New-York tribune., 1910-01-24
|>,Q TAX AGITATION
|.srC CASES BROUGHT.
.,,rsham Confident Cor
,;ou Act WU Stand.

a1fdsso"
..,,s concerning the new cor
gsci s'e ,assed by Congress as an
ss'p 70 the tariff act signed by the
August 5. 1909. are pouring
rss5eas - internal revenue collectors
Be - forwarded by the collectors
sss shu - for consideration; suits
FSsA','s ~s.,,yt,t as test cases in several
k.ae .be country. and through all
ss's = agitation the authorities who
So. a superintend the collection are
ss" Attorney General Wicker
as ssclared that he believes the
copstituiionai.
..,s city only few returns have
: an the blanks sent out by the
y H@S .sveral weeks ago. There are
- thousand corporations or joint
-.,eries n the district presided
y rhsrles ". Anderson. whose Of
.,e custom House. He has heard
-..,slv few complaints, and there
sP@-.;ne intention on the part Of the
.oncerned TO report and pay up.
- learned yesterday that the only
n - ufv there lAa NS ASA pONiA 9"-N@ O.
= in this city so far has been the
=. vnits brought elsewhere covered
- st issue. and hence litigation
-ors be superfuous. Thus, there
= csses begun in Boston, Chicago.
- and s.. Paul No amount OF
- however. VIII impede the collec-
he first years tax. as a decision
Trnited States Supreme Court. It
=, pointed out. cannot be handed
tine TO prevent II
,bs reports must be received by
and il IS expected here that there
sslsv until the last two weeks of
-srsining tine.
rrN-Fs FOR FALSE RETURNS.
Is no equivocation regarding the
s-sr+ 70 be meted out TO the corpo-
= f.fiing 10 report on-time. The reg
g ~ the tax. Section IS of the
4 -. n Part S. provide that refusa!
II .,,sef 10 report or a false or fraudu-
i -s-u-n. shall make the corporation,
4 rsNs 10 q fne Of not less than 81 ,0da
~ more than $4,000. And any per
i -so makes 2 false return shall be
u -- of g rnisdernesnor and liable to a
II. nj exceeding $1,000. or Imprisonment
Il ues5ing one year. or both
i :. ebiection 70 the law most often
- 10 the publicity part. 1t has
Il : srBlained by representatives of cor
--p-s that after The lapse Of a year
-s L their line OF business, not in
4 sted OF IL any way subject to the
-sr then look over the reports and
= rrch useful Information regarding a
-,eaor This objection forms a part
. trief fled IN every test case.
s scheme OF evasion has been spoken
nia Il believed II will be extensively
-sse5 There are so-calleG family cor
ssaoas. sometimes doing a very large
Elsss but Incorporated merely for the
h. q convenience. These viii often re-
the copartnership method. A cor
zasn manufacturing shoes on a very
n EgEle has signlfied the intention 10
Eavs, snd real estate concern will do
zus. Bur IL was said yesterday that
r vi have 10 pay the first years tax
sE
--ols business men sent g large delega-
70 see President Taft last month
z ne TX. They wanted its enforce
2 delayed until the law was passed
5y the Supreme Court They de-
Y t1at eminent lawyers believed that
&C. was unconstitutional. In four OBJ
1ns they went over the ground, laying
lAi stress upon the publicity feature.
did not so much object 10 the non
1ztion man seeing The reports as 10
greater corporations seeing the reports
2 lesser and thus being able 10 control
thoroughly the business IN which
were engaged.
ere has been much dispute regarding
z2ss-nent that the tax is an excise tax.
opposed 70 il declare that il cannot
ls1s a. excise tax by calling II so. To
o2ponents il is q direct tax. in line
ne one declared unc0nstitutionaI by
s-pfsre Court. n & measure Attor-
Ialsral WickeTsham answered this in
z-sian given z week ago.
4 TTCKERSHAM'S RULING.
Rickersham said that the income
goTernment bonds, Of which the banks
l'01i s7o9,000 600 worth. can be taxed.
= are he'd a security for circulation
e goFernment deposits. and will give
--ssa income Of about $3.50, 600 TO the
-2snt L was said by authorities in
-isSSlry Department that If any item
EaE income were excluded from constd-
a ne proposed tax would not be Ie-
q excise tax but q direct tax. This
not De constitutional unless Il was
-loneo among the states according TO
-aucn-
Attorney General said that the tax
af iaid on Tie bonds, but on the in
i -On Rem. M. Cabell, the Internal
--t Commissioner. at once sent addi-
4 @slfnctions 70 the internal revenue
@os based OF the foregoing. He ex-
-N right OF that the tax was not upon
''pe'y OF income Of a corporation,
i ''9eA company, etc, but was a special
y measured b. the annual net in
sach corporations, etc. The United
u. o'h1ho-ders in making their returns
-l-loe the interest received there
saoulo not be deducted from the
-ile Tor the purpose Of getting the
Andersen and other collectors here
--'e lnciosed with the blanks a copy
- ' and the explanation Of the Sec
J, = u-e Treasury. This makes clear
a., re corporations are expected 10
So '---s out toe blanks; every possible
- = answered a. length; il rehearses
a''ies for violation OF the act, and
IT, ',iloh 10 tie power Of the depart
-ethano the elucidation OF reports,
H.. ''''le the books and records when
aot Is 70 their accuracy.