The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-11-01
"Wall Street" Is Com
pletely at Sea as to
Its Meaning.
AT THE SOURCE"
is CHIEF TROUBLE
Ruling Gives Rise to Endless
Confusion With Bankers, Cor
porstion Officials and Law
yers Unable to Solve Rid
dle-Machinery of Depart
ment Taxed to Utmost.

New York. October 31.-That part OF
New York. which is referred to o'vaguely
as wall Street" was in state of CON
fusion to-day For once in it's career,
Wall street did not know which 9syN
TO turn. The new income tax law be-
comes effective tomorrow, and Rome
OF the highest priced lawyers, bankers
and corporation officials In the world
confessed that they We're completely at
sea as TO its meaning.
Al O'Clock tonight, group or
men emerged from one of the largest
banks in the downtown district in tho
group We're tho presidents and vice
presidents OF the bank. They had just
concluded the last OF n series OF lengthy
conferences, which have been held every
evening this week after business hours
The subject OF all these conferences
was the income tax law
Were swimming In the mud" said
one of these officers. exprcssively. For
!: day or two | thought | was coming
TO know what was meant b. the in
come tax law, and the Treasury regu-
lations concerning it, but now I'm con
vinced that | hardly know anything
about them and my fellow officials
know Less
Chief Source of Trouble.
The chief source OF trouble is that
portion of the Law which provides for
the collection lat the source" OF the
tax on income derived from interest
on bonds, mortgages and certain other
obligations. Banks and corporations
are required TO withhold this tax in
making payments of interest due to
holders OF securities. Moro than $50,
100000 is due tomorrow In November
I interest payments in New York.
4 The ruling In question has given rise
TO endless confusion. In cases in which
! bonds are not registered, the names OF
1f 1. q
the banks Or fiscal aEenin - whom
coupons are presented for payment.
Certain exemptions are allowed under
tho law. Six classes OF exemptions
have been defined. Every lawyer and
hank official in New York has had his
life made a burden By clients, who
wish TO know which OF the six forms
OF exemption apply to their particular
cases There are no preccdents TO APP
lply. For tho last two weeks Wall Street
/ has been flooded with booklets, dia-
/ grams. charts and pamphlets purport-
ing 10 summarize and clarity the law
\ Newspapers have printed many col
umns Of interviews with bankers and
/ lawyers Some banks have sent ont
printed instructions TO all their clients
regarding the procedure for claiming
exemption. The result of this delrce
has been to leave the average investor
more confused than ever. Appeals to
lawyers avail naught. as the lawyers
/ themselves are in doubt
/ Wires Kept busy.
/ The wires TO Washington have bccn
kept busy the last fortnight with an.
peals 10 the Internal Revenue Depart.
/ nent for help. Last Saturday a SET OF
/ instructions was issued. On Monday
\ IL was said, the regulations would be
/ changed ON Tuesday, ii was said
there would be no changes Since then
! there has been no further light. To.
/ night there was q deep-seated sus.
| picion in the quarters affected that
! Washington was nearly as much In the
/ Wall Street itself
1t is practically a foregone conclu.
sion that payment OF large part o.
me $4,000, 600 interest duo tomorrow
VIII be deferred, pending solution OF
| the riddle
! Whatever the outcome. 1t is pre-
4 dlcted that many suits will he insti-
j tuted against the government To test
I the law. Some of the leading iusur-
ance companies have questioned that
+ feature OF the law which imposes tax
! on corporate holders of State or munl-
! cipal bonds eXompting individual
] holders
i The provisions OF the law requiring
! employers to withhold tho tax on sal
aried employees receiving more than
/ the exempt amount. and in respect to
/ the tax on rents to he withheld by
tenants, also will take effect to-mor-
row. but they present few immediate o
4 problems. Additional regulations COW
/ ering these features OF the law are
/ soon to be issued by the Treasury De-
J Dartment