Evening Star Newspaper, May 31, 1937, Page 20

B—2 ¥» THE EVENING STAR, WASHINGTON, D. €., MONDAY, MAY 31, 1937. TAXEVASN QU SPROMISEDSOON Probe of Millionaires’ Cases to Start as Soon as List Is Ready, Says Doughton. Early investigation of reported tax evasions by millionaires was promised today by Chairman Doughton of the House Ways and Means Committee. Doughton said that as soon as a list of tax-evasion cases prepared by the Treasury Department is received by the House arrangements would be made to start the inquiry. He ex- plained it was not certain, but he assumed the job would be assigned his committee by Speaker Bankhead. Doughton denied he had seen the Treasury list, or knew how many cases it contained, or the names of the millionaires invelved. He said President Roosevelt, in discussing the situation with him and Chairman Harrison of the Senate Committee, referred to the cases only as the case against “Mr. X.” The list is expected to be sent to the Heuse along with the President’s tax message, which is expected tomorrow, but which may be delayed a day, pend- ing the return of Mr. Roosevelt from | New York. Reperted to List 119 Cases. There were unconfirmed reports the list contained 119 cases involving an alleged loss to the Government of $225,000,000 in tax revenue, which the millionaires are said to have avoided paying, by various loopholes in existing law. Doughton indicated there is a pos- sibility of a joint House-Senate study of the new legislation the President will recommend to plug holes in the income tax law, to prevent evasions, which officials are said to regard as technically legal, but unethical. Joint hearings on the proposed legis- lation might serve to expedite Con- gressional action on the program, but he pointed out such procedure prob- ably would not shorten the period toward adjournment. Meanwhile fiscal officials have about abandoned hope of collecting this year | ebcut $78,000,000 in so-called windfall taxes, These taxes aimed at processors ®ho pass on to consumers or oth- ers the A A A. processing taxes, were authorized in 1936 at President Roosevelt's request as a stop-gap to recoup part of the revenue loss re- sulting from invalidation of processing taxes under the old Agricultural Ad- Justment Administration Before these taxes can yleld any major revenue, however, it was ex- plained, the Supreme Court must val- idate the windfall levies. No case is pending, however, and the court can- Tot rule before this fiscal period ends June 30. Challenged in Court. Numerous suits have challenged the Jegality of the windfall taxes and offi- cials said it is improbable any ma- terial collections will be received this fiscal period. Listed as an $82. 000.000 | revenue item in Mr. Roosevelt's Jan- uary budget, the taxes thus far have provided only $4,000.000. The Supreme Court already has validated a law banning claims for processing taxes paid under the A. A. A. unless it is proven the levies were not passed on to consumers. This court decision did not improve the Government's budgetary position, however, because no provision had been made for refunding the taxes. Officials said today court approval of the windfall taxes would help nar- row the gap between income and outgo during the next fiscal year, because the $78,000,000 of delayed col- lections would flow in then. This would whittle the estimated $418,- | 000.000 deficit for next year by a eorresponding amount. Won't Increase Deficit. Authorities added that loss of the eollections this year probably will not increase the $2,557.000.000 deficit projected for June 30, because the windfall tax litigation was taken into account in President Roosevelt's re- vised budget forecast last month. It is possible, officials reported, the estimated deficit may even be scaled down $100,000,000 or so by an upturn in revenues over expectations and a drop in expenditures. To shave the deficit in this amount, % was said, second-quarter income collections during June must top the $500.000,0000 mark. Some rev- snue authorities expressed confidence these collections would go over $600,- 000,000. Look Wel//BEronE vou LEAPY Harviet Habbard Ayer TROUSSEAU TREATMENT 'vfocu!ion * First; an WOMAN DIES OF HURTS IN FALL FROM HORSE | Miss Adeline XKennard Suffers Skull Fracture When Thrown at Edgewood Arsenal. By the Associated Press. EDGEWOOD, Md, May 31.—Miss Adeline Kennard, 20, a sister-in-law of Capt. T. H. Hickey of the 6th Field Artillery at Fert Foyle, died last night of injuries received when she was thrown from her horse on the grounds of the Edgewood Arsenal. Miss Kennard's horse bolted sud- denly, Army officers said. Death was attributed to & fractured skull, MESSAGE READY ONTAX EVASIONS President Puts in Second Day at Hyde Park in Rest and Recreation, By the Assoclated Press. HYDE PARK, N. Y, May 31— President Roosevelt mapped another day of rest and recreation for himself today, the second of a three-day visit to his mother's home here on the‘ Hudson. Work on his special message to | Congress recommending checks against | tax evasion and avoidance has been completed and it was expected to be transmitted from the White House to | the Capitol at noon tomorrow. Except for reading a small pouch of Government mail during the fore- noon and recelving a neighbor or two in his tiny office on the main floor of his large country home, the President planned to devote the day to motoring around the estate and to an afternoon swim at his Val-Kil | cottage outdoor pool. | No official engagements were made | for the memorial holiday, although James Townsend of Poughkeepsie, Democratic county chairman, was ex- | pected to pay a brief call at the estate. | The President saw his 82-year-old mother yesterday for the first time | since his 55th birthday anniversary, observed in Washington last January 30. She greeted him when he arrived by motor from the village depot and they breakfasted together. She broke an ankle bone a month ago, but was said to be recovering rapidly. Late in the day, the President participated in a meeting at his home of the vestrymen of St. James Epis- copal Church of Hyde Park and talked briefly with Herbert C. 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