Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-10-28
New Statutes Provisions on
PubIiC's Right to Data In
terpreted in Two Ways u,
S, May Bring Test Suit
BY ROBERT T. SMALL
Copyright. 1924, by The Consolidated Press
sociation-Specal Leased Wire
In The Atlanta Journal


Copyright 1924, by The Consolidated Press
Associaton-Special Leased Wire
to The Atlanta Journal.)
WASHINGTON, Oct. 25.-The
publication of income tax returns
in various sections of the country
today as a result of the ruling OF
the treasury department that all in
come tax payments be made avail
able to the public has shocked
Washington more than any event
since the discovery of the $4,000
Doheny loan to Albert B. Fall.
The treasury has been able to
| pacify several thousands of anxious
inquirers that there is nothing in
! the new statute under which it is
operating that will permit anyone
to inspect the details of a return
| and that the sources and deductions
| noted in the returns will not be-
come public property under the law
as it now stands.
The law merely provides that a
full list of all persons who have
! made returns shall be made avail
able to the public together with the
amounts they have paid, these
| amounts including original pay
ments, penalties and interest as
sessed. Some inquisitive persons
| misunderstood the law to mean that
avery detail of any mans return
should be posted for inspection and
that revenue department employees
should be assigned to help all in
quirers properly to decipher the in
tricate figures.
This i= tho oaS hnwaUpT The
details OF a mans returns, and like
| wise the details of a corpora ton S
business still are inviolate, but treas
ury officials said today they would
not be surprised if congress this
| winter provided that the most in
innate details of every mans busl-
ness should be spread out for pub
lie inspection and consumption.
When New York newspapers, bold
ly printing the payments made by
the wealthy men of the country re
siding in the metropolitan collection
districts, reached Washington this
morning, treasury officials frankly
were amazed They had issued a
warning that publication of the re-
turns was plainly in violation of one
of the sections of the new law. Emf
nent lawyers consulted by the news
papers gave it is their opinion that
it was the intent of the law that
| the payments be made public and
the printing of the payments in the
| newspapers was merely a logical
means of giving the publicity pro-
vided by the statute.
L. s. IIavy Take Action
Treasury officials are somewhat at
odds on this point. but there was a
general feeling in Washington today
that governmental action may follow
the publications as a means of test
ing the c0nstitutionality of the new
provisions.
The tax payment publications
came as a shock because most per-
sons had forgotten that the publicity
clause had been added to the revenue
act passed last spring, reducing
taxes 25 per cent. The amendment
providing for publication was offered
by Senator Norris, of Nebraska, a
member of the progressive group OF
Republicans. The effect of the
amendment was thoroughly discuss
ed at the time, but since then it vir.
tually has been forgotten.
Not by the treasury, however
The officials of that department, 1t
may be stated, are not in sympathy
with the new law. 1t was passed as
a substitute for the measure recon-
mended by Secretary Mellon. Both
Democrats and Republicans have
laid claim to full credit for it. The
treasury has been studying the act
constantly and suddenly announced
yesterday that complete lists of all
who had paid taxes and the amount
paid by them. We're now open for in
spection
The announcement was q simple
one, carrying no warning with it.
| Soon the department was lombard
ed by the various collectors through
out the country, asking for guild
ance in giving out the lists to news.
| papers. Then the treasury issued it's
warning against publication.
The attitude of the treasury de-
! partment toward the action it was
| compelled to take in making the pay
ments public was expressed only yes
terdaX by Eliot Wadsworth, assist
ant secretary of the treasury, in a
speech at Boston.
Il wonder" said Mr.. Wadsworth,
''if we understood how much the in.
y
| freedom to such a power and how
far the strong hand of government
has forced itseh into our personal af-
fairs? AS time goes on there will be
in the internal revenue bureau a
record Ct 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
I -,
trust which involves unusual posi-
biiities for good or harm. 1T is not
difficult to understand its cash value
to an INSCRIPTIONS competitor"
Point Worries Government
This is one of the points which is
| worrying the government today. The
treasury has interpreted the law as
to mean that all income payments
shall be thrown open to inspection
whether made by an individual, a
firm, n estate or a corpora ton.
Regardless of whether the pay.
ments may be published lawfully in
a newspaper-and this is mere in
depreciation of the law-they are at
any "a tie open to any competitor in
any line of business.
bly,. as Mr.. Wadsworth
says. this is the fartherest step the
government ever has taken in delv-
ing into a citizens private affairs.
If congress is in the same recalci-
trant mood this winter that it was
in last spring, there is no telling the
| ends to which it may go in providing
further publicity for individual and
! corporate tax returns.
Some Of the individual returns
published this morning were a dis
tinct surprise. They showed that in
the New York district John D.
Rockefeller, Jr.. paid the largest tax
by several millions of dollars. J.