Evening star., 1932-07-11
Inquiry Now Would Interfere
With New Revenue Law,
He Tells House Group.
ADMINISTRATION BLOCKS
QUIZ, SAYS McFADDEN
Declares It Seeks to Prevent Con-
gress Investigation of Tax
Statutes Operation.
BY the Associated Press.

By the Associated Press.
A Treasury spokesman told COM
mit'ee today his department would CO.
operate if the House decided on an in
"estigation of Government fiscal agen-
cies. but indicated strongly he felt the
inquiry would be a waste of time and
money.
Undersecretary Ballantine made his
statement before the House Rules Com
mittee. which has resolution pending
for an investigation of the Treasury
and Federal Reserve Board.
A little while before Representative
McFadden. Republican. of Pennsyl-
vania, had charged the administration
was trying to block the inquiry.
Ballantine said no facts had been
presented to warrant the inquiry which
has the support of Speaker Garner. He
reminded that it would come at a time
when the Bureau of Internal Revenue
was trying to adjust the new tax bill
In the Undersecretary's opinion. next
December would do just as well if there
were anything to investigate in his de-
partment.
My appeal is on behalf of the public
interest and not political benefit" said
McFadden, sponsor of investigating res
olutions that last week gained the sup
port of Speaker Garner.
McFadden caused a furore near the
beginning of last session by asserting
that President Hoover had sold out"
to international bankers.
Taking the witness chair shortly
afterwards. Undersecretary Ballantine
told the committee that the Treasury
makes no objection whatever to con-
gressional investigation of the admin
of the tax laws"
Weighs O'Connor Resolution.
The Rules Committee had before it
the O'Connor resolution, approved by
Garner, calling for an inquiry into the
Governments fiscal affairs.
Ballantine said, however mo facts
have been submitted suggesting any
warrant for an investigation"
If the Speaker in his new role de-
termines upon an investigation at this
time" he said, the Treasury stands
ready to cooperate, even though this
action does not seem particularly in line
with the purpose of eliminating COM
missions and Investigations"
At the outset Ballantine read a pre-
pared statement in which he said:
If there is anything to investigate
it could equally well be investigated in
DECEMBER when Congress reconvenes,
at which time the atmosphere will be
clearer, and the new tax law will
have become established"
He added that a congressional inves-
n
the Bureau of Internal Revenue at the
very time when its resources and energy
are demanded for putting into effect
the new revenue law"
Would Tie-Up Employees.
He pointed out that an investigation
would tie up many employees at a time
when they were badly needed.
Ballantine said since 1927 the
standing Joint Committee on Internal
Revenue Taxation, composed of five
members of the House and five members
of the Senate has continu-
and development of the tax law"
In the case OF every refund or credit
of $4,000 or more a statement of facts
and reasons has been submitted to the
Joint Committee not less than 80 days
before action was taken. he said, adding
that the committee had approved all
abatements and credits recon-
mended by the Treasury A resolution
by McFadden proposing an inquiry di-
rected particular attention to refunds to
taxpayers, Ballantine said.
The Unde-secretary said if the in
vestigation was MADE those responsible
must account to the already harassed
taxpayer"
There are always suspicious or dis
gruntled individuals who propose in
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