The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-09
VIII Cut Down the Prospective Re.
ceipts at Least so Per Cent.
and Possibly More.
NEW BLANKS TO BE SENT OUT
AND REFUND MADE TO PEOPLE WHO
PAID THE ILLEGAL TAX.
Views of Attorney-GenernI OIncy and
ages of Rented Homes and Farms.

WASHINGTON, April S-Treasury Off
cials are greatly dispirited over the Su-
preme Courts decision in the income tax
cases. and while admitting that they have
no reliable data which to form an esti-
rate estimate, they express the belief that
the net result of the decision will be a loss
OF at least so per cent. in their receipts
from incomes. In some cities the loss will
be far greater than this. notably in the
city of Washington, where the loss is ex-
pected to reach 70 per cent. Washington.
however. is exceptionally renting city.
The proportion of rented houses In other
cities of the country also is very large. In
1890 the rented homes in New York city was
nearly "a per cent. of the whole. In Boston
it 81 per cent; in Brooklyn, 81; in Gin
cinnati, S0 and in Jersey City 81. In thS
other large cities the percentages range
down to SO at Rochester. In New York city
there were 292.s56 rented houses; in Phiadel-
pha, 157 SOB; in Chicago, 1886; in Brook
Iyn, 139040. The total number of rented
houses in the United Staets in 1890 was
112c4S which, during the last five years,
has undoubtedly increased very materially.
Dwellings,. however, represent only small
part of the capital invested in buildings of
every character which produce enormous
rentals.
Comparatively little was expected from
interest on State. county and municipal
bonds, but the total loss 1t is thought, will
not fa.- short of si5,o00,0o0 or $2O.oOo0oo for
thu first year, and this loss is expected to
increase rather than diminish in succeed
ing years should the law remain unrepealed.
The loss of this revenue however, is not
the only cause of regret among the offi-
Gals The fact that the court was evenly
, divided on the main constitutional ques@
ticns, it is expected. win result in almost
endless litigation, thus very materially add
ing to the expense of collecting the tax.
Nevertheless, the internal revenue officials
Will proceed at once to prepare supple
mental regulations to conform TO to-dsys .
decision, and from now on until next Nom
day. when the time expires in which re-
turns may be made, any returns In wnicn
incomes from rents and bonds are deducted
will be regarded as full compliance with
the law. Persons who haze alerady made
the law. Persons who have already maoe
their returns and paid the tax Will be aa-
y;sed OF the change in the regulations anu
as soon as possible the proporuoha'e
amounts of tax paid by each on rents ana
bonds will be refunded to chem unoer. tne
rer eral law which authorizes the Commls-
sioner of Internal Revenue to reiunu 'aNeS
Attorney-general Olney was much SUI, SUI,
,,rised at that part of the decision Whicn
exempts rents under the income taA' s 1As
to the section of the act relating 70 ponus
the Attorney general rather expected an
adverse decision, but he regards the action
of the court on the rent propositiuhh h,oh
having been taken on technicalities wnlcn,
he believes, will not stand the test test o1 law umef ef
ahn land On ali other points the gov
ernment, he believes has no serious cause se
for complaint. 1t is universally regreh..eu he,.
that there was not full pench 10 M Mnsar
the ti'e' case and should Justice Jackson resign
there is very good reason to believe ms ms
successor would almost certainly De trn, iano
ahSa 70 the law in which event anotner
test case would very soon be brought 10
corha comha d. presSdent on being asked this after
view of the decision of the supreme Court
extra session of Congress would be caiieu,
said that neither he nor the secretary OF
ne Treasury saw any necessity Tor such
action and that unless there Was he ad an un NO
~ that Congress would meet again be-
fore the time appointed for it's regular ses-