Washington, November 17.
Congress begins its extra session
in an atmosphere of political con
fusion and dissension which sub
jects any attempts to forecast re
sults to heavy discounts. The
best opinion here is that the acts
of the special session will be gov
erned more by the members' own
judgment of national needs than
by the desires of the Administra
tion for the further promotion of
social and economic reforms.
Business Troubles First
The first ne6d, as many lead
ers in both Senate and House -see
MM hi M JUM/f UNSCRAMBLE TNC UTTERS OF IAIN UNI *TNE ANSWER
Win M rn§££ H A TIN WORD SENTENCE-ONLY ONE MONO TO (AIM UNI
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C EWT lift LAUNDRY K 1
'j HAWS IMPUTE*
i Hirttf-t-receivu ;
ft ~~T , h kJ PUZZLE Wo. 4 W
y FRA 'kj Nothing short of J•
I ICMOON LACE perfect work is \
C _ ~| acceptable in our h
t r?l cleaning. |ij
FT] FIST TQRSACAY ~
SPHI ZES MtaS LIST! 0 HEREIN Wilt BE AWARDED FOR WHAT ri
WE JUOCE TO BE THE MKT AtOJKMf. THE Ml Alt ST.
M Ist: $2.00 In ARC THE MOSTAJTRMTIVt SOLUTIONS MAILED OR I
a laimdrv «*OUCHT TO US WITHIN FIVE DAYS FOLLOWING PUBII- )
7 o . C*TK>H OF THIS ADVERTISEMENT. DUPLICATE AWARDS U
u 2nd: $1.50 in WILL »e MID TO TYING CONTESTANTS, ANYBODY, k
SI Laundry. ° U * EMPLOYEES, MAY COMPETE, IT IS I;
£ „ " _ , NOT NECESSARY TO MAKE ANY PURCHASES, USE >'
g 3rd: SI.OO In TNI FORM ABOVE;OA A SEPARATE SHE EX WRITE 5
fj Laundry. NAME AND ADDRESS PLAINLY £
i Winners Last Week: 'jj
IST PRIZE: MRS. BUB PRICE
2ND PRIZE: MRS. WOODSON COCKERHAM
3RD PRIZE: MRS. E. R. WOODRU|FF, Thurmond, N. C.
I Congratulations to the New Rendezvous! |
I YOU CAN DEPEND ON FINER FOOD *i. w iir •■ 1 i • , ynij rA M oiiy TU AT I
I AT THE RENDEZVOUS !t Is With Real Pride ™™f™T ■
BECAUSE That We Announce the Opening of The vivJUD v^ULt 1 (jAj
IWE SUPPLY THMOCERIES NEW RENDEZVOUS AT THE RENDEZVOUS I
AMD MATS RECENTLY REMODELED AND ENLARGED r - V a Filling of Glllf-Pride Oil
Trade Here and Bank the Difference ™ E PUBLIC IS CORDIALLY INVITED TO VISIT US AND Youll Be p|eased
MAKE A COMPLETE INSPECTION OP OUR ¥¥ Tr 0 ,„
I THE BASKETERIA MODERN NEW KITCHEN AND DINING ROOM CHURCH OIL CO. I
I E " nn ' N - C - Jonesvin.. N. c. Catering to Parties and Specializing in Elkin ' N - C - I
I Congratulations WESTERN STEAKS CONGRATULATIONS TO THE I
I ToThe m , BNPW I 1 RENDEZVOUS UPON COMPLETION I
I KT N 1 STEAM HEAT GRADE OF MANY MODERN IMPROVEMENTS I
IIN 0 W Rendezvous MODER^" ; EVERY I A YOU'LL FIND OUR STORE IS ALSO G
PI FfTRir n . FT , T . I^I MODERN IN VERY WAY
I Sydnor-Spainhour HMr ra ™ g _ A "*■ I
I EIKIN, N. C. _ 96 TURNER DRUG CO. I
I —iwmct THF nrnwr — I
IXUI ILl!i 1 fit tLbtlKll provaL ' v,e arc suro the New Rendexvous will meet) with yoor wholehearted ap- We Installed The
I REFRIGERATOR WHEN MAKING SS TAS Fl FfTßir RANfF I
VAITD IMCnrrTIAM your cnjoyiirept 'Vlalt the New Rendezvous at your
YOUR INSPECTION £SfTESS aST*; 1
■ e sg™|J J aH otheT modern ALTTA TO cku cookery and satni- AnH NPW
Qf Xh e , g h * V * you - and afUsr »e beUevo you will come An(l JNeW
I RENDEZVOUS' NEW KITCHEN I ALL KINDS OP DELICIOUS SANDWICHES - CHILI CON CARNE I AGA COOK STOVE ST
Harris FlpftriV fn Meel F Tl°L Cl mh™* 7"I Cobb Will Give You Snappy ,
I ESN C T0 " " --^OEEJinonh,c„ C wT^ S ™ ELKIN PLUMBING & HEATING CO. I
it, Is to encourages business
There are indications that the
Administration, too, is keenly
aware of this need. When he
called Congress in special session
President Roosevelt did not list
tax law amendments in the Im
mediate program of legislation.
Farm legislation was No. 1. But
that was Several weeks ago, and
in the interval a threatened bus
mess depression has appeared,
with breaks in the stock markets
and other signs of business un
rest.
While the administration does
not accept full repsonsibility for
the market slump aggravated by
the foreign war situation and
other economic factors beyond
American control, it takes It ser
iously enough to not laugh It off
but make a careful study of the
facts.
TAXES ARE BLAMED '
The first remedy upon which
there seems to be wide agreement
among the members of Congress is
i- , -i - ';fpig w M r " '^::Mh?:?■.&&&£■ TOppl
TOE ELKIN TRIBUNE, 13LKJN, NORTH CAROLINA
—
for tax repeal or amendment of
tax laws which haye been found.
in practice, to slow down the op
erations of business and indus
try.
The two tax iaws most severe
ly criticised by business men are
the capital gains tax and tax on
undistributed corporation earn
ings. The capital gams tax is of
j pre-Roosevelt origin. It taxes as
> income certain increases in an In
dividual's capital. If a man buys
property, tangible or in securities,
his profit, if any and beyond cer
tain exceptions, is taxed as in
i come for that tax year. In hlgh
,er brackets this tax is so steep
as to amount to practical confis
cation.
WHY THE SPECULATOR
This is naturally discouraging to
men who usually risk funds to
launch new enterprises. Such
risks are necessary. Without
proof that a new business will be
profitable, the public cannot hon
estly be invited to invest. If the
speculating investor loses, the
public has been safeguarded. If
he wins, he expects adequate re
wards in the form of profits.
But with the Government tak
ing as high as 75 per cent of
earnings, men who have capital to
invest usually decide to play
"safe" and put surplus funds In
to Government bonds. This stran
gles new business, curtails expan
sion of business already under
way.
The other tax which Is blamed
for a large share in the business
recession, the undistributed prof
its tax, was written into the 1936
Revenue Act at the urgent insist
ence of the President. It provides
that corporation earning profits
In any year must distribute them
to their stockholders as dividends
in that year, instead of holding
them as reserves or using them to
expand or pay off bonded debts.
Corporations failing to make such
distributions are taxed up to as
high as 26 per cent of the amount.
SOAKING THE "BAD BOYS"
The purpose of the undistrib
uted surplus tax was two-fold. In
part it was designed to punish a
few large corporations which had|
built up large reserves for future
expansion, but whose controlling!
management had incurred the
displeasure of the Administration
The economic justification was i
the assumption that, by paying
out surpluses In dividends, the
'ncomes of stockholders would be
increased and could be taxed at
higher rates, thus bringing addi
tional revenue into the Treasury.
It was estimated that this tax
would produce $800,000,000 a year
of new revenues.
It not only has failed to pro
duce anything like the anticipat-
U. S, Horses Take Show Prizes
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NEW YORK CITY ... These prize horses, "Dakota" (left) and "Renzo"
of the United States team, Bcored first and second place in the Inter
national Military Competitions held at the National Horse Show, Madi
son Square Garden. They rated the low total of only seven faults.
Ed revenue but, according to the
hundreds of business men, indus
trialists, investors, bankers and
economists who have appeared be
fore the sub-committee of the
House which is studying tax mat
ters, the undistributed profits tax
has proved a serious obstacle to
business improvement and expan
sion.
The way in whicn all business
enterprises have developed in the
past is by "plowing back" profits
into the business, and the present
tax penalizes that.
TAX CHANGES ARE "NO. 1"
Somewhat reluctantly, the Ad
ministration has accepted the
truth of the arguments against
the capital gains tax and the tax
on undistributed profits, and
Roswell Magill, assistant Secre
tary of the Treasury, has been
working with the House Commit
tee, helping to shape revisions
and amendments in those and
some other taxes widely com
plained of. Almost unanimously
Senators and Representatives pre
dict a change in at least the un
distributed profits tax, and Chair
man Vinson of the sub-committee
of the Ways and Means commit
tee lists it as "No. 1" on the leg
islative program.
Modern ordnance has taken
sport out of war, says British of
ficial. But we thought it was top
rergeants and second-lieutenants.
TENANT PROGRAM
DATA RECEIVED
Land Purchase Loans Not to
Be in Every County at
Present
COMMITTEE NOT NAMED
R. O. Palmer, County Rehabili
tation Supervisor in charge of the
rehabilitation program of the
Farm Security Administration in
Surry and Stokes counties has re
ceived from regional headquarters
an announcement listing the
names of the newly appointed
, State PSA Advisory Committee
and explaining the new federal
program to aid farm tenants.
The state committee, nominat
jed by PSA Regional Director
George S. Mitchell, Raleigh, and
appointed by Secretary Wallace,
to assist in carrying out the ten
ant land purchase loan program
in North Carolina is as follows:
Dr. Clarence Poe, Editor, Pro
gressive Parmer and member of
the President's Committee on
Farm Tenancy. Chairman; I. O.
Schaub, Director of Agricultural
Extension and Dean of the School
of Agriculture, State College, T.
E. Browne, State Director, Voca-
farmer, Greensboro; L. O. Leu
deke. Castle Hayne Colony fann
er and bulb grower, Castle Hayne,
New Hanover county; Jonathan
Danlele, Editor of the Raleigh
News & Observer; W. M. Bacon,
large Durham County tobacco
fanner and active member of the
Durham Co-operative Exchange.
Rougemont; J. Paul Davenport,
former Pitt County Commission
er and leading dirt famer, Green
ville and J. O. K. McClure, out
standing civic leader and active)
in mountain counties, Farmers
Federation. Asheville.
Tenant purchase loans will be
made to aid tenant families to
purchase and improve family
sized farms and to make a better
living by the adoption of improv
ed-farm practices. Each* borrower
agrees in accepting the loan to
follow crop rotation and farm
management plans suited to the
jgajm > I
•fly Mm
• This Royal Outfit will solve your cleaning problem. Many
Royals are still in use after more than 25 years' service.
HARRIS ELECTRIC COMPANY
Phone 250 Elkin, N. C, r -
Thursda -, Nov em 3#
_
Busy
Head Barber—How Is it you
never seem to wear a clean shirt,
Sam?
Porter—Well, yo see, mah wife's
awful busy.
Head Barber—What does she
do?
Porter—She takes In washln'.
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