The Portland daily press., 1895-04-11
INCOME TAX QUESTION.
Many High Government Officials will
Contributed.
President and Judges Believed To Be
Exempted-Other officials VIII Be
"Docked" the Requisite Amount.

"Docked" the Requisite Amount.
Washington. April lO-The collection Of
the income tax on the salaries of Govern
ment officers who receive more than $4,000
year will probably be fraught with many
embarrassing complications. Already che
question has arisen as to whether it is con-
stitutional to deduct from the annual sal
ary of the president of the United States
$3.50 which will be his share of the contri-
button TO the revenue under the two per-
cent assessment. The federal Econstitution
provides that the salary of the President
shall neither be increased or diminished
during the period for which he is elected.
A deduction of the income tax from the
Presidents salary is construed to be dimi-
mutton and therefore contrary TO the con-
stitutional provisions quoted. b matter
undoubtedly will be brought to the atten-
ion of the comptroller of the treasury Tor
decision. The application Of the prin-
ciple given is the same with reference to
all federal judges app ointed for life. Their
salaries are.apparently protected from the
income tax by the constitutional provision
that their compensation is not to sbe dimiL-
ished during their continuance in office.
Federal judges appointed for stated
term will probably be obliged to pay the tax
through deductions of the requisite
amounts from their salaries. Nearly every
one of the officers of the government who
receive compensation of more than $4,000
per year have been busy since thesSupreme
court decision was rendered, making up
a statement of their income for transmits
sion to the collector OF internal revenue
in the district where he has legal resi-
dence. The President ia underst oon to have
sent in statement and Private Secretary
Thurber lost no time in doing likewise.
The collection of the tax for the year 1895,
by the reduction from compensa tion of the
government officers is operative Immediate
ly in the case of q number of officials. nota-
bly, all the am assadors of the United
States. the minister 10 Mexico and consul
general at London and Paris. The deduction
will be made from the first payment to the
officer after his Compensation has reached
$4,000 during The present year. There will be
no separation OF the taxable income re-
ceipts received fro2 the government and
private sources by the government officers
in leyying the tax.
Income Tax Has Few Friends.
New York. April 1O.-Charles Allen has
begun a suit in the Circuit of the United
States for the Southern District of New
York against President Fish and the direc-
tors of the Illinois Central Railroad oompa-
ny to prevent them from paying the govern
ment income tax of per cent on the earn
ngs of the company for the year ending
December 8. 1894. Mr.. allen says.in his COM
plant. that he is holder of five s lares of
the capital stock of the company. and lie
contends that the income tax is unconsti-
tutlonal beca it is direct tax, but if it
should be held it is not direct tax, then
he maintains the tax is uncollectable for
the reason that it is not uniform, many
of the stockholders of he Illinois Cen tral,
having incomes of less than $4,000, includ-
ing the dividend received from their stock
Maine Office Holders and Their Salaries.
Washington, April 1s-A statement pre-
pared at the Treasury Department shows
the salaries paid anunually to persons en-
ployed in the treasury at Washing gton ag-
gregafe 4.676.49S. The number of employees
from Maine is sixty-eight, and the salary
list is Sl05, ,95l
Run Without Regard to Law.
Washington. April l0.-A severe report
concerning the alleged fraudulent methods
of tie Fidelity Building Loan and Invest
ment association, and Fidelity Building and
Loan association and the Columbia Build
ing Loan and Investment associations.
which resulted in the arrest in Pittsburg
several months ago of the persons connect
ed with the organizations. made to
Judge Cox of the. District Supreme court
this morning by an auditor appointed by
that tribunal. The report says that the
three assooiations.::were run with absolute
disregard to law, the articles of the Consti-
tuition and all commercial interest, except
ing that of the officers Of the concern.