Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-01
MELLON ANSWERS
REFUND CRITICISM
Secretary's Statement Gives
Clear Idea of Plan Followed
in ReadjustmentS.
BY JOHN F. SINCLAIR.


first submit his own estimate OF his IN
come and inclose check to cover the
first installment of the taxes due. me
date for filing is fixed and def1nuite A
penalty is imposed upon any one VINO
fails to return his statement on INA!
date.
Revenue audits each return. II the
return is correct, the matter is closed;
"If the taxpayer has underestimate
his tax. an additional tax is assessed,
said the Secretary. IF he has over
estimated his tax. he is entitled to the
refund of the amount overpald. Ii the
taxpayer is dissatisfied with the oe-
Termination of the bureau, ne is en-
titled to. q full hearing. OF, AT ms 1 tpe
ton. he may have recourse 10 tne
Board of Tax Appeals or to the courts
Refunds Exceeding $4,000.
An refunds in excess of $4,000 must
be submitted in advance OF the pay
ment and passed upon by the con,
Qressional joint committee on lnternai
revenue taxation, consisting OF senator
Smoot of Utah, Senator Watson OF IN
llama senator Reed of Pennsylvania,
senator Harrison of Mississippi, Rep
resentstive Hawley of oregon. Repre-
sentative Treadway of MASSACHUSETTS,
REPRESENTATIVE Bachrach OF New Jer-
sey Representative Garner Of Texas
and Representative Collier OF MlsSls-
sippi. .,.4 =,
far the largest amount OF theSe re-
funds is due to court decision ana De-
yond Treasury control. Still, the Sec
retary objects to slowing up the pro-
cedure by making it mandatory tnat
Ali refunds be made by virtue OF DE-
eision of the Federal court. He holos
that such a procedure would delegaVe
to the court the entire administrator
Of the income tax law.
Finally. the Secretary said that IN tne
last IA years the total amount OF aools
tional assessments, which have resulted
from office audits and field nvestlga-
tions has been $5,345 ZOO, 900, while the
amount paid out in refunds during the
SAM period has been 81 ,254, OOO,OOO.
"During that period the total internal
revenue receipts have been $44 ,O32,31!,-
Asst. SO that the amount REFUNDED py
the bureau has been only approxlmatty,
2.S per cent of the amount collecteo,
said the Secretary in concluding nus
remarks. AL true, but nevertneleSs
CONGRESS is preparing to investigate
very carefully the recent reIuno caSsS
which have arisen.
Snowden and Tariffs.
Is Philip Snowden about to leave the
British cabinet? This lOO-pouna m
valid the dynamic intellectual Leader
f of the present Labor government, Is not
nanny. The British cabinet IS divided
i1oneiessly SO, over the subject OF pro-
lection. Behind closed doors, the mem
hers are carrying on bitter struggle
for and against 1t. ~.
But no argument influences Mr..
snowden. Always a freetraoer' AT, ne
knows why he is one. He mas no lliu-
sions regarding protection. To MN, II
cheap, full of special favors ard o1ten
graft, resulting in an unholy alnancs
Of government and business. He VIII
have nothing to do with it-ro matter
how successful other nations nave oeen
In building up their protective tarlH
system.
Mr.. Snowden will not change not
even If every dominion in the BRUSH
commonwealth is converted TO pro-
tectiye tariff policy! That means notn-
ing to him. He has at least two others
in the cabinet who agree with him
Mr.. Graham and Mr.. Alexander. II
nv Snowden goes, they viii go TOO.
reports are becoming more and more
frequent that the iron" chancellor, the
most capable and brilliant since the
DAYS when William e. Gladstone neld
the treasury portfolio, is about to retire
to private life.
He NAV be defeated but his head IS
unbowed and he is unafraid. His con-
duct in public office, no matter how Que
feels about his policy. has been an IN
SEPARATION to the entire British people
and to the rest of the world.
The British Labor government VII!
lose its most valuable member shouid
Mr.. Snowden retire, and 1t may spen;
too. the downfall Of the Macdonald
government.
L. S. Income.
The income of the United States dur
ing the next six months is estimated by
the Brookmire Economic Service at
$50 ,604, 600 900, loss Of 10 per cent
from the corresponding period OF a
year ago.
The present cash crop year income Is
estimated at 20 per cent below the
1o29-l93O income. Certain farming sec
tons are in better shape than many
others. The New England farm section.
for example. has fair prospects over the
next six months, because OF fairly high
priced potatoes and the favorable out
look for dairy income.
Retail trade through the country as
q whole in September was per cent
below the same month OF a year ago,
although a seasonal increase may he
expected in the next so days. Car load
ings for the week ending October IL
were 81 per cent below that Of 1929, In
dustrial employment 1917 per cent be-
low September of 1929, while pay rolls
were 274 per cent less.
The best indication Of the business
trend is that the Brookmire business
index in Sep ember stood at 8l.6, COM
pared to 11l.2 just one year ago.
Weekly Business Summary.
The Department of Commences
weekly summary of business shows bank
debts for the week ending OCTOBER 70:
outside of New York City, increased
over the preceding week, but declined
from the corresponding week Of 1929
Loans and discounts of the Federal Re-
serve member banks, however, were
lower than a year ago, although about
the same as in the preceding week
No change occurred in the interest
rates either for call or time money
from a week ago, but the rates con-
siderably lower than last year.
Stock and bond prices were under
the preceding week, while bond prices
increased and stock prices declined as
compared with year ago.
Wholesale prices. as measured by
Fishers index. were lower than for the
same week of 1929, but showed nc
change from the preceding week.
The Department Of Commerce sum
marizes the production of major indus
tries for the week ending october 10
1890, as follows:
Increases occurred over the proceed
ing week in the production of petroleum
and lumber and in the receipts at prin'
cipal markets of cattle and calves. De.
clines from the previous week occurred
in the production of bituninous Goa
and steel ingots. in the value of build
ing contracts awarded and in the re-
ceipts Of wheat and hogs at importan
centers"