The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-06-01
CORPORATION TAX UNDECIDED
TEE SUPREME COURT ORDERS 4
REHEARING or THE CASE.

Reserve N tire Treasury Running Low and
ne oaa.OO0.OoO Il Needed Govern
msnt 10 &c o. Coliectng the Tax
COaEt Probably Divided hy 4 70 ..
WARRINGTON. May N.-Ths Supreme
Court this afternoon restored 10 the docket
fOg roargument the sixteen cases brought
TO tost the legality Of the corporation tar
Law. This means that the cases oanno,
come uP before the middle Of October,
and possibly later. Il pOsiponos the de-
CiaiOn in these important cases for Al least
siE months, and possibly more
Meantime the Treasury Department
will fnd itself in an unoqmfOrtable situa-
ton owing TO the delay. The Treasury
ofElcialS will be in the attitude Of collect
Ing tar under law whose constitution
atty apparently is doubted seriously by
a part u not a majority Of the court
The tar Ia due to-mOrrow. and the Depart
msnt intends TO 20 ahead and make col.
lsctiOns. eniorcing the penalty in cases
where the tar 10 not paid The tar. IL
has been estimated. will Yield abou,
s1o.O0oOO The Government will be
obliged 10 ray this amount back Il the
law finally is held to be unconstitutional
The collection Of the corporation tax
and it, repayment, out Of the Treasury in
the event Of the decision going against
the Government will be practically
analogoSs 10 conditions which existed
when the income raN law was enforced
In 1884 In thai case the Government had
collected only about o. OOO when the Su-
preme Court held the law unconstitutional
The corporation tax will be refunded
II necessary a. was the income iax money.
under the general provisions Of section
1.270 81 the Revised Statutes. which pro-
vides that any tAI collected without
warrant Of law shll Le returned by the
Commissioner OF Internal Revsnus The
money will be repaid automatically
without any special Appropriation.
Ia the income tar case there was no
delay iu the Fefunding 81 the money
and officials Il the Treasury Department
say that paymsnts oil he Just a. prompt
in the corporation tar cases 4 the supreme
Court finally decides against the Law
The Treasury Department officials
declinei 10 saw today What provision
would be made Tor the repayment of the
l1a on. 0O0 u the court decision went
against them. but Il IL evident that such
= contingency would require a bond Issue,
The present working balance IN the
Treasury 10 about tlaOOOO0. and the
Treasury officials expect that Il will 60
down to about $40 600 ono during the month
Of June
The Treasury officials and other sup
pOTteFs Of the Administration are sfill
confident. however. that the constitu-
tiOnalty Of the law will he sustained
.ssd thss they-wiil not have to make any
emergency provision FOR he refuniins
of he 40 0D 0O
The action ~ the court was serious
disF ppointmrnt ~ tho Taft Administra-
ton II - the second biow tha' hss
e lien from the Suprema Court IN the
present administration The rpdocketirg
- tho STANDARD oil and tobacco trust
cases WIS Disappointing Q, the Admins
irruJn. bat Mr. Taft and his advisers had
ieli confident that they would ct a no.
Cisipn 10 'ne corporation tax cas~s
The POTION ~ the court means it - U'-
lieved that Il was divided q, ? on tho
cnsas Whether the four wore Tor o.
rxrinsi the Government ~ II oourss
unknoWn II j. believed that the court
decided IN these cases ~ IN the Standard
Oh aud tobacco trust cases. tnat they
wer~ ton important 20 10 dscided except
by majority ~ she entire membership
~ nine
The plstp0npment % the decision means
that Gov Hughes will he an important
factor in decidinE the corporation tax a.
well ~ the standard Ol and tobacco
trust cases
Two additional cases attacking tho
validity " the corporation tax have
already been assigned for argument on
October p the first day n the next term
and a. the cases restored to-day resume
their places we'll down on the calendar. -
will he necessary 90 advance them hy
motion Il the two sets ara n b. hea ri
together.
mr. nnaNE TUnnRg IgNH