The Washington herald., 1913-11-04


impossibilty of swearing ahead of the
'end Of the year as to what ones net
income will be at the end of the year. In
order to get the benefit OF the exemption
from deduction at the source during the
year. Is thus illustrated:
aThe return Of income must be made
by oath or affirmation. with a penalty OF
a fine not exceeding 5000. or iuprison-
ment not exceeding a year, or both, Tor
any or fraudulent return or statement
with intent TO defeat or evade the as
sessment. How many individuals viii be
able to swear TO the amount of their
gross incomes ana TO the deductions al
lowed at any time before the close OF
the calendar year in which the incomes
accrue TO them and the payments or
losses that are to be considered in
making the deductions are metz
"A friendly suit by way Of Injunction
against the operation of the income tax
should be brought Immediately says the
Record, because of the inpossibilities
OF the law and in order 10 test it
From the Journal Of Commerce: "A
man has bond on which he is entitled
to collect $40 interest for six months.
He should get it free OF tax. but 20 cents
is held back because he has not proved
that his income is less than S,eOe IN
the usual American fashion he VIII let
that 20 cents go because it is not worth
the red tape necessary to get it back,
and the government viii have an enor-
nous unclaimed fund on hand one OF
these days that will create scandal in
the usual way,if the system Of collect
ing this tax is not reformed
Corporation Pays Tax. :
.erbe United States Steel Corporation
paid its coupons without making any de-
.ductions. That Is not right. 1t will
paw the tax 70 the government at the
expense of the shareholders. though the
bondholders are presumably quite as rich.
N the tax is paid on the whole interest
outlay the management will give the
government too much and will rob the
shareholders at the same time. Such
a system defeats the object of the income
tax, which is TO add to the burdens Of
the rich while exempting those less able
TO pay
Those who are fortunate enough to be
liable for income tax should pay it direct
to the government Corporations paying
interest and dividends might reasonably
be asked to furnish lists Of shareholders
and bondholders and names Of payees Of
coupons to enable the government tax
collectors to check up their work. But
to impose the great cost of collecting the
ana IcSpOuSlDull. pdSSAlA6 Ou
claims of exemption from it on private
corporations is beyond reason and seems
clearly Illegal 1t is still worse to de-
duct the tax from payments to people
not liable for it. AS II is, payments, in
terest, and dividends could not be made
in full in many cases and 1t will be days
before the confusion resulting from the
first attempt will be righted."
Local Securities.
Sales yesterday, included 1870 shares of
stock and $4,000 bonds The exchange
will be in session this noon, as usual,
despite closure in New York.
Prices were generally easier: in fact
wouId-be buyers are asking recessions;
and while holders are slow to yield, they
give away fractions. save on Railway
common. which is held very strongly
and well thought of. The usual bid
failed TO, develop selling orders.
Railway preferred, steady at So.
Capital Traction sold at new low,
ia 1-e, and the closing was ia 3-sa1l4 SIS.
showing close connections for possible in
creases in trades
Gas was weak at 81. 1t is probable that
the suits in the gas situation may cause
some nervousness
Railway Is were in demand, starting at
50 is and advancing on sales Of nine ad-
dftional bonds to a strong closing at 81.
Traction SIS, 107 3-4a1W rs.