Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-05-20
DISMAY At oTHE TREASURY
Officials Demoralized by the Income Tax
Decision.
Far-Re"chinR aPd seriou. Effect. in
Many Directions of the Wiping
Out Of the Law.

The officials OF the internal revenue bu-
reau who were charged with the execu-
tlon OF the income tax law are very much
demoralized by the action of the United
States Supreme Court today in declaring
that law unconstitutional. Months and
months have been spent in preparing the
intricate machinery for the collection Of
the tax, and 1t Is now in full operation in
all parts of the country. 1t will not be so
difficult to stop the further progress of
the machinery as it will be to undo and
read5ust the work that has already been
done. Nearly $4,000 mas already been col
lected and covered into the treasury.
Although there is no question that this
money will have to be refunded, there IS
considerable doubt as to the proper legal
method of doing it. Commissioner Miller
and other officials are firm in the belief that
1t VIII require special act of Congress to
refund the money. The money is now In
the treasury and cannot be taken out under
any circumstances, save through an appro-
priation by Congress.
Dismissals Due to the Decision.
According to one official the total amount
collected represents practically the outlay
to date en- account of the tax. This, how
ever, is believed to be an exceedingly low
estimate of the expenditures on this ac-
count.
One Of the immediate effects of the
courts decision will be the dismissal of the
entire force OF deputy collectors and clerks
employed under the income tax appropria-
ton. The law authorized the employment
of SOB additional deputy collectors. About
20 deputies We're appointed and are Low in
the field, collecting data. They will all have
to be recalled and dismissed at once. The
income tax division of the Treasury De-
partment, including a chief and a large
number
abolished as soon as the bureau is officially
advised of the action of the court. All the
money spent on stationery, printing, &C.,
will be dead loss
Commissioners Millcr's Views.
Commissioner Miller said to Star re-
porter this afternoon that he was not yet
prepared to discuss the effect of the court s
decision. The law had been declared I'M
constitutional, and that was the end of 1t,
so far as the bureau Is concerned. The
&C mmissioner said he did not know yet
what he would do about it. He would
Rave to see the decision first.
Effect on the Finances.
Considerable speculation is INDUCED in as
10 the enect OF the decision on the national
finances. and all sorts of predictions are
made. When the law was passed it was
estimated that it would add $4,000, 600 a
year to the revenues, and after it was
emascalated by the Supreme Court a few
weeks ago the estimated revenue from in
comes was reduced to Si5U0O, coo a year
Today's decision wipes this out and until
congress meets there is no way to make
up the deficit. In the absence of Secretary
carlisle there isfno, one at the department
to speak with authority on the subject, but
several subordinate officials say that the
ordinary revenues will be sufficient for ali
purposes until Congress meets in regular
session in December next.
MIR. Miller's Instructions.
Internal Revenue Commissioner Miller
has telesraphed all collectors of the inter-
nal revenue to forward at once TO his Of
flee all income tax returns and everything
else pertaining to the tax