The midland journal. (Rising Sun, Md.) 1885-1947, 1910-02-25
CALLS CONGRESS-
TO THE RESCUE
Taft Wants Publicity In Tax
Returns.

Secretary OF Treasury Cannot Open
To Public Inspection The Returns
OF Corporations Unless An Appro-
priation or $4,000 Is Provided
For Clerical Hire Snake Found
y In A Former Act President Rem
ders An Opinion.
Washington. D. G.. Especially The
returns made by corporations under
the law imposing a tax of per cent.
on their net incomes are not to be
open to public inspection unless Con-
gress makes an appropriation specifi-
cally providing for accommodations
and clerical help for that purpose.
Somebody has discovered that an act
passed In 1882 expressly prohibits
the Secretary of the Treasury from
using any part of the appropriate
of 100000 made by Congress for
the expenses of collecting the cor
poration tax in the employment of
persons within the District of Co
lumbia.
President Taft Is of opinion that
Congress intended that the returns,
original and corrected, should Sbe
open to inspection as are court rec
ords, and in letter to the Secretary
of the Treasury he has suggested
that If the construction which seems
to him to be the right one is to be
carried into execution there must
be an appropriation of $4,000 for
the specific purpose. Following the
Presidents suggestion, Charles D.
Norton, acting secretary of the Treas
ury, has submitted to the Speaker
Of the House an estimate for an aD-
preparation to the amoi Mt stated.
Strong opposition had developed
to the publicity feature of the Cor
poration Tax Law and President Taft
and his advisers have frequently con-
ferred on the question of reaching a
basis Of administration of the act.
The issue now is squarely before
Congress and much interest Is mani
tested as to whether thct body in
effect will re-enact the existing pub
icity provision by granting the APP
preparation recommended.
President Taft's attitude and views
on the subject are voiced in the fol-
lowing letter to the Secretary of the
Treasury:
The White House,
Washington, Februs ry 16, 1910.
MY Dear Mr.. Secretary: On the
question as to the meaning of para
graph 6 of the Corporation Excise
Law, In section 38 of the tariff act
of August s, 1909, have very. little
doubt. It seems 20 me that it was
intended by Congress that the re-
turns. original and corrected, but
not the documents and evidence
taken upon Investigation, should be
open to inspection, as are court rec
ords.
II understand the difficulty that
presents itself to you, to wit: That
Congress, in the urgent deficiency
bill of August 5. 1909, appropriated
100000 for the expenses of collect
ing the corporation tax, and that 1t |
was assumed that this would enable
you to use proper part of the sum
for increasing your clerical and other
assistance needed to give the oppor-
tunity for the public inspection spe-
officially provided III the act. 1t will
require at least $4,000, properly to |
index and display the returns Of more
than 100000 corporations, to house |
them in rooms convenient to access
for the public and to provide clerks |
for the care and custody of them |
under such conditions.
1t now turns out, no lever, that /
by section A of the act of August
5, 1882, the Secretary of the Treas
ury is expressly prohibited from u.s.
ing any part of the appropriation of |
100000 made in the words of the |
statutes already quoted for the en-
ployment of persons within the Dis
trict of Columbia. In other wor is,
therefore, no appropriation exists |
with which to make the returns of |
public record available |
for public inspection in any different
manner from that In which other in
ternal revenue records are public
records.
In my judgment, the failure to
make a specific appropriation for the |
purpose was an oversight, due to
the superstition that the 100000
might be applied in part to the pur-
pose under discussion, and that 1t
was, as already said, the intention
Of Congress to make these records |
different from the the ordinary in |
ternal revenue records and really
subject to general public inspection.
But with the situation as it is,
nothing remains to be done except |
FOR you to state the case to the |
House of Representatives, where ap-
bills are properly intro
iuced, and to suggest that il the
which seems to me to
be the right one is to be carried into
execution there must be an appro-
priation of $4,000 for the specific
purpose: and with a further state
ment that II no such appropriation
Is made the only course open to those
who are executing the law in the
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