The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-02-07
It Is Thought the President
Would Make Concessions to
the Foes of the Publicity
Part of Law.
EXECUTIVE STIRRED
By SEC'Y M'VEAGH
He Believes That an Admins
tration Regulation Will Be
Enough to Cure the Fault
Under Protest.

Washington, d. c., Feb. 7.-Presi-
dent Taft will endeavor to make some
concession to the small corporations
which are fighting the publicity fea-
ture of the corporation tax. At the
instance of Secretary MacVeagh he
has consented to take the matter up
with that official and the attorney
general Immediately.
1t is not believed the president is
disposed to go to the extent Of recon-
mending any change in the law by
congress. He realizes that to do so
will mean the reopening of the tariff
question.
Democrats and low tariff congress-
men would welcome an opportunity to
attach tariff rider to corporation
tax measure. and in view of the fact
that the latter forms part of the tar
If law it's pertinency could not be
denied. Therefore it is entirely un-
likely that the president will ask con-
gress to consider the matter.
Another Method Possible.
1t is possible, however. the presi-
dent may be able to draw the teeth
of the Objectionable provision by ad-
ministrative regulation. That this
will be difficult matter the admins
tration recognizes.
The law is mandatory. It states that
the returns made by corporations
shall constitute public records and
shall be open to inspection as such.
t. L. thn a1v ofcf1
provide for that secrecy which the
small corporations want by defining
public records as records made for
the benefit only of the government,
and that no person, except by order
of the court or for good cause shown,
shall be permitted to examine them.
The corporations desire their returns
treated in the same way as those made
by the brewers, distillers, and others
in accordance with the provisions OF
the internal revenue laws.
The internal revenue law provides
that such returns shall constitute pub
lie records and shall be open to inspec-
tion under regulations made by the
secretary of the treasury.
The regulations of the secretary
make the returns subject only to Off
cial and legal inspection. 1t Is hoped
by Secretary MacVeagh that the presi-
dent will authorize him to make SINH
lar regulations in connection with the
enforcement Of the corporation law.
Intent Is Shown by Order.
That the administration has no in
tention of suspending the operation of
the law, as desired by representatives
of the corporations, until the supreme
court has passed upon the constitution
ality of the statute, was shown today
when the commissioner Of internal rev.
enue issued the following order to col
lectors of internal revenue:
The attention of collectors Of in
ternal revenue and others is called to
the provisions of section 80 of the act
OF Aug. 5, 1909, requiring corporations
Joint stock companies, associations and
insurance companies, subject to the
special excise tax therein imposed. to
render the prescribed return of their
gross and net income for the calendar
year 1909 on or before the first day OF
March, 1910. and to the penalties i'm
posed by the eighth paragraph Of said
section IS, for neglect or refusal to rem
der such return, or for rendering a
false or fraudulent return.
ION receipt of this circular collect
ors will. so far as possible. and with
out further expense to the government,
see that notice of these provisions of
the law are given through the public
press to all such corporations, joint
stock companies. associations and in
surance companies.
Postmarks in Evidence.
"Where the prescribed returns are
received after March 1, 1910. the en-
velopes bearing postmarks showing
the time Of mailing shall be preserved,
each attached to the return contained
therein and forwarded as part there
of to this office.
LAS stated in article 6 of regulations
No. 81, blank forms for making the re-
quired returns will be furnished, on ap-
plication, by collectors of internal rev.
enue, and q failure to procure such
blanks and to make the required re-
turn within the prescribed time will
not relieve the corporation. Joint
stock company. association or insur-
ance company. from the penalties i'm
posed for a failure to make such re-
turns"