The Washington herald., 1910-02-17

! sViia NltuLl tue AtlstFtCt CT ANiuihua III btlitt
words therefore, no appropriation exists with which
70 make the returns Of corporations public record.
available for public inspection in any different man
ncr from that in which ether internal revenue rec
ords are public reconls.
supreme Court Decision.
The Supreme Court Ct the United States has held
tlat the Secretary OF the Treasury may by regulation
provide that the other internal records shall
be open 10 the inspection only Of the taxpayer. OF
his properly constituted attorney. OF such persons as
may b. specifically authorized BY order Of the Pres
/ dent or the Secretary ot the Treasury; and such
records aTe uniformly regarded as executive dOcu-
meEts the information in them have been obtained
under compulsion for the purpose OF raising revenue
| In my Judgment the failure to make specific
appropriation for the purpose was An oversight due
to the supp0sitlon that the $4,000 might be ap-
phed II part TO the purpose under discussion and
that II was, as already said the intention Of Con
sreSs to make these records different from the
ordinary internal revenue records and really subject
u general public inspection. But. with the situa-
uon as II IS, nothing remains TO be d0ue except f
you TO state the 10 the House Of Representa-
tiyes where appropriation bills arc properly intro
seems 20 me 10 be the night one Is to he carried
irto execution there must 10 appropriation OF
5000 for the specific purpose. and, with further
statement that If no such appropriation is made the
only course open TO those Who are executing the law
IN the department viii he 10 treat the returns as
ether internal rcTenue records. Sincerely yours.
WILLIAM Ii. TAFT.
The Secretary Of the Treasury.
Secretary NOrtOn's Letter.
This is the letter in which Acting Sec
retary of the Treasury Charles d. Norton
asked the Speaker of the House for
$4,000 appropriation:
The Speaker Of the House Of Representatives:
Sir: / have the homer 20 transmit herewith for
fTa rlararf Of
appropriation Of 5000 from the Commissioner Of
Internal Revenue and 10 call your attention to the
fact that paragraph e the eorporation excise law
section s. o. the tariff act Of August 5 1853 Is as
follows:
'Whep the assessment shall be made as provided
IN this section. the returns together with any cor
Iecticus thereof which may have been made by the
commissioner OF lnternzd Revenue shall constitute
pubic records and b opsn 10 inspection as such"
II Congress intended tie returns TO be public rec
Gds iu the Office Of the Commissioner Of Internal
Revenue such as court records deeds, wills. &c
an appropriation by Congress Of at least SO6O0.
available fT Use in the District Of Columbia is re-
quired for the reason that the act q August 5
lso-' prohibits the employment Of persons within
the District Of Columbia by any Of the. executive
departments subordinate bureaus thereof excert
as specifically appropriated for by law
The urgent deficiency bill Of August 5 1902 appro-
puated 10000 for the expenses Of collecting the
corporation tax. but did authorize the exrendi-
IN.
and all Of this Appropriation IS necessary for use
outside the District Of Columbia. To provide the
space IN which 10 make open to public inSpe0tiou
the returns cf more than 800 0c9 corporations 10 in
deX them, and 70 provide clerks for their care and
custody, requires. above stated an appropriation
Of at least S500O0
Regulations of the Treasury.
The Secretary Of the Treasury has uniformly NO
yided by regulation that internal reyeuue records
shall be open 10 the inspection only # the tax
payer cr his properly constituted attorney or such
person as may te specifically authorized by order q
the President the Secretary Of the TreasIrv and
such records are uniformly regarded as executive
documents, the information in them having been
obtained under cOmpuls0n for the purpose Of raising
revenue. The supreme Court Of the United States
has upheld the right of the Secretary Of the Treas
ury 20 make such leglation3
In the absence Of the approximation above de-
scTIbed the Secretary II the Treasury viii treat the
corporation tax returns as other internal revenue r.
turns treated.
For Mr.. MacYeagh, I an
Respectfully, yours CHARLES D. NORTON.
Acting Secretary.
Announcement was made last night
that the Treasury Department would Sc
sue regulations in regard to the cor
poration returns to-day. In view Of the
decision reached by the President and
Mr.. Norton, these regulations no doubt
Will be TO the same general effect as
set forth IN the correspondence. that tax
payers, attorneys, and properly author
lied officials alone shall have access TO
the returns