Evening star., 1938-04-22
INCOME RETURNS
OPEN TO PR0BERS
Roosevelt Order Allows
Senate Inquiry Into Data
Given in Confidence.

Threats OF general exposure OF in
come. excess-prof1ts and capital stock
tax returns. submitted in confidence
to the United States Government, are
carried In an executive order. signed
this week by President Roosevelt.
The order will give the Senate Lobby
Committee. headed by Senator Sher-
man Minton. Democrat of Indiana.
more power to lift the lid on private
business secrets than ever has been
given before to any agency OF Con-
gress
Until today. the fact that a revo-
lutionary executive order had been
signed by the President on April l8
remained generally unknown. There
was no official announcement of any
such action The first intimation such
step was in contemplation came
through a technical, dry. routine
statement, appearing in the Federal
Register, under date of April 20, re-
vealing it had been issued two days
before.
Open to Inspection.
BY virtue of the authority vested
in me-" so reads the Presidents off,
cial order 1T is hereby ordered that
income. excess profits, and capital
stock tax returns. made under the
Revenue Act of 1895, as amended by
the Revenue Act of 1895. as amended
by the Revenue Act of 1897, shall be
open to inspection by the special COM
mlftap ia lNh
ties. United States Senate, or any duly
authorized subcommittee thereof. for
the purpose of and to the extent nec-
essary in. the investigation of lobbying
activities in connection with the So
called holding company bill or any
other matter or proposal affecting
legislation. which such committee or
subcommittee is authorized and direct
ed to make by Senate Resolution 1865,
passed July IL, 1885, such inspection
to be in accordance and upon compli-
ance with the rules and regulations
prescribed by the Secretary of the
Treasury in the Treasury decision re-
latlng to the inspection of returns by
that committee, approved by me this
date"
When copies of the Federal Regis
ter containing the order were called
to the attention of Senators. 1t be.
came apparent that this unusual step
by the White House to aid an in
vestigating committee is not to pass
unnoticed at the Capitol. Anti-New
Deal Democratic Senator's. as well as
Republicans, intend to attack 1t as a
violation of the constitutional guaran-
tees given Americans against unlawful
search and seizure.
Asked by Minton.
Senator Minton. as chairman of the
Senate Lobby Committee. who sue
ceeded Senator Hugo L. Black of Ala
bama in that capacity when the lat
ter was elevated to the United States
Supreme Court. denied the new execu-
tive order would be used as a general
graphing hook on business. He ad.
mltted. however, the President had
issued 1t at his request. He said he
had signed the letter. requesting it,
because some of the boys wanted it
for a particular OUTFIT" When asked
who the boys" meant, he said the
clerks employed by his lobbying COM
mittee.
Although Senator Minton saws the
door is not to be swung open for a
general drag-net investigation of busi-
ness, one OF his Democratic colleagues
said today he regards this as general
threat to business in a campaign year,
and the use Of the powers Of the exec
utlve to intimidate all who have to
nle anay of the tax returns involved
in the executive order.
When the Senate Lobby Committee,
under the Craftsmanship Of Senator
Black, gained access to thousands of
kilograms, obtained under subpoena in
the Federal Communications Commits
sion investigation. which showed wide
spread propaganda by power COM
panies against the enactment Of the
death sentence clause Of the holding
company bill, there was widespread
criticism. and court action to test
legality. The fact that this same com.
mittee is to be given this new author.
1ty under the executive order In deal.
ing with Federal taxpayers may be
expected to cause considerable busi-
ness concern.
'conyrisht. 1893. by the North American
Newspaper Alliance, 1ne.)