Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1895-04-09

the Dictum on Rents and About sI5.-
100000 Get OF by That on Bonds-some
Statistics of Large Cities-Attorney Gen.
eral Oiney SurprIsed-What He Thinks
of the Courts Ruling.
WASHINGTON, April y.-Treasury or
Gcials are greatly dispirited over the SUI
ispreme courts decision in the income tax
case, and, while admitting that they have
no reliable data upon which to form an
accurate estimate, they express the belief
that the net result OF the decision will be
loss of at least 80 per cent. in the re-
, .eipts from incomes. In some cities the
loss will be far greater than this, notably
in the city of Washington, where the loss
is expected to reach 7o per cent. Wash
inston, however, is exceptionally rent
ing city. The proportion OF rented
houses in other cities Of the country also
is very large.
Percentages OF Rented Houses.
In 1890 the rented houses in New York
city was nearly 81 per cent. of the whole;
in Boston i. was 81 per cent, in Brooklyn
81, in Cincinnati 50, and in Jersey City 81.
In the other large cities the percentages
ranged down to IS at Rochester. In New
| York city there were -S9 $50 rented
bouses, in Philadelphia l57 Sos in Chi
rago 156 556, in Brooklyn l29,0A0. The
| total number of rented houses in the
| United States in 1880 was !, ,l3), 49,, which
during the last five years has undcubted-
| IL increased very materially. Dwelling
houses, however, represent only small
part OF the capital invested in buildings
of every character which produce enor-
nous rentals.
| Fifteen Millions Less on Bonds.
Comparatively little was expected from
] interest on state, county and municipal
bonds, but the total loss. it is thought,
will not fall short of Sl5, 100000 or $2D,-
U00, 001 for the first year, and this loss Is
expected to increase rather than to di-
minish in succeeding years, should the
law remain unrepealed. The loss OF this
| revenue, however. Is not the only cause
of regret among the officials.
| Endless Litigation Looked For.
| The fact that the court WIS evenly di-
vided on the main constitutional ques-
tion. it is expected, will result in almost
endless litigation, thus very materially
adding to the expense of collecting the
/ tax. Nevertheless, the internal revenue
officials will proceed at once to prepare
| supplemental regulations to conform to
the decision, and from now on until next
| Monday, when the time expires within
which returns may be made, any returns
in which incomes from rents or bonds are
deducted will be regarded as u full COM
pliance with the law.
| Attorney General Olney Surprised.
| Persons who have already made their
returns and paid the tax will be advised
of the change in the regulations and as
soon as possible the proportionate
amounts of tax paid by each on rents and
bonds will be refunded to them under the
general law which authorizes the COM
missioner of Internal revenue to refund
taxes wrongfully collected. Attorney
General Olney was much surprised at
| that part of the decision which exempts
| rents under the income tax. As to the
section of the act relating to bonds the
attorney general rather expected an ad
verse decision, but he regards the action
of the court on the rent proposition as
having been taken on technicalities which
he believes will not stand the test of time,
and cannot remain the permanent law OF
the land
Regret for Judge Jackson's Absence.
On all other points the government, he
believes, has no serious cause for COM
plaint 1t is unanimously regretted that
there was not full bench TO hear the
case and should Justice jackson resign
there is very good reason to believe his
successor would almost certainly be favor
able to the law. in which event another
test case very soon would be brought L
the court for determination.