The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-04-09
OFFICIALS DISPLRITED.
The Decision Means q Loss of Fifty Per
Cent of Income TG1es.

The Decision Means Loss of Fifty Per
Cent of Income TG1es.
WASHINGTON, April S.-Treasury off
Gals are greatly dispirited over the Su-
preme Courts decision on the income-tax
case, and while admitting that they have
no reliable data upon which to form an &C
curate estimate, they express the belief
that the net result of the decision will be
the loss of at least so per cent of the re-
ceipts from the incomes. In most cities
the loss will be far greater than this, not
ably the city of Washington, where the loss
is expected to reach 70 per cent.
Washington, however, is exceptionally a
renting city. The proportion of rented
houses in other cities of the country also is
very large. In 1890 the rented houses in
New York City were nearly "a per cent of
the whole. In Boston it was 81 per cent;
in Brooklyn and Jersey City, 81; in Gin
cinnati, so. In the other large cities the
percentages ranged down to SO at Roches-
ter.
The total number of rented houses in the
United Stated in 1890 was Is, 100, 487, which,
during the last five years, has undoubtedly
increased very materially. Dwellings, how
ever, represent only small part of the
capital invested in buildings of every char
acter. which produce enormous rentals.
Comparatively little was expected on
State, county and municipal bonds, but
the total loss, it is thought, will not fall
short of SIS 1000, 600 or $20,OOO,0O0 for the
first year, and this loss is expected to in
crease rather than diminish in succeeding
years should the law remain unrepealed.
The loss of this revenue, however, is not
the only cause of regret among the Off
Gals. The fact that the court was evenly
divided on the main constitutional ques-
ton, it is expected will result in almost
endless litigation, thus very materially
adding to the expense of collecting the
tax. Nevertheless the internal revenue Of
fcials will proceed at once to prepare sup
Elemental regulations to conform to to-
days 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 and bonds
are deducted will be regarded as full COM
pllance with the tax. 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 author
ICES the Commissioner of Internal Revenue
to refund taxes wrongfully collected.
Attorney-General Olney was much sur
prised 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 expected an adverse
decision, but he regards the action of the
court on the rent provision 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.
On all other points the Government, he
believes, has no serious cause for COM
plant.
1t is universally 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 favorable to the law,
in which event another test case would
very soon be brought to the court for de-
termination.