The Birmingham age-herald., 1921-06-26
PIZITZ CO. CHARGED
 WITH FAILURE ID AFFIX TAX STAMPS
Head of Firm Issues State- ment Explaining Contro- verSy With Revenue
 Officers

was lileu yesterday Tn the United States district court against the Louis Pizitz Dry Goods company, charging that the concern failed to collect, truly account for and pay over to the United States the tax on certain toilet and proprietary arti- cles and preparations"
 The information charges that the Pizitz company, through it's clerks failed to stamp the articles sold to some IS purchasers with the inter nal revenue stamp tax, It specifi cally alleges that during the time since May l, 1919, the company has unlawfully and knowingly failed to collect and pay over to the United States government the tax on cer- tain proprietary articles and prep arations, such as perfumes, toilet powders, and creams sold to sundry persons.
 The tax Is cent for each 25 cents or fraction thereof of the amount paid for the articles, and is required by the revenue act of 1918. The pur- chaser in each sale is required to
 
 seller required to place tax stamp on the article equivalent to the tax.
 Jim c. Smith, assistant district at torney, stated that this is only one of three cases which are to be filed against the company, the others to be commenced at a later date. special drive is to be inaugurated for the collection of luxury taxes which officials claim are now duo the government, according to a state ment made yesterday, and new pros cautions are to be filed unless the tax is paid immediately.
 Pizitz's Statement
 Louis Pizitz, head of the Pizitz company, issued the following state ment last night concerning the pros- ecution;
 T have just finished reading a very sensational statement made in one of Birmingham's afternoon pa pers alleged to have been given by the United States district attorneys office of this city, in which l, as president of the Louis Pizitz Dry Goods company. am charged by the government with failing to collect, account for and pay over to the United States government, tax on toilet goods and other goods sold in the Louis Pizitz Dry Goods company store. am charged, as this state ment purports, with willfully and Knowingly violating this act.
 Quite a number of other state ments are made in this article, pur- portating to emanate from the dis trict attorneys office and are of sucn character and derogation of the true facts to such an extent that 1t has made warrant my answer 10 the same.
 Tn the beginning, l might say that if these statements alleged to have been made by the district at torney's office are true, which l can not conceive to be a fact because have had the highest respect for the office of the district attorney of this city, and I would not believe that It would be his purpose or aim in any manner to besmirch the character of my firm or myself, who have enjoyed the confidence and integrity of the citizens of Alabama for so many years, resulting from what l believe in a measure, to my every effort Ia maintain honesty and good faith In all of my dealings with, my fellow men and to every letter and spirit carry out what l believe to be the duty of a good citizen of this coun- try.
 ITO color such facts and to make an effort or an attempt to try this case by newspapers which can cer- tainly be of no aid or assistance to the justice of the case, as to its merits or demerits, suffices me to say to the public that these stamp taxes are revenues placed upon the sale of toilet articles and that the placing of the stamps thereon or the failure of placing a stamp thereon would not benefit my company to the slightest degree; because the law makes it obligatory upon the pur- chaser of these toilat articles to pay for the stamps and when the stamps are placed thereon, we have already paid for the stamps, because we pay for them upon purchase, and when no stamp is placed thereon, the only person that receives the slightest benefit by reason thereof is the GUS toner who has failed to pay the tax and certainly not the Louis Pizirz Dry Goods company nor any person connected with the firm. Therefore 1t IS apparent to any thinking person that the Louis Pizitz Dry Goods com pany or any person connected Wltn the firm would have no motive in the world to fail to have the customer nav the tax required and place the tax thereon. If an error or mistake is made by one of the girls III the departments, it is apparent to any thinking person that 1t is an error of mind and not of heart or inten- ton.
 Magnitude of Business
 Tn a business like ours that sells | multitude of merchandise and that waits on thousands of customers daily, it would be exacting of the human being the impossible, to say that now and then some error Will not creep into their. days work. Ihis would be true of the highest paiu executive of the United States, anu while my company, as is well know employes the best talent avaliapics and pays the highest prices main- tained in the district and while tnis department has over 1t an eHecuuNo who has been with our firm for ~ odd wears. and who has an assistant, one who has been with our ilrm TOT many years in whom we have al ways reposed the highest conHdehce' we would not say, nevertheless tl,aI in the multitude of thousandseoi saies there has not here nor there crep' in the failure on their part or the mart of their subordinates 10 piacs a one-cent staHp on first one article' and then another during gwen period of time. .,,r
 .My office. I am told, has taken every precaunon known to ene ,r. wan heinz from all practical pur- noses to guard against any possiple failure to place these one-cen' stamps on toilet articles sold, Ims general manager in charge or our store. the assistant general managef and the comptroller, and myseii have constantly from time 10 ti,n7 cautioned those in charge or the ue nare1nent with the necessity or utiiiA ing every means in thelr coiilha ue carrv out the provisions of the " xI.ra the revenue stamp on