New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-03-22
THE COLLECTORS ANSWERED.
ELIHU ROOT AND OTHER LAWYERS AGREE
WITH THOMAS HARLAND.

AN ATTORNEY COMPETENT TO SPEAK on THE
INCOME TAX SHOWS THE ABscRDITY OF
SULLIVAN AND CROSSES CONTENTIOUS.
Euhu Root ex-surrogate Daniel G. Rollins and
other lawyers Of experience and prominence IN thiS
city have lately given opinions in support OF tne
opinion of Thomas Harland. recently published fuy
IN The Tribune that under the Constitution OF the
United States collector of internal revenue canno;
delegate TO a deputy the du.y OF making the re-
turns for income tax for persons when the persons
declare their willingness to disclose the particulars OF
their business occupation In the instructions 10
collectors under the Income Tax law appears the
following:
II any person liable to pay an income tax for
himself or Others shall fail make and deliver The
return required by law. but shall consent TO diScose
tho particulars of business or occupation Iao,e
pay such tax 1t shall be the duty OF he eOevr r
or deputy collector to make such list or return
signed and verified by oath or affirmation by the
person liable to make said return: the saIne may
be received the list or return of such person
The lawyers declare that this provision OF the
law cannot be observed, because the making OF a
return under such circumstances is judicial act
which a collector cannot permit a deputy or as
sfstant to perform for him. and. as there are Jew
collectors. they would be unable to make returns
all the persons in their districts il they were
Obliged 10 make visit to each person
\ prominent and influential lawyer OF this city
who has given much of his time to a study Of the
Income Tax law. and has made a careful research
upon the Whole SUBJECT SdlH NesSIudH' ieANi'iio
10 the interviews with Collectors sullivan ana
Crosse. published in The Tribune:
Collector Sullivan says that a careful reading OF
the law will show that deputies have TO an prac-
teal authority and power as tne
Collector himself, and Collector Crosse says that
With some authority on the matter. and that the
law clearly gives the deputies the same power anu
ton taken by those lawyers who were referred 10
in The Tribunes editorial on Monday clearly rec0g-
niZes that the statute attempts TO cIothe me
deputy collectors with the same powers as the
or d but ny ASSET a s 1ea as ca only be
performed by pubic officers Congress cannot seos
them in deputy collectors who are not orlcers OF
the United States and that the statute is in so far
plainly void as in conflict with the Constitution
similar tactics were employed by some people
under the ola act, but the law was eyeniuaihg
public officers The Collectors memory seems TO
be little confused, for under the old law deputy
the functions in question. These duties under the
old act We're performed ny ass a was syenuay
enforced" that Congress passed an act author
izing the appointment of those assistant assessors
by The Secretary of the Treasury. 1870 &,
Collector Sullivan says that commSn ads ,,a is
taxpayers may refuse to make returns unless called
upon by the Collector because such construction
temperatures he does not seem TO appreciate the lac.
that the language Of the act in refeenGe 10
be construed in the same way now as then. 1n n
of rendering the act imperative. This city, at that
time had population not more than nan the pre- pre-
were then some POO assistant assessors ,,
Mr. Crosse says that there is absolutely nothns
in the act 10 justify the belief that persons can
refuse to make returns unless called on by tne
collector He has studied the act carefully, but
he apparently has missed that part OF Section -
which takes up and amends Section BIB of the Re-
vised Statutes That section makes it the duty OF
the officer call at the taxpayers residence OF
place of business for the annua! return ana directs
him If the taxpayer i absent to leave a note Ee,
ouiring the return be made within ten days, ana
fhe statute then proceeds follows: And II any
person on being notified or required as AFORESAID
shall refuse neglect 10 render such list or return
within the time required aforesaid. or whenever
any person who is required 10 deliver a monthly or
other return OF objects subject 10 tax fails TO DO SO
at the time required il shall be lawful Tor the col
lector TO summon such person. etc. II MI crosse
had read this section he would hardly have sati
that there absolutely nothing in the act 10 justify
the belief that persons refuse to make returns
unless called by the collector
Internal Revenue Collector Mckinney, OF Brook
lyn has received advices from Washington relative
10 the construction which he and his predecessor,
Mr. Heay, had put upon the income tax on cor
poratons. The Washington authorities have writ
ten him follows
You are advised that corporations are required TO
pay tax OF per cent upon all their net profits
where dividends declared and paid in excess or
the earnings of corporation. All of said divl-
distribution Of capital profits accumulated prior
the year in which return is made should no.
Abe included for taxation.