Evening star., 1927-12-03
ENGINEERS DISCUSS
FEDERAL TAXATION
Administrative Provisions of
Law Are Greatest Cause OF
Complaint, Says Fernald.

With Federal taxation as its general
! topic of discussion, the American
Mining Congress moved into the final
/ sessions OF Il tnree-day convention at
| the MaVfiower Hotel today.
| The greatest reason for complaint
| by taxpayers against the present law
! is concerned with its administrative
| provisions. Henry r. Fernald of New
| York told the convention. Mr.. Fernaid
| is a member of the general tax com
mittee of the American Mining Con-
cress Referring to the confusion Gre
ated by existing complicated provi.
sions of the tax laws, Mr.. Fernaid
said the taxpayer must sign ana
swear to his return regardless OF
whether he can understand it or not. :"
lie said the oath should be changed to
one swearing that his return is in ac-
cordance with his books and recogds.
The taxpayer primarily expects fair
ness in the new tax law" he added.
Simplification of Law.
Simplification of the tax law was
discussed by Charles ID. Hamel of
Washington, counsel to the joint con-
sressional committee on internal rev
enue taxation. 1t is necessary to sim.
plify the substance of the law in or
der to overcome imperfections and
shortcomings of the present tax sys
tenn, Mr.. lIamel said.
simpler basic policies in the tax
law are needed" he declared. Gen
eral rules are obscured by numerous
exceptions and qualifications. Com
plicated rules of law are involved in
various provisions of the act. We
need more of the qualities of the com.
mon law in our income tax law. FIRE.
quent statutory provisions complicate
the law, make for uncertainty and
keep the administration of the law in
a state of constant turmoil"
Robert n. Miller. an attorney of
Washington. denied that lack of in
dustry in the Internal Revenue Bu-
reau, dishonesty or influence loom
very large among its problems"
Its honesty and industry have been
and remain creditabe in the highest
degree he said. Mr. Miller grouped
Government, tax administrators into
two classes, one being able to get the
right answer under general rules
through the exercise of judgment on
the facts and the other those who
honestly err in favor of the Govern
ment by lack of coura ge or clear
vision or from an idea of loyalty that
requires them to discourage taxpayers
ana to get as much for the Govern.
ment as the traffic viii bear. He re.
ferred TO some of the business admin.
lstrative officials of the bureau as
sensitive only to the Governments
grievances and callous to the troubles
OF the taxpayer"
Sees Larger Combinations.
More and larger combinations in in.
dustry were predicted by Gilbert N
Montague of New York. due 30 the
desire of business to overcome falling
prices and diminishing profits.
More and bigger consultations
among producers. manufacturers and
distributors, under proper Conditions
and with adequate legal safeguards
are permitted and indeed invited by
the present attitude If he Supreme
Court and the Government" Mr.
Montague said.
BY avoiding unlawful acquisitions
OF capital stock and by taking care to
leave outside enough competitors to
insure effective competition such con.
solidationS can now be set UP in many
industries in entire conformity to the
law and with the utmost advantage tc
the public interest"
The conference will conclude this
afternoon with an address by Senator
James Il. Watson of Indiana, and a
round-tabie discussion with officials of
the Geological Survey, headed by Di
rector George Otis Smith.