TOL. ' ' ' ' " NUM?? warworn President Would Levy Tax OnBigSurpluses In Corporate Coffers a*?* . ? ^ _ ? . ? _ . i _ ?.? - iTopoflftsr swcejnasr kc* viaea q? GorporafcoH Tax Stpvctee to Boost Federal R^vatue Washiagtov Mmh 3.?A White House proposal that $$20,000,000 be added to cogpsrsie in&nlcjh sanaal tax bill through a ovajor revision of the federal revenue system today; ?tressed an obviously apprehensive Congress to immediate controversy. In a special message, President Roosevelt suggested that farm re lief and payeoeat of the hnaua be financed from a tax on profits which mcpotatimm- amass in then- treas ons* as surplus instead of distribot iog was dividends. Later, speaking* te the - press, he drew s broad distinction between reserve**?to provide working capi tal and cover depreciation of equip ment?and' surplus, which he said represented earnings, needed by the mnalter stockholders; which should be taxed or distributed. Called an "EriL" . Is both the memoes and-at-hut preu conference, he- condemned the accumulation oi andisCtttuted profits as a method - of evading1 taxation. I The message termed this an "evil*' J that "has reached* dmtnrfcing pro portions from the- standpoint of the | inequality it represents and of its! serious effect' en the- federal ieve-f sue." With some Democrats applauding! ?while others were openly critical*! or frowning; with many Republi-1 cans frank in their denunciation; and I administration leaders emphasizing that the Presides fa plan- was only a "suggestion,'* machinery was gear ed for starting^ ?- bill through Congress. Even as a- vigors as row developed on the House floor, the Ways and Means committee, which will frame the measure, relegated the whole sabject to a sub-committee which will begin its task tomorrow. Chair man Do ugh ton (D-N. C.) said open hearings before the full committee mould follow. t Unnt?nn . f It-Minn, i i touched off an explosive floor in tercharge with a critical speech. Minority Leader Saell added a caustic assertion that bat for cor poration reserves, unemployment would have beta greater. Representa tive O'Connor (D-N. Y.) accused the Kbpublicmm of already playing poli tics with the tax proposal. CaapM* Aaswsr. Chairman Harrison (D-Misa.), of thb Senate Finance committee, which wiB-ta**-charge- of the tax btf* When it emerges from the House, tensed the menage a "complete answer to those who- have been shouting about unbalanced budgets.1' He hoped they would "cheerfully pay their share." Mr. Rooeeveh suggested that he present' corporation income tax be replaced by a graduated tax on future undistributed profits, which some dose to the- administration thought might An from 26 to 41) per cent, and average 33 1-2. > This would have the effect of driving such profits out of corpora tion treasuries and into the hands of stockholders, which might pro vide funds for reinvestment, pro duce a mora rapid turnover of capital and, most important, would - ? ? ? I x- X make these rands suojeci u> ox* atioEL 1 The stockholders, would be re quired to pay the nonnsl income tax rate of four per cent and the surtax, a rate increasing with the sue of his income, on money tins received as dividends. At present, he pays only surtax on income from dividends. By repeating the present tax on corporation income and certain other corporate levies, the Treasury would lose- a year, vfcfle the new program would pro duce shout *1,820,030,000, the Pru dent est fmsfied, Tam 12CTUHKS Bit. S. L Isbeil of Lenoir, N. C, wQt speaks his tmb thsoach the Holy the Fhamrflte Christian ebareh Sandsy, March 8th at 7M p. m. He wiB also speak at the Farm rills Heabytarisa dmxeh Mon day, March 9th ah ?:? > bl, on his ly trasalsd soaatehst the fhrwriOa male ?**?.*- ' '? - > ' -"3^-.-*^- . . ;? ?>. ? ?. *\ - ahmhsasms* ? .-? -? - ' vtsfirf _ |jn ,, li i | r -' v r>\ ,v"i ' ?n nrrTT ? ? ii IN BALANCE Washington, March 3. ? President Rooaevalt, in hia tax menage today, reiterated hia contention that "with* out tfa* itema for relief?' his 1966 37 budget wee in. balance He added, however, that the fis* prerar Court's JULA. and rice miliars' decisions, and passage of cash bonus t payment legislation, had "adverse^ affected" the budget for both current and coming fiscal years tM 1 follows: v Deficite to date throagfc expendi tures chargeable to processing taxM; 1 less processing taxes collected, |28?r 1 oooooo ' 3 m expenditure* iox rcw bursing fanners for performance* ! under 1986 AAA-ctmttacts ptiot to 1 invalidation, $296,000,000. . 2 Estimated expenditures under the new soil conservation-snbudy Mil, 1440,000,000. . j Annual cost of boon* payments for nine years, $120,000,000. J - ^ Strong: Program Banned For Farm Broadcasts I ? * 1 With spring closing in fast, farm. ( people are beafly engaged in prepar-' iag for the new crap year. Realizing this, specialists at Stttt* . College are advising growers over the Carolina Farm Features radio j program as to the proper methods of planting and caring for the crop*. These fans broadcasts are heard each week day over a number of North Carolina - statin* * One of the Most important tasks at this time of the year is the start- 1 in* of baby chides. Mr. C. F. Par- ' rish, extension peultrym&n, haa pre pared a -talk on "The Feeding, Care, 1 and Management of Baby Chicks," 1 which he befiewes wiH be of much help, to the raisers. The broadcast j will be heard on Friday. On Saturday Dr. G. K. Middleton, of the Afrricultaral Experiment Sta tion,' will be on the air with a discus sion of "Corn Production in North ! Carolina." He will place emphasis 1 on the best varieties for the different sections of the state. * Officers Break lip Tehees i Theft BHtf; ??- 1 White Man. T5sw>v 11UVV U ??*?*' -???j ? "H Negroes Sentenced In , Greene County Court 1 Snow Hill, March 4.?Operating J in thi? section of the State for the ?, last eight or ten years, according to Greene County officers, three white men and two Negroes a to- ( bacco stealing ring were found ( guilty in Superior Court here dur ing the criminal term that ad- | journed Monday. "The gang has been stealing to- i bacco throughout Wilson, Greene t and Pitt counties for "the last ten i years, and headed by a white man, , had a regular organization," said Deputy Sheriff F. C. Carraway of , Snow Hill, who arrested the men , over a period of several weeks. , Ruffin Seamster, white leader of ( the gang, waa sentenced to six ytfln i in State prison by Judge FrizzeUe,* while Claud Wflliams, Negro, was given the aame time on the roads, and Otgar Joyner, Negro, and Geroge \ Brand, white, weA given ooa and < two years, respectively, on the roads. B. O. Robinson, white lieutenant , of Seamster, was given a five-year suspended sentence by the judge on condition that he waa not to take a drop of whiskey for that period. The ease Jesse lunar. Negro, who hid tamed State's evi The ris vm charged with lnrt? ing end entering, larceny and tea* ipiracy. ' . :V; Deputy Carraway said Monday that there were aevarml of the gang *01 at larg* but that he expected to dean up the net of then to toil near future. . . "The stealing of tobacco in 'thia said Carraway. ? ' ' i " t Tboee wtog the TVA phoapato in ?jft I ^ ^ ' a * "a -^a" a 1 ^ '? ? '?' *'. f Mmrtt' UH&fcWt eriaa*tf thai hi*' ptupoaad tax on undivided cor the- man on trial, testified that jbe-^had been on the scene of the shooting: an hour after it occurred and he had seen evidence of a scuffle in the road. > | j He also corroborated Owen's testi mony by telling the- story as told to him by Owens himself the next w ? Mrs* Owens testified that Lyman had threatened Owens before the shooting.' She also corroborated bar husband's 'testimony.. Ailm onH ntvtn tVio ttmd, ?he stood out in contrast to Mii. Metheseutt who sat most of th* day today with her head in her hailrfa ; Character witnesses put on the1 ^iftd for Owens included Chief of Poice J. a Bryan of Fountain, For. met Sheriff i l; Jfettttry of Greene counts and f Whitley, chairman offlfc JBtord nf Conner Commission^ uf- Greene County. ; State Patrolman H* a Johnson, Sheriff J. X. Cobb of Snow fiill end Da#atyF. Ti CtofiMty testified cottsrning Ow*ns>>JMfc Johnson testified that they found Owens* pat with three empty shells and that Owen*> had said *t didn't aim the last wrt She Mid hfer kind said to Oim at tfe* kotti on the afternoon of the shoots g"11 he osi el par way in an ?aid ht nicest Lai Of Progress 'Alt Washington And la adjoining States ft Cited . . Raleigh, March 5.?The chaneefe tor control of the 1996 flue-cured tobacco crop thsough atateg con* pacts, authorised by Congress and enacted by the state legislatures, apt peered to Governor Ehriagfraus td have diminished even further yesteri day. In the- first place, with the plant* ing season dangerously near?es* pecially in Georgia and South' Caro* lina?no progress was reporoa irum Washington Hearts the Department of Agriculture is working 0* the bill to uuthoiiileiheeompacts: Apj jsiwtfy the bill has not beed drawn, much lees introduced. ? 1m the second [place, the Virginia Legislature bee passed a peculiarly worded compact hill which, in ef-i feet, would leave it-, up to the^GovJ ernor- of Virginia whether or not the states compact would be ef-i fective?and even he could do notE-* ing until and unless Georgia adopt-': ed some form of control "subatani tially in accord with the quota and) marketing provisions of the act." Voluntary Sign-Up. Governor Ehringhaus, in the mean time, was giving his attention to pro-' posals for a voluntary crop reduction; sign-up?apparently the only thing! left unless Congress comes through, South Carolina comes through and Georgia comes through with some plan for control without a control law which* would be satisfactory to the Governor of Virginia* ? In the meantime, a joint subcom mittee representing the State To bacco Advisory Committee and the executive committee of the State Farm Bureau Federation, will con /e. with South Carolina Legislatures today to learn if they are willing to join in a compact with Georgia on the outside, The wording of the Vir ginia law is expected to affeot the situation at Columbia, S. C., when the. North and South Carolinians meet today. Virginia's Ur. The new Virginia law includes the following! "This act will not become effective unless and until the Congress of the United States shall pan an act con senting to the establishment of com pictg sttch as are authorized by this act and thereafter tUs act shall be come effective with respect to flue cured tobacco upon the enactment of a similar act by the legislatures of the states Jof North" CaioHna, South Carolina and Georgia; altd shsdl be come ^effective relative'to burlisy to bacco -upon the enactment of a1 simi lar act of the legislatures of the states-of North Carolina, Kentucky Ctoolhmf if juul when the governor shall And aft r* fact and proclaim that in his-opinitn effective means have bMbt aMglsd to regulate by agreement or other wise the marketing and sale kind of tobaoco In Georgia substan tially in accord with the quota .and marketing provisions of this act" What ItMettSr : Governor RhringhauS, in a tele phone conversation -with Governor Peery of Virginia, yesterday asked the meaning of the words "effective means ... to regulate by agree ment or otherwise the - marketing and sale of such kind of tobacco in Georgia substantially in' accord with the quota and marketing pro visdons.of this act" . \ V. v (V Governor Peery replied tiudF. -as | be interpreted the provision it meant regulation in Georgia by legislation or soma voluntary phm^ With the Georgia erop 'aoon to go into the ground, the prospeet for > voluntary control plan "substan tially in a*xasdM with-Oh? jnwisions ai the proposed contract seemed very Biim to governor rinnngrumw _ V ton, the Governor'aent th? following telegram to Senat0 r: to^^^^5 ^'Beg^rdin ' ?&??! .-? * *-* " *-J *y the acreage re duction program. Adams urged the fansat^Mon day to produce all the fosdiij^ feed needed and sis# wmit *cfah tinned efforts for soil conservation. f ; ,