The sun., 1910-02-17
PUBLICITY CLAUSE HELD UP
No MONEY TO ENFORCE THAT
FART or CORPORATION TAN. .

Congress Seems wiling to stand Pat on
the situation and Let the Corpora
ton secrets Remain Unpublished.
Though TAFT Asks for the Money.
WARRINGTON. Feb. ie.-The teeth have
been drawn from President Taft's cor
porstion tax law, at least until Congress
aots. The President and his advisers
have discovered that Congress has sppro-
priated no money with which to index
and display tho returns from the corpora
tons. Congress. 10 10 true. did appro-
pirate 100000 for the expenses Of col
leoting the corporation tax but the
President has discovered law passed
by Congress back ip 1852 which he con-
strues as prohibiting the use OF any OF
this money for promoting the publicity
clause Of the corporation tax law. The
President intends until this condition OF
Affairs can be rsotifisd to treat the returns
from corporations merely as internal
rsvsnue returns, and thus the business
secrets extracted from concerns all over
the country win be accessible only to the
corporation or its attorney. or to such
persons as are authorized by the Pres-
dent
The President puts the entire situation
, squareiy up 10 Congress. The acting
Secretary OF the Treasury has written
a letter TO Speaker Cannon urging the
necessity OF the passage Of bill providing
a $4,000 appropriation for carrying out
the publicity feature OF the law. The
President holds that the intention Of Con-
gress when 1t passed the corporation tax
was to make the returns accessible to the
public. He regrets the failure OF Congress
10 provide specifically for this as an over
sight.
The Presidents announcement OF the
notification OF the publicity clause came
as a surprise. Corporations all over the
country have been objecting 10 this fea-
tUre OF the law and it is known that their
protests have given the President and his
advisers considerable concern. Nobody.
sowever, looked for an announcement
ihat the publicity provision OF the bill
would be suspended.
While the President puts the respons-
hiity for the oversight upon Congress.
members OF that body were inclined
tonight to hold the President and his
Pdvieers equally at fault They pointed
out that the corporation tax law had
been a strictly Administration mesasure,
that Congress never had been greatly
Interested in il, and that it had been
assed IN Difference to the personal wishes |
Of Mr.. Taft.
Considerable doubt was expressed |
tonight whether Congress will be willing |
70 shoulder the responsibility OF foisting |
This publicity clause ON the corporations,
now that an avenue Of escapeIs open.
One or two OF the leaders in the House |
said tonight that there Ia doubt il the 4
House will be able to make an appropria-
ton under the authority contained in |
the corporation law. At any rate any
attempt to supply the necessary $50. 900 /
is certain TO stir UP a big rumpus. and |
Congress has about a. much OF that sort |
Of thing now ~ Il wants.
Some members OF Congress did not |
hesitate to say that they believed this |
Administration was glad to accept the |
opportunity Of postponing the publicity /
fsaeure OF the corporation tax. at least |
'int1 the Supreme Court has had an
opportunity to pass on the constitution
Atty OF the law. There are already six
or seven oasee pending before the Supreme
Court and they VIII come for up argument
within few weeks.
Here Is tho letter Sc by the President
to the Secretary of the Treasury annotmc-
ing his decision in the matter:
TEE wHITE HOUSE,.
WASHINGTON. February 10.
Mt DEAR SEcRETARY: On the question
as, 70 the meaning Of paragraph OF the
corpora ton excise law in section 3s OF the
iaftn act OF August s, 1909. have very
little doubt. Ii seems to me that 1t was
Intended by Congress that the returns,
original and corrected. but not the docu-
ton, should be open 70 inspection, as are
court records.
understand the dificulty that presents
Itself to you. 70 wit. Ehat Congress in the
Urgent deficiency bN of August 5. 1909.
appropriated 800, 900 for the expenses of
collecting the corporation tax and that it
va assumed that this would enable you
70 use a proper part Of the sum for increas-
ing your clerical and other assistance
needed to give the opportunity for the
public inspection specifically provided In
The act It will require at least $4,000
properly to index and display the returns
Il more than 4OO. 900 corpora tions. to have
them in rooms convenient OF access for
the purpose and TO provide clerks for the
care and custody Of them under such condi-
ions |,
II now turns out, however. that by sec
ton Of the act OF August S. 1882. the
secretary OF the Treasury IL expressly
prohibited from using any part OF the
appropriation of 500. 900 made in the words
~ the statute already quoted for the EN-
ployment of persons within the District
~ Columbia. In other words. therefore,
m appropriation exists with which TO
make the returns OF corporations q public I
record, available for public Inspection In !
any different manner from that in which
Other internal revenue records are public |
ecords
The supreme Court OF the United States '
pas held that the Secretary Of the Treasury
may by regulation provide that the other
.nternal revenue records shall be open
70 he inspection only Of the taxpayer or
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