Newspapers / Carolina Watchman (Salisbury, N.C.) / Feb. 10, 1933, edition 1 / Page 5
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Clement Explains Production Tax Bill Solons Told They Must Look To Bill Bill’s Rate Not Excessive Rowan Senator Would Levy Five Mill Tax On Production Cites Reasons Why Legislature Slxmld Levy Production Tax Appearing before the joint sub committee of the joint finance committee, Senator Hayden Clem ent, of Rowan, author of the pro duction tax bill to levy a tax of one-half of one per cent on the val ue of practically all products manufactured in the State, told the committee that it faces an impos sible task of writing a revenue bill unless the principle of a produc tion tax is incorporated in the re venue bill to be written. Senator Clement made the fol lowing statement to the sub-com mittee: The 1931-32 tax bll for all purposes was $88,483,434. Total taxes including property, franchise license and State income paid by all manufacturing companies (ex cept tobacco) .during the year 1931 was $2,514,343 (from page 287 of Report of the Tax Com mission. 1932). Included in this group are all cotton mills, hosiery mills, lum ber and furniture, bottling com panies and miscellaneous small manufacturers. Individual tax items for this group show property taxes paid $1,85 8,444, franchise $214,249, privilege or license $23,295, State income taxes $414,632, and special dividend $2,728. Under S. B. 4 introduced by Senator Hayden Clement placing a 5 mills tax on gross production, these same industries wiil yield an additional $2,500,000 based on the most conservative estimates. As To Tobacco Assuming that under the pre sent schedules the tobacco and all other manufacturing concerns not hitherto covered in this report pay total taxes for all purposes of $4, 000,000 the entire amount of re venue received from productive in dustry is about $6,5 00,000 or only about 7 l/z per cent of the total tax figure of $88,483,434. Comparing tne sum oi upwaras of $1,000,000 received for manu factured goods by the various in dustries with the sum of $13 5, 000,000 received by farmers for their farm and agricultural pro ducts, it would not seem that the tax ratio has yet reached a fair basis, and in North Carolina in dustry is greatly favored over agriculture. The present system of taxing net income of corporations is not broad, and only takes in the more successful companies. The way is open for excessive salaries and fee to be charged a gainst gross income. Inventory losses and losses in sub sidiary companies having no bear ing on the actual operating acti vities of a company may be charg ed in the same way. There is also a tendency to claim depletion and depreciation in ex cess of a fair amount and also in excess of that actually sustained during the year. The Production Tax is an in strument of extreme simplicity and no deductions can be made from the gross figures. The 193 3 report of the Tax Commission had very little to say about the possibilities or yield of a manufacturers or. production tac in North Carolina. Table IX, page 307, estimated total industrial :urnover in 1932 of $1. s’, >00, 300. In view of the very high ratio of operations for the currenc y'ear of the two major iiuln, i ies, textiles and tobacco products, thisj figure would appear to be a decid-j ;d under-estimate. However, there1 must be substacted $13 5,000,000j representing gross receipts frcmj igriculture; $240,000,000. Federal^ tobacco excise taxes paid; and $65 0,000,000 wholesale and retail trade. Under the Production Tax Bill the taxable figure according to the figures in table IX would be $75 6, 500,000 plus $100,000,000 of items not included in the report but covered by the bill, and mul tiplied by 5 mills would yield .he State $4,282,500. Lowest Estimate This is the lowest possible esti mate that c#n be made for the Clement measure. The latest and best estimates on industrial pro duction in North Carolina in 1932 place the net figure at $1,100,000, 000 and it may run somewhat higher. On a 5 mills basis a yield is indicated of $5,500,000. Should the basic industries of the State show a normal improvement, the yield could easily mount to $6, 000,000 to $7,000,000 in the sec ond year of operation. Calling for a modern day ap plication of the principles of taxa tion to restore the confidence of the people, Senator Hayden Clem ent, chairman of the Senate Ap propriations Committee, made public a statement in support of his proposal for a production tax in North Carolina. "We have invested in industrial equipment for the manufacture of marketable commodities $1,25 0, 000,UOU ana employ ziu,uuu wage earners who in 1930 produced in dustrial products to . the value of $1,312,003),000,” Senater Clement said. "In our State’s population of 3,170,276 approximately 600,000 persons were engaged in agricul ture, who produced agricultural products to the value of only $327,000,000. "Yet out of 96 millions dollars collected in taxes in 1931 by State, county and city governments, 49 millions were collected from pro perty taxes. 'This discrepancy between the market and taxable values of agri cultural products and the market and taxable values of the fabri cated products of industry and the accumulation of corporate inter ests, commonly known as com merce, should cause us to consider if a balance of these important subjects would not tend to bring about a more equitable distribu-i tions of the burdens of taxation,' thereby bridging the gap that now exists between the value of agri cultural products and the ac cumulation of corporate wealth. "Our agricultural products are largerly consumed by those who produce them, while the potential market of our industrial commo dities is unlimited, and many are' now consumed by other peoples ofj the earth. i "The chief objection heard to the imposition of a production tax on manufacturing is that it places a tax on articles manufactured in this State that are required to com pete with the manufacturers of other States. The same objection can be raised to on income tax, to a franchise tax, to a property tax or to any other form of tax levied in this State on manufactur ed products, which is not borne by manufacturers of other States. "While we have forms of taxa tion not uniform in other States, we must remember that manufac turers in other States have their burdens of taxation, not uniform with this State. For example, al most every other State levies a property tax, on both real and per sonal property which they must overcome in competition with this State. "Our State, due to its geogra phical location and climate condi tions, and having as it does super ior natural advantages for manu facturing, coupled with its frugal and industrious population, is des tined to become the industrial workshop of our nation. Ranking hrst in cotton goods, hrst in tob acco products and first in the manufacture of wooden bedroom furniture, and having the largest hosiery mill, towel factory, over all plant, cordage and twine mill, and weaving establishments, den im mill, damask mill, underwear factory, the second largest alumi num reduction plant in the world and one of the largest pulp paper mills and rayon mills in the United States, we can snap our fingers at our competitors and say, 'Indus try is North Carolina and North Carolina is industry.’ ” SENATE SUSPENDS OFFICER "There are not many senators or representatives who 'sell their votes for money, and it is pretty well known who those few are," wrote David S. Barry in the New Outlook magazine. 'The senate, suspended Barry from his post as sergeant-at-arms, when he said he could not name any members of congress who had accepted bribes. PEACE IN NICARAGUA General Augusto Sandino, elu sive Nicaraguon insurgent leader vainly sought by American mar ihes for five years, last week ans wered the final departure of mar ines from the country by declar ing peace with the Nicaraguan government. KEEP CORPORATION COMMISSION The state senate voted 26 to 24 in refusal to accept the, re-organi zation committee’s proposal to abolish the state corporation com mission of three men and substi tute an appointive officer to do its work. Get Real Relief From Monthly Pains SEVERE monthly suffering is a sign of warning. • If you are having aches and pains every month, heed the WARNING. See what is wrong. Treat the CAUSE of the trouble. When womanly aches and pains are due to a weak, run-down condi tion, take CARDUI. It has been used by women for over 50 years. It is a purely vegetable medicine and it cannot harm you. Thousands of women have said that when they had built up their strength with the help of Cardui, real relief was obtained and their general health and leeiing of well-being improved. •* If you suffer this way, try Cardui, which you can get at the drug store. In The WEEK'S NEWS FLORIDA FRUIT TO A CALI- . FORNIAN. Each winter for four years Congressman H. J. Drane of Florida has presented President Hoover of California with crates of sealed- y sweet oranges and / grapefruit. Here/ the president] thanks Mrs. Drane I on the steps of the \ White House, while ' Congressman Drane looks on. TECHNOCRACY HITS THE HORSE. Old Dobbin inspects the vehicle its in ventor, Lee Oldfield (right), claims will displace the horse in delivery work. The unique package car has a replaceable motor in the rear, no frame, and is oper i ated by a single hand I | BETTY BUDD MADE AN ? ERROR when she brought \ her sand pail to Miami . Beach. She finds that the pail will not hold even a / middle sized coconut. GERMANY'S NEW LEADER. Adolph Hit ler, head of Germany's Fascists, who upset the European political picture when he be came Chancellor. | --... ==^/. i PLAN RAILROAD AID. The National Transpor tation Committee, which plans means of restoring the railroads to economic stability, pictured in conference at Washington. L. to r.—Alexander Legge, Congressman Samuel Rayburn, Alfred E. Smith, and Bernard Baruch. W EASY FOrI P HER. M II e . ji Christl Matzker, pretty Austrian ” acrobat, demon strates her sup _pleness. Wanted Woman who will work part or full time as our representative in Salisbury and vicinity, sell ing our high class dress fabrics, hosiery, underwear, lingerie, corsets, raincoats, house dresses, handerchiefs, etc. Liberal com mission. We loan you the sam oles and teach you to work. Write today for details. MUTUAL FABRIC CO. BINGHAMTON, N. Y. Dept. AB. .jHeed promptly bladder irreg ularities, getting up at night and nagging backache>-They may warn of some disordered kidney or bladder condition. Users everywhere rely on Doan’s Pills. Praised for more than 50 years by grateful users the country over. Sold by all' druggists. ^rCITY and COUNTY^ £jVEWS BRIEFS £ MR. BROWN ENTERTAINS | W. A. Brown was host Febru-j ary 3rd, at a delicious barbecue supper and social event at the ! fire station to the present and past; members of the department, and their wives. Mr. Brown was fire chief of the Salisbury fire depart ment for 24 years, and a member of the department for over 3 3 years. _____ t ELECTED Capt. E. W. Cole, of Salisbury, commander of the local unit of the national guard, Company C, of the; 105th Engineers, was elect ed to succeed Capt. Walter L. Tatum as president of the Pied mont chapter of this state, at the mnual banquet held Saturday night at the Yadkin Flotel. MEMORIAL DAY February 10th, is Price Memo rial day at Livingstone College. Each year this day is celebrated in honor of the life and work of Dr. J. C. Price, the institution’s first president. Rev. C. T. Hinton, a member of the class of 1924, will be speaker of the day. CAUGHT IN ACT Robert Smoot a young 19 ye^r 'Id negro, of Mocksville, was1 caught Friday afternoon, in the | act of opening postoffice boxes and mail. It is thought that he was in search of money orders or cash, and at the time he was seiz ed, he had an envelope about half way open. Smoot was placed un der arrest by C. W. Hall, U. S. deputy marshal, and is being held in, the Mocksville jail. FORCES REDUCED With the arrival of a message from Washington ordering the suspension of only about 15 0 men from the Southern’s shops in Spen cer, instead of 700, as first an nounced, came smiles and much rejoicing from a large number of citizens in Spencer and vicinity. The change in the original order means that practically all of the employees residing in Spencer, East Spencer, Salisbury, will be retained while those cut off are new men, who were called in from other shops last fall. HONORED On Friday night, February 7th, the Salisbury-Rowan lodge of Knights of Pythias honored Major John Mertz, the smallest Pythian and Dokie in the world, with a party in celebration of his 79th birthday, which occured January 15 th. The meeting was presided over by J. F. Harrelson, chancel lor commander of the lodge. Major Mertz was born on Jan uary 15, 18 54, in Austria-Hun gary, and came to this country in 1876. He is only 46 inches high, and weighs 60 pounds, and was for 37 years conected with several of the leading carnival and circuses in _ this nation. GRANGE PROGRAM OUTLINED Louis J. Taber of Columbus, O., National Grange master, was here February 7th for a conference wit! the state executive committee and Dther leaders, and outlined a farm financial program of the Grange to be presented before congress soon. He praised farming conditions n this state and said they are "in is good or better shape than any section of the United States,” and' mentioned three things to be ask id in Washington: Immediate emergency credit of $500,000,000 to be made available to farm owners to care for past due interest and taxes to halt fore tdosures. Interest would be three tr four per cent; Merging federal land banks and joint s tock loan banks into a uni fied system, and to exchange pre sent five per cent bonds of these jrganizations for two and a half per cent government bonds with thef armer being charged four per :ent; Reamortizing present loans to farmers over a longer period and a rewriting of loans on a four per :ent basis. • LARGEST OVERALLS The world’s largest overall, made by The Lee Overall com pany is on display in front of IVexler Bros, and Yost Clothing itore. In connection with the dis play of the overall the one guess ng the nearest correct number of /ards of thread used in making this garment will be awarded a pair of iveralls free of charge. VISITOR HERE Mr. B. J. Coley of Rockwell, R.oute 1, was a business visitor in Salisbury on Monday. While in :own Mr. Coley dropped in and re newed his subscription to The Carolina Watchman. FOUR DIE FROM BURNS Foul play is suspected in the deaths of Isaac Welborn and his son, Thomas, 11, whose charred bodies were found in their Alex ander county home. One man is held, suspected of having slain the two and then fired the home. Jac sualine Davis, three, died at Greens boro from burns received two days before when her clothing ignited from contact with a stove. Mrs. Lessie McDowell, 38, burned to death, at Albemarle. She fell in to an open fire. It is thought she must have han an epileptic seizure. HITLER PLEADS FOR TIME Adolf Hitler, Fascist chief, who took over the reins of German government, has addressed to his countrymen a plea for at least four years of power in which to test the efficacy of the Fascist pol icies. ! + Do You Know? * I Photograph, Canadian National Railways THAT in this house at Arcadia near Yarmouth, Nova Scotia, the fa mous Paul Revere was made a Mason? The house which has only been slightly altered since that time, was owned by a man named Sarclay, a friend of Revere’s. Barclay came to Nova Scotia from New England and settled first at Shelburne, N.S., but later moved to Arcadia. Revere was a frequent visitor at the house between 1761 and 1775. ---£-- ■ " ■ , Kingfish Rests U. S. Senator Huey P. Long, self styled Kingfish, as photographed in characteristic pose on his trip to New York for a rest... after his 'filibuster in the Senate. VICTIM OF CAR ACCIDENT Mrs. Ylia Puig, wife of a Cub an. officials in Havana, was in stantly killed near Hendersonville in the overturning of her car. NOTICE Don’f forget to look over our line of fruits—the ■ best in the city. Watch our penny display —lc each, 10c dozen. D. C. DEADMON FRUIT STORES No. 1 Next to Wachovia Bank 'No. 2 Next to Maynard Music Co._ PAINTING WALLPAPERING Stocks of Paint and Paper on hand. "QUICK DELIVERY” H. M. C. Fisher 628 S. Fulton St. Phone 478-W Call me for estimates OSTEOPATHY is nature’s way to health DR. S. O. HOLLAND 410 Wallacte Bldg. Phone 346 JOHN R. FISH, | AGENT Metropolitan Life Insurance Company 207 Wallace Bldg. Phone 400 Salisbury, N. C. Shoes rebuilt the better way. All kinds of harness, trunk and suitcase repairing. FAYSSOUX’S PLACE Phone 433 120 E. Innes St. I STAR LAUNDRY | r "The Good One" Launderers and Dry Cleaners Phone 24 114 West Bank St. One Day Service WHY WAIT until it is too late to stop that leak in your radiator ? It will give you lots of trouble. You can’t keep anti-freeze in a leaking radiator. We recore, repair and clean all types of radiators. We sell or trade new and second hand radiators. We allow you more for your old radiator. EAST SPENCER MOTOR CO. THE CHRYSLER DEALER Phone 1198-J_East Spencer, N. C. Dependable There is no heat so satisfactory as coal heat and there is no coal more dependable than VIR GLOW PROMPT DELIVERY Place your order with us today. YADKIN FUEL COMPANY ■ . v ; Phone _1”._1___ U94
Carolina Watchman (Salisbury, N.C.)
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Feb. 10, 1933, edition 1
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