Evening star., 1933-01-05
TEST Of FEES LAW
BY u. S. REQUESTED
Institutions Contend They
Are UnjustIy Treated in
Conduct of Games.
BY RI. C. BYRD.

ME rcucIdl GOf6IIlIlSllG HAS
been requested to bring
about court action against
Iowa State College to test
the validity of that section of the
Federal revenue act which applies
to tax on admissions to athletic
games as it applies to State uni
verSities and State colleges. Iowa
State College, acting on the advice
of the attorney general of Iowa,
,haS refused to collect the tax. So
Ffar the Federal Government has
3made no move in the matter, and
yesterday definite requests were
hlaced before the Federal author
sitieS to initiate action.
Representatives of two State uni
NersitieS called on Attorney General
Mitchell and discussed with him at
some length the question of the Coy
eTnment's legal right to make State
institutions collect this tax. Mr..
Mitchell was in agreement with the
proposals that the Government take
action, indicating that it was his
logical in asking that steps be taken to
test the validity of the act as applied
to them.
1t is intended that the Government
shall initiate court action against Iowa
State College, and that the case shall
be a test case affecting all State col
leges and State universities. Arrange
ments have been effected, it is under
stood, whereby Newton D. Baker will
be of the counsel for the defense. Mr..
Baker has given it as his private opin-
ion that there is no doubt in his mind
that the courts will hold invalid this
tax section of the revenue act as it
applies to State institutions.
In all likelihood, according to opin-
ion expressed by Attorney General
Mitchell, it will be June or July, 1884,
before the case can be prosecuted and
the courts render a decision. In the
meantime a determined effort will be
made to eliminate the section referring
to a tax on admissions to intercollegi-
ate contests, it being generally held
that the tax was one Of the reasons
for the slump in foot ball receipts last
Fall. College athletics is being taxed
in another way also, there being 10
per cent tax on all athletic equipment
purchased.
EELDING YOST, athletic director at
IL Michigan, has been in washington
since last Saturday morning and
has spent virtually all his time here CIV
ing tax information as it has affected
college foot ball and college athletics to
Senators and Representatives. Yost was
one Of the men who took up the matter
with Attorney General Mitchell. There
Is not the least doubt in YostS mind
that the Government, when it goes to
court, will not be able to establish its
right to force the State institutions to
collect a Federal tax on admissions to
athletic games or any other kind OF a
tax
Some inferences have been given by
local papers that Yost while here is
taking up matters pertaining to the
arrangement Of foot ball games with
one or more local schools. AS a mat
ter of fact, he has had nothing of the
kind in mind. A representative Of one
local school, while in New York, did
mention the possibility of foot ball
game with Michigan, but Yost replied
that 1t was out of the question as
Michigan's schedule is complete for the
next two years.
A MOTHER Middle Western univer-
"A sity that has not paid the tax on
dQIIllSSlOIlo W 4OOO onlA SdAAlCo
of last Fall is the University of Mime
sofa. That institution collected the
tax, but has not paid it over to the
Government and has no intention of
doing so, it is said, until after the
Federal Government proves in the
courts its right to the money.
Even If the Federal Government, it
Is claimed, can establish the validity
of the tax on admissions to games, it
cannot legally force the State institu-
tions to collect the tax and for that
reason, if for no other. the whole sec
ton will fail of its purpose. However,
even if the State institutions can escape
the tax through invalidating the act,
las far as they are concerned, they
would much rather see the section re-
pealed because that would give relief
to the private institutions which are
just as hard hit and have just as de-
serving cases.
lust what will happen if the Gov
ernment fails to take action is hard
to foresee Such lack of action
probably would result eventually in the
State institutions one by one simply
neglecting to collect the tax. However,
such an eventuality is not expected, as
it is believed by the great majority OF
those connected with the colleges AMI
universities that Congress will take ac-
ton favorable to them. Not even dur
ing the war time was tax placed