Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-12-09
TREASURY DEPARTMENT BEAR
ING DOWN ON INSTITUTIONS
FOR PENALTIES.
LAWS OPENLY EvADEo
IN MANY INsTANcEs
Back Taxes and Penalties Will Amount
TO Millions Of Dollars and LssisIa-
ton. May Be Enacted to Give Relief
to Worthy HespitaIs-soms Institu-
tions Using Il by Barrel.
Especial Correspondence

Washington. Dec. 9.-Five hundred
hospitals in all parts of the United
States have been put in a most en-
barrassing and troublesome position by
the treasury department, which has
borne down upon them to collect taxes
and penalties for alcohol they have
been using in violation Of law.
For weeks, Commissioner Of Internal
Revenue Cabell has had agents work.
ing on this matter. He is taking steps
to collect the taxes which have not
been paid and the penalties The PEN
alties amount to the same as the taxes
under the law. Most Of the hospital
authorities of the country are in fer
ment over it and they are already
flooding congress with letters asking
for relief.
Under the law, hospitals have beerf
withdrawing from bond alcohol used
for certain purposes. The law allows
use Of alcohol free Of tax If it is en-
ployed to preserve specimens. Alcohol
SO used Is supposed IL DC 5e:sfnred
or made unfit for drinking. But the
treasury department found that some-
how or other about 100000 gallons a
year was being withdrawn from bond
and used tax-free by the hospitals.
Commissioner Cabell and his officials
wondered what was happening to 1t.
Investigation was made by revenue
agents and officials all over the coun-
try. 1t was found there was common
use of tax-free alcohol in hospitals for
all sorts Of purposes. even to the CIV
ing of alcohol baths. In other words
Nd nj
many cases were using alcohol that
paid no tax as freely as II the law per-
mitted the hospitals complete immun-
ity from payment OF the tax.
Used BY the Barrel.
In the case OF at least one hospital
1t was found there was barrel OF 1t
kept in a convenient place and that 1t
was used freely for bathing and kin
dred purposes.
Uncle Sam doesn't like to be mulct-
ed of taxes on alcohol even in good
cause and the word has gone out that
the hospitals who are delinquent must
pay back taxes plus penalty equal -
the taxes for period Of fifteen months
past.
The strange part Of the whole bust
ness is that it has been going on for
many years. Nobody knows how much
in taxes the government has lost.
Taxes Run Into Millions.
But even the taxes and penalties for
The last fifteen months will run M
probably into the millions. The inter
nal revenue bureau is obtaining in
formation as to what par: Of the 5000
900 gallons used by the hospitals an
nually free OF taxes has been used for
purposes other than the law permits.
In some cases, it is admitted that q
fourth Of the supply obtained free OF
| tax has been used for such purposes
as the law does not contemplate
Senator Hitchcock Of Nebraska and
Senator Cummins OF Iowa had a con-
ference on the matter. They are get
ting letters from hospitals in their do
main urging that something be done
to help them out. A bill exemptine
them from taxes imposed under the
new orders of the commissioner Of in
ternal revenue will be introduced and
probably a bill making the law more
liberal as to use of alcohol by hos
| pitfalls.