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.1 'IWKAfi- X ,. - ETTE LOCAL COTTON. 14 1-2 CIKTS TODAT tAM4 t XHl ASoClAro fS'. GASTONIA, N. C WEDNESDAY AFTERNOON, DECEMBER 8, 1920. SINGLE COPY 5 CENTS mm HOUSTON ADVISES REVISIONFOF NATION'S TAXES; URGES REPEAL EXCESS PROFIT TAX 1 s'- 1 - WOULD INCREASE TAX ON INCOMES UP TO $5,000 (By Th Awoeiated lreM.) WASHINGTON, Dec. 8. Immedkt '. Tifioh of th nation's tax laws on the ' kaais of an annual levy of four billion f doUars for a period of four years, and I Inelodinc an increase of two per eent ia -fb taxes on incomes up to $5,000, is wrged by Secretary Houston in his i ual report sent today to Congress. Kepeal of the excess profits taxes, elim . Ination of certain of the so-called luxury taxes, including the levy on soda fountain nd similar beverages, and a readjust ment of the rates in the higher gronps of income taxes, is proposed by the Treasury chief. To meet the losses brought about by these proposed changes, Mr. Houston recommends revised and ; new taxes to yield about $2,000,000,000 as follows: A tax of 20 per eent on corporation profits, distributed or undistributed, in addition to application of a higher sur tax rata to yield $690,000,000. ; Am additional tax of 6 per cent on cor- 10 ration incomes to yield $465,000,000.'-t-yjBnajustment of surtax rates on in--eonut to yield an additional $230,000,000. Abolishment of the $2,000 exemption .-allowed corporations on income to yield 458,000. Am inerease from the present 4 per eent to 8 per eent in the tax on incomes of -$5,000 or less and from &.p$r eent to IS percent in the tax on incomes between $5,000 nnd $10,000, the whole estimated to yield $15040,000 annually. ' A. tax of two cents a gallon on gaso llrft for motor ears and all other pur poses; to yield $90,000,000. A federal license tax of 60 eenta per rone&yint on, the use of motor cars to yield r$100,000,000. An additional sales tax on automobiles (other than trucks and wagons) and mo torcycles and motor car accessories to yield $100,000,000. A' tern per cent additional tax on theat- rieal admissions to yield $70,000,000. An additional tax of $2 per thousand n cigarettes to yield $70,000,000. An additional tax of 25 cents per thou sand on eigars to yield $5,000,000. An additional tax of 6 eents per pound n tobaeeo and snuff to yield $8,000,000. An additional lax of 5 per eent oi andy to yield $20,000,000. ' An additional tax of 7 per cent on toilet soap and toilet-soap powders to yield $4,000,009. A 10 per cent tax on the sale by manu facturers, producers or importers of per fumes, cosmetics and medicinal articles in lieu of the present tax to the consumer to yield $10,000,000. An additional five per cent tax on jew elry and precious metals to yield $25. 000,000. An additional tax of 5 per cent on snusical instruments to yield $13,000,000. An additional tax of 5 per cent on mo tion picture films to yield $4,000,000. In the readjustment of surtaxes, Mr. Houston proposes the division of incomes into "saved "or reinvested and "spent" On the former class he would limit the tighest tax to 20 per cent while the in ome spent would be subjected to a tax ranging as high as 50 per cent. Under .the plan proposed by the Secretary, in comes between $5,000 snd $6,000 would fco taxed 2 per cent on the part saved and the same on the part spent. The same ratio with a graduated increase would apply to incomes up to $30,000, where the maximum of 20 per cent on saved in come is reached. From $30,000 to $40, D00, the' rates would be 20 per cent on aved and 25 per cent on spent; $40,000 to $50,000, 20 per eent and 30 per eent; . 450,000 to $75,000, 20 per eent and 35 per eent; $75,000 to $100,000, 20 per, ent and 40 per eent, and over $100,000, 20 per eent and 50 per cent or a total tax f 70 per eent t The present maximum rate is 70 per ent on incomes of $1,000,000, but Mr. Houston declares it has "long passed the point ef its minimum productivity" since ft oaeoarages the investment in tax exempt securities. He says the "only effective way to tax the rich is to adopt rates that do not force investment in tax exempt securities." The new rates while not laying as high A levy against the great incomes will,t the secretary expects, produce a greater' return to the government since the wealthy class will not find it profitable to invest in bonds of states, countries or - municipalities which are tax-exempt, but ' .. pay a lower rate of interest "These possible sources of lneome are . mentioned for the information of Cos arress," Mr. Houston says. "While I . ' haH net attempt to discuss them, atten- ., tion should be called to the new and additional consumption taxes. Seasons aav been given for the belief that 10 - TiUd objection exists ts the employment , of a moderate number of consumption - taxes properly selected, but it would, ia ' my opinion, bo neither wise nor expedient to increase 'rapidly the volume of eon ration taxes. The arUsles jaelsd. ed in the suggested list of additional con sumption taxes have not been, selected becsuse their use is particularly harmful or in any sense less legitimate than taos not included. ' Consumption taxes must be judged by practical standards. What should be sought are a few consumption taxes which tap the surplus income whinli is being wasted, not a .conglomerate mul tiplication of petty taxes upon every article of luxurious or- unnecessary con sumption which can neither be clearlv defined, cheaply collected nor adminis tered without widespread evasion." Th repeal of the tax on soda fountain and other beverages is asked, the secre tary says, because the collection of the tax, the aggregate of which is small, has presented an administrative problem of magnitude. ' Added to that, Mr. Houston says, there has been constant and wide-' spread evasion of such taxes. The excess profits tax, Mr. Houston de clares, has not fulfilled the theoretical grounds upon which it was enacted and has. been found to be wrong both in the ory and in political philosophy. He says it discriminated against the conserva tively financed corporation while aiding materially the firms whose capitalization is exaggerated. He urges that it be re placed by some form of a corporation profits tax "not only on the grounds of the government's revenue needs, but upon grounds of equality and justice." The corporation profits, the secretary tinues, should not be allowed, to escape with a tax of 10 per cent while other tax payers are subjected to taxes on tnoir incomes ranging as high as 70 per cent. Mr. Houston again urges the necessity for rigid economy in government expen diture, asserting that only by conserving the finances carefully ean the expendi tures be kept within the $4,000,000,000 annually which he suggests should be the basis for a revenue program. He is hopeful, however, that with the "heavy burdens placed by the Transportation Act" out of the way, there will be a sub stantial excess shown by government re ceipts over government expenditures. An analysis of the government expen ditures for the last fiscal year develops the fact that almost one-fifth of the $6, 400,000,000 paid out was spent in connec tion with federal control and the guaran ty of earnings for the railroads. Only one department of the government the War Department spent more than was used in connection with the carriers. The War Department's total, tho record shows, was $1,611,000,000 against $1, 087,000,000 for the railroads. Discussing the war debt, and a pro Eram for its retirement, Mr. Houston says that within the next thirty months the government will have to pay off ap proximately $7,500,000,000 in Victory Notes, War Savings Certificates and Treasury certificates of indebtedness. He proposed that the Treasury certificates not be funded further ; that they be re tired as rapidly as the treasury's condi tions pemit so the program for redeem ing other government obligations will not be hampered by simultaneous payments. Mr. Houston tells Congress that the heavy payments required by the Trans portation Act had "disarranged the gov ernment's fiscal plans" but he believes early spring will witness final settlement of the claims of the railroads under the guaranty provisions and that the Treas ury, then can proceed with its previously anounced program of meeting and retir ing the War Savings Certificates, amounting to $800,000,000, and the Vic tory Note issue, which aggregates $4, 500,000,000. ' Through operations of the sinking fund, use of the small repayments by for eign governments on loans, and the em ployment of certain salvage returns to the Treasury, it has retired $1,764,896. 150 in bonds, Mr. Houston says, saving $100,000,000 on the transactions by buy ing in the opon markets. Of the amount purchased, bonds aggregating $119,109, 000 were retired from funds repaid by tho foreign governments. Lessons of the wrold war, Mr. Houjton says, have shown the need for the trans- - fer of some of the Treasury activities to other departments. Five bureaus, War Risk Insurance, Prohibition, . Public Health Service, Supervising Architect and the General Supply Committee, are in no way related to the fiscal operation of the government, he says, and urges that they be placed under other jurisdiction. The request, He tdds, is unusual for few if any other exwutive department heads have been willing to see their depart .meats dismembered. His own request, he says, demands the more attention far this reason. n . ; In connection with this suggested re organisation, the secretary asks that "the position of under secretary of the Tress nry be created at a salary of $10,000. He recommend an increase ia the sal - ;(CoB tinned on page 8.) CONCRETE RECOMMENDATIONS IN -PRESIDENT'S MESSAGE. Washington, Dec! 7. President Wilson's concrete recommendations to Congress in his annual message today were: Revision ef the tax laws with sinv plificarJon of the income and prof its taxes. Independence for the Philippines. A loan to Armenia. Economy in government appropria- tions and-expenditures and creation of A "workable" budget system. Cold storage and other laws affect ing the cost of living, and the fed eral licensing of corporations as rec ommended in previous messages. Rehabilitation and training ef dis able soldiers and sailors. The president did not endorse a bonus. Nowhere did the president refer to the League of Nations or the peace treaty fight, except perhaps, by inference in his opening when he quoted Abraham Lincoln's "Let us have faith that right makes might, and in that faith let us dare to do our doty-as we, understand it.". At its close, the president wrote a paragraph which might be regarded as a valedictory, saying: "I have not bo much laid before you a series of recommendations as sought to utter a confession of faith, of the faith of which I was bred and which it is my solemn purpose to stand by until my last fighting day. I believe this to be the faith of America, the faith of the future and of all the victories which await na tional action in the days to come, wheth er in America or-elsewhere. " Democracy, the president said, "is being put upon its final test. " "The old world," said he, "ia just now suffering from a wanton rejection of the principle of democracy and a substitution of the principle of autocra cy as asserted m the name but without the authority and sanction of the multi tude. This is the time of all others when democracy should prove its purity and its spiritual power to prevail. It is surely the manifest destiny of the United States to lead in the attempt to make this spirit prevail. " . SENATE TO CONSIDER FARM RELIEF LAWS Preliminaries Over, Congress Gets Down to Business To day. WASHINGTON, Deo. H. With pre liminaries over and the president's an nual message out of the way Congress today got into its regular business stride. In the senate actual debate was expected to begin with the taking up late in the day of the measure designed to rgulate the meat parking industry. There also was a likelihood the proposed farmer relief legislation, temporarily blocked yesterday, would be called up for action In the house the day's proceedings I promised to be confined chiefly to com mittee activities. Majority members of the ways and means committee were ex pected to discuss a legislativ program with respect to commerce and industry and the naval affairs committee had been called in session to outline its program for the coming year. WHERE FORMER ui.i.ijiiiiiio. u...J' f-vr 4Zr 'W'.i " 3 , &jfA 4!li ... I jj-ifiSll 1 - - -. - 1 1 . t - v x - " I In ths event sf Constantino's return to the Greek throne, the former Emperor William ef Germany, at present ja exile in Holland, win nuke his home en the Island ef Corfu, phots shows the beastifal VlUa AxbiUcios, which la rwned Yj the former Emperor. i -.;rV" '. t- ;N v TRAIL OF ALLEGED MURDERER HAS LED DEEP INTO MEXICO Ardmore Officials Are Uncer tain As to Next StepFath er of Missing Woman De clares His Daughter Inno cent No Word From News paper Man Who Talked With Her. EL PASO, Tex., Dec. 8. The search for Clara Barton Smith; wanted in con nection with the death of Jake L. Ha mon, at Ardmore, Okla ended last night, as far as local officers are concerned, they said, when Miss Smith was almost within their grasp at Juarez. Sheriff Orndorff learned the location ef Miss Smith through a confidential tele gram and declares the informants wanted a reward in return for disclosing her hid ing place. The sheriff construed an an swer to a telegram to Sheriff Garrett at Ardmore to mean that Miss Smith was not wanted and that there was no reward for her capture. He declared last night that he would not continue work on the case. J. L. Smith, father of the missing woman, and his wife were found at a local address last night. Smith declared that he had been here for two weeks and that he had not seen his daughter in more than a year. He exprssed confidence that she was innocent of anything wrong and that her reported confession was untrue. Mrs. Smith wept as her husband talked with a reporter. Juares police last night searched every hotel and rooming house in the city with out result. They declared that Miss Smith had vanished, probably going to Chihuahua City or some other interior pointA Next Step Unknown. ARDMORE, Okla., Dec. 8. With the trail of Miss Clara B. Smith apparently leading deeply into. Mexico, local officials conducting the search for the woman had not made public. early today the next steps they will take to bring about her apprehension. Reports last night that she had been definitely located just over the Mexican line near El Paso and might be expected to cross to this side shortly and surren der, caused optimism on the part 0 Rus sell R. Brown, local county attorney, who has directed the spreading of the net across the southwest to intercept her. The belief was expressed today that the local officials would await official reports from the El Paso authorities before go ing ahead with their plans. No Word From Ross. SAN ANTONIO. Tex., Dec. 8. No word hnd been received here early today from Penny M. Ross, local newspaper .,.,, lont who in company with an- ClU Il-CT)'lMiwi .... . - other correspondent left here la4t tnr -th, nl.n-i near 8iin Antonio, night where Ross claims he conversed with Miss Clara Smith, sought in connection with the shooting of Jake L. Ramon, of Ardmore, okla- . . Ross and his companion refused to per mit city detectives to accompany them. STEAMER FROM NEW YORK. HAS SMUGGLED GOODS? GENOA. Dec. 7. Search of the American, upon its nrrivnl here t v- Vnrlt vpsterdav. revealed s quantity of tobacco, sugar 1 rum coffee, I wWfc it is alleged, was being nanuiru by smugglers. ' In addition the officers found 400,000 rubles in the custody of the wireless op erator. He declared the money was not to be used for political purposes, but be longed. The money and goods have been sequestrated bv the police. KAISER MAY j LIVE x VAR COST . AMERICAN HUGE SUM 0F$24,ooo,ooo,oc WASHINGTON, Dec 8 The cost was fixed by Secretary Houston today at $24,0.0,000,000 . This he said, repre sented the "adjusted" expenditure of the treasury, excluding all other outlay which had no relation to the actual prosecution of the war during the period frees April 6, 1917, to June 30, last, which he said, covered the extremes of the govern ment's war-time fiscal operations Total expenditures by the government during the period covered, excepting only one postal disbursement from postol revenues, were 138,830,813,895, Trcesej ry figures showed. Of this amount $16,078,844,097 was obtained in taxes aas revenue from sources other than borrowed money. GERMAN SPY IS HELD 0:i GOVERNOR'S ISLAND AWAITING TRIAL Hans Willet, Alias Capt. John A. Willars, Former Com mandant of a Company at Camp Sevier. NEW YORK, Deo. 8. Hans Willett, alias Captain John A. Willars, com mander of Company I, 48th United States infantry, during th war, was held in Castle William, Governor's Island, to day, awaiting action by army officials on a cnofession he is alleged to have made to police detectives here yesterday that he was a Grman spy. Although be had been sought as a de serter, alleged to have absconded soon after the armistice with $6,000 in com pany funds, his confession of espionage came as a complete surprise. Hugh J. Hannigan, a former lieutenant under his command, on whose identification Willett was arrested, said not a man under the captain ' command had ever suapeeted he if elm a German sympathizer. 1 Willet said, according to the detectives, that he was one of 300 cadets who had trained in Germany and were sent to this country to enlist in the United States army. The scheme, he is alleged to have said, was for the cadets to lead units of soldiers to France and expose them in dangerous positions for slaughter. Willett protested vigorously at first that he was not the man sought for deser tion, but, after Htwo other former officers of his company corroboraed Hannigan 's identification, he sank, down in a chair and murmured: "You've got me." A few minutes later he became calm anil deliberate, and said: "I have nothing to regret. It is just the fortunes of war. Luck was ngainst me and I'll have to pay." His wife, who was formerly a Miss Crawford, of Chicago, called at the po lice stjition early today, after having heard of her husband's arrest, and asked the police for his keys and his money, When told Willett had been taken to Governor's Island she said she would go to see him later. They havo lived for more than a yenr on Riverside Drive, she said. NEW YORK, Dec. 7. Sensational disclosures of his mission to this country as a spy for the German government, were given in an alleged confession by John Willers, formerly captain in com pany I, 48th I'nited States infantry, al leged thief and deserter, after his arrest here tonight charged with absconding with $5,000 of bis company funds on De cember 19, 1918. His regiment was then stationed at Camp Sevier, Greenville, S. C. His capture was accidental. He was crossing Fifth avenue at 4 2d street near the public library when Hugh J. Hanni gan, formerly a first lieutenant in Wil ier 's company, recognized him. Hanni gan called a policeman and Willers was arrested. At a police station the pris oner was further identified by two other former lieutenants in company I, Sidney P. Howell and Francis Hatch. Willers was then taken to Governors Island, headquarters of the second army corps, and placed in confinement at Fort Jay. Willers, the police said, recited in a brazen fashion how he was sent to the United States as one of 300 cadets train ed in the acts of espionage to enlist in the American army. On his arrival in the United States, Willers went to Albany, where he enlist ed, he said, as a private. His military aptitude won him rapid promotion and his knowledge of English and his ability to "speak like sn American" enabled him to obtain a commission. MODERN tfOBIN HOOD FOUND IN OHIO STEUBENVILLE, O., Dec. 8. Daniel Cable, a pottery worker, reported to the police here last night that a robber had leaped upon him, overpowered hint and rifled his pockets. Finding no money, Cable said, the hrghwsy man reached into his own pocket, pulled out a roll sf bills sad of fered ts give him tlO, saying: ''Hem, Brother jren ased it worse than I Is." Cable said he was toe surprised to accept ths money. e e PEOPLE of the-war to the American gover Mr. Houston said a deduction of 523,000,000, the amount loaned to for eign governments, should be made from -the grand total since these loans will be repaid and consequently cannot be eharf , ed as an actual expenditure. The eeere tary made other deductions aggregating approximately $4,500,000,000 which he said represented the excess cost of aetuar governmental operations for the three . years and three months over which they would have been in normal times. HARDING PLEASED WITH WASHINGTON COIIFERECCE Returns to Marlon Ready Becn Work on- Policies to of Coming Ad ministration. (By The Associated Press.) MARION, O., Dec. 8. With his re turn to Marion today from his vacation trip to the tropics. President-elect Had ing was ready to begin actual eonstrae- tlve work on the policies of the1 administration. In Washington during the last days he felt out opinions on many ob jects and he let it be known today thai he was well pleased with the result. He told his friends that he believed his ideal of party government and common un derstanding had been furthered by hie talks with republican leaders in and en of congress and that his canvass of sen timent regarding an association of na tions had been particularly encouraging The work done in Washingtoa purely preliminary, however, and at ', some of the senators with whom he dis cussed foreign affairs will come to Ma rion later to take part in the league con ferences that are to begin early next week . Meantime consultations about the selections of the cabinet will continue, ' and it is not probable that the final list of appointments to Mr. Harding's offi cial family will be complete' much before inauguration day. During the remainder of the present week the president-elect plans to devow his attention almost wholly to corrce pondence that has accumulated since he left for his vacation on November 6th. fys also hopes to find opportunity te make up on the golf links some ef the putdoor exercise he missed during hie voyage to Panama and his four days of, travel and conferences in Virginia the capital. COTTON GINNERS' REPORT UP TO DECEMBER I (By The Associated Press.) WASHINGTON, Dec. 8. CoTtox ginned prior to December 1 amounted te 10,144,921 running bales, including 191? 687 round bales, 48,268 bales of ft uteri can Egyptian, and 1,111 bales of sea island, the census bureau announced to day. Last year to December 1 ginning amounted to 8,844,368 .bales of lint, in cluding 99,668 round bales, 23,725 balce of American-Egyptian and 5,362 bales of sea island. Ginnings to December 1 this year by states follows: Alabama, 570,992; Arizona, 57,288; Arkansas, 812,912; California, 32,709; Florida. 16,063; Georgia, 1,261,326; Louisiana, 331,041; Mississippi, 730,571; Missouri, 44,141; North Carolna, filly 103; Oklahoma, 768,712; 8outh Carolina, 1,259,029; Tennessee, 209,741; Texas, 3, 423,111; Virginia, 9,842; all other states, 6,342. GIGANTIC FURNITURE SALE WILL REGIN FRIDAY The Gastonia Furniture Company, on of the city 's largest and oldest mereaa- , tile establishments, is using four pages of today 's Gazette to make a trade an- nouncement that should be a matter of genuine interest and financial benefit te every reader of this paper. This firm has probably the best aaeV largest stock of fine furniture to be found in the' State, and. they propose, be ginning Friday, to offer it at praetieaXry -half price in order b reduce their stock. ; The reputation of the firm, is an abso lute -aarantee that what they advertise as a bargain is really and truly a bar gain. , The sals coming right at Cfcrkt mas buying time, should prove a sour? sf help to many in finding suitable c" for their families and frenij. -
Gastonia Daily Gazette (Gastonia, N.C.)
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Dec. 8, 1920, edition 1
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