
from bringing suit to recover what was
due and unpaid. No doubt there were
many such cases. 1t was not an uncom-
mon thing for men who were making
money faster than they cared to have
known, to elect TO make no return and pay
the penalty. They held the opinion ex-
pressed by Judge Sinnott in his defence of
Tilden. 1.-The statute gave the tax-pay-
er the option to take that course" The SUI
preme Court does not so regard it. 1t was
not an option, at least not in any such sense
as TO debar the government from collecting
at any time all that may be due. 1t was
a means of preventing the total escape Of
persons from payment Of income tax, and
undoubtedly was intended TO be used as a
means to compel all to make true returns
under oath in the way explained by
an assessor our columns dav or
two ago. 1t never was the intent Of this
law to provide way by which men might
escape just taxation. This decision effec-
tually dissipates the theory of an option,
theory which it is surprising that any
lawyer--any statesman-could have en-
tertained.
1t cannot fail TO be noticed that this
decision is applicable to the case of Gov.
Tilden. if the facts in his case are as
alleged. He made sworn return in the
year 1864 of his income for the years
1882 3, and thenceforth as long as the
income tax was levied made no return
but paid his tax on an assessed income
with the penalty. preferrng to do this
rather than take the trouble of making a
true return, under oath. 1t may have been
more convenient then bufthe government
has relinqushed none Of its rights to
percentage of his large profits during the
ten years of the imposition of the tax.
and it may be found advisable. in view
OF the information made public concern
ing his affairs, to institute a suit for. the
recovery of what he ought to have paid.
Senator Blaine's First Speech i'm