Evening Star Newspaper, March 18, 1932, Page 3

PRINTING RUSH SERVICE W. F. Roberts Company Telephone, NAtional 4894 At 8:15 P.M. Shall We Recognize Soviet Russia? GEN. AMOS A. FRIES (‘NO” PROF. SCOTT NEARING ‘(YES’! Chairman Rev. Russell J. Clinchy MASONIC TEMPLE ’:eklfi‘ 'gtm:’l and $1.50, on sale al beginning Doors Business and Investment Sales and Exchanges A Personalized Service [SiannoN = LUCHY) 1435 K St. N.W. NA. 2345 aiaves’ oo _— Put Your New Car in a Garage IDAKOTA VOTE DIN | HOPES OF MURRAY Oklahoma Governor Had Pinned Faith on Attitude of Agricultural West. By the Associated Press. North Dakota’s voice may count for less than 1 per cent in the electoral college, but n complete returns today from Tuesday's primary showed she had spoken loudly enough to be heard from coast to coast on three important political questions of the hour. 8o far as she herself is concerned, she affirmed overwhelmingly the of! questioned ability of New York's Gov-| ernor, Franklin D. Roosevelt, to com- mand the support of the rank and file of Western voters; disposed of any sur- mise that “Alfalfa Bill” Murray has become the universal idol of distressed agriculture, and notified the Republican party that there is appreciable party disaffection in that particular Republi- can territory. Value Is Unquestioned. For Roosevelt the North Dakota tri- umph falls into a class with his con- quest of New Hampshire a week ago. Only 10 delegates were at stake and until the final count he was not assured of every one, but it was a decision won at the polls and not in convention, and won against a candidate having special uplpe-l to the section. The psychologi- fcal advantage of such a victory is unquestioned by any politician. The New York Governor now has pledged to him more than 50 delegates, every one from States bordering on Canada. He has a prospect of more from the same Northern tier and a re- liable promise of substantial help from the South. Next week Georgia is ex- pected to make a formal pledge and other States will follow. ‘There remalns, however, that popu- lous stretch of country between the extreme North and the extreme South. From New York to Missourl Roosevelt has not yet the pledge of a single dele- gate, and he needs many if he is to win. His problem from now on will lie largely in that territory—and in Mured tl;xlusett.s. wher: he has been en- a severe trial of popularit: with Alfred E. Smith. . Proportionagely, the North Dakota results mean more to Murray than they do to Roosevelt. With only his own State behind him thus far, the Oklahoma Governor had high haves that his campaign of dissent from the present order would sweep the North- western farmers off their feet. Some Estate Taxes Retroactive If Congress Ft;lloznd Example Set by States, It Could Include a Provision in District of Columbia Law Refunding Hundreds of Thousands of Dollars to the City. (This is the third of a series of ar- ticles discusging the proposed estate tax law for the District of Columbia.) REVIOUS articles of this series have pointed out how the Dis- trict estate tax bill now d- ing in the Senate ittee would place a heavier burden on estates in this city than most States E‘“ on transfers of property at_deat] This article discusses the question of a retroactive feature, which is omitted from the District bill. Neither the Mapes bill to levy an | estate tax on transfer of property at death here in the District of Colum- bia nor the Bureau of Efficiency re- port on that bill have anything to say about & retroactive provision that has been included by many States, which into past years to collect 80 per cent of the Federal estate tax, allowed as a “credit” to the States. No explanation is given either in the report of the Mapes bill nor in the Bureau of Icy report as to why this feature ww# eliminated from con- sideration. It is known to have been considered, but for some reason was left out. Would Return Large Amount. Should such a retroactive provision be enacted into the District estate tax law, it would operate to take many thousands of dollars out of the Federal Treasury, and put it to the credit of the District of Columbia. Several States of the Union already have enacted such provisions into their estate tax laws, and have obtained large sums as a result of the operation of such provisions. The Bureau of In- ternal Revenue is on record as saying that “there has been no disposition on the part of the Government to ques- tion the validity of the exaction of the State.” As the new District estate tax bill now stands, it will allow 80 .per cent of the Federal estate tax to be credited to the District of Columbia in the future. For instance, if the Fed- eral estate tax on a certain transfer of property at death were $100,000, the Federal Government would take only $20,000 cash, and credit the other $80.- 000 to the District of Columbia. One of the inequalities of the new District | estate bill, however, as has been pointed out in previous articles, is that the District would not only collect its $80,000 part of the Federal credit, but able only to estates still in process of settlement. Consequently, the policy of the Government with respect to the Maine tax would not necessarily be followed in the case of the statute under consideration. However, it has been the policy of the Government to allow credit for all taxes exacted by the States up to 80 per centum of the Federal tax. There has been no disposition on the part of the Govern- ment to question the validity of the exaction of the State. This will moss | likely be the policy of the bureau with respect to any payments made to the State of Indiana, under the statute re- ferred to above. The Three-Year Limit. “Section 301 (b) of the revenue act of 1926 provides that the credit shall “include only such taxes as were actu- ally paid and credit therefor claimed within three years after the filing of the return required by section 304’ Under this limitation the dep‘rtmgn'_}_ of course, cannot allow & credit for any taxes that are pald after three years from the date of filing of the estate tax return. “It is probable that in many cases the allowance of a credit for such addi- tional payments will involve a refund of a portion of the tax collected by the Federal Government. In such cases the refund must be governed by sec- tion 319 of the revenue aet of 1926, section 608 of the revenue act of 1928 | 3nd the regulations of the Treasury | Department relating to the refund of estate taxes collected.” The State of Iowa has a retroactive provision in its estate tax law declar- ing that a tax shall be imposed upon the transfer of “the net personal es- tate of every decedent dying after the 26th day of February, 1926 (effective date of the Federal 80 per cent credit provision), whose estate shall be opened and pending in the courts of this State, or subject to the jurisdiction of such courts, at the effective date of this act, | or whose estate shall or may become | subject to administration in, or to the jurisdiction of the courts of this State after the effective date of this act.” What Maine Did. | The State of Maine, which was one |of the first to take advantage of the |80 per cent credit provision, also has a retroactive provision which ap- constitution amendment authorizing estate tax became méun. = ‘The nearby ‘Mary] State of land also has a retroactive clause, but its pro- “apply to the Maryland lecedents dying after Sep- Thers. & St are ce: limitations and restrictions which would apply to credits and refunds. The Bureau of Internal Revenue can give credit to a State only for estate tax paid within three years after the filing of the re- turn. If a refund is desired the claim :;q;;; nl‘«lt h:u.hm thn; years after of t o ooy tax sought to be re. Taking into consideration, however, all the various restrictions, rules and regulations which are necessarily placed about the functioning of any Govern- ment tax procedure, it becomes plain &n ,';:lc:‘l “’;‘r thousands of dollars in e easury, pald in by es- tates in the District o‘;‘Columbll. to which the 80 per cent credit pro- vision could be forced to apply through | a retroactive provision in the new Dis- trict estate tax bill. Estimating What D. C. Would Gain. According to the latest records avail- able, for instance, the total Federal es- tate tax due by estates in this city into the Federal Government during the calendar year 1930 was $981,496. Of this, however, $17.249 was credited to other States, because of inheritance taxes levied by those States upon the property in those States of the per- sons dying in this city. In other words, only a small percentage, 1.76, was credited to other States. As the Fed- eral Government allows a maximum of 80 per cent credit against its tax, it will thus be seen that a retroactive tax provision would attach a possible remaining 78.24 per cent of the total $981,496 Federal tax here in 1930, or about $767,000. The importance of this “possible” credit-refund to the District from this one year is seen when compared with the estimate of the Bureau of Effi- | ciency and the House Committee that | the new bill itself in the future would bring in a total of about $750,000 an- nually to the District. In other words, there is a possibility of collecting from | tne past few years a large sum other- wise lost to the District. IMPORT QUOTA EXTENDED PARIS, March 18 (#).—Storage bat- terles, incandescent lamps and porcelain insulators were added today to the elec- trical equipment on which import quotas have been fixed by the government. ' The quota of these allotted to the glg:;d States has not yet been pub- shed. District’s Heroes " in the World War Compiled by Sergt. L. E. Jaeckel. 8 recorded in the official citation, James Hosp, private, Company H, 53rd Infantry, 6th Division, American Expeditionary Force, received the Distinguished Serv- Cross for extraordinary heroism in ac- tion with the enemy near Landerbach. Alsace, November 4, 1918. Private Hosp was a mem- ber of a party of ~50 attacked by an enemy raiding par- ty consisting of about three hun- dred storm troops. During the raid, - and before the barrage lifted, Pvt. Hosp crossed over | open ground, ex- | posed to the en- | emy, to his post, and remained in it alone through- out the engage- ment. During the latter part of the fight he was the sole protection for a group of soldiers near him who had been flanked by the enemy. Residence at enlistment, District of Columbia. Pvt. Hosp is now lving at Lolita, Calif. (Copyright, 1932.) Laurel Man Is Jailed. HYATTSVILLE, Md., March 18 (Spe- cial) —Irving Bailey of Laurel was jailed here yesterday on charges of being drunk and disorderly and resist- ing an officer, preferred by Town Policeman Milton Hodges of Laurel. Lord Louis Mountbatten of England has just had patented his new polo club, which gives a greater loft and a better trajectory to the ball. SPRING HATS REMODELED Bachrach 733 Eleventh St. N.W. 3530 Connecticut Ave. N.W. From the Vei'y Start = AUTO OWNERS PLAN 10 0PPOSE TAXES Association Names Commit- |aa: tees to Fight Measures Pending in Congress. Consolidating opposition both to the Mapes Committee weight-gas motor tax program and the Bureau of Efficiency recommendations relative to such legis- lation, the Commercial Motor Vehicle Owners’ Association board of governors yesterday afternoon approved a special committee to prepare arguments and | data against these tax levies for use at the forthcoming Senate hearings. Edward Costigan will head this spe- cial group. it was decided at the meet- | ing. held +t the Chamber of Commerce of the United States, and those assist- | ing him will be Paul Lum, W. N. DeNeane, Charles B. Buck and P. T.| McDermott. They were named by John W. Hardell, president. Their report from this committee will go before the assoclation at a meeting on the night of March 30. Another Committee Named. | Another committee, of Arthur C. Smith, Prancis J. Kane, B, F. Rayner, Lester B. Powell and Edwin Brawner, was named by Mr. Hardell to define the views of the association on the bill sponsored by Senator Couzens. ublican, of Michigan, for the regu- latlon of interstate trucks and busses This measure now is under consider- ation by the Senate Interstate Com- merce Committee, which Senator Couz- | ens heads, and a representative of the | association is to be heard some time | Virtually all trucks here | operate in interstate commerce, accord- An unusual ring of SOLID PLATINUM SETTING with a 33-100th Carat Per- Paisley, Scotland, will lay out s park around its ancient Abbey. 28 Years of Service DENTISTRY AM completely equipped to serve you, at lowest possible prices, and on very liberal g terms of credit. § Free X-Ray § Pictures and Free Extrac tions with 3 other work. & Gas Adminis- tered. Dr.CarletonVaughau 932-934 F St MEtropolitan 9576. Pinned Hopes on West. He had pinned his hopes on the West and a part of the pEout.h. An earlier plan to enter New, Hampshire | plies “to all estates not fully distrib- | uted and now in process of settlement, where the date of death was subse- would add substantially more to its own tax. Estates here would have to pay something in addition to the Federal estate tax. In many States restric- | quent to February 26, 1926.” tions are enacted .into law which hold | ~ Michigan has a semewhat similar down the State levy to 80 per cent of | retroactive clause, with certain excep- the Federal tax, in order to avoid |tions, as follows: “The provisions of additional taxation by the State. | this se%uon s‘r’\n‘ll apply mlthe te:tate{s of decedents, dying on or after the ef- Effective Date Inserted. | fective date of the Federal revenue act of our business, back in 1858, we have handled only the HIGHEST quality coal obtainable. That is why we sell Famous Reading Anthracite—that better hard coal from America’s richest Anthracite veins. Try a few tons today! fect Diamond. 12 fine cut Diamonds create a dis- tinctive design. Prices have never been 30 low Our engineer will call, revealing interesting facts. No obligation. No Down Payment $5 Monthly Payments as Low as Also Other Home Improvements— Pdinting, hperm Ete. LT - Members Amsterdam try — agriculture — . Diamond Exchange now is in its second decade of almost continuous depression. His friends had hoped that, at the very least, he would CONSTRUCTION Q. run Roosevelt a close race, giving him in neighboring States and in- suring that he would be a real factor in the convention. Chandler Bldg. Wisc. 3758 Vision ... must be per- fect— a nd comfort is ‘essential, so we combine them with beauty in smart new oxfords. Examina- tions and consulta- tions without any obligation. " A.Xahn Jne. 440 years at 935 F Street Registered Optometrist in Attendance SPECIAL NOTICES. LESH, Al s = S Ritornese: NOTICE OF DMQ!LUHON or rtnership heretofore existing be- i AL T R Wl 4 ing under. ihe % sud style of POTOMAG CONSTRUG- [ON CO., and dol a pile-driving and glfl’ ‘construction business, principally in City , District of - of Washiogton, Co. ibla, and hl'mc, ess 1n_said city dl'y nfm'h‘. 1832, dll.lgn\‘!-d by Veonsent an en_agreem | WILLIAM H. McARTHUR. C MARTIN. Washington, D. C., March 7, 1932, ,_mhil18,35.dp1 ARGH 25, 1932, AT 12 NOON. WE WILL Psell “at Gus Eichberg's, 1227 R st. n.¥. 5 Chevrolet coach, motor 3883942, for re- ir and storage chu(u\ OWENS MOTOR I WL NoT Blbmonsm!l.).‘l: yg;lzn.\":gv i contracted by any one other - ‘seif. JOSE:’FH H. COOPER, 1431 R st. nw. JGOING7 WHERE? TELL US WHEN AND fwe'll move your furniture and take mighty {good care of it at low cost. A telephone all will save you time and troubie. NATL. b Y_ASSOCIATION. 146 THIS ASSOCIATION. phon DATE I WIL ebts contracted by a mysell 19 B e i L NOT BE RE- than personally. HONEY—5-LB, C. ‘Hor folks who cant +West 0654 by 10 s.m. YAPTER THIS DATE I sponsible for debts contracted by an other_than_ myself personaily. MR. W. HERBERT, Box 111, Ca RE, ELIVERED: eat sugar. HONEY POT, 1065 31st st. n.w. WILL NOT BE RE- one AS. PAPERHANGING_ROOMS 00 and up, if you have the paper: new samples. Call ROBBINS. Columbia 3588 ) .7 0 NEW YORK C! TO PHILADELPHIA. TO RICHMOND.. . E And =il points North and West. IED VAN M GE €O. 1313 You St. N.W. FPhone North 3343-3343 Gospel Forum Each Sabbath (SBaturday) from 11 a.m. to 1 Ym- at 1421 T st. n.w, an open forum is held for the study of Bibie topics. Topic for March 19, “The Second Advent.” conducted b‘ Charles Thomas Shaffer, widely and favor- ably known teacher of the Bible. Admission free. Preaching at 2 pm. by the same Among the Republicans, the results were not much of a surprise. The party organization in North Dakota has been in the hands of the insur- gents, and President Hoover was not even entered in the primaries. The preference vote was divided betwen Josph 1. France of Maryland and Jacob 8. Coxey of Ohio, but there is no as- surance that, under the peculiar State law, either of them will have a single delegate. A majority of delegates fa- voring Hoover was elected. ‘The extraordinary number of Repub- licans who voted in the Democratic pfl:nry. however, oc&uxoned curiosity and concern among the ga-rty regulars. It was hardly expected the Dem c total would be so great. Senator Nye, a Republican independent, sald was proof of widespread dissatisfaction with the administration’s farm policies. The Hoover leaders were silent. In the country generally, it was a week of comparative political quiet, and North Dakota had the spotlight almost entirely to herself. There was plenty of local maneuvering, particularly among the badly split Masachusetts Democrats, but without decisive result. MURRAY GETS ONE VOTE. Governor’s Brother George Only Dele- gate Pledged to Oklahoman. Copyrighted, 1832, by the Associated Press. FARGO, N. Dak, March 18.—Gov. Franklin D. Roosevelt of New York, wio defeated Gov. William Murray of Oklahoma in the contest for the State's Democratic presidential prefer- ence vote, won at least 7 and possibly 9 pledged National Convention dele- gates in Tuesday's primary election, it was indicated early today in returns compiled by the Associated Press. In the Republican delegate contest 10 candidates pledged to President Hoover and 1 uninstructed delegate held the favored I1 positions in re- turns from 1,933 precincts out of 2,235 in North Dakota. President Hoover was not a candi- date. Former Senator J. I. Prance of Maryland and Gen. Jacob S. Coxey, mayor of Massillon, Ohio, were the candidates. The nine Roosevelt and one Murray delegates received their positions in tabulations from 1,900 recincts. George Murray, brother of the Okla- homa Governor, was the only Murray delegate in the running, standing in seventh place. Seven of the Roosevelt delegates polled votes which assured them of election, while two others remained in the “borderline” positions with only a few hundred votes separating them ?(‘)Dm those who ranked below the first William Stern of Fargo and Mrs. Helma Stenerson of Minot, Hoover supporters, won races for national committeeman and committeewoman, defeating two incumbants indorsed by the Non-partisans. H. Perry of Ellendale defeated two opponents to win in the Demo- cratic national commiteeman contest. He received the indorsement of the Democratic State Convention, which also indorsed Gov.' Roosevelt. Will Rogers bunch of 'em are trying to defeat the sales tax. Canada and every- where that have tried it have found it absolutely sat- isfactory. The idea that a tax on something sveaker Everybody Invited and Welcome. 18% ROOF WORK —of any nature promptly and_capably per- ot oAl e ractical roofers. us up! Roofing 3 VBt MW, Compsny __~__ North 4423 . 25% to 509 Reduction " On All Electric Clocks , PLITT JEWELRY T 5302 H St. 1330 7th St. Phone MEt. 2842 Grape Juice sale mlflflkg REPR! ., 11th and E sts. s.w. Na ¢'ve Learned How gy SAAIee 20V «to pl N/ oduce printing that S it Ratnal Gapil e AVE., 3rd snd IGERATING t. 7684, 18% . . G. C. Dickens, Cm Dickens, the Bl oY As a matter of fact, the original Mapes estate tax bill had no effective date clause in it, and one was sug- gested by the Bureau of Efficiency re- port, reading that “except as otherwise provided, this act shall take effect upon its enactment.” But what have some of these States accomplished by their retroactive pro- visions, and what are these provisions? In the first place, these States have succeeded in getting back from the Federal Treasury thousands of dollars which had been paid to the Federal Government prior to the enactment by the State of a new estate tax law. The Government has acquiesced in this pro- cedure, and has paid in refunds the money found due, after proper consid- eration and operation of the refund provisions of the estate tax law. Take the State of Indiana, for in- stance. It was the Hoosler te which this | drew from the Bureau of Internal Rev- enue an official statement virtually ap- proving the principle of the retroactive clause. Indiana provided with other things that its new estate tax should “apply to estates of decedents dying on or after the effective date of the Federal revenue act of 1926.” Outlines Federal Policy. In answer to & query concerning the Indiana act, H. F. Mires, then acting commissioner of the Bureau of Internal | Revenue, wrote under date of June 16, of last Summer, as follows: “Reference is made to your letter of May_ 12, 1931, asking to be advised whether the Treasury Department will | allow a credit against the Federal es- | tate tax under section 301 (b) of the | revenue act of 1926, on account of any State transfer tax paid to the State of Indiana under the retroactive pro- visions of section 38, chapter 75, laws of 1931, effective March 6, 1931. “Section 38 of chapter 75, laws of 1931 (of Indiana), in substance, pro- vides that additional inheritance tax is imposed upon all the estates sub- ject to an estate tax under the pro- visions of the United States revenue act of 1926, equal to the difference be- tween the total of all transfer and in- heritance taxes paid to the several States of the United States and 80 per centum of the Federal tax. The pro- visions of this section apply to estates of decedents dying on or after the ef- fective date of the revenue act of 1926. It is provided that if the United States Government should refuse to allow a credit or should collect the amount of the credit previously allowed by it for the additional inheritance tax, then the treasurer of the State shall refund the amount for which credit was disallowed by the Federa]l Govern- ment. It is also provided that if Title mleoj me re";!‘mue u;:,n!hau]d be re- peal en the tax jposed by sec- tion 38 shall become void in respect to the estates of persons who die sub- sequent to the effective date of such Tepeal. Apparently the additional tax imposed will be collected by the State of Indiana, regardless of whether the administration of the estate is closed, and regardless of the fact that its tax liability both under the Federal estate tax law and the transfer tax law of Indiana in effect at the date of the gll;cddent'! death has been entirely set- “Your letter refers to the fact that other States have enacted statutes to absorb the 80 per centum credit and making the statutes retroactive. In all the cases mentioned the Govern- ment has allowed the credit. “The statute of Maine was applic- ‘When It Comes to a Question of Window Shade Replacements— consult The Shade Shop and ask: for esti- mates on du Pont shade fabric, the WASHABLE, wrinkle- proof and long-wearing shade cloth which has won nation-wide popularity with homemakers, builders and others inter- ested in home construction. '| RUSH PRINTING of 1926, except in those estates wherz the tax was paid in full prior to May 21, 1929, in accordance with the pro- visions of law then in force.” Vermont law says: “The provisions of this act shall apply to all estates in process of settlement, where the date of the decedent was subsequent to Feb- ruary 26, 1926." The State of Florida is attempting to get the benefit of the 80 per cent credit as far back as possible, which, in the case of that State, is the date of November 4, 1930, when the State folding chairs FOR RENT OR SALE UNITED % STATES STORAGE CO. 418 10th Street Metropolitan 1843 EXPERT SERVICE BYRON S. ADAMS I Never Disgpoonms”™ YOUR TIME —will be well spent in seeing these NEW HOMES, so perfectly planned, so well constructed and so ideally locafed in the Fort Blocum Park section. Furnished Exhibit H 326 Madison St. N.W. 7 big rooms, 2 baths, completely cquipped kitchen, finished recreation room, ~in gai Real Home Comfort. 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