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US Court Holds Federal Gambling Tax Is Illegal IllegalJudge Judge Welsh Rules Against Stamp Fee and Furnishing Information InformationPHILADELPHIA PHILADELPHIA Pa May 6 A TJ S district judge ruled today that the 50 fed ¬ eral gambling tax and registration of bookmakers and numbers operators is un ¬ constitutional The decision by Judge George A Welsh is expected to be appealed directly to the U S Supreme Court by the government governmentIn In Washington a Justice Department spokesman said comment was being with ¬ held pending receipt and reading of the opinion It first will be studied by the crim ¬ inal division and then referred to the solicitor generals office for a final decision on whether an appeal should be taken takenWelsh Welsh ruled against the stamp lee and the furnishing of information to the Inter ¬ nal Revenue Bureau in an opinion sustain ¬ ing a motion for dismissal of a criminal information against Joseph Kahriger 36 Kahriger is one of 16 persons charged with failing to register as gamblers gamblersWelshs Welshs decision commended the high purposes of the act but termed illegal the provisions calling for payment of the 50 stamp tax registration with the Collector of Internal Revenue listing the place of business and posting there a government certificate showing that the registrant is engaged in gambling gamblingWelsh Welsh also said the listing of names of employes is objectionable because it makes gamblers informers for the state f fThe The decision held that the 10 per cent tax on gross income of gamblers also in ¬ cluded in the laws provisions is constitu ¬ tional though it might be unwise
