Evening star., 1934-05-05
Says Tax Action Is PerSe-
cution Based Upon Po-
IiticaI Enmity.
Continued From First Page)

In so lar as am COIlCtIlIeu' N4o4l
It to be clearly understood that
have made no such offer Of settlement
and never intend to make one.
owe the Government no additional
taxes. I have overpaid, not under
paid, my taxes. Under the circum-
stances. I should lose my Self-re-
spect if I submitted to an unjustifi-
able tax merely to avoid having my
case sent to the Grand Jury by Of
ficialS who have refused so far to
give me any hearing or even to ac-
quaint me with any grounds for
Grand jury proceedings.
II there is such a Federal tax
policy as the Attorney General has
announced it is nothing more than
an attempt to regularize campaign
of terrorism with the tax law as
the weapon. and most assuredly it
does not excuse the action of the
Attorney General himself. who for
months has been issuing public state
ments about my tax affairs. regard
less of the gross impropriety of thus
attempting TO prejudice the cause of
later trial by the courts.
Says He Was Promised Hearing.
I know something about the ad-
niniStratlon of the tax laws, but
never until now have I known of a
case where a taxpayer has been rail-
roaded to the Grand Jury without
first being given a hearing in the
Treasury ard an opportunity to re-
flute the Governments claims. What
makes the Attorney Generals action
more unjust is the fact that, when
l voluntarily gave the Treasury a
waiver of the Statute Of Limitations
on my 1881 return Ghe year in
Volved), I was promised by the duly
authorized official of the Bureau of
Internal Revenue that no action
would be taken in my case without
first giving me the usual hearing
Certainly. the Government could
have lost nothing either in taxes or
strategic advantage by treating me
like any other taxpayer.
The utter disregard Of statutory
regulations and settled procedure.
which has been shown in my case.
has confirmed the warning I re-
Ceived more than a year ago from
a source high in the councils of the
Democratic party in which I still
have many friends that a definite
effort was being made to discredit
me in connection with either my
administration Of the Treasury or
my tax affairs. What has happened
since has made 1t plain to me that
nothing I could have done or left
undone at the time of making out
my 1881 tax return would have
avoided an attack of the kind that
is now being made on me. Had
I not been a member of the Cabinet
of the last three administrations, I
would not now be the object Of this
extraordinary procedure.
Held Unprecedented Action.
AS previously stated, I am still
completely at a loss to know what
possible grounds there can be tor
sending my tax affairs to the grand
jury. More than two weeks after
the Attorney General first an
nounced that he was taking such
action in my case, the Treasury sent
me a letter, asserting that an addi-
tional tax of Sl.3l9 O8090 and a pen
atty of S65954O45 are due from me-
. in addition to the quite substantial
amount of tax already paid for the
year 1881. Not only was this amount
arrived at in the most arbitrary and
: scaprlcious manner. but the Treasury's
letter did not state any reasons
which would justify grand jury pro-
3 CeedingS. 1t is apparent that the
. Treasury was directed by the At
torney General to support his unpre-
Cedented action in sending my case
to the grand jury before any addi-
Z tional taxes had been claimed by
the Government: and it is apparent
also that the Treasury. at the At
torney Generals instance, in order
to give semblance of regularity to
his action, has asserted this addi-
tional tax, although knowing full
well that such claims could never be
supported in fact or in law
, In computing the tax claimed. the
Treasury has not only increased my
taxable income in the most arbitrary
manner but has also disallowed
pursuant, l understand, to orders),
deductions claimed on my return
(which are allowable under both law
and regulations and which have not
been questioned in the hundreds of
cases other than my own. While
the Treasury has thus increased the
amount Of my taxable income, it has
not allowed me. or given me an op-
portunity to claim, the proper per-
Centage of credit specifically provid-
ed by law relating to gifts made by
me in 1881 amounting to a total of
over $4,000 900 for charitable. relig-
1ous and public educational purposes,
although Department of Justice
agents, who examined my records.
had full knowledge of these facts.
These agents Informed me that there
was no shortage of irregularities of
any kind in my return, and the re-
port of the Treasury agents, who ex-
emined my records last Summer
shows that. instead of underpaying
my tax, have overpaid it by a sub
Stantial amount.
Taking Appeal.
= I am taking an appeal to the
United States Board of Tax Appeals,
and expect to establish not only that
there is no additional tax due, but
that I am entitled to a refund of
part of the taxes l have already
paid Under the course which the
Attorney General has taken, it is
impossible for this appeal to be de-
-termined until after my case is
brought before the grand jury. Fur
thermore, under grand jury proceed
tngs, I am not allowed to be repre-
sented by counsel or to present evil
dence to controvert any charges
which the Attorney General may
choose to make BY such tactics, an
atten1nt is heinp made to iodiot mo