Crawford avalanche. (Grayling, Mich.) 1879-19??, 1895-04-18

rHE PRESIDENT URGED TO CON-
vENE CONGRESS.
People Are Confused Over the Supreme
Court Decision-Treasury Ofhcials
Will BE Surprised If the Whole
Consmunity Docs Not Dodge thc Tax.
Unjust to Business Men.

sonally by men of highest influence in
public affairs and avalanched with
weighty letters and kilograms urging him
to convene Congress in special session
for the repeal or correction of the income
tax law. These appeals are grounded on
the broad proposition that the law in its
present emasculated shape discriminates
with brutal injustice against the mercan-
title, manufacturing and bustling business
interests in general and in favor of the
coupon clippers and heavy owners of real
estate, who were especially aimed at.
They contend that the law rs 1t now
stands is so rankly and cruelty wrong
that common justice requires either its
immediate repeal or its amendment in
some form that will reach the rich classes
who are exempted from the payment OF
their share of the taxes. How the Presi-
dent will act in the premises cannot be
stated. He has permitted the statement
to be made with authority that he would
not call an extra session il the Supreme
Court annulled the act. but that was to
quiet the fears that the Government
might not have enough money to get
through the calendar year If deprived of
the revenue from the income tax.
The situation as it is now presented to
him is an altogether different one. 1t is not
now u question of revenue, but one of
grave injustice to hundreds of thousands
of men, who represent substantially all
there is to the business push, energy and
brain of the country. This is phase OF
the question he had not previously taken
into consideration, and there is NO telling
how he will look at it,
CurtaiIs Government Revenues.
High treasury officials turn brave
front to the world and publicly insist that
the income tax will yield a large revenue
in spite of its horrible mutilation by the
Supreme Court. In confidence they will
tell you that the law is as good as killed,
and that, instead of $15, ,000, 600 to $50, )
0O0, 600 revenue, they do not really expect
to drag in more than $1,000, 600 or S1O,-
100000, and will not be greatly surprised
il the amount should drop below the in
side figure named. Yhey admit that bust
ness men will be assailed by strong temp
tation to dodge the payment of n tax that
imposes a burden on them and relieves
those who are better able to bear 1t. They
will be pleasurably disappointed If the
whole community does not turn in and de-
liberately ''beat the tax by the discovery
of convenient offsets"
And then, again, here is a possibility
that confronts the revenue bureau: Sup
pose legal proceedings are instituted in
Federal Courts in several States to enjoin
the collection of taxes, new points being
raised. And then suppose the judges of
the lower courts should uphold the con-
tention and the Government take an ap-
peal to the Supreme Court. The Supreme
Court is tie on the main question of the
constitutionality of the law. Reverse the
position and let the Government be the
party making the appeal The appeal
would fail in that case as IT did in the
case just heard. That would leave the
remaining remnant of the law dead in
some parts of the Union and alive in 9TH
ers. If not. why not? Altogether the
situation is full of complexity and con-
fusion.
Instructions have been sent to collectors
of internal revenue all over the United
States to withhold returns made under
the income tax law until regulations can
be prepared at the Treasury Department
in accordance with the decision of the Su-
preme Court of the United States. tour
work is going to be much more difficult" ("
said the Commissioner Of Internal Reve-
nue., Sin consequence of the action by the
Supreme Court, and it may be quite n
while before we get matters Strengthened
out. Hence it was deemed advisable to
let the returns accumulate i'm the coilec-
ton districts rather than have them pile
up on us here mt Washington and neoessi-
tate double labor upon us. Advices re-
ceived from the collectors Office for the
District of Columbia and vicinity show
a remarkable increase Of returns of IN
comes. There has been a crowd of people
asking for blanks and information in re-
gard to the proper construction of the law
We have experienced a sort of overflow
here mt the department, too, and the mail
from all parts of the country has been un-
usually heavy. Particularly is this true
of the big cities in the East, where the
largest corporations are located. There
will be no difficulty encountered about
collecting the tax. inasmuch as the law
makes provision for levy against the
property of persons failing to comply with
the regulations issued by the Internal
Revenue Bureau. of course there is
remedy by an 'injunction, but pending
such procedure fhetaxes much be paid"
Views of Attorney General Olney.
$50 far M the lower courts are concern
ed" said Attorney General Olney, "the
division of the Supreme Court upon the
income tax law is ms binding as If the
whole court had been unanimous in it's
favor. / cannot believe any judge would
grant an injunction to prevent a collector
from collecting the tax on incomes derived
from other sources than rents or State
and municipal bonds In the face of the
Supreme Courts action. The only way l
can see by which persons who object to
paying the tax can secure judicial action
is by their paying the tax under protest
and entering suit for its recovery"