J. E. WOOD DEFENDS
SMALL PROCESS TAX
PAYERS IN LETTER
l Rcbvhd Congress In Answer To An
Editorial In Norfolk
■ Virginian-Pilot
K Os particular interest to Herald
readers is an article written by J. E.
Wood, of Eden ton, and appfiring in
Friday's issue of the Virginian-Pilot
in aswer to an editorial in that news
paper relative to the return of im
pounded processing taxes.
Mr. Wood's letter follows:
4:read with great interest your
editorial entitled “Lucky and Un
lucky Processors” in the January
22nd issue of the Virginian-Pilot
It is indeed an unholy tax mess, but
the present administration in Wash
ington has only itself to blame. If
the President had not asked Congress
last summer to pass legislation out
lawing processing tax suits, it is
doubtful that the courts would have
found substantial grounds for en
joining the collection of processing
taxes.
“Pay first and litigate later” has
been the lav/ in all tax suits hereto
-1 fore, but when Congress threatened
to take away the time-honored right
of taxpayers to recover taxes ille
gally collected, it took away the jus
i tice in “pay now and litigate later.”
f Naturally the processors immediate
ly went to court and said, “Give us
injunctions restraining further col
lection of these taxes because now
that Congress is preparing to out
law tax recovery suits we have no
remedy at law in the event the tax
is eveutually declared unconstitu
tional.”
As you doubtless remember, tem
porary injunctions were granted
throughout the land and bonds and
cash to secure unpaid taxes were
impounded in the courts. Later the
threatened legislation; was passed,
but so amended as to enable tax
payers to recover that portion of the
tax "which they coaid prove they did
not pass on to the consumer or back
to the producer. The government
then moved that the injunction be
dissolved but the courts denied the
motion, ruling that there was still
inadequate remedy at law as it was
practically impossible to determine
whether or not taxes had been pass
ed on, and many judges held that no
matter if they had, processors were
entitled to full recovery under exist
ing law.
Nor, it seems to me that the
courts were right in this matter.
Though I am not a lawyer, I would
Ifelike to emphasize the fact that the
tax was not a sales tax but
a tax imposed on the right to pro
cess certain commodities; and that
sjf£. there is no law-limiting the a
, -mount of profit a processors can
'make; any profit added to the price
of these* commodities to take care of
possible processing taxes should have
the same legal status as profit added
to cover other expenses of doing bus
iness. Even though an expense is
never realized, there is nothing to
prevent a manufacturer from allow
ing for it in his prices. For instance,
some companies carry their own fire
insurance, adding a certain percent
age to their prices and crediting it
to a reserve to cover their losses if
and when they occur. In the event
they never have a fire, surely the
law could not compel them to refund
this fire insurance reserve to their
customers. Neither should a pro
cessors have to refund his impound
ed processing tax reserve to his cus
tomers. Such action might not only
eliminate his profit entirely but cause
4lim a heavy loss as well. After all
it must be borne in mind that the
tax was ruled unconstitutional,
thereby making is mandatory to give
first consideration to the taxpayer—
the processor!
As a matter of fact, I am reliably
informed that only a relatively small
portion/of the $200,000,000 of im
pounded funds returned to the pro
cessors represents a real profit. A
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large part of it is little more than ]
returned capital outlay, and when
one recalls how prices of processed
raw materials tumbled last spring i
when the NRA was invalidated and ]
doubt was cast on the AAA, it will
not be hard to believe that proces- i
sors lost more than $200,000,000 in 1
inventory mark-downs.
That it is unjust for one group of
processors to recover their taxes and i
another group be denied this right ]
goes without saying. But the infer
ence should not be made, as in your •
editorial, that the group which paid
$1000,000,000 to the Treasury recov
ered nothing, while those who paid
$2000,000,000 into the courts recov
ered aIL The groups were not divid
ed in that manner. You overlooked
the fact that the bulk of the billion
dollars paid to the Treasury was
paid by those large processors who
were the first to obtain injunctions
and who shared heaviest in the
$200,000,000 return from the courts.
The luckless lot is the vast number
of small processors who played ball
with the administration to the end.
And whose fault is it that they are
out of luck? Is anyone to blame but
our dear, sweet Congress which has
denied them the right to recover?
TAX
\ RYLAND !
V >
Excitement prevailed in the home
of Mr. and Mrs. Isaac Byrum for a
few minutes Sunday when the house
was discovered to be on fire. The
fire, which broke out in the dining
room, was seen by Mr. Byrum just
about the time it blazed, and prompt
action by a bucket brigade soon had
the blaze extinguished. The actual
damage by the fire was small.
Mrs. R. S. Ward, who was quite
sick several days last week, is now
improving. Mrs. Ward fainted late
Wednesday afternoon while attend
ing a hog killing at the home of Mr.
and Mrs. N. E. Jordan.
Mr. and Mrs. Joe White and son,
Robert, of Gliden, visited Mrs. Har
riett Parks Sunday afternoon.
Mrs. W. E. Copeland visited Mrs.
Roy Parks last Thursday afternoon.
Carson Davis made a business trip
to Chuckatuck, Va., Friday.
The regular meeting of the home
demonstration club was held in the
school building last Tuesday after
noon. Miss Colwell, home agent, was
present, and discussed with the mem
, bers the arrangement of furniture.
The condition of W- H. Boyce re
mains about the same.
Mrs. Roy Parks, L. T. Chappell
and Juanita Lane were in Edenton
on business Monday afternoon.
The “Chowan Coon Hunters” will
be at Ryland school building Friday
evening, at 7:30, with a string band.
; The Sunday School benefits from the
admission charge, so give the “Coon
; Hunters” a big hand.
Miss Ronella Ward spent Monday
’ afternoon in Edenton.
T. J. Dilday has been suffering
with attacks of kidney colic for the
past several days.
Mr. and Mrs. Heywood Phthisic
and children, of Edenton, visited Mr.
and Mrs. Roy Parks Sunday after
. noon. Mr. and Mrs. Joe White and
son, of Gliden, also visited Mr. and
Mrs. Parks during the afternoon.
Roy Parks and Cameron Boyce
spent Monday in Franklin, Va.
Mrs. H. H. Lane and children vis
ited her brother, Wilbur Phthisic,
near Belvidere, Sunday afternoon.
Mrs. C. W. Ward and son, Fermor,
visited Mr. and Mrs. R. S. Ward on
Friday evening.
Miss Mary Lee Davis spent Thurs
day with Mrs. Joe Byrum near Can
non’s Ferry.
Mrs- Stephen Knox, of Oxford,
was the her parents, Mr. and
Mrs. N. E. Jordan, several days last
week.
Mrs. Jim Hudson,of Suffolk, Va.,
spent a few days last week with her
sister, Mrs. N. E- Jordan.
Garland Byrum, a student at
Wake Forest College, returned to his
studies Wednesday, after spending a
few days with his parents, Mr. and
THE CHOWAN HERALD, EDENTON, N. C-, THURSDAY, JANUARY 30, 1936
Mrs. Isaac Byrum.
Adolph Spivey, who has been in
Washington, D. C., for the past few
months, is at home with his mother,
Mrs. Cornie Spivey.
Mr. and Mrs. Julian E. Ward and
son, George, of Edenton, visited in
the home of R. S. Ward Sunday af
ternoon.
Mr. and Mrs. Mclhrie Jordan, of
Suffolk, Va., spent Sunday with his.
parents, Mr. and Mrs. N. E. Jordan.
After spending the week-end with
her parents, Mr. and Mrs- Isaac By
rum, Miss Pauline Byrum returned
to Murfreesboro Sunday to resume
her studies at Chowan College.
Mrs. Callie Copeland and children,
from near Belvidere; Mr. and Mrs.
Erson Blanchard and children, from
near Hobbsville; Mr. and Mrs. P. E.
Lane and little daughter, from near
Hertford, visited Mrs. Louisa Ward
Sunday afternoon.
Mr. and Mrs. Isaac Byrum and
family motored to Windsor Saturday
afternoon. They met their son, Gar
land, who was coming home from
Wake Forest College.
1 COLERAIN I
\ /
Miss Connie Wynne returned home
Wednesday after spending several
days with Mrs. L. D. Perry.
GANDERSO^’S
• This sale will last only 10 more days ... all prices are slashed to the bone ... this is your
opportunity to save ... come and take advantage of these mone^aavingnpnces^^^^^^^^
Boys' All Wool Sport Back
Knicker Suits
A SPECIAL AT
$4.88
Men's and Boys'
Sport Sweaters
All Wool ... all new styles
Values to $3.50
89c to sl*B9
Brand New Styles In
Men*s Dress Hats
Values to $3.50
$1.29 to $8.49
Men's Solid Leather
Work and Dress Shoes
All Guaranteed... Value $4.50
$1.69 to $2.89
Boys' Work and Dress
SHOES
Values to $3.50
SI.S9 to 5Z.49
ALL FIRST GRADE U. S.
RUBBER BOOTS
WILL BE SOLD AT COST
100 Pairs Men’s Dress Pants. All wool and
2*“..’“51.9$ to s*.B9
• All furnishings not mentioned are reduced
and save... these prices cannot be duplicated.
S. GANDERSON & SONS
The Men*s and Boys* Store Edenton, N. C.
Mr. and Mrs. E. L. Stokes and
Donald Newsome spent Sunday in
Raleigh.
Mrs. Graham Harrell and Mrs.
Shelton Pierce were shoppers in
Norfolk, Va., Wednesday.
Mrs- J. A. Curran, of Edenton, was
the guest of her sister, Mrs. C. C.
Hughes, several days last week.
Mr. and Mrs. M. L. Brinkley and
Miss Jennie Mae Brinkley spent Sat
urday in Greenville with Miss Caro
lyn Brinkley, a student at E. C. T. C.
Miss Geneva Harrell, of E. C. T.
C., Greenville, spent the week-end
with her mother, Mrs. Avie Harrell.
Mrs. Annie Beasley is spending
several days in Windsor with Mr.
and Mrs- Merle Montague.
J. J. Beale, Mrs. W. E. White and
Mrs. L. D. Perry were in Windsor
Wednesday night in the interest of
the school.
Mr. and Mrs. J. P. Deans had as
their guests Sunday Mr. and Mrs.
Alvin Eley, of Ahoskie.
Miss Julia Austin spent the week
end with her mother in Lewiston.
Mrs. J. K. Spruill, Mrs. H. O-
Harrell and Mrs. Luther Winborne
were in Ahoskie Thursday shopping.
Mrs. J. Mi Britt was carried to
Protestant Hospital, Norfolk, Va..
Monday. She was accompanied by
| Mrs. W. E. White, Mrs. Lee Miller
■ and Grady Britt.
Grady Britt, of Wake Forest Col
lege, is spending a few days with his
parents, Mr. and Mrs. J. M. Britt.
Mr. and Mrs. J. A. Curran, of
Edenton, spent Sunday with Mr. and
Mrs. C. C. Hughes.
The Woman’s Missionary Union
held the first meeting of the new
year Friday afternoon. Circle I ren
dered a splendid program. A large
attendance was present.
Ford Co. Distributes
Valuable Almanac
Publication of a “Farm Almanac
and Facts Book” which will be dis
tributed to the rural population in
all parts of the country has been an
nounced by the Ford Motor Company.
The book is of a convenient pocket
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senting an extensive array of handy
tables, statistics and charts for the
assistance of the farmer and business
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aid the farm wife.
This first Ford Almanac is publish
ed for 1936 and is now being distri
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calendar on the back cover and con
tains tables showing the time of rise
and set of sun and moon in all parts
of the country every day of the year.
*"' ■ *'
MEN’S AND BOYS’
Pajamas
Newest and Latest Styles
89c°51.69
Values to $3.95
h i /
Men’s two-piece medium weight Underwear.
Regular 69c value. Special
over 20% during this great sale .. . Buy now
Men's and Boys’ Sport and Dress
SUITS
Every New Style and Model
One Group of tie*
1 $14.95 values now...
One Group of
$16.95 values now
One Group of
$18.50 values now ...
One Group of . ei^
$19.50 values n0w....^A4»™5
Men’s and Young Men’s
New Style
OVERCOATS
Only a few left— rm &ei
$19.75 value
A Group of 175 Men’s
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Values to $1.35 — em
While they last
All patterns—with the new no
wilt collar —all sizes
One Group of 375
Men*s Shirts
New patterns *mei
$1.95 value—now
Lot of 100
Boys* Shirts
Values to 89c — Now
44c
Other helpful and interesting astro
logical and astronomical information
is included.
Among the other prominent sec
tions of the book are: A list of mem
orable historic events for each day of
the year, facts about the universe,
explanations of physical phenomena,
a list of important festivals and an
hiversaries for the year, rules for
foretelling weather conditions, popu
lation statistics, facts and records on
farming as an industry, discussion
of the farm of the future, informa
tion on citizenship and naturaliza
tion, a brief review of the history
and development of the United
States, “do’s and don’ts” for use in
emergencies, poisons and their anti
dotes, instructions for flower and
vegetable gardening, crop seed sow
ing instructions, a list of places of
interest to the tourist, parcel post
rules and regulations, temperature
and rainfall charts, dates of killing
frosts in all parts of the country,
and a table of distances between the
principal cities of the country.
Stories on the founding and devel
opment of the Ford Motor Company
and about the Ford Rouge Plant,
word pictures of famous Edison In
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field Village, established within a few
miles of the Rouge Plant, are other
features of the Ford Farm Almanac.
PAGE THREE