The Mason City Globe-Gazette from Mason City, Iowa on March 3, 1936 · Page 2
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March 3, 1936

The Mason City Globe-Gazette from Mason City, Iowa · Page 2

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Mason City, Iowa
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Tuesday, March 3, 1936
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TWO MASON CITY GLOBE-GAZETTE, MARCH 3 1936 handle any tax bill sent over by the house, said: Would Balance Buflgct. "Nobody relishes taxes in an election year, but this program certainly will contribute toward a balancing of the budget when we get relief off our shoulders." Barkley said an average tax of about 33 1-3 per cent on undistributed corporate earnings, with a sale of from 25 to 40 per cent had been suggested. He added that consideration would be given to exemptions of such amounts as required for depletion reserves and debt retirements. The Kentuckian said the "windfall" tax might be in the form of a requirement that processors who received refunds of taxes which he did not pass on to the consumer in the first place would include the refunds in his income for taxation purposes. .In a momentous message recommending a thorough revision of the national tax system, the president also proposed: Broader and Thinner. Processing taxes spread broader and thinner than the old levies outlawed by the supreme court A "windfall" tax to recover a considerable part · of the old processing taxes which were returned to the taxpayers or on which they refused payment. Repeal of the existing capital stock tax which was estimated to yield $163,000,000 in the fiscal year 1937. Repeal of the corporation excess profits tax which was estimated to yield 55,000,000 in 193T. Repeal of the exemption of dividends from the normal tax on individual incomes. The graduated corporation .in- Come tax which the president pro- Your GUARANTEE of PURITY posed to repeal was estimated to yield $826,000,000 in the fiscal year 1937. Provide Extra Revenue. Treasury experts were understood to estimate that the proposed new levy on undistributed corporation profits would not only replace the $994,600,000 taxes which would be repealed put would provide an additional revenue of $620,000,000 on 1936 corporation incomes. The president told congress invalidation of the processing taxes left a deficit in the budget of Jl,017,000,000 and that the cash bonus would add an annual charge of $120,000,000 a year. "We are called upon, therefore," he said, "to raise by some form of permanent taxation an annual amount of $620,000,000. It may be said, truthfully and correctly, that $500,000,000 of this amount represents substitute .taxes in place of the old processing taxes, and that only $120,000,000 represents new taxes not hitherto levied." From Budget Message. Quoting from his budget message statement that "the increase in revenues would ultimately meet and pass the declining cost of relief," Mr. Roosevelt said: "If we are to maintain this clear- cut and sound policy, it is incumbent upon us to make good to the federal treasury both the loss of revenue caused by the supreme court decision and the increase in expenses caused by the adjusted compensation payment act. "I emphasize that adherence to consistent policy calls for such action." The chief executive said he was leaving "to the discretion of congress" the formulation of appropriate taxes. But he invited the attention of congress to "a form of tax which would accomplish an important tax reform, ^remove two major inequalities in our tax system, and stop 'leaks' in present surtaxes." Corporate Income Tax. Mr. Roosevelt then proposed the tax on undistributed corporate incomes "graduated and so fixed as to yield approximately the same revenue as would be yielded if corporate profits were distributed and taxed in the hands of stockholders." The president did not mention a specific rate but said the treasury would submit estimates by which the desired yield could be realized. It was understood the treasury's proposal was for a graduated tax averaging about 33'/i per cent. The president made it plain that he expected the new corporation tax not only to cover the repealed taxes but to raise the $620,000,000 which characterized as permanent levies. Proposes Windfall Tax. He proposed the windfall tax and temporary processing taxes to cover the 5517,000,000 which the government lost in this year's pro- :essing taxes. The first would seek to regain unpaid processing taxes from beneficiaries "unfairly en- TAXES SUGGESTED WASHINGTON, UP) -- Taxes suggested by President Roosevelt in his message to congress: PERMANENT A levy on undistributed corporation profits to yield $1,614,000,000 annually. This would be accompanied by repeal of the present corporate income tax, the capital stock tax, the related excess profits tax and the present exemption of dividends from the normal tax on individual incomes, so that the net additional permanent revenue would be $620,000,000 a year. TEMPORARY A tax on the "windfall income" 1 received by processors from nonpayment or return of the outlawed AAA processing taxes. An excise on the processing of certain agricultural products, to be spread over two or three years. The two temporary levies to- raise a total of 5517,000,000 over the full period of their operation. riched by the return or non-payment' 1 of the levies. The' second was to place "an excise on the processing of certain agricultural products." The president in his message and treasury experts in unofficial amplification of the program took the view that the proposals would eliminate the greatest "leak" in the present tax structure,' would establish equality in taxation between recipients of business profits from corporate and non-corporate sources, simplify th'e tax system for the taxpayers as well as the government, and eliminate taxes entirely on corporations which distributed all their income. Difficult to Incorporate. The present law, treasury ex- parts advised the president, makes it difficult for a ,small business to be incorporated because of the corporation taxes in addition to personal income taxes paid by owners. As a part of the tax reform, the president also proposed that the present exemption of dividends from the normal tax on individual incomes be repealed. This point reflected the theory of the new tax plan: That instead of taxing corporation profits, the revenue should be raised by taxing these profits as they are reflected in individual income tax returns from those who get the profit. The president, in explaining- his proposals to congress, said: Changes Considered. "Extended study of methods of improving present taxes on income from business warrants the consideration of changes to provide a fairer distribution of the tax load among all the beneficial owners of business profits, whether derived from unincorporated enterprises or You Can Not Afford to Buy Without Comparing iir Lower Prices i With Others Anywhere...Anytime We hove convinced hundreds of buyers that they con do nuieh' better oMaur store. Our low overhead and direct factory buying connections enables us to quote very attractive prices. Our mer- chandise comes from the recognized, leading manufacturers of the United Stares. BE FAIR TO YOURSELF--SEE US BEFORE YOU BUY INLAID LINOLEUM We will gladly give you a FREE ESTIMATE OR any room. We guarantee satisfaction. CREDIT Our terms are liberal -- Weekly or monthly payments arranged to suit your convenience. CARPETS RUGS We can take care of any of your requirements no matter how large or small. Let us figure with you! 29 Second Street S. E. Mason City, Iowa Phone 3910 from incorporated businesses, and whether distributed to the real owners as earned or withheld from them. The existing difference be tween corporate taxes and those imposed on owners of unincorporated businesses renders incorporation of small businesses difficult or impossible. "The accumulation of surplus in corporations controlled by taxpayers with large incomes is encouraged by the present freedom of undistributed corporate income from surtaxes. Since stockholders are the beneficial owners of both distributed and undistributed corporate income, the aim, as a matter of fundamental equity, should be to seek equality of tax burdens or. all corporate income, whether distributed or withheld from the beneficiaJ owners. Dip Too Deeply. "As the law now stands, our corporate taxes dip too deeply into the shares of corporate earnings going to stockholders who need the disbursement of dividends; while the shares of stockholders who can afford to leave earnings undistributed escape current surtaxes altogether." Explaining this proposition, tax experts said that a man holding 60 per cent of the stock of a corporation has in the past frequently left the profits in the corporation in the form of surplus rather than dividing them and thus subjecting them to taxation. While the big stockholder did not need this money, experts said, the other and smaller stockholders might have needed it badly. If the new tax would force the distribution of such surplus income, it would not only increase revenues, they said, but would provide new purchasing power for the smaller stockholders. The president, continuing his discussion of this problem, in his message, said: Old as Law Itself. "This method of evading existing surtaxes constitutes a problem as old as the income tax itself. Repeated attempts by the congress to prevent this form of evasion have not been successful. The evil has been a growing one. It has now reached disturbing proportions from the standpoint of the inequality it represents and of its serious effects on the federal revenue. "Thus, the treasury estimates that, during the calendar year 1936, over $4,500,000,000 of corporate income will be withheld from the stockholders. If 'this undistributed income were distributed, it would be added to the income of stockholders and their tax as is other personal income. But, as matters now stand, t will be withheld from stockholders by those in control of these corporations. In one year alone,, the government will be deprived of revenues amounting to over $1,300,000,000. Would Correct Inequality. "A proper tax on corporate incomes (including dividends from other corporations), which is not distributed . as earned, would correct the serious twofold inequality in bur. taxes -'on · business'' profits if' accompanied by a repeal of the present corporate income tax, the capital stock tax, the related excess profits tax, and the present exemption of dividends from the normal tax on individual income. The rate on undistributed corporate income should be graduated and so fixed ag to yield approximately the same revenue as would be yielded if corporate profits were distributed and taxed in the hands of stockholders. "Such a revision of our corporate taxas would effect great simplification in tax procedure, in corporate accounting, and in the understanding of the whole subject by the citizens of the nation. It would constitute distinct progress in tax reform." Would Not Apply. Treasury experts explained that the proposed new graduated tax for undistributed net profits of corporations would not apply to reserves accumulated in the past but only to income currently allocated to reserves. They said, however, that any current income that was undistributed would be taxed regardless of tie use to which it was put. They added, as an example, that if a corporation put $200,000 of current income into expansion of its plant this money would be taxed.. It was suggested that corporations might get money for expansion by issuing rights to stockholders and getting their consent to retain the profits for expansion purposes. The effect of this would be the same it was said, as though the money had actually been paid over to the stockholder in profits and reinvested by him. The stockholder would have to report his paid tax on the income. Tax Collections Drop. NSW HAMPTON--Current tax collections during February in Chickasaw county were nearly $5,000 less than the same month last year. Last month the collections totaled 518,095.52 compared with $23,020.74 in the same month last year. Old age assistance collections totaled $609.61 compared with $1,134.00 in the same month last year. Shovel Way for Physician. OSAGE--The snowplow and 12 shovelers opened the road from Osage to the L. E. Raymond home so medical aid could get to the home as Mrs. L. B. Raymond was very ill. NOTICE! Our advertisement, which appeared In yesterday'* Globe-Gazette, contained thl* Item: NATIONAL SEAI, FLOUR, 100 Ibs. . . $1.69. 49 Ibs. should have been listed at this price, and not JOfl Ibs. The item flhonld have read: NATIONAL SEAL FLOCK, 49 Ibs Sl-69 We reRret. that the eiror occurred. Sterling Groceries and Meat Markets BOND ISSUE IS OVERSUBSCRIBED Treasury Stands Ready to Give Congress Advice on Tax Bill. WASHINGTON, W)--The treasury, which stands ready to give congress tax suggestion if asked, Tuesday hailed. the results of its big March financing operations. An offering of securities for $1,250,000,000 cash, the major part of the financing operation, was "heavily oversubscribed" Monday. The books were kept open on a 5559,000,000 offering of new securities in exchange for maturing notes. Altogether, it was the biggest financing- operation since the World war. The senate lobby c o m m i t t e e plunged into another day's hearings with Chairman Black (D., Ala.) charging that some companies which sought to influence legislation have resorted to large scale destruction of their records. To Set Dale. Other Washington developments: The senate was expected to set a date soon for the impeachment trial of Federal Judge HaJsted L. Ritter of southern Florida. The house-voted Monday, 181 to 146, to impeach him on charges of high crimes and misdemeanors. He is accused of accepting $4,500 from a former law partner who was allowed a $75,000 fee in a receivership case in Ritter's court. To Attend Meeting. Secretary Wallace planned to attend a farmers' meeting in Memphis Friday to start the new deal's $500,000,000 soil conservation-farm subsidy program in the southland and one in Chicago Saturday. The American Federation of Labor estimate that unemployed to- talled 12,626,000 in January revived demands in congress for passage of legislation to limit the work week to 30 hours. Senator Norris (R., Nebr.) said "we will have to come to a reduction of the work week." Republican conservatives, however, took the view that the way to cure unemployment was for the government to give ecbnomic forces full sway. SWIFT TO HEAD SOLDIERS' HOME Maquoketa Man to Succeed B. C. Whitehill at Marshalltown. ,. -. DES MOINES, C.B -- The state board of control Tuesday announced the appointment of Dr. Frederick J. Swift of Maquoketa, deputy state health commissioner, as commandant of the soldiers' home at Marshalltown to succeed B. C. Whitehill. Dr. Swift will assume charge April 1. He received a four year appointment. The board also announced the reappointment of Col. Glenn Haynes as warden of the state penitentiary at Fort Madison. His new four year appointment starts April 30. Served 20 Years. WhitehiU, a republican, has served 20 years as commandant of the soldiers' home. Dr. Swift once was a democratic state representative from Jackson county. E. H. Felton, a member of the state board of control, said there was no relationship between the failure to reappoint Whitehill and the charges of political activities at the home during the last session of the state legislature. Called lor Investigation. A resolution calling for an investigation was passed in the senate after its introduction by Senator Chris Reese (D) of Marshaltown. Reese charged that only five of the 157 employes at the soldiers' home were democrats. The house, however, refused to pass the senate resolution. Whitehill later was exonerated of the charges at a hearing held by the state board of control. Dr. Swift will receive a 53,000 yearly salary and maintenance for himself and family. BREAK WIDENS IN NEW JERSEY Political Developments Add to Hoffman-Schwarzkopf Differences. TRENTON. N. J.. (J--Gov. Harold G. Hoffman's differences of opinion with Col. H. Norman Schwarzkopf, head of the state police, over the merits of the police work in the Lindbergh kidnap-slaying. were close to the breaking point Tuesday. Two unexpected political developments sharpened the edge of their disagreement: Democratic minority members of the state assembly swung their strength against a bill, sponsored by a republican legislator, which was intended to defeat any designs the republican governor might have to see that Schwarzkopf is out of office by the end of June. And a rasolution was introduced in the assembly to investigate the administration of the motor vehicle department. Assemblyman Basil Bruno, republican, who brought up the resolution, said he was advised "several employes are engaged in the Hauptmann case." St. Paul to Register All Former Convicts ST. PAUL, UH--Under terms of a new St. Paul ordinance, designed to combat crime, all persons in the city who have been convicted of felonies in the past 10 years must register with the police department within the next 48 hours. Visitors in the same classification must file 24 hours after their arrival. Hearing on Biermann Bill Set for Thursday WASHINGTON, (ff--Representative Fred "Biermann of Decorah, Iowa, announced hearings on his bill to require labelling of shoes would be held Thursday before an interstate commerce subcommittee. He said the bill would prevent rating cheap shoes higher than their quality. MEANS TO FIGHT INSECTS GIVEN Scientists Gather at Ames to Map Out Battles With Pests. AMES, (/P)--The men who pit scientific devices against invading insect armies converged on the Iowa State college campus Tuesday for a series of national and midwestern entomological meetings. The meetings come at a. time when millions of insects, holding a potential threat to crops over a wide area should the weather favor their growth, soon will emerge from winter hibernation. Sessions of the national codling moth conference opened Tuesday and will continue Wednesday. The central plant board meeting opens Wednesday, and the North Central States Entomologists convene Thursday and Friday. Will Standardize Quarantines. One of the important pieces of busines before the central plant board is the problem of standardizing state insect quarantines. Allied with this is the question of whether the state quarantines against the European corn borer, slowly spreading westward, shall be discontinued. Canadian insect regulations, grass hopper and chinch bug control, state pest inspection, the alfalfa weevil threat, transmission of animal disease by insects, the Hessian fly menace, and scores of other kindred subjects are scheduled for discussion. Will Outline Methods. Dr. J. R. Parker of Bozeman. Mont., who will represent the United States this summer^ at the .world grasshopper conference in Cairo, Egypt, will outline latest methods of controlling the pest which has wrought thousands of dollars damage to midwestern crops in the last five years. Dr. C. J. Drake, Iowa entomologist, said he expected from 150 to 200 scientists, representing nearly every state in the Union, to attend the sessions. STATE WILL ASK FOR REHEARING To Appeal to High Court on County Pension Board Expense Ruling. DES MOINES, W)--The attorney general's office has announced the state will ask a rehearing on the supreme court decision which held the old age assistance commission responsible for the expenses of county old age boards. The commission estimated the shift of expense to the state pension fund would reduce the amount available for pensions approximately $125,000 annually. The supreme court's decision was handed down in a. suit by Floyd county to escape payment of costs of the county board. Cutting the state's pension fund by a $125,000 would mean $250,000 less for pensions since the federal government matches pension payments, the commission said. The attorney general's office said that in case the supreme court reverses its earlier decision it will require that all state funds paid for county board expenses conditionally must be refunded. · The decision to ask for a rehearing was made after a series of conferences of state officials. Woman Drinks Poison. SIOUX CITY, UP)--'Police said Mrs. Mayme Kraft, 34, of Sioux City, drank a small bottle of poison in the police station, but suffered no ill effects after emergency treatment. Police said she gave no reason for the act. She was held for observation. Many Once Deaf Now Hear Again Many who once were "bard of hearing" have solved their problem through the prescription of a noted European specialist. It is called OURINE. Before you invest in expensive hearing devices, try one bottle of OURINE. See if it doesn't help you, too/ to banish earache, ringing and buzzing in ears, discharge, chronic headache, and enable you to hear better. Relief is quick--and the cost is only a few cents a day. Money back guarantee. Get OURINE today. Sold at your FORD HOPKINS DRUG STORE HOGS AND CORN PRICES BOOSTED 60 Cent Gain in Swine and 2 Cents in Corn Seen for Jan. 15-Feb. 15. DES MOINES, (If}--A 60 cent in. crease in the price of hogs and a 2 cent boost in corn prices in Iowa for the period Jan. 15 to Feb. 15 have been reported by Leslie M. Carl, federal agricultural statistician. Hog prices advanced from 59.10 a hundredweight to 59.70, and corn sold at 49 cents a bushel, an increase of 2 cents. Carl said that prices received by Iowa farmers for all their products were either steady or somewhat higher on Feb. 15 compared with the previous month. Corn-Hog Ratio. "The corn-hog ratio at 19.8 bush, els compares with 19.4 last month and 9.0 on Feb. 15, 1935, when grain prices were relatively high and hog prices about 20 per cent below present levels," Car] reported. Wheat sold at 93 cents a bushel, a 1 cent drop, and oats remained unchanged at 23 cents. Beef cattle at $7.60 a hundredweight were 30 cents below the previous month, but veal calves went up 60 cents to $8.70. Lambs were 10 cents lower at 58.70. In Good Demand. Horses continued in good demand and at $116 a head were $9 higher than last month. Egg prices shot up from 19.5 cents a dozen to 22.9 cents and butter on the farms sold for 36 cents a pound, an increase of 2 cents. Butterfat averaged 37 cents compared with 35 cents last month, but was 1 cent short of the price a year ago. Moore to Head Iowa WPA Music Projects DES MOINES, (IP) -- W i 11 a r d Moore, music supervisor for a group of Iowa theaters (Publix) for three years, became director of Iowa WPA music projects with an annual salary of 52,300. There are 129 Iowa musicians on relief. Rural Electrification Allotments on Iowa Projects Announced WASHINGTON, OT -- The rural electrific a t i o n administration announced Monday allotments totaling 51,634,500 to seven projects in Iowa, Minnesota and Texas. The allotments were made subject to compliance by the applicants with legal and engineering requirements. The allotments included: City of Hawarden, Iowa, 5127,500 to build 150 miles of line in Sioux county; city of Cowrie, Iowa, $26,000 to construct 26 miles of line in Webster county; Boone Valley Electric Co-Operative, $45,000 to build 40 miles of lines in Wright county, Iowa; Corning Municipal Utilities company. Corning, Iowa, $120,000 to build 110 miles of rural lines in Adams county; McLeod Co-Opera- ·tive Power association, $650,000 to build 636 miles of lines in Glencoe, Iowa, and McLeod counties, Minn. For Bad Winter Coughs, Mix This Remedy Yourself Saves Good Money! No Cooking 1 ! If you want tho best cough remedy tbat money can buy, mix it at home. It costs very little, yet it's the most reliable, quick-acting medicine you ever used. The way it takes hold of distressing coughs, giving immediate relief, is astonishing. Any druggist can supply you with 2M; ounces of Finer. Pour this into a pint bottle, and add grauulated sugar syrup to make a full pint. To make syrup, use '2 cups of sugar and one cup of water, and stir a few moments until dissolved. No cooking needed. It's no trouble at all, and gives you four times as much cough medicine for your money--a real family supply. Keeps perfectly and tastes fine. It is surprising how quickly this loosens the phlegm, soothes the irritated membranes, helps dear the air passages', and thus ends a bad cough in a hurry. Pioox is a compound of rs orway Fine, in concentrated form, famous for Its effect in stopping coughs quickly. Money refunded i£ it doesn't please you in every way. ^o«J5!»2f- LAST DAYS TO TAKE ADVANTAGE OF the Hundreds of Bargains offered in our SMASH FOR CASH WEDNESDAY THURSDAY FINAL SLASH 2-DAY CLEAN-UP 600 GARMENTS COATS DRESSES Fur Coats WOOL DRESSES WOOL SUITS KNIT DRESSES Skirts, Sweaters, Blouses, Jackets-Going Now at Rummage Prices. FINK'S SMART APPAREL 15 South Federal Ave.

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