Evening star., 1924-10-24
INCOME TAX PUBLICITY BIGGEST
SHOCK SINCE DOHENY'S LOAN
Treasury Officials Disagree Legality of PubIica-
ton and Predict Further Exposures
by Congress.

had paid taxes and the amounts paid
tion.
The announcement was a simple
one, carrying no warning with 1t.
Soon the department was bombarded
by tEe various collectors through
out the country. asking for guidance
in giving out the lists to newspapers.
Then the Treasury issued its warn
ing against publication.
The attitude OF the Treasury De-
partment toward the action 1t was
compelled to take in making the pay
ments public was expressed only yes
terday by Eliot Wadsworth, assist
ant secretary Of the Treasury, in a
speech at Boston.
OmciaIs Express Views.
"I wonder" said Mr.. Wadsworth, 'ff
we understood how much the indi-
vidual citizen yields in personal free
dom to such a power and how far the
strong hand of Government has
forced itself into our personal af-
fairs? AS time goes on there Will be
in the Internal Revenue Bureau a
record OF the income and financial
status of every citizen, rich and poor
alike. The mere fact that such in
formation Is in the files places the
Federal Government in a position of
trust which involves unusual possi-
biIities for good or harm. 1t is not
difficult to understand its cash value
TO an unscrupulous competitor"
II This is one OF the points which is
worrying the Government today. The
Treasury has interpreted the law TO
mean that all income payments shall
be thrown open to inspection, whether
made by an individual, firm, an es-
tate or a CORPORATION.
Regardless of whether the pay
ments may be published lawfully in
newspaper, and this is a mere in
terpretation of the law, they are at
any rate open to any competitor in
any line of business.
Fear Further Publicity.
Unquestionably, as Mr.. Wadsworth
says, this is the farthest step the Gov
ernment ever has taken in delYlng
into a citizens private affairs. II
Congress is in the same recalcitrant
mood this Winter that il was last
Spring, there is no telling the ends
to which il may go in providing fur
ther publicity for individual and cor
porate tax returns.
Some of the individual returns pub
lished this morning were distinct sur
prise They showed that in the New
York district John d. Rockefeller, IT.,
paid the largest tax by several millions
of dollars. j. Pierpont Morgan was far
down the line, being rated, for instance,
below Eugene Meyer, jr., of the Govern
ment's War Finance Corporation.
Charles NJ Schwab and William Ran
dolph Hearst We're among the most
moderate OF the payers, and John W..
Davis. the Democratic nominee for
President. was far above both of them.
The test of the law lies in the fact
that one section says the income tax lists
and actual payments shall be made
available to public inspection" while
another section says 1t shall be unlsw-
full Ito print or publish" the returns in
any way whatever not provided by law.
Some lawyers say the inspection clause
of the act does not provide for pubiica-
ton. Others say that was the clear in
tent.
1t was impossible today to see what
the results may be. individuals who
might be protected by the law already
have suffered whatever damage might
accrue from publication, and it is diff
cult for some Of the lawyers to see
where public inspection" ends and pub
lication begins.
A fine tangle has been created and the
Government is in a decided turmoil.
Copyright. 1924