Evening Star Newspaper, November 30, 1931, Page 6

TAX EXEMPT CHEST GIFTS ARE LIKELY Liberal Interpretation of Law | Governing Donations Is Promised. Contributions #f corporations to | Community Chest funds in all proba- Biiity will be exempted from Federal; income tax this year, if corporations make a claim for such an exemption, it wos learned last night. | ‘The Bureau of Internal Revenue. it | 8 known, plans to interpret liberally provisions of the law wihich provide that corporations to get such an ex- emption must show contributions to | religious and charitable purposes have a direct business benefit to the cor- poration. Regulations on the matter have been issued to tax collectors throughout the country who will receive tte income tax returns of the American people for this year. News of this possible de- duetion is received with favor both by the Community Chests of the country. and by corporations planning to make their contributions generous for the benefit of unemployment relief. Regulation Explained. Under the Yevenue act of 1928, con- tributions by a corporation are deduct- ible only if the contributions may be classified as ordinary and necessary ex- Dance THE EVENING Committee ALOYSIAN CLUB TO BE HOST FRIDAY. Margaret Kane and Catherine Hughes, who are members of the committee which is meking arrangements for the Aloysian Club dance, to be held Friday night at the club house, 47 I street. s of the business within the mean- f ing of section 23 (a) of the act. In | the interpretation of this part of the Iaw, instructions have been issued by y » Un the Bureau of Internal Revenue which are evidently designed tp make it very easy for the collectors 6f internal rev- enue to grant the claims of corpor: tions asking their contributions be d ducted from taxable income and, ther fore, exempt from taxation. These regulations explain that “con- tributions made to the organization by individuals are fleducul‘:le ‘fl.(l:r fl'fiml! income tax purposes” in the and to the extent provided in the law. “Contributions by a corporation,” it was explained, however, “are deductible only if the contributions may be classi- fied as ordinary and necessary expenses of_the business within the meaning of section 23 (a) of the revenue act of expenses, corporate contributions, char- itable or otherwise, must be shown to have in a direct sense some reasonable relation to the corporation's business, or it must be shown that the contribu- tions Pesult in a direct benefit to the corporation. Classification Outlined. “In such cases,” the instructions read, “the contributions will be allowed as deductions from gross income under the classification of ordinary and necessary business expenses. “Oareful %nnlderlflm will be given in each instance to any facts tending to show such relation or in the absence of such a showing a deduction for corporate contributions cannot be allowed.” Those familiar with the language of the Bureau of Internal Revenue be- lieve this opens the gate for Washing- ton corporations to contribute to the mmum:y Chest here, and to avold ion on such gifts. The langua; ia.5aid to be about as liberal as it could q be written under the circumstances, to interpret the law as the Jaw now stands. ¢ In other words, the intimation could hardly be broader under the restric- ug‘xl of enfdrcing the revenue laws. t it was pointed out c tions ade called upon to include the claim for deduction in their income tax re- b if they expect to have such gifts empud from the tax. If this claim &:gllmd. the contributions must be 6.0. P. WANTS JERSEY SENATOR NAMED SOON Larson Expected to Pick Morrow’s Successor Before Meeting on Organization. Republican * leaders in the Senate, where the margin of control is very small, are urging Gov. Larson of New Jersey to lose no time in appointing a successor to the late Senator Morrow. The Republican Governor has indi- eated he will make the appeintment in time for his chcic: to vote on Senate organization, but Senate chieftains are asking action this week. Senator Watson of Indiana, the Re- publican leader, has been in communi- catlon with Gov, Larson. He is de- termined that the Republicans shall assume their responsibility and retain organization of the Senate. However, there :s still & strong possi- bility that the Dumocrats may take over the Benate as well as the House of the| new Congress--because of internecine war in the Republican ranks. ‘The disturbance over the re-election of Senator Moses of New Hampshire as President pro tem. is threatening a party upheaval. Without the New Jersey Senator the standing of the Senate next Mo day would be: Republicans, 47; Demo- crats, 47, Farmer-Labor, 1 Stam}i Proposed By Admiral Hayden| To Restore Nation| Inscription Would Sway Public, He Thinks. Faith, Hope and Charity’“ s ‘Rear Admiral Edward Everett Hay- den, U. 8. N., retired, has submitted to the President's Committee on Unem- ployment Relicef a suggestion of issuing: a new post:ge stamp issue inscribed “Faith, Hope and Chaity,” as & possible | salution to thi troubles by irspiring confidenc> Admiral Hayden has informed Walter 8. Gifford, national relief director, that his idea is to add_ the inscription in small, but distinct, letters to c_ch of the most commonly used postage :.amps, including the special delivery and the air mail, and offer them for sale at 10 per cent above their face value, the proceeds to be turned over to a fund to relieve istress among the unem- ployed. “We firm'y believd,” Admiral Hay- den’s letter ‘o Mr. Gifford read, “that Uncle Sam, backed by a very strong favorable pt'blic oplnion, can quicl!’ pass a law Authorizing the issue and sale and préviding for the use of the résulting fund, to help hrovide work far the unemployed and we believe that 1Ar more of them would be sold than thcse at fsce value, ‘while the moral and psychl effect of these many little voluntary ‘“ntributions would be good for all of ‘s He also “Uggested that the issue be- come avail*ble for this country’s Christ- mas mail ‘to carry to the remotest corners of the earth and to a hundred million homes in North and South America the divinely inspiring messhge, faith, hope and charity, to help tlem dam the flood of doubt and timidity through and underm our channels.” [ Hayden is s fo vice and secretary of the National hic Soclety. country’s economic the 78-10 per cent of the sum collected, | but this year they will be only about 56-10 per cent. This figure, p}:med. is based on the present budget O e reduction is possible, Mr. Street | HYely_constant, thereby making it a Than Last Winter. Although the Community Mr. expenses Last_year, Chest's amounted Chest's 1938. To be held deductible as business tentative goal for next year is greater Street pointed out, | he ex- | ville diocese was with continued, because of the Chest's abil- ity to handle the increased goal with the same staff employed last year. U. 8. Pledges Boosted Cost. ‘This, he said, is the result of “the action of the Pederal departments in putting on a separate cnmpn&n, and is based on the expectation at the Government pledges will be collected through the various departments rather than through billing by the Chest.” | Last year'’s campaign and adminis- tration Costs were larger than expected because of the last-minute ofening of the Federal departments to s/lcitation, Mr, Street said, this incre®ting the number of pledges from appOximately 68,000 in 1930 to 118,000 in 13). This sudden increase necessitated - ‘italla- tion of new accounting and Hilling systems and brought about an i rease in cost Says Demands Increase. | Even at a cost of 7.8 per cent of the amount pledged, Mr. Street de- clared, the Chest plan saved more than half the usual cost of raising money | for separate organizations under the | old plan of making 63 separate cam- | paigns. Figures submitted by various agencies, he went on, show that the cost of raising money prior to the or- ization of the Chest ranged from 15 33 per cent of the total raised. ‘The goal for 1932 is larger than that of last year, Mr. Street explained, be- cause the Chest has taken over the District Committee on Employment, | which means that it must finance this | organization the same as any other Chest agency, and unemployment is one of the major problems confronting the city. In addition, he added, the de- mands for relief have increased to a| mounting figure that may reach 100 per cent more than last year, due to the unemployment situation and its aftermath. CATHOLIC PRELATE DIES Right Rev. Mgr. Louisville Diocese Expires. LOUISVILLE; Ky., November 30 (#). —Right Rev. Mgr. George Schumann, 66, vicar general of the Catholic diocese of Louisville and domestic prelate of the Pope's household, died yesterday at Mayo clinic, Rochester, Minn., after a long illness. Bishop John A. Floersh of the Louls- him when he died and will accompany the body to Louisville. Mgr. Schumann was pastor of St. John's Catholic Church here. Schumann of At Moderate Rental 2 and 3 Rooms, Kitchen & Bath apartments, with Electrical Refrig- eration and all latest equipment. 2001 Sixteenth St. N.W. CHRISTMAS | PHOTOGRAPHS Bachrach 4 1342 Cenn. Ave. N.W. '} | Gra Eves Examined al Glasses Fitted DR. CLAUDE S. SEMONES | Eyesight Specialist ! Phone National 0721 e s - 2nd National Electrical Show Wotch Electricity Work Wonders AEE WHAT IS NEW IN PLECTRICAL APPLIANCES IDEAL AS CHRISTMAS GIFTS Free Souvenir Prizes Daily As a special to our Monday vis- itors we offer a dandy fur- 3 niture and auto polish. ... . NATIONAL ELECTRICAL SUPPLY CO. 1328-30 New York Ave. N.W. STREET DECLARES BIGEER CHEST PART Same Staff Will Handle Sum Quota’s Disproportion Shown Much Greater This Year by Comparisons of Em- ployed Population. While 59.9 per cent of the increase in the Community Chest quota this year over last is to be borne by Gov- than that of last year, the cost of col- | ernment employes, who compose 40 to lecting and administering the fund will | 45 per cent of the employed popula- be less, according to Director Elwood ton of Washington, the; Street. are being 8.4 per cent of the total fund sought, an analysis to |Of figures made public by the chest | organization reveal. Although many thousands more per- |sons in the District are unemployed | this year than last year, the Govern- | ment personnel has remained compara- | asked to subscribe to but proportionately larger part of the total number of workers in the city. Proportion of Burden. Because of this, Community Chest officials felt that Government employes should bear a greater proportion of the chest quota than last year. To achieve this end, Federal and District workers had to be asked to pay almost 60 per cent on the increase. It is estimated by Chest officials that last year 35 per cent of the employed population worked for the Government and was asked to contribute $550,000, or 20.7 pe;ncem of the total 1931 quota v the percentage employed by the Government has jumped to be- tween 40 and 45 per cent, it is esti- mated, and is being asked to contributé $1,000,000, or 38.4 per cent of the total 1932 quota of $2,601,000. $751,000 Difference This Year. ‘The difference in the quotas of the two years is $751,000. Of this amount, $450,000 is sought from employes of the Federal and District governments. While this constitutes almost 60 per cent of the increase, it is- pointed out that it brings the proportion of the whole 1932 quota which Government workers are asked to pay only up to their proportionate share. Kentucky Pastor Dies. MURRAY, Ky. November 30 (#).— Rev. Richard H. Pigue, 74, retired min- ister of the Methodist Episcopal Church South, died yesterday. Six of his eight sons are newspaper men. They include Will and Muncie Pigue, Pittsburgh, and Whitten Pigue, 8t. Louls. “Elephant Skin” and mole. Sizes 32 to 46 Mandleberg R worsted gabardine, shower- proofed. J. R. Hunt & Co.’s Crinkled wool lined, in tan, reindeer $19.75 $21.50 All Sales Final and for Cash Only No Charge for Necessary Alterations Free Parking at the Capital Garage While Shopping Here STAR, WASHINGTON, GANDH FOREGASTS HLL” 0N RETUR British ‘May Ever Deport Him, He Says, Walking London Streets at 4 A.M. | By the Associated Pre: | _LONDON, November 30.—Mahatma | Gandhi, despairing of the independence for India he came here to seek at the Round Table Conference, today prepared 1o sail for home Saturday to what he predicted is ‘going to be “hell,” and probably more jail for him. “There is going to be hell,” the little man said sterday as he plodded through slusBy streets on his reguldr early mornin§ walk at 4 a.m. lookin even more ghost-like in the raw, col fog. “I leave Saturday for Bombay. ‘There we shall take up again our we-gonleu battle against England.” “Yes,” he sdld, in answer to a ques- tion, “I expeat to be a guest of the government again in Jjail—or they might deport me—but the fight will go on.” Sees More “Suffering.” He plodded along, his head bowed, his shoulders drooped "and his homespun shawl pulled tightly around his scrawny body. His voice sounded spectral as it |came through the thick fog to the | listener at his side. | PFrom behind him came the eolicitous admonition of Mira Behn, the former Miss Madeleine Slade, his devoted disci- ple. “This way, baaboo (father).” The Mahatma paused while she picked up the end of his trailing shawl and put it around his shoulder, beckoning to a turn in the road. “We must go again through a Cal- vary of suffering,” he continued after a moment's silence. Not far away the chimes of a church rang out the hour. ‘The swish of Gandhi's sandals echoed through the silent streets. “It seems God's will that we must take up our heavy cross and carry it to the end.” Derides Foggy Weather. “How soon after your return will you begin the battle?” “The masses in India are only await- ing my signal, but I think I shall study conditions awhile before I give it.” little party almost .ran into & milk wagon in the fog. The driver's lantern flashed in the Mahatma’s face. “Oh, good morning, Mr. Gandhi,” he said. “It's rotten weather.” “Yes, quite British.” said Gandhi. Refuses to Stay Indoors. “I was not going out this morning,” he said, as a breath of chill breeze waved the little tuft of hair at the back of his head, by which, according to the Hindu faith, he may be pulled back from perdition by a friend. “I thought I might just as well walk ‘round and ‘round my room and keep dry, but T decided nothing British, not’ even the weather, should change the habit of a lifetime.” “Nightingale” Pleads for India. An eloquent appeal to Great Britain to confer equal partmership on India ‘was delivered at a plenary session of the round table conference today by Mrs. Sarojini Naidu, India’s “nightingale.” “1 spe}lk from the very core of my heart,” she said as she turned toward Prime Minister MacDonald. “My peo- ple are dying under the sweat and anguish of slavery. They are held in leash from revolution only because we }’M‘m them that when we came back rom England we would bring somo substantial alternative to their demand for that word which you dred. ‘In- dependence.’ L The conference will “close tomorrow with a final declaratiop of policy by Mr. MacDonald. CANADA STUDIES WHEAT | e | Drought-Resistant Variety Sought by National Research Council. WINNIPEG, November 30 (#).—8ci- entists of Canada seeking to be rid of the most feared destroyer of Canadian wheat crops—drought—yesterday began drafting a program of studies on drought-resisting wheats. ‘The efforts come after a crop season when searing sun and lack of moisture affected some 12,000,000 acres of wheat lands of the southern prairies. Last Summer’s drought cut the wheat yleld from 197,000,000 busnels in 1930 to 117,000,000 or less in 1931. The Research Committee of the Na- tional Research Council has undertaken the study. NOVEMBER 30, 1931. D. C. MONDAY, Predicts “Hell” MAHATMA GANDHIL STATES SEEN ABLE 10 HANDLE RELIEF Gifford Thinks Each Commu- nity Preparing to Care for Its Jobless. Walter S. Gifford, director of the | President’s Emergency Relief Com- mittee, in a letter to President Hoover made public at the White House, ex- pressed confidence every community of the Nation will .be prepared to relieve suffering among the jobless during the coming cold mcnths. He reported there was now ‘“every indication that each State will take care of its own this Winter." Although no final figure was avail- able as. to the total sum that will result from local drives for jobless funds throughout the country, Gifford said results of the campaigns thus far com- pleted had been gratifying. His com- mittee lent general aid to all the drives. “The fundstespecially earmarked for unemployment relief are some 50 per | cent greaterthan last year,” he said. “evidence that the people of the country are keenly aware of the need and are determined tc meet it." President Hoover has given more than a little of his time lately to & considera~ tion of unemployment needs and methods of meeting them. Gifford has conferred him twice during the past week, especially upon the sections of the Chief Executives annual message to Congress that will deal with the subject. HDuplu t{w BI\:?lth hgg_&;:’- Mr. oover spent some time yes y upon his forthcoming mnnga, After at- tending, as usual, the Priends Church services, he retired to the Lincoln study to work before luncheon.. No guests were invited to the Executive Mansion for the week end, and he was able to return to his study again in the after- noon Gifford’s letter to the Chief Execu- | tive reported that more than 2,000 local, county and State committees al- [ready were at work in the effort to | reach “every impertant point of unem- | ployment.” © He expressed confidence | that there would be “united forces” to | meet the situation. | “I can report, he said, “that in prac- tically all communities requiring or- ganized effort to meet unemployment this Winter such organization is either completed and functioning or i ex- pected to be in the near future, * * ¢ “As a result, plans are completed in | nearly all States and in preparation in others to the end that all communities with, in some instances, assistance from the county or State, may meet this Winter's expected relief burden.” Ex-French Mmuter_mel. PARIS, November 30 (#1.—Gabriel Guisthau, a former cabinct member un- der Raymond Poincare and Aristide Briand, died Friday, it was revealed yesterday. Starting in 1912 he was successively minister of public instruction, minister of commerce and minister of marine, the latter in 1921-22. He was an im- portant figure at the time of the Wash- ington Arms Conference in 1921. L FIETEEN Raincoats, Sizes 34 to aincoats of @ Heeping Washington Men Well Dressed ® Special Purchase Men’s Raincoats J.R. Hunt & Co.’s Black Worsted Rubber- ized Raincoats. Made in England. Sizes 36 to 48. Regular $25 values. P $13.75 J.R. Hunt & Co.’s Tan Wor« sted. Rubberized Raincoats with butten-through front and shot-silk trim. $10.75 48 Genuine Mandleberg gabardine showerproof trench coats. New York Avenue at Fifteenth $9.75 New York $1.50, $2 and $2.50 Silk Neckties 85¢ $9 DOZEN You can buy ties like these at $1.50, $2 and $2.50, plenty of them —but why do it? Here are rich ime ported and domestic silk ties of the high. est character at 85c. A m anufacturer’s entire made-up stock, for which we paid cash. . ° Thousands of them in hosts of patterns and color combina- tions — spaced fig- ures, large figures, all-over patterns, two-toned stripes ... handsome moires... gleaming Swiss sat- ins, rich Italian twills and manvy, many others. All are of resilient construction, assur- ing a satisfactory knot and exception- ally long wear. ol Handsomely b-oxed for Christmas gifts. AUl Sales Final and for Cash Only Free Parking at the Capital Garage While Shopping Here Avenue at Fifteenth Branch Store: 3113 Fourteenth N.W. <amn FAD S et S e i AT L e L GG e il e RS o Lt SO