The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-06-05

The Record Of an Unfortunate New
Enslander's Serious Offending.

A young New Highlander not many
years ago came into an inheritance of
$50, 900. Favored by this comfortable
independence he set Out to follow an
artistic career dear to his heart but
Of small advantage to his pocket. A
kinsman addicted to stock trading on
margins. thinking to do the boy a
good turn. advised the purchase Of a
certain stock on the same precarious
basis. Something went wrong and he
lost 100000 Of his $4,000.
The youth had a wife and two chill
dren, whom he had established on
a basis Of living measured by his
original principal. IT meant tearing
things up by the roots to get down
to tho reduced capital. SO he con-
cluded he must recover his lost prin-
cipal. He had been playing as an
amateur against the professional. He
would become a professional himself.
He would study the speculative game
and operate as a trader long enough
to recoup his losses.
He faithfully pursued the plan he
had mapped out. lie arose early and
worked late. and indeed mad progress.
He made stock study his business and
stock trading his constant pursuit.
He risked his money In trade. After
a year Of faithful effort he had re-
covered $4,000 OF his $4,000 loss.
Then the Lusitania went down and
$4,000 OF his remaining assets melted
away into thin air.
Now this unfortunate youth num-
bered among his possessions n cor
poration bond of small value. He con-
ceived II his duty as a Law complying
citizen To file with the collector an
income tax return. otherwise he
| might have remained in an %innocuous
%obscurity to this day. lie entered
! gross returns ron successful trades
in n sum close 10 5000. Against II
he set off some $50. 900 In gros. losses.
lie had less than no net income by
many thousands OF dollars and was
| ruined and well nigh %penniless into
the bargain. lie never questioned that
his debts would balance his credits
what was sauce for the goose mus
be sauce for the gander. Nor could
he conceive that one whom the world
from the days Of Baron Rothschild by
common consent had called "A trader"
was not engaged "in trade"
But the youth reckoned without his
host-and his host was the Commits
| sioner OF Internal Revenue. The lat
ter Is n frugal %provider and his busi-
ness Is to soc that the Government bin
f, IS kept filed. Why should he he ham,
pered by the mere language OF a stat
ute? Had he not the divine authority
OF Inter p~retation? Could he not. II
moved thereto. decree that a trader did
not trade? The Congress could make
laws. but the COMMISSIONS could
make rulings. II the lawmakers saw
III to take from those that had income,
might not a good record for the en-
chequer be still further promoted II
the jealous Commissioner took from
! those that lad II not?
The latter source also had its adj
v%antsges. Being down, and Likewise
out. IL We may be rardoued the use
Of this handy expression Of the prize
ring. the victim could not kick back.
The valuable time Of the Governments
functlonaries would not be consumed
through the legal recalc!trance so fire.
quentlv In evidence among ltigious
taxpayers cursed with wealth. With
down and cutters some household Of
fects were generally locatable to en-
force the collection.
While the young New Englander. a.
4 result Of his financial experiences.
was viewing his cherished goods and
chat;els upon the threshold OF his erst-
while home. now the scene of dispos-
session. a summons was handed to him
by a deputy collector. The document
made plain the fact that the Govern
ment could conveniently employ some
5000 OF our young friends wealth.
He was charged with the tax and
supertax as well. This latter delight
full device affords fortunate persons
with annual Incomes In excess OF
$50. 900 the privilege Of turning over
n double portion 10 their faithful SER
wants In high office.
The youth fled objections and emit
ted can Of correspondence. The
Commissioners printed rulings set
down trade as synonymous with
business" Business they defined az
that which occupies ones time . .
for the purpose OF profit.
his personal concern or inter-
est: and his regular (but not
necessarily his sole) occupation"
Tho tax Ratherer must retract or be
hoist with his own petard. Stock
trading occupied our young friends
time; his purpose was profit; II was
his personal concern and interest; he
made II his regular occupation. He
had lost his money "in trade"
But the Lord High Commissioner.
feeling. no doubt. n keen though AGA
demic sympathy IN the loss OF that
$50, 900. which removed the young
mans much taxed profits beyond the
vanishing point by several parasanRs.
knew that the Government needed the
money.
So the youth who was down and
out was elect to pay the supertax,
Could M SO fortunate demur at 50
signal an honor? Might he not boast
Of a single years gains to the pleasing
tune OF $4,000? Since the country
rated his two per centum at six hum
dred golden coin OF the realm his pow
erty needs must he but a Pigment Of q
disordered cerebellum. At $50, 900 must
he gauge his wealth. for such was the
fiat OF the Commissioner.
And admiration filled his soul as he
pondered on the clan OF deserving
Democrats. secure In high ONCE. Be
hold n race Of giant stature. able 10
unscramble an egg. to draw blood from
n stone and TO make prolific the much