The midland journal. (Rising Sun, Md.) 1885-1947, 1924-03-28
1856 DISMISSED
AS DISHONEST
Field Service Drops All But
70 Of Discharged
PUBLIC TAX RETURN ASKED
Board OF Appeals Cases Should Be
Disclosed, Says Assistant Com
missioner--Losses Re-
covered.
PUBLIC TAX RETURN ASKED

Washington. Seven hundred
and ninety-six persons have been
dismissed by the Internal Rev
enue Bureau for dishonesty, Com
missioner David FL. Blair told
the special Senate committee in
vestigating the Bureau.
! OF these ZIG were in the field service
and 70 in the Washington Offices. They
included revenue agents, inspectors,
deputy collectors and auditors, prac.
tically all of those dropped in Wash
ington being in the latter class.
In number of cases, Blair stated,
there had been defalcations among
deputy collectors. He was not pre-
pared to state what losses the Gov
eminent had sustained as a result. In
most cases, however, the Government
had recovered substantial Indemnity
from the surety companies or personal
.bondsmen of the dismissed officers.
The defalcations, Blair stated, were
chiefly in the collection of amusement
admission, jewelry and other excise
taxes, where the deputy collector
would collect from the proprietor of
theatre or store, destroy the return
and put the money in his pocket.
Demand for publicity Of the tax re-
turns as check on dishonesty and
fraud on the part of the taxpayers was
made during the committee hearing
by Senator Jones, Democrat, of New
Mexico. member of the committee.
Jones declared that no taxpayer has a
right to secrecy if he raises question
as the to the amount Of tax due the
Government and files a claim for re.
fund or reduction of assessment after
his return has been audited by the
Bureau.
Jones insisted that wherever there
is a controversy between taxpayer
and the Government the facts should
be public, either through the medium
of public hearings or by making the
record open to public inspection
The suggestion was made by Deputy
Commissioner Bright that the pro-
ceedings of the board of appeals, pro-
vided for in the pending tax bill,
should be public. Bright declared
there would be far less fraud at
tempted by the taxpayers if he knew
in making out his original return that
it was likely to be made public. The
moral influence of such provision
would prompt the taxpayers to make
an honest return, he declared
James F. Drake, president of the
Standard Steel Company, of Pitts
burgh, and former assistant to the
president of the Gulf Refining Com
pany, in which Secretary of the Treas
ury Mellon is largely interested, was
the first witness before the committee.
He told of being called in by Secretary
Mellon in 1921 to pass on the qualifica-
lions of the personnel of the bureau.
He said he found salaries too low and
the bureau Offices too widely scattered
and inadequately housed for proper
efficiency.
Drake testified he had been instru-
mental in obtaining refunds of $780,
900 for the Cuff and 10 other com
panies in 1921. He said that in order
not to embarrass Secretary Mellon he
advised that these cases be jspeeded
up to let the old administration settle
them, regardless Of whatever loss the
corporations might suffer through
these speedy explanations.