Maryland independent. [volume] (Port Tobacco, Md.) 1874-current, 1924-11-07
TAX PUBLICITY
UP TO COURT
Attorney General Puzzled as to
What Congress Had in Mind"
Prepares Suit as Test.
NEWSPAPERS ARE WARMED
Inspection Legal; Publication Banned
judicial Ruling Sought as Guide
for Collectors; Books to Remain
open-Test Case Not Selected.

Washington. = Attorney General
Stone will bring a test case before
the courts to determine the applica-
tIon Of the clause in the Revenue
Act Of 1924. which the Treasury De
partment contends makes publication
Of income tax assessments unlawful.
Mr.. Stone sided with the Treasury
view. but did not take a definite
stand that publication is Illegal. He
left the question to judicial deter.
mination.
In his conclusions on the tax tan
gle, which he announced following
conference on the subject at the
Cabinet meeting. he pointed out that
Congress did not make a direct pro-
vision that newspapers may print tax
iata laid open for public inspection
IN the Revenue Collectors Offices.
instead. he explained, It re-enacted a
section Of the Revised Statutes pro-
hibsting printing or publishing any
part OF an income tax return.
What Congress had in mind when
It re-enacted the latter provision. he
continued. "can only be surmised."
Mr.. Stone took the view. however.
that since the section is a part OF
The present Tax Law. the Department
of Justice has a clear duty to have It's
force and effect tested In the courts.
The Attorney General said he had
refrained from delivering a formal
opinion interpreting the law because
such an opinion would have the force
Of law and every one would be bound
by 1t. He added that It might even
result in preventing test case.
An opinion, such as Attorney Cen
eral Palmer handed down when he
ruled that beer was a medicine,
would hold until overturned by the
courts or. as in the beer case, until
Congress settled the matter by en-
acting new legislation. Attorney Gen
eral Stone expressed the belief that
judicial action on income tax pub
liclty would be to the public interest,
and consequently did not attempt to
settle the question with inaiIty him
self.
He has not decided where or how
hs will bring the test case. He said
he had no definite case in mind yet,
but would have an investigation be-
gun to find a case that will present
the issue most squarely.
The Attorney General said infor-
mally to newspaper correspondents
after he had given out the typewrit-
ten text OF his announcement, that
in his study OF the Revenue Law he
die not go into the question Of
whether the newspapers might not
have full authority under constitution.
al guarantees of freedom Of the press
to print income tax data thrown open
to the general public.
Neither did he take into consider.
alton. he said. the question of
whether the Law authorized the Treas
ury Department and Internal Revenue
Bureau to make available for inspec-
tion assessments on the 1923 tax year
returns, which were filed last March.
It is being argued that the Treasury
was year ahead of its authority.
His remarks indicated belief that
the Treasury has acted properly, but
this was not involved in his finding
that test case should be brought.
As far as he has gone the Attorney
General upholds the contention OF Sec
retary of the Treasury Mellon that
publication of the tax lists is illegal.
The Department OF Justice proceed
ings are to be on that basis.
In the mean time. however, the
collectors books will not be closed to
the public. Pending a decision through
the test case newspapers who publish
the information will do so ''at their
own peril" said the Attorney General.
The Attorney General said ne was
not ready 10 indicate wher the test
case would be brought or whether a
single newspaper would be singled
out or whether suits would be COM
menced against a rumber of news
papers.