Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1910-06-29
SUPREME COURT
AIDS UNCLE SAM
DELAYED JUDGMENT ON coRpoR-
ALTON TAX LET'S GOVERN
MENT USE s2looo,ooo.
AND FEDERAL TREASURY JUST
NOW IS IN SORE NEED or
READY Cash.

A bank OF New York city. in its
monthly circular on financial con.
ditions. takes more conservative
view of the supreme courts post
ponement Of the corporation tax case
than is presented nom other sources.
1t says:
Tine postponement of the corpora
ton tax cases for a reheaTing, as an
nounced BY the supreme court. re-
lieves treasury fnanelu conditions
temporarily. No decisiSns at tAis
time are, in a way, as favorable TO
the Immediate financial situation as
if the court had disposed of the cases
in accordance with the governments
contentious. The delay oecasioned
by setting aside these cases for rear
gument will permit the treasury To
use in its current cash something
like S27,00Q,U 200 at time when it is
really needed, ard will result in de-
ferring he expected issue of either
Panama bonds or certificates of in.
debtedness for a considerable period.
II the taxes are not paid on or before
the end of this month penalty of 5
per cent. of the amount of the unpaid
taxes will at once attach, and there
will be a further penalty of I per
cent. month Until the payment is
made. These penalties are perhaps
the most drastic known to the inter
nal revenue laws and will likely re-
suit in prompt liquidation of the as
sessments already made by the com
missioner OF internal revenue. which
TO date are roundly S27,000,O00
"The supreme court after announc-
ing a rehearing OF these cases adj
iourned to meet October 10. AS there
are other great questions which have
been similarly postponed, awaiting
reargument before a fun court, they
will probably be heard first, with the
result that the corporation tax cases
may not be heard for some weeks aft
er the court convenes for the fall
term. After argument there must.
necessarily elapse period before the
opinions are ready to be handed
down 1t viii likely, therefore, be
midwinter, or, perhaps, the better
part of year, before the country
viii be advised as to whether the so
called corporation excise law is valid
or not. Meantime the treasury will
have covered the taxes into the gen
eral fund and will have the use of
the money quite as effectually, for
time at least, as if decisions favora.
BILE to the government had been rem
dered now.
There seems to be no escape from
the conclusion. however, that there
will be a bond issue of some kind
fnciSeut TO the enormous outlay on
account of the Panama canal Tue
amount expended on purchase and
construction of the canal to date is
s201.392, 900. of which s87, 309 900 has
been paid from the proceeds of the
sales of bonds, leaving s114.0S3,O09
expended out of the general fund of
the treasury and to be reimbursed
from the proceeds of bonds not yet
sold 1t has been estimated that the
canal viii cost to completion $685.
100000. According to this estimate
there yet remains STA 100000 to be
provided for its completion independ-
ent of any reimbursement to which
the treasury is entitled. AS it was de-
cared in the act of Augu-' S, 1909,
to be the policy of the government to
pay for the canal out of the proceeds
of bonds rather than out of current
revenues, it seems likely that the
balance of the bonds authorized but
not yet issued. amounting TO $500,
$4,000. or some considerable part Of
them. while the work IS in progress
may be placed upon thu, market
THE treasury has done exceedingly
we'll during the last six or seven
months in avoiding an issue of bonds.
It is rather remarkable that for so
many months the total balance in the
general fund of the treasury has been
maintained at practically the same
figure. somewhere in the neighbor-
hood of sSO.0OO,0O0 Only careful adj
justments could have maintained such
equilibrium. Notwithstanding the
revenues show handsome increas.
of s4s.O00,000 for the II months OF
this fiscal year to date. as compared
with the same period a year ago,
there would yet have been an issue
probably of 3 per cent. certificates III
the departmental economies inaugu-
rated by the president had not been
carefully studied and rigid enforced
by members of the cabinet These
economies in some instances have re.
suited in very large reductions in ex.
penditures, the most notable of which
is shown in the work of the postoflce
department. A year ago there was =
postal deficiency of sf9,0T0.0O0, while
at this time It Is only 50. 4e5. 900. a
cut Of nearly ten millions in this ac-
count. which savors very much OF
real economy. II is understood thar
before the fiscal year is closed the
good work OF this department viii be
further evidenced BY another substan-
tial reduction. The war department
totals for the same periods show a
decrease Of $5.0000OO. to be accounted
for likewise by careful and painstak.
ing supervision Of expenditures.