The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-05-22
IN ASTATE OF WRECK.
That is the Condition of the
Taxing Power.
It is the Effect of the Income
Tax Decision.
so SAYS MR.. MORGAN.
Well Settled Principles Have
Been Torn Up.
20 SAYS MR.. MORGAN.

WASHINGTON, May 2S.-1ne income
tax decision, its effect upon the rev.
enues and the proba bilities of an extra
of congress to provide means for sup
plying the deficit were the chief sub
jects of discussion in official and polit-
ical circles yesterday. Senator Nor
gan, of Alabama, one of the ab1est
constitutional lawyers in the SEN
ate, said the decision leaves the
taxing powers of the government in a
state of wreck It will require a long
time to gather up the fragments. Prin-
ciples of taxation which were consid-
cred well settled are torn up by this
decision.
"How will the question come up in
the senate?''
''In connection with the question of
refunding the $75 900 already collected,
and the refund of the cotton, whisky,
beer and tobacco taxes. All these
taxes are as much direct taxes as the
tax on personality and as unconstitu-
tional according to Mondays decision
of the supreme court"
What can congress do?"
''Of course, replied Senator Morgan,
congress will have to accept the deci-
sion, but an amendment to the consti-
tuition is always possible"
Senator Faulkner, of West Virginia,
! said he thought there was no danger
of an extra session. He added: Gwen
with this loss of income there is a COM
Portable condition of the treasury. It
has to-day 500, 900, 900 surplus in addi-
ton to the gold surplus, and 1 am sure
that will be sufficient to last until the
meeting of congress"
70 r. T.
1ican, of Iowa, said: 1.-The tax was
not an unpopular one in the west.
| However, l think the court did we'll to
declare the whole act void after it had
been devitalized by the first Judgment.
| of congress now"
Members of the administration who
are undou btedly fully acquainted with
the presidents views and purposes
state unhesitatingly that an extra ses-
sion of congress is out of the question.
Nor is there the least likelihood of an
other bond issue. The treasury now
has balance of over 1892, 600, 900, which
| is available for all purposes, and this
amount is more likely to be increased
than diminished during the next few
months.
1t is argued the approaching fruit
| canning season is certain to make a
largely increased demand for sugar,
which, owing to the small supply on
hand, must be imported. The revenues
from this source are confidently ex-
! pected to reach several millions
and this, added to the large
amounts which very soon will
| begin to come in from renewed
liquor licenses, will largely augment
the revenues, even should the customs
not meet present expectations. All
licenses expire on June 80 in each year,
and Judging from last years revenues
the receipts this year from this source
will exceed Sc, 900, 900, which must be
paid within the next forty days.
In the meantime the expenditures
will be kept down to the lowest point
consistent with good business prin-
ciples. Commissioner Miller, of the
internal revenue bureau, will dismiss
at once every unnecessary person en-
ployed in connection with the income
tax at the earliest possible moment
and as soon as the returns can be classi
fed and tabulated so that the amount
to be refunded to each person who has
paid his tax is made apparent the bu
reau will be closed.
No uneasiness is felt at the interna
revenue bureau as to the danger of the
contents of the income tax returns be
ing divulged by employees Should
however. any emplove be detected il
making public any information he may
have obtained while in government
employ no time or expense would be
spared in bringing him to justice.