Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-02-17
BARRED TO PUBLIC
No Appropriation to Furnish
Corporation Tax Figures.
Mr.. TAFT WRITES LETTER
Suggests That Congress Be Asked to
Furnish $4,000.
BELIEVES IT WAS OVERSIGHT
Failure to Properly Legislate Makes
Necessary Special Act to Put
New Law in Force.
BELIEVES IT WAS OVERSIGHT

The returns made by corporations un-
der the law imposing a tax of l per
cent on their net incomes are not to be
open to public inspection unless Congress
makes an appropriation specifically pro-
viding for accommodations and clerical
help for that purpose. Somebody has dis
covered that an act passed in 1882 ex-
pressly prohibits the Secretary OF the
Treasury from using any part of the ap-
preparation of 100000 made by Congress
for expenses OF collecting the corpora
ton tax" in the employment of persons
in the District Of Columbia.
President Taft is OF opinion that Con-
gress intended that the returns. original
and corrected. should be open to inspec-
ton, as are court records. and in letter
| to the Secretary of the Treasury he has
suggested that IL the construction Whicn
| seems to him to be the right one Is TO
be carried into execution there must De
an appropriation of $4,000 for the SPECIFIC
purpose. Following the Presidents sus-
gestion. Charles D. Norton, acting secre-
| tary OF the treasury has submitted an es-
innate for an appropriation OF the
amount stated to the Speaker Of the
| House. .
Strong opposition had developed to the
publicity feature Of the corporation tax
| law, and President Taft and his advisers
have frequently conferred on the question
Of reaching a basis of administration OF
| the act The issue now Is squarely De-
| fore Congress, and much interest Is
manifested as to whether that booy, IN
| effect. will re-enact the existing publicity
provision by granting the appropriation
recommended.
Letter to Secretary.
President Taft's attitude and views on
the subject are voiced in the following
letter to the Secretary of the Treasury:
THE White House.
'.Washington, February ID, 1910.
| my Dear Mr.. Secretary:
ION the question as to the meaning or
ma "a rraph 6 OF the corporation excise
law. in section SO of the tariff act OF Au-
gust ), 1909, have very little doubt. IL
seems to me that it was intended by
Congress that the returns. original ana
corrected, but not the documents ano
be open to inspection, as are court rec
ords.
Il understand the difficulty that pre-
sents itself to you. to wit, that congress
1909, appropriated 100000 "for the ex,
penses Of collecting the corporation tax.
and that it was assumed that this would
enable you to use proper part OF the
sum for increasing your cieric a. ana nnl
Iportunity for the public inspection spe-
cifically provided in the act. 1t will re-
quire at least $4,000 properly to index
land display the returns of more than
100000 corporations. to house them IN
rooms convenient of access for the pub
lie and provide clerks for the care and
custody Of them under such conditions.
ut turns out. however. that by sec
ton 4 OF the act of August 5, 1882 the
| Secretary of the Treasury Is expressly
| prohibited from using any part OF the
appropriation OF 100000 made In the
words Of the statute already quoted for
| the employment of persons within the
| District of Columbia. In other words,
therefore. no appropriation exists with
which to make the returns Of corpora
lions a public record, available for public
inspection. in any different manner from
| that in which other internal revenue rec
ords are public records.
| believes It Oversight.
In my Judgment the failure to make
a specific appropriation for the purpose
was an oversight, due to the supposition
| that the 100000 might be applied In part
| to the purpose under discussion, and that
/ 4, u,oS &C already said the intention OF