Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-07-01
Federal OFFICE
HERE BES|EGED
BY TAX PAYERS
$500, 900 Received on Last Day
for Income and Corpora
ton Levy.

come tax. the office here of Internal
Revenue Collector Charles " Duffy
did a record business yesterday. It
was the last day to pay up, and, in
order to avoid being penalized, hun
dreds of citizens of the North Jersey
district descended in droves on the
federal office here.
The entire regular clerical force.
also a number of extra tellers and
clerks, were kept working at top
speed. There was no let-up with
nightfall, and some of the clerks were
still at their posts at daybreak today.
Collector Duffy was at his desk
until after midnight He was back at
work this forenoon at the usual office
hour for the opening Of the office.
In all 1850 payments, representing
total of more than $780, 900, were re-
ceived yesterday. penalty of 5 per
cent will be imposed on all those
citizens and corporations who have
not made their returns before July 1.
Payments at the cash windows of
the local Office were received until 5
p. m. yesterday, but checks and money
orders came in by mail, special de-
livery and messenger service as late
as 10 o'clock. 1t was an hour later
before the rush was ended. At that
time a score of clerks and assistants
from the Union National Bank re-
ported at the internal revenue office
and escorted Mr. Duffy to the bank
with a deposit of half million dol
lars. This was the largest amount
ever collected and deposited in one
day by the local office.
Fifteen thousand bills were sent out
by the local Office of the department
- nj tx.I n.
iect to the income or corporation tax.
These bills represented total of
about $2,000,000. OF this amount it is
estimated that fully M,600, 900 has
been received This represents about
so per cent of the bills sent out The
bills contained notices to the effect
that the taxes should be paid before
July 1, under penalty of per cent.
addition for failure to do so.
Ten Days of Grace.
The government, however, allows
ten days grace for delinquents. The
final limit for the payment of the
taxes is therefore not until July 10.
This was not generally known, and
as result a much larger percentage
of the returns have been collected
than otherwise would have been.
The force of clerks and bank tellers
at the revenue Office worked under the
guidance of Mr. Duffy and Homer c..
link, who today was succeeded as
chief deputy collector by John v.
link worked from o'clock yester-
day morning until after midnight di-
recting the Office force. Mr.. link,
though no longer officially identified
with the government Office was back
again at a. m. TO lend whatever as
sistance he could offer
The entire force of receiving tellers
from the Union National Bank helped
out in the internal revenue office last
night The bank is the official de-
posting place for the funds of the
department The tellers worked at
checking up the money for deposit,
looking over the checks and passing
upon the various questionable checks
and payments. This is the work they
would have had to do today at the
bank if it had not been done yester-
day and last night The investiga-
lions and checkings were made as the
funds were received.
The payments of corporation taxes
ranged from one cent up to $155, 200.
The latter sum was the largest single
amount 1t was rumored that it was
paid by the Prudential Insurance
Company. This could not be con-
firmed, however.
Many Paid One Cent Tax.
There were scores of taxes of only
one cent paid. 1t has been estimated
that it costs the department about
$3.50 to collect every tax. This is
true of the one-cent taxes as well as
the larger amounts. Thus the gov
eminent loses about S1.49 on every
one-cent tax 1t collected.
The majority of the clerks and en-
ployes left the office shortly before
daybreak. All were at work again at
Z a. m. today.
OF the 81, 500, 900 collected, not one
counterfeit coin or bill was found,
Scores of checks were returned be-
cause of non-certihcation or other
causes. Checks must be certified and
must be made payable on banks To-
Gated In Newark, New York OF Jer-
sey City.
Payments in Cash.
Within the last few days the ma
jority of the payments have been
made in check. This was contrary to
the practise used by the early pay
ers. Then most of the payments were
made in cash. This was true even
OF the COTpOTaLlOIlS. IL WAS SdlQ Ills
was done so that the banks could not
learn of the incomes of the individ-
uals or the earnings of the corpora
lions.
After the payments have all been
Strengthened out, the first thing to be
done is to make an investigation to
determine what percentage of those
receiving bills has paid. The receipts
are checked and those who were
billed and did not make payments
will be placed on a separate list for
investigation. On the lists will also
be the names of those whom the de-
partment thinks are trying to eyade
payment of the tax. These names are
received from many sources, includ-
ing anonymous letters, private tips,
disgruntled taxpayers and telephone
calls Every tip will be run down.
These names will be turned over to
United States internal revenue agents.
These men are specially trained in
vestigators.
The prosecution of those who have
tried to evade payment Of the taxes
or swear to false returns will be
in the hands of special agents.
Deputy Collector link declared to-
day that by July 10 probably more
than 95 per cent of the bills will have
been paid.