The New York herald., 1922-04-29

Special Dispatch to THE. NEW York HEaALD.
New York Herald Bureau.
Washington. ID. c.. April 2S.
Senator Harrison (Miss) introduced
bill to-day to amend the revenue act
Of 1921 so that persons who contribute
to the Wilson Foundation can have
the amount deducted from their in
come tax. The bill also provides such
exemptions for every corporation.
community, fund or foundation or
ganized and operated exclusively for
religious, charitable, scientific, literary
or educational purposes. special men
ton Is made in TIE bill of the Wilson
Foundation and posts of the American
Legion.
Senator Harrison explained that he
was prompted to introduce the bill by
ruling Of Internal Revenue Commits
sioner Blair to the effect that sums
contributed to the Wilson Foundation
are not deductible from income tax
returns. 49,.
The Mississippi Senator scored the
ruling as partisan, puerile and plea
yunish." He declared that only re-
ment had ruled that contributions for
the Roosevelt Memorial Fund were
deductible from income tax returns.
and at q previous date had given a
similar decision as regards contribu
tions made to the Mckinley Memorial
Fund.
Not ON Partisan Basis.
"I am sure that the ruling just made
by the Internal Revenue Department
concerning the Wilson Foundation,
said Senator Harrison. does not express
the sentiment of the Republican Senators
In this body. i am sure that the people
of the country will be surprised, If not
dlsgusted. by the decision.
THE Wilson Foundation is not being
established on a partisan basis. Per
sons in all walks of life. of both political
parties, are contributors, including fo,
mer Postmaster-General Hays
Senator Harrison said his bill aimed
to rectify the injustice of the ruling
and he hopes 1t will meet with little
opposition.
The Woodrow Wilson Foundation was
held by Commissioner Blair to be civic"
rather than educational, and he ruled on
April that contributions made to 1t
were not exempt from income taxes.
Commissioner Blair held that the
foundation differed essentially from both
the Roosevelt Memorial Association and
the Mckinley Memorial Association. H.,
defined these two organizations as Eek
clrsively educational and therefore fell
within the class entitled under the
revenue act to enjoy exemption for gift
OF money to educational projects
The Commissioner, dealing with the
charter of the Woodrow Wilson Founda-
ticn, held that one of the primary pur-
poses of the foundation was to make
awards to individuals or groups that
had rendered conspicuous service t.
democracy or public welfare.
Ruling Is Held Up.
The bureau was in turmoil through
out the day over the question of making
a full explanation OF the decision, bu.
apparently the political effect OF suc.i
action was feared by some officials.
Mr. Blair was absent from Washing
ton. and Acting Commissioner Smith
gave orders that the ruling must be
suppressed temporarily.
Reports became current about the
Treasury that because the ruling might
be seized upon by Democrats to make
political capital there should be further
deliberation over II before II was for
mally promulgated. Officials said the
ruling was In final form, so far as the
legal advisors OF the Internal Revenue
Bureau we're concerned.
What Commissioner Blair would do
about the matter upon his return TO
Wa sh lngton. probably Tomorrow, Off
cials refused to predict. But the fact
that n ruling has been drafted, bearing
official approval, and yet has not been
allowed to follow the regular routine
procedure OF being issued like other
Treasury decisions, may stir up fur
thor row in the Treasury Department.
Officials in authority would not discuss
the provisions of the ruling.
Officers OF the Woodrow Wilson Foun-
dation said yesterday that while they
were averse TO becoming involved in a
controversy with the Internal Revenue
Bureau, they would contest the ruins
that contributions TO the Foundation
are not tax free. 1t was pointed out
that the Foundation has not been incor-
porated and that until 1t has been its
character cannot he passed upon with
any degree OF intelligence. The Officers
| believed their organization was as much
| entitled to exemption as were the AIc-
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