The Junction Eagle (Junction, Tex.), Vol. 40, No. 43, Ed. 1 Friday, February 15, 1924 Page: 6 of 8
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PAGE SIX.
THE JUNCTION EAGLE
Friday, Fabroary 15,1M4.
The Truth About the Fight
Against Adjusted Compensation.
(By Aaron Sapiro, Chairman National Legislative Committee, in
American Legion Weekly.)
(Concluded from last week.)
There is Henry Ford, for in-
stance. He has come out against
adjusted compensation. He says
it is an insult to the veteran.
But Mr. Ford neglected to say
what the Mellon plan would
mean to him and his son, Edsel
Ford. He omitted to state how
many millions in profits he col-
lected on Liberty motor and oth
ci’ war contracts. Fortunately,
tr.ose figures are on file. Mr.
Ford doesn’t own his property
as an individual. He is incor-
porated. It is just a family
corporation, but it is a corpora-
tion, so that the maximum tax
he pays is twelve and a half per
cent. Every person in the coun
try who knows anything about
taxes knows that these big fel-
lows escape the payment of
heavy taxes bv incorporating
themselves so they can dodge
personal taxes and save a huge
wad. Mr. Mellon knows this
better than anyone else knows
it. The subject has been dis-
cussed with him. Yet -not a
word about it in his tax recom-
mendations.
We have a real weakness in
this country in inheritance taxes
In England, where family inher-
itances, ancestry an the like are
regarded as much more sacred
than they are here, they have
imposed a graduated tax on in-
heritances running up as high
as seventy-five percent. Our
top tax is twenty-five percent,
no matter if you have a billion
dollars to pass on when you die.
Everybody in Congress with
whom I have discussed the sit-
uation seems to appreciate that
inheritance tax rate on amounts
in excess of $100,000 given to
one jierson ought to be increas-
ed. Yet not a line about it in
the Mellon tax revision plans.
to tax-exempt securities. The
impression has been created
that enormous proportions of
private wealth are rapidly be-
ing tied up in such securities,
which are deemed unproductive
No such thing has happened.
An analysis in New York of the
estates of every man who has
died within the past few years
leaving more than $5,000,000,
shows that less than eight per-
cent of the securities they own-
ed at death were tax exempt
and that more than ninety-two
percent were taxable. Further-
more, these tax-exempt securi-
ties are largely state, county and
municipal bonds floated to build
roads, water works and other
public improvements. Are such
investments unproductive? Do
they fail to provide work and
stimulate industry, as has been
claimed? Additionally, such in-
vestments draw unusually small
rates of interest.
Mr. Mellon said capital was
not going into productive indus-
try and that industry was not
going ahead because of high
surtaxes. In the year just clos-
ed there has been a record in ex-
tra dividends and increased div-
idends for the first time since
1919, when more than one hun-
dred big corporations in New
York increased their dividends
or declared extra ones. Busi-
ness is better off today than it
has been at any time in the last
TAXES OF THE STATE
ARE NOW COMPILED.
Austin, February 9.—For the
years 1923-24, taxpayers of
Texas have paid and will pay
$103,829,500 in taxes of various
kinds, according to Representa-
tive John T. Smith of Travis
County. Of this sum, $47,975,-
500 will be paid in different
kinds of state taxes, from the
following sources: General rev-
enue, $16,930,000; state school
fund, $13,000,000; state pension
fund, $1,550,000; automobile
tax, $11,500,000; gasoline tax,
$3,500,000; franchise tax, $1,-
185,500; inheritance tax, $310,-
000.
Of the remainder of this vast
sum of money, $22,594,000 will
be paid in city taxes, $16,500,-1
000 in local school taxes, dis- j
trict taxes, road and levy dis-
trict taxes, $8,250,000 in road
and levee district taxes, and $8,-
500,000 in city taxes. These
are figured by Smith on an av-
erage county rate of 70 cents
to the $100 property valuation
of $2,242,000,000 total net val-
uation of the State.
“Now let us add the amount |
Texas tax payers pay to the fed-
eral government amounting to
about $35,000,000, and we have
the total yearly tax payments
by the tax payers of Texas of j
the enormous sum of $138,819,-!
500.” said Smith. Counting the |
population of Texas to be 5,000,-
000, this shows there is an
amount of about $27.75 for ev-
ery man, woman and child in
money paid out by Texas tax
payer in taxes.”
.“We admit the figures are
staggering, but we trimmed I
Hankins Drug Company
DRUGS
And
CONFECTIOERY
Hankins DrugCompany
§X§)(i)(§)(3X3XS)(i)®®®®(SX§X+)($K*x£X?Xs)®(^^
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mi
JUNCTION WOOL & MOHAIR CO
Courteous Treatment Fair Dealings.
We can Bave you money on Suit, Flour, Meal, Feed,
Sheet Iron, Etc.
COMPLETE STOCK OF LUMBER AND
BUILDING MATERIAL.
We operate our own trucks and make deliveries to
your ranch promptly. Give us your business
and we promise to do our best to please you.
TRY US WITH YOUR NEXT CLIP OF
WOOL AND MOHAIR.
We handle it like you want it handled.
four and a half years despite! wherever there was a reasona-
those surtaxes. Mr. Mellon's ble doubt.” Smith added that |(
surtax argument fails even as candidates for* the Legislature|j
an economic proposition, and!.should be asked about this and
this can be shown by the Sec re-; their views on the subject.
PART OF MOTOR TAX
STATUTE HELD VOID.
Houston, Feb. 8.—Judge J. D.
Harvey o ft he Eightieah D‘s-
tary’s own figures.
As I write this I see that Sen-
ator McLean of Connecticut got
up in the Senate yesterday and
said that the nation was trying
to offer “a poor debtor’s excuse”
Then there is the worst fea- .for not meeting its obligation i trict Court Friday declared un-
turo of all—the disintegration J to the soldiers. The Senator constitutional that provision of
ot huge fortunes through gifts .-gave some figures to show the the motor vehicle tax law which
l etore the death of the owner, absurdity of this claim. Cer- assesses a charge of $4 a seat
I his method ot tax evasion de- j tainly, the funds are available on service cars in addition to
piives the Treasury ot millions to pay this debt, the payment the usual taxes on motor vehi-
each year. If John 1). Rocke- of which need not interfere with cles.
feller had kept all his money to- tax reduction. Yet Mr. Mellon
grther he would have had $1.- tries to make it out that the
250,000,000. But he was wisely country is too jx>or to pay its
soldiers.
Suppose you owed the Mellon
National Bank, in Pittsburg, a
thousand dollars and had not
paid it or jtaiil any interest on
it for a few years. 1 fancy Mr.
JUNCTION WOOL & MOHAIR CO.
John R. Smart, President and General Manager.
Junction and Menard, Texas.
Try The Drug Store First!
advised, lie began to give hi
property away to his children,
\ ho sooner or later would get
it anyway. If you will look at
the records of the Standard Oil
Company of New Jersey you
will find that there is hardly a Mellon’s attitude would bo‘ verv
share in the name of Mr. Rocke- decided. He would not look you
It tier senior. You will find ii up and say, “You can’t afford
in the names of the children or i<» pav this debt and therefore 1
* be Kocketellei toundat ions, will excuse you from (laying,”
When Mr Rockefeller dies the ......i.i i... ...... »*iV
t iuv'eminent. u
Next Spring-
>;;nt i.ooo.ooo
will pioltahK
million.
When Mr
get less than
Ford d
h
mg
t
which is now
s*',oo non ooo
I do,onn,oo»
I Vrd estate
I ed at atn»u
like y will ic
This is a hole m the tax
l.»w that you could drive a hors
end wagon through, and isen
ot
nit
Mr
here
Me
Iwly know
known it t*<
void a Unit it in his scheme
kill adjusted com pen sat ion
farther eamg the tax hurdt
of the itch a great deal while
eases the hut den ot the xm
man a little ho In the next t
mii.n there will tie enough <
tape* llorn taxatioi
gift* lieforv death
ad of getting pay this thousand, it means
heiitance tax. that you will not In* able to buy
a new automobile next year,
therefore I will wipe the debt off
tin* luniks." Mr. Mellon would
land on you like a ton of brick
and make you pay. Why? Be-
cause the debt is just. That is
the only thing that would In* in
Banker Mellon's mind.
In the past the country has
shown that it regards its debt
to the ex-service men as a just
debt and one that should be (and
It is our duty to see that the
l»eo|tIe art' not swayed from
their attitude by the Hood of
>ordid propaganda which has
l*een covering the
covering Uoitgre**
to avoid pnvment •
When I call this
"sordid” i take a word from a
1 bave lust received from
Ol MI OOO
aw
,’ountry ami
n an effort
t t he tieh|,
propaganda
i iv nrnki
to pav
ter
United St,
Sor
jifNttd tom pen '*1
UMl UlthiiUt
did” in hi* term fo
>c the fitment -
taking a * cut fn
i|V1 AHk ot her
eti effort by whic
h the
-curve Mr Melk*
•u know- t hi*.
ImiinrM lnttr»*ta
have nought
I Wit he ha* kept *i
Unit except to
to Mind the eyei* e
»f 1 he country
a> that if eon*pen
oat Ian i* |cu«|
to the truth at»m
it #the Mellon
the |»Mf man * t*xc* * an’t It# .
tax prv*p»»*at* am)
to induce the
cut ami pro)—My w
‘i»i lie l»K*rc»>- 1
memWr* of t'otiga
mo to rvpudb
id Which <mpl
y iml true.
ate their pledge* ti
t tw*- t bo Ad-
Mr, Mel Son ha- 1
i*0-1x1 ht* fight
lusted tHwupt float lo«t lid).
u» cut the taxon i
t the rich on
1 *hall m»t take
up your time
tie**) Iliat w*
the surtax*’s t
With over 200,000 orders lor Ford Cars and
'Scucks already placed ior delivery during
the next few months, we are facing a record-
breaking spring demand.
Each successive month this winter has
witnessed a growth in sales far surpassing
that of any previous winter season. This
increase will be even greater during the
spring months always the heaviest buying
period.
These facts suggest that you place your
order early to avoid disappointment in
delivery at the time desired.
It it not near—*ry to c**h fot vou? cut in eider
to kwv yout lunt placed o*t the pwkiml delivery
I mm. You *«n nuke i email r*vm#nt down, or
you cm hit, il you %wk. undr? the convent#*!
!#(*• ©I tkt Fold Weekly Burch**# BU*.
Sec the Nearest Authorized Ford Dealer
t
induce the uge nit (Vnftfn wns brought
It* buy few,mt tax* I about. I nee that thin wa* ex.
wv until V great, nwrted in tat week *
„ of m*i>0 Ho * Wn made |
“the flight of capital” in
iM
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Perry, H. Grady. The Junction Eagle (Junction, Tex.), Vol. 40, No. 43, Ed. 1 Friday, February 15, 1924, newspaper, February 15, 1924; Junction, Texas. (https://texashistory.unt.edu/ark:/67531/metapth890729/m1/6/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; .