Evening star., 1924-10-25

norance of persons who thought 1t
| only Treasury decision to open tie
books for public inspection.
The lists containing District OF Co
lumbia records. located in the ONCE
of the collector of internal revenue,
Galen L. TAFT. at Baltimore, were
not opened for public inspection un :
til yesterday about noon. since which
time investigators have been bustly
extracting the choicest Information
from great mass of material
AS the ground swell OF public
feeling rose higher and higher to-
day against publicity. the serious
warnings OF President Coolidge, Sec
retary Mellon and Secretary Hoover,
aounded at the time the matter was
before Congress-, were recalled to
give poignant expression to the feet
ings that already have been loosed.
Concealment FEARED
1T is not alone in the unwar-
ranted Interference with the right
of tho citizen to privacy that these
provisions are hurtful." said Presi-
dent Coolidge in his message to Con-
gress on June 2, ut Is believed that
far from increasing revenue the de-
sire to avoid the qualification or the
idle curiosity of others or the ex-
posurc of ones personal affairs to
ones competitor will result in the
concealment of millions OF dollars of
income which would otherwise be re-
ported. This means a change in the
fundamental policy of our laws, vio-
lative OF private rights and harmful
to Government revenues"
Secretary Mellon in opposing the
publicity provision declared: ''The
Constitution guarantees to the citizen
the sanctity OF his private affairs.
This privilege gives way to the supe-
rior right of the Government or the
courts where Information Is essen
tisi to the operation of government
in litigation.
State Laws Cited.
"It is interesting TO note that in
every State having an income tax
the law, with one exception, protects
the privacy OF returns That excep-
ton is Wisconsin, which has recently
repealed the privacy section ot the
joined the giving of such information
to the public, and this case IL now
(May 49, pending in the Supreme Court
OF the State.
"The object gained by publicity of
returns is the satisfaction of the Curl
osity of the public. either idle or for
unfair motives.
I'VE have not heretofore sought
to govern the American through in
formers. That has been confined to
suspected criminals. Publicity of re-
turns introduces this new element
into Government. Based on no ne
cessity, causing unfair injury to the
taxpayer. and bringing loss of reve-
nue. to the Treasury, can even a po
litical argument justify such a sacri-
fice of fair dealing between the Gov
ernment and it's cttizens?'
Hoover Saw Danger.
Secretary Hoover fears that pub
licity of the returns will jeopardize
small business and place it at the
mercy OF larger competitors.
"Such publication" said Mr.. Hoover
on May 16, would be likely to be-
come the basis of credit rating in the
smaller business, and the vital factor
of character and reputation Will be
undetermined by the tax return of
any bad year, thus working grave
injustice on firms undergoing mo-
avoidable in times Of depression.
1T will enable strong competitors
to take advantage of temporary weak
condition of smaller concerns, and
on the other hand fraudulent con-
Germs would gladly pay few thou
sand dollars a year falsely disguised
as profit In order to mislead the pub
lie People who wish to disguise
their wealth will be stimulated to
further evasion. 1t can add nothing
to revenue returns.
Recalls Postwar Law.
"It may be we'll recalled that pub
licity Of tax returns, which was re-
quired during the period OF 1887 to
1872 contributed to the industrial and
financial chaos of the time. One Sc
rious effect might be to undermine
confidence in the whole system of
taxes on incomes, which would be
a great pity"
ENTIRELY unjustlfed and unau-
thorized by law" was the vigorous de-
nouncement today regarding publica.
ton of the tax lists made by SEN
ator Reed Smoot of Utah, who as
chairman Of the Senate finance COM
mittee mad an important part in
making the law.
With the record of the legislation
before him, Senator Smoot said today
that there was no such purpose or
intent when the law was drafted or
in the conference between repre-
sentatives of the House and Senate
which adjusted disagreements be-
tween the two houses on this item.
The intent OF the law and the law