The Cleveland Star SHELBY, N. C. MONDAY — WEDNESDAY — FRIDAY THE STAR PUBLISHING COMPANY, INC. SUBSCRIPTION PRICE By Mail, per year .. $2.5.0 By Carrier, per year... $3.00 LEE B, WEATHERS ........—....... President and Editor E. ERNEST HOEY .....—..—........ Secretary and Foreman R2NN DRUM —.......—....— --- News Editor L. E. DAIL ........—...— —,- Advertising Manager Esilercd os second 00,000 to $102. 000,000, and then he got into the matter of reduced prices for to bacco, cotton and other products, agreeing with the Federal Farm Board that it would have been "a littls short of miraculous, if, under the circumstances, the prices for to bacco had not come down. Mr. Williams traced the course of pre judicial preachments against his company, and proving that it is not a contributing factor to the low prices paid the tobacco farmers, finds that there is romething else up the sleeve of the Reynolds bait ers. That company is "too prosper ous." It is prosperous President Williams admits, but it is standing up today in the face of depression without having thrown down its fellow citizens here in North Caro lina, nor having had any hand in bringing about their distress. He has yet to find the first thinking man in the State, who is willing to look at the facts, and say that the Reynolds Company is responsible for the wave of depression in North Carolina which has swept so many things before it. Mr. Williams faced the charge that the tobacco company is mak ing too much profit on the grow ers by showing facts in transae-1 tions going to prove that the pros perity of the company was not built up through means of that kind. No doubt, he said, those inclined to criticise the company because it is prosperous, would be pleased with a proposition Williams laid down His company would be regarded as a "good fellow." tf it would agree to furnish all the people of North, Carolina at exact cost and withoutj a cent of nroflt a” its nroduMs+tei* the population of North Carolina uses. Truly that would sound like a magnanimous proposition, but a surprise would be in store if the Reynolds should put their business on that basis. The people of the State would find that they had been penalized to the extent of more thnn $1,000,000. In Its net result, that supposed magnanimity on part of the Reynolds to the extent of about $800,000 from its net profits, would actually result in the citizens of North Carolina being forced to put up about $2,000,000 in ex change for the $800,000. How? Mr. Williams explained that there are 120,000,000 of people In this coun try'. of whom 3,000,000 in North Carolina. “Bring all of our export business home and distribute it over the one hundred twenty mill ion population along with all of our domestic business, all being put on a per capita basis," says Mr. Williams, “North Carolina with one fortieth of the population would, on that basis, pay us one fortieth, or two and one-half per ct^it of our gross Income from sales and of our net profits. We made a net profit of $34,000,000 in 1930. North Caronia's contribution thereto was accordingly, on the assumed basis, something over $800,000. If we were to fix our prices at exact cost, the citizenship of North Carolina would at that^stage of the matter make a saving of $800,000 from our net profit*. T^ut, when we should have reduced our prices to exact cost, we would have eliminated all of that income on which we pay in come tax into the State 's general fund in the sum of approximately $2,000,000 of tax as figured on the basis of the law as amended In 1931. It's as simple as this: Those figures mean that R. J. Reynolds Tobacco Company takes every cent of profit that any citizen of North Carolina pays to it, then adds to that cent another cent and a frac tion which it has made somewhere else, and then carries the two cents plus down to your State Treasury and deposits them in that general fund which largely educat es our children and carries tire burden of so many other things for - which funds must be provided by the citizenship of North Caro lina whether R. J. Reynolds Tobac co Company puts in anything or whether, on it* failure so to do, it* part has to be distributed back over and collected from the balance Of Hie eififPnshin r>id vou ever see a finer commercial example of) spending your money and having! It too?” Taking another tack, Mr. Will- i lams spoke of the fact that the portion of the State west of Ra leigh, having much of industry op erating largely on capital gathered from outside of North Carolina; and making Its profits from sales1 all over the country, and in some ■ cases, all-over the world, can, as In! the fiscal year just closed, put up 82 per cent of the State's general! fund while North Carolina east of Raleigh, not one whit less valiant as taxpayers, puts up only 18 per cent of that fund. “That's why I many of us think that the Solution \ for North Carolina, and fcr the i North Carolina farmer and home owner and merchant and other ! business man, lies in getting more of that kind of thing and not less. That's why, too, so manv other States are continuously stretching out their arms in welcome to in dustry generally and particularly toj U*r tobacco Industry. That's why you and I don’t ever want to see! any part of industry abused h or driven from this, your native Slate! and mine.’1 It _... I Uilii.*n>s v*. W (Uiams. i Raleigh News ar.rj Observes > ! Clay William-, president .of the j n. J. Reynolds Tobacco Company, in an address to the. orcenviUp R«-1 tary Club on Monday "contended! that, there are certain in/lucnces1 in North Carolina that have sought: to foster a spirit of nutagonifith i rather than one ol co-operation! between different sections, ant] be-1 tween agriculture and industry, be tween rural and urban popula-1 lions,” according to the report! sent out from Greenville. T; there are any people in NorthI Carolina guilty of such conduct,j Mr Williams is right In holding! them up to criticism. This State! is one from the mountain to the' sea. the prosperity of agriculture as j a while and industry as a whole are | bound together, end the prosperity j of country and city people depend! upon mutual working together, j Speaking recently Frederick E.! Murphy, publisher of the Minne apolis Tribune, who is to come to Asheville this month, announced! truths that need to be emphasized.' “Your non-agricultural activities,” i he declared “may appear to pro.:-! per when agriculture is languish ing, but this is deception, for they are merely living upon the capita! that agriculture has produced.” He added “When the farmers quit buy ing. let industry do what It will, the wheels slow down and eventu ally come to a stop.” And that ic what has cut down the prosperity o* cities and industrial centres. They will go forward together or fell backward alike. -it any man Has given voice to resentment that tends to divide the people of the section, who is he? On October 13th of this year Clay Williams made a speech in Greens boro. As reported to The Greensboro News he “cited figures to show that 35 per cent of the States popula tion living East of Raleigh pays only 13 per cent of its (the State's! general fund, leaving 65 per cent, living west of Raleigh, to pay 32 per cent.” He went on to elaborate on his assertion that the people .east of Raleigh do not pav their share. Such charges are the sort calculated to “foster, a spirit of an tagonism between different sections of the States" which Mr. Williams deplored at Greenville. In other words Mr. Williams at Greenville condemned the utterance of Mr. Williams at Greensboro. As a matter of fact, the taxes paid west of Raleigh were merely forwarded to the State tax collec tor. The taxes were paid by the consumers of the products, If Mr. •Williams’ company paid more taxes than Greenville paid, it was j because the Wlnston-Srlem com pany received the profits on to bacco sold in Pitt, as well as For syth. Tire Winston-Salem company was only the messenger. The state tax was paid by the consumers of the cigarettes Just as they pay the tax to the Federrl government. Sometimes we are told that New York pays the bulk of the Income tax, paying more than all the Southern states. It is not true. New York receives the monev from railroads and industries paid by people who patronize them where they operate. New Yorkers who re ceive this money, and forward the tax. are but the forwarding agents, Henry Ford pays no big income taxes. He collects the money from the buyers of Ford cars all over the country and forward i; to the tax collector There is no mom in North Caro lina for suggesting that one sec tion is' paying in trxes something for another section. We are breth ren. East and West, city and coun try men. farmers and mechanics are in the same boat. It Is calcu lated “to faster a spirit of antrgp nism” for those In one section, after selling their tobacco products at Increased prices and paying re duced prices for the weed, to claim that it ts paying the taxes for an other section. It would not be cour teous if 4t were true. Stncc it is based on error, there is no excuse for voicing such claims. We be brethren. The success cf industry, of commerce rad of agri eultuif- from Cherokee to Curri tuck should be equally dear to errrv citizen of thr cnrmnonwenlth 3ebate Question Of Compulsory Schools (By Caleb McSwain.) The fifth debate of the J. C. Mc Neely debating club was given at the club's weekly meeting, held Wednesday morning of this week As a misunderstanding had arisen concerning those Who were to take part in the debate, only two de . baters had prepared for the de bate. However, Loris Dover volun teered to aid Margaret Louis Me ■ Neely in defending the affirmative side of the query, and Sara Louise I Palls volunteered to aid Nancy Bnej Sperling in upholding the nega- j tide of the query, which was "Re -, solved, that the agg for compulsory school attendance should be from j six to eighteen years." Judges selected from ihe mem bers of the club decided that Mar garet Louis McNeely presented her points of argument more clearly than the others, and gave the af firmative side the decision. At the meeting of the club, James Byers and Herman Best were accepted as new members. Gentlemanly Instinct. From a novel: “The burglar, op ening the door, found Lady Clara in her bath. He immediately cov ered her with his revolver.” HOME OVVNfeD STORES CD u X O H CD a UJ Z £ o w 0 1 THE COMFORT OF FIRESIDE comes most easily to those hornet where the conveniences of telephone . . . the luxury of delivery, are an accepted routine! 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