Evening star., 1924-10-30
WILL DELAY TEST
ON TAX PUBLICITY
Governments Suit in Pub
Iication May Not Be Filed
for Weeks.

The test case to try out IN the
courts publicity given income tax re-
turns by newspapers under penalty
sections of the 1924 Internal Revenue
law. will not be filed until sometime
after the election.
This was assured today when At
torney General Stone announced the
Department of Justice is pursuing it's
usual course of procedure in prepar-
ing for such test case or cases,
with prospects it may be some time
before final decision will be reached
as to what newspaper or newspapers
may be prosecuted.
District attorneys in many parts of
the United States have been advised
to look over the situation in their
fields and report to the Department
of Justice. These reports. containing
official information concerning the
newspapers publishing income tax
returns, will be carefully surveyed.
and the case or cases picked for
action.
Depends on Attorneys.
When the department will be able
d to reach this conclusion depends, it
was said today. upon the alacrity of
the district attorneys, upon the situa
try and a number Of other factors
which enter the problem.
Attorney General Stone indicated
the department is giving TO this
matter similar treatment which has
been accorded other nation wide
problems. which have assumed like
proportion in the public mind. There
will be no delay in the working out
of this program, 1t was indicated,
with the possibility, however, that 1t
may be many days, perhaps weeks,
before the suit is filed.
1t has not as yet been determined
whether one case will be made test
or whether several will be tried, ac-
cording to indications at the depart
ment This will be decided when the
district attorneys reports are all "on
the table"
At the Treasury officials continued
to take the same stand of keeping
open for public inspection the lists in
all parts of the country, with warn
ing that section 1857 of the revenue
laws provides penalty for publica ton.
Safeguards are Placed.
Various methods have been adopted
by the collectors in various districts
to safeguard themselves, and yet
obey the publicity provision of the
law.
A novelty has been introduced in
Newark, N. j., whereby the taxpayer
whose income has been inspected may
be informed of the persons who have
wanted to see his figures, and why.
Zach person who asks for informa-
tion is required to fill out a blank,
which says: II desire to ascertain the
amount of income tax as filed on
March Is, 1924. by whose ad-
dress is --. This information is
desired by me for the following rea-
sons. -
Instructions were added as follows:
please file requests in duplicate so
that one duplicate may be mailed to
the taxpayer. II the information
given in response to this request is
published, the applicatio will be for
warded to the Attorney General for
prosecution under ection 3167, Re-
vised Statutes"
New York papers continued today
TO print extended lists of taxpayers,
including not only persons of promi-
nence in public life, but others as
well.
A question of law which is caus-
Ing much speculation. but which has
not as yet been decided is the matter
of what constitutes an "offense,"
against the penalty provisions of the
law. Authorities are divided as to
whether an offense means one issue
OF newspaper, several issues or
whether the printing of each single
name and figure could be construed
as an offense. The penalty for the
oHense, under the penalty provision
is fine not exceeding $1,000 or by
Imprisonment not exceeding one year
or both, at the discretion of the
court"
No indications were forthcoming
" hrnr =,
as TO who. personally would be made
the defendant, in case the prison
penalty should be asked. The defend
ant might be. according to various
thought on the subject, the publisher
the editor, the manager, or the re-
porter.
NO more light was Forthcoming on
the disputed point as to whether the
treasury had violated the law in
making returns public this year in
s,eao or next. The opinion has gain
ed ground among many legal an
thorities that the law provides on,v for
publicity for incomes of the wear
1874, which would not be taxed nv
the Government until 1925, next wear
government authorities are inclined
TO agree with the Treasury. while
independent legal authorities are
pressing the other view.
Another Complication.
Another element of confusion over
administration of the publicity sec
tion has grown out Of the wide pub
Ncation of an executive order issued
September 81 by President Coolidge,
setting forth the regulations under
which interested persons were per-
mitted under the old revenue law to
inspect, after fling, their own re-
turns and other returns in which they
had direct legal interest.
This executive order merely repeated,
in effect, the regulations that have
been in force for years. 1t was issued
as routine order before the tax re-
turns were made available to general
inspection under the new law. Internal
revenue officials said today that it had
nothing to do with the question of in
spection by the public, from which arose
the controversy over publication.
The old regulations set forth the
legitimate rights of stockholders, attor-
neys in fact and officers Of corporations,
partnerships, trusts and estates and
other such returns. all Of which are
enumerated in the law.