The news in this publi
cation is released for the
press on receipt.
THE UNIVERSITY OF NORTH CAROLINA
NEWS LETTER
Published Weekly by the
University of North Caro
lina for the University Ex
tension Division.
lARCH 18, 1925
CHAPEL HILL, N. C.
THE UNIVERSITY OP NORTH CAROLINA PRriOo
VOL. XI, NO. 18
rdi R. C. Branaon. 3. H
Hobba, Jr.. L. R. Wilson. 8. W Knitibt. D. D. Carroll. J. B.BnIlItt. B. W. Odam.
Bn„roa ....«nd-cl.a.ma.u,r X.,.n.bor M. 1914. a..boPr.tofflo...Cb.p.lHill. N. C.. ondo. .ho .cl An^n.. 94. 1912
FEDERAL INCOME TAX RETURNS
1117
890
172
14
29
78
50,640
26,196
21,429
8,623
federal income taxes
The Federal income taxes paid by
:orth Carolina individualsandcorpora-
ions for the income year ending De-
ember 31, 1922, amounted to $16,374,-
68 or one percent of the total income
ax'paid by all the states. Of this total
orporations paid $11,466,967 and indi-
dduals paid $4,908,611.
The corporations reporting net m-
iomes numbered 3,486, or 61 percent of
ill corporations in the state. How
nanyof these actually paid an income
lax is not reported. Two-thirds of ail
Slorth Carolina Federal income taxes
were.paid by corporations. These cor
porations reported a gross income of
nearly 941 million dollars, but they
paid income and excess profltitaxes on
only 99 million dollars in round num -
bers. In other words, their net tax
able income was less than one-ninth of
their gross income. The deductions
under the law amounted to more than
eight-ninths of their gross income.
The Federal income taxes paid by
our corporations tor the income year
1922 were as follows:
889 Manufactories $7,701,561
251 Transportation etc, ... 1,901,866
7Q1
Trade concerns yyo,
Financial corp:)rations .693,242
Personal service con
cerns
Mines and quarries ..
Miscellaneous ..
Agricultural corpora
tions
These totals do not include the stamp
axes on tobacco and tobacco products,
yhieh amounted to nearly 137 million
lollars in North Carolina for the year
mding June 30, 1924. j
Personal Income Taxes
The individuals who filed Federal
personal income tax returns for 1922
numbered 68,009, with an aggregate
pet income of nearly 172 million dol
lars. Of the total number reporting net
incomes, 36,336 actually paid no income
tax because of exemptions allowed un
der the law. The personal income
taxes, aggregating nearly five million
dollars, were paid by the 22,674 peo
ple, who, after all exemptions had
been deducted, had net taxable in
comes, The table which appears else
where shows in detail the income
classes, the number of returns filed by
each class, the net income, and the
taxes paid.
The population of North Carolina to-
tals two million seven hundred thou
sand in round numbers, of whom 22,674
paid Federal income taxes for 1922!
Which means that less than one per
cent of the total population paid Fed
eral income taxes, or about one family
out of every twenty-five the state
over. In other words, ninety-nine per
cent of the population pays no income
tax to the Federal government.
By way of parenthesis we might say
that income taxes comprise the main
source of revenue for the operation of
our state government and the facts
relating to the number who pay in
come taxes are approximately correct
for state income tax payers, individual
and corporation. In the aggregate,
our state government is cheap, very
cheap, for about ninety-nine percent
of us who pay no state income taxes
but expensive to the bare handful of
people and corporations on whom almost
the entire burden of the cost of the
state government falls. The support
of our state government needs to be
borne by more shoulders, and it must
be or the limit of expansion in state
government activities will soon be
reached.
Who Pays Income Taxes
Income taxes are paid mainly by
urban dwellers. The study in last
week’s News Letter dwelt on this
point. And they are paid in the aggre
gate by a bare handful of urban dwel
lers.
For instance, the 54,844 individuals
with reported incomes ranging up to
six thousand dollars paid all told less
than six hundred thousand dollars of
income taxes. Three individuals with
net incomes of more than four hun
dred thousand dollars paid more than
six hundred and fifty thousand dol
lars in taxes. The eighty-eight indi
viduals with net incomes of more than
fifty thousand dollars each, paid more
than half of the entire Federal per
sonal income tax, largely because of
the high rates on large incomes.
Sixty-five Millionaires
Just how many millionaires there
are in North Carolina no one knows.
Using the accompanyingltable and
assuming that a person with a net in
come of sixty thousand dollars, six
percent on a million dollars, is a mil
lionaire, there are at least sixty-five
millionaires in the state. There are
seventy others who are approximately
millionaires, with net incomes ranging
from forty thousand to sixty thousand
dollars after all exemptions allowed
under the law have been deducted
from their gross incomes.
These are only a few of the perti
nent facts suggested by studying the
accompanying table, taken from the
recent Statistics of Income issued by
the Federal Treasury. The table is
full of interesting facts for the reader
who cares to study it. —S. H. H,, Jr.
COUNTY GOVERNMENT
Prof. A. C. McIntosh, member of
the faculty of the school of law of
the University of North Carolina, has
an article both timely and interesting
in the February number of the Nati
onal Municipal Review on County
Government in North Carolina. It is
a remarkably clear exposition of what
county government in this state is, and
in conclusion Professor McIntosh points
out what he considers some of its de-
lects.
He finds that there is a lack of uni
formity in organization which he
readily admits “may not be altogether
a defect, since conditions are not the
same in all sections of the state.
EDUCATION SPEAKS
I am Education. I bear the
torch that enlightens the world,
fires the imagination of man, feeds
the flame of genius. I give wings
to dream and might to hand and
brain.
From out the deep shadows of the
past I come, wearing the scars of
struggle and the stripes of toil, but
bearing in triumph the wisdom ofi
all ages. Man, because of me,
holds dominion over earth, air, and
sea; it is for him I leash the light
ning, plumb the deep, and shackle
the ether.
I am the parent of progress, crea
tor of culture, molder of destiny.
Philosophy, science, and art are the
works of my hand. I banish ignor
ance, discourage vice, disarm an
archy.
Thus have I become freedom’s
citadel, the arm of democracy, the
hope of youth, the'pride of adoles
cence, the joy of age. Fortunate
the nations and happy the homes
that welcome me.
The school is my workshop; here
I stir ambitions, stimulate ideals,
forge the keys that open the door
to opportunity. I am the source of
inspiration; the aid of aspiration.
I am irresistible power,—Selected.
No Headship
He is more emphatic in his assertion
that county government “is not well
co-ordinated, but rather loose-jointed in
that the various offices and depart
ments are more or less independent of
each other. And this suggests what
may be the most apparent defect, that
it is a community government without
even a nominal head. No particular
ofticer can be considered, in any sense,
the responsible head of the county
government. The chairman of the
board of commissioners may be
such in theory, but he is in fact only
what his title implies, the presiding
officer of the board at its meetings and
he has no duty or authority otherwise
unless it has been delegated to him as
the representative of the board. In the
few counties which now have a whole
time chairman, with definite duties
prescribed, there appears to be some
recognition of the necessity for such a
head officer.”
Professor McIntosh finds that the
compensation generally provided for
the county commissioners and the
board of education would seem to be
inadequate for the duties and responsi
bilities involved-. It appears to be a
cheap form of government, but that
often proves to be an expensive form.
No question is raised as to the honesty
and good intentions of the men selected
I for these positions, but they are often
men without the experience and busi
ness training required for such duties.
The short term and the popular election
may make them particularly re
sponsive to the public will, but the
change which may take place every
two years may seriously interfere with
working out any well defined polmy-
While'they are not strictly political
offices, party affiliation is nearly al
ways considered in their election, but
there is no criticism that the office is
made the opportunity for graft or
political corruption. There is no de
finite and generally accepted
making reports of finances so that
they may be readily understood, and i
many instances it might be difficult to
ascertain the exact financial condition
of the county at a particular time.”
While this is a commission form of
government, in that it is a government
by commissioners, Professor McIntosh
; finds that “it is far from the commiS’
sion form as found in municipal cor
potations. In at least ope county
the latter form has been recog
nized in making the commissioners
whole-time officers and assigning to each
one a particular department of the pub
lic work. There is a state organization
of county commissioners which meets
annually to discuss the various ques
tions of county government, and this
may lead to a more general knowledge
of the conditions in the different sec
tions of the state, and bring about final
ly a more unified and consistent plan.”
An Agency of the State
“The county is considered only as
an agency of the state for govern
mental purposes and not an organiza
tion for local self-government as in a
municipality; and for this reason little
legislative power has been conferred
upon it, except that involved in tax
ation, and no police power in the sense
that it may pass ordinances for its in
ternal government. This is as it
should be, since there are in the state
one hundred of these separate govern
mental agencies, all engaged in the
same work and to carry out the same
purpose, and it might lead to greater
confusion to confer upon them any
extensive legislative or police power.’
—Durham Morning Herald.
that of a big tree, with its trunk ever
becoming deeper rooted a»d its branch
es ever extending outward until both
have reached their full stature. The
University is the tree and the Exten
sion Division its branches.
Summary of Activities
For the sake of brevity its other
principal activities during the last two
years may be summarized as follows:
eighty-seven thousand people heard
one or more of the 207 educational lec
tures scheduled by the division in 110
communities; 668 physicians took sum
mer post-graduate medical extension
classes in 36 centers of the state; 1,-
767,960 pieces of second-class mail
(educational bulletins, circulars, news
letters, etc.) were issued during the
biennium; 6,800 high-school students
took part in the state championship de
bating and athletic contests, 980 peo
ple were reached by the Bureau of
Design and Improvement of School
Grounds; 2,600 requests for educa
tional information were taken care of
by the School of Education; 13,076
members of women’s clubs studied
programs or used library facilities;
6,951 package libraries containing 23,-
091 books and pamphlets were sent
upon request; 960 people were reached
by the field work of the School of Com
merce; 6,960 letters were written in
answer to requests for general in
formation; 1,940 people were reached
by the extension services of the School
of Welfare; 25,000 people attended
home-talent plays and pageants di
rected by the Bureau of Community
Drama; 8,150 people were served by
the work of the Bureau of Community
Music; 8,800 letters requesting informa
tion about North Carolina were an
swered by the Department of Kural
Social-Economics; 16,000 homes re
ceived the University News Letter
every week duringthe two-year period;
814 communities were reached by one or
more forms of University Extension
service.
extension idea twelve years ago. His
successor, President Chase, who has al
ways been heartily in sympathy with
the extension idea says, ‘ ‘A Univejsity’s
service ought not to stop where its cam
pus stops. Its business is two-fold: to
train individuals and to cooperate
; effectively and immediately in the
! great work of commonwealth build
ing. It serves the future through its
teaching and research. It must also
serve the present. The special expert
knowledge and skill assembled on a
university campus ought to be daily
at the disposal of the state. A uni
versity and its state must be in part
nership with each other, and I believe
that in North Carolina they are.”
WorK Lauded by Reber
Began Under Graham
It was Edward Kidder Graham, the
late President of the University, who
conceived and put into execution the
A noteworthy appraisal of the Uni
versity’s extension work was made
recently by Dean Louis Reber, direc
tor of the Extension Division of the
University of Wisconsin, the largest
division in the world, following a per
sonal tour of inspection of the work
being done here. On his return to
Wisconsin, Dean Reber wired Daniel
L. Grant, General Alumni Secretary,
as follows:
“My return tp Wisconsin has been
accompanied by unusually fruitful
memories of my brief stay in North
Carolina. The vigor and power of
the work of your university must im
press even the casual visitor. It is
natural that I should be especially im
pressed, with the results secured by
the extension division. By the scope
and liberality of its work and business
like way in which it is handled, it is
quite clear that with you the results of
research are being made to an unusual
degree effective and useful to the peo
ple of the state. The faculty mem
bers whom I met, and I met a number
of them, were full of the spirit which
leads to the end. This spirit seemed
to permeate the entire institution and
one must conclude that it is the inti
mate union of scholastic and humani
tarian interests in the University of
North Carolina that has led to its be
coming so.”
FEDERAL PERSONAL INCOME TAXPAYERS
In North Carolina, by classes, 1922
Based on Statistics of Income, issued by the Federal Commissioner of In.
ternal Revenue, for the income year ending December 31, 1922, showing (1)
the number of individuals who filed personal income tax returns, by classes, (2)
the incomes of each class, and (3) the taxes paid by each class.
In North Carolina 68,009 individuals filed returns covering the income year
1922, 36,336 of whom actually paid no tax. The net income of these 68,009 indi
viduals was $171,929,269, and the tax paid amounted to $4,908,611.
Department of Rural Social-Economics, University of North Carolina.
Income Class
extension work grows
An amazing growth in the work of
the Extension Division of the Univer
sity of North Carolina is revealed in a
biennial report which Director Chester
Snell has just issued. During the last
two years, it is shown, the University
gave instruction to exactly 3,369 North
Carolina folk who for one reason or
another could not come to the campus
for residence study.
These 3,369 non-residence students
fall under two divisions, those enrolled
for class work conducted by University
professors just as the work is con
ducted on the campus, and those taking
correspondence courses by mail. Dur
ing the two-year period 2,158 non-resi
dence students registered for 2,307
courses in 139 classes held in 49 towns,
while 1,211 non-residence students
were enrolled in 1,841 correspondence-
study courses in 98 countiea.
But class work and correspondence
courses, while standing out among the
the major endeavors of the Extension
Division, are by no means the only con
cern of this phase of University activ
ity. Its activities are manifold and
varied. It furnishes most anything
the average Tar Heel wants in the way
of a mental menu. Its growth is like
Under $1,000»
Under 1,000
§1,000 to $2,000*
I, 000 to
2,000 to
2,000 to
3,000 to
3,000 to
4,000 to
4,000 to
5,000 to
6,000 to
6,000 to
7,000 to
8,000 to-
9,000 to
10,000 to
II, 000 to
12,000 to
13,000 to
14,000 to
16,000 to
20,000 to
26,000 to
30,000 to
40,000 to
60,000 to
60,000 to
70,000 to
80,000'to
90,000 to
100,000 to
160,000 to
200,000 to
250,000 to
300,000 to
400,000 to
500,000 to
Total
2,000
3,000*
3,000
4,000*
4,000
6,000*
5,000
6,000*
• 6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
20,000
26,000
30,000
40,000
60,000
60,000
70,000
80,000
90,000
100,000
160,000
200,000
260,000
300,000
400,000
600,000t
750,000^
No. Returns
2,597
60
8,237
10,183
19,747
3,278
3,969
2,924
626
2,020
110
Net Income
$1,860,264
32,362
12,879,664
14,146,276
47,079,271
8,243,892
13,366,043
10,182,761
2,954,091
9,047,451
586,707
Total Tax
$1,119
149,326
112,914
108,903
119,621
1,054 .
6,742,595
102,958
724
4,700,686
96,989
480
3,586,789
87,299
341
2,899,002
81,267
254
2,403,088
72,634
211
2,216,750
74,936
163
1,766,640
65,036
120
1,497,930
60,238
86
1,159,699 '
46,982
81
1,169,764
52,678
280
4.858,088
262,101
142
3,173,951
214,309
80
2,180,487
172,963
78
2,702,668
267,591
47
2.116,422
264,263
, 23
1,267,882
183,719
10
634,876
107,326
13
972,332
156,491
10
864,995
181,922
8
754,401
176,139
12
1,463,633
401,261
6
917,171
339,192
2
460,213
156,37.4
2
667,003
150,842
2
1
1 1,615,622
652,639
58,009
$171,929,259
$4,908,611
lOLUl .
♦Paid no tax because exemptions exceeded net income,
iClasses grouped to conceal net income and identity of taxpayer.