The New York herald., 1921-03-16
INCOME TAX TOTAL
DROPS; MANY FAIL
FIRST NSTAuMENT
Decrease to S6OO,OOO,OOO for
This District Is Gen
eral Estimate.
BIG LOSSES REPORTED
Collector Edwards's Force
Handles Returns With
out Much Difficulty.
GOOD LEEWAY is GIVEN
Returns Posted by Midnight
to Be Considered as With
in Time Limit.
GOOD LEEWAY is GIVEN

When the time fixed by law for fl
ing Federal income tax returns ex-
pired at IL o'clock last night two i'm
portant facts stared Uncle Sam In
the face. Despite an increase in the
number of returns the total of tax
able incomes had been shown to be
far below that Of a year ago, and the
wave of defation which has swept
the country causing the closing Of in
dustrial plants and curtailment of
many other, business enterprises also
had swept away a huge part of the
revenues which the Government would
otherwise have obtained through the
excess profits tax.
Unofficial estimates had 1t that in this
district alone the Governments revenues
had dropped to $500. 100000. but big
Bilr' Edwards, Collector of Internal
Revenue, would not venture even guess
along these lines. There has been a
marked decrease" he said, but what
that decrease amounts to the official
figures from Washington will have to
show"
It was said at Mr.. Edwards's Office in
the Customs House that the situation
yesterday was similar in many respects
to that which presented Itself on Decem-
her Is last, when many persons reported
their inability to pay the final install
ments on their 1919 taxes because the
depression had stripped them Of their
financial resources.
Big Losses Reported.
Many OF the big incomes Of year ago
appeared yesterday to have been COM
pletely ,wept away, and the condition
OF the stock market WAS reflected in the
returns OF many men of the financial dis
trict who reported terrific losses. Many
persons who possessed considerable
money a year ago motored down to see
Mr.. Edwards within the few hours be-
fore midnight to ask for extensions of
time in which to pay, and many who
were unable to pay as much as / per
cent, the amount required for the first
instalment of the tax. offered the Col
lector sums on accorEt.
One noticeable thing about yesterday :
business at Collector Edwards's office
was that the crowds were disposed OF
far more quickly than last year. De-
spite the fact that the place swarmed
with humanity throughout tho day and
7
\ only a handful of persons on the prem
ises. When Big Bill'' decided at 12 10
A. NJ. to call 1t night the corridors
about his offices looked as IL wind
storm had blown all the paper scraps of
the city into them. Multilated blanks
lay everywhere. but the nights work
was very nearly done and the hordes
OF taxpayers were gone.
Vtpx~v.I AxxfxuA. n-yvs-~x
This was largely because Of the an
nouncement of Collector Edwards that
all payments mailed before midnight
would be considered as having been
made within the legal time of grace He
made il plain that even II persons have
neglected the whole business they may
nie their returns now without encoun-
terng trouble, provided they have good
excuses to offer He said that the
Government does not want to penalize
people for misunderstanding the law, and
that If they have misunderstood 1t he
win be glad TO set them right.
The last hours OF grace were marked
with many human touches. One woman
informed Collector Edwards that she
was In a quandary as to how to make
out her return owing to the fact that
she has not been on speaking terms
with her husband for some time. al
though living under the same roof. Her
situation was embarrassing. for II her
husband had not claimed $4,000 exemp-
tion she was entitled TO 1t. and. owing to
their strained relations. she did not want
to ask him II he had claimed It. There
was nothing Collector Edwards could do
In a case like this, so finally the woman
informed him that rather than speak TO
her husband she would omit exemption
claim from her report, thereby increas-
ing her tax $50.
Walters showed dubious countenances
when informed that they must pay in
come taxes upon all tips. but the staff
OF the Collector noticed that the sums
put down By these walters as their totals
in tips for the year were amazingly
small,
One letter which Collector Edwards
received was from q Tombs prisoner,
whose name was withheld. who asked
an extension OF time In which to pay
OWING TO his present predicament.