Douglas daily dispatch., 1927-02-24
MAY
Be COMPELLED TO
PAY INCOME TAX
Chief Justice Taft, Lloyd
George and Others Eff
fected by Rule

PHILADELPHIA, Feb. % (P0.-W4l-
liam Fl. Taft, chief justice of the United
States supreme court; David Lloyd
George, former premier of England;
Mrs. Theodore Roosevelt and Mrs, Gro
yer Cleveland, and the Right Honorable
John Burns are among a number of
national and international celebrities
who may have to pay United States in
come taxes on annuities ranging from
$4,000 to $4,000 they are receiving
from the estate of the late Andrew
Carnegie.
In an Interpretation given today of
the annuity clause of the will of the
renowned iron master, financier and
philanthropist, the United States cir
cult court of appeals, in q decision by
Judge Victor B. Woolley, ruled that the
moneys with which the Home Trust
company of New York, executor and
trustee of the Carnegie estate pays the
annual gifts to these notables and 40
other personal friends and employees
of Mr.. Carnegie, is derived from trust
funds and is Income" within the mean
ing of the federal tax laws and amen
able to taxation
The court set aside the ruling of
Judge Schoonmaker, of the United
States district courts at Pittsburgh,
who in a test suit filed by the estate
of John w. Beatty, director of the
Carnegie institute at Pittsburgh, held
that 45 annuities were outright gifts
by Mr.. Carnegie and not assessable un
der the income tax laws.
Mr.. Beatty was left annuity of
$4,000
ACKNOWLEDGEMENTS
BILL assailed the filibuster and finally
asked unanimous consent for imme-
diate action on the veterans loan bill.
Senator Tyson, of Tennessee, wanted
his emergency officers retirement bill
considered as an amendment, and this
drew the ire of Reed, of Pennsylvania.
For ten minutes, General Tyson
and Major Reed, as they We're rank
ed in the war debated back and
forth across the aisle, with the
1ennesseen emphasizing his points by
shaking his finger.
Out of a welter OF discussion dur
ing which all rules and formalities
were cast to the winos, there emerg-
ed an agreement to vote at once on
the loan measure and to devote an
hour on tn Tyson bill tomorrow
Bruce objected but his objection was
lost, in hubbub. The Marylander
protested he had objected and Har-
rison, beside whom he was standing,
sustained him. General Dawes ex-
pressed regret and Bruce withdrew
his objection.
After a roll call had shown not
single senator against the loan
bill and the senate had adopted a
motion to insist on it's amendments
and ask for a conference, Curtis
arose to ask for an executive ses-
sion. Ashurst anticipated him, how
ever, and began to berate Senator
Copeland, democratic colleague, for
his structures. Flushing, Copeland
arose as Ashurst advanced toward
him. There was a tense moment.
which was quickly ended with Curtis
motion ana the jamming of it through
by the vice president.
More than half of the senator's
showed up at p. m. for the night
session. These including Curtis and
several others who spent all of last
j night and today in the chamber.
! ting some much needed sleep, but the
filibuster against his bill took no
chances, all three being in their
places.
Ashurst spent an hour reading and
signing his mail; Phipps had his desk
piled with ammunition, and Cameron
ws all set for new barrage against
the Boulder canyon bill if by any
chance it came up.
/ Shortridge of California, staunch
supporter of his colleagues measure,
was on hand, as were Copeland and
Blease of South Carolina, Kendricl1
of Wyoming and Mayfield of Texas,
who had stuck through the long fill
\ clustering session.
The galleries were crowded, but the
show proved rather disappointing, al
/ though at the outset McNary of Ore
J gon and Overman of South Carolina
engaged in humorous passage about
! a bill designed to protect the water
sheds of navigable streams.
! n ToIo-oLo -