Evening Star Newspaper, January 24, 1933, Page 6

MISSISSIPPI DEBT CUT BY SALES TAX BGovernor Invited by 32 States to Tell Legislatures About System. @pecial Dispatch to The Star. JACKSON, Miss, January 24 (N.AN.A).—Mississippi enjoys the dis- tinction of being the only State in the Union that has adopted a con- structive plan of balancing its budget and successfully curbing its mounting deficits, according to the supporters of Gov. Conner. ‘When the Legislature met in Janu- ary, 1932, the treasury books showed & deficit of wfi)mxtm-'ely $14,000,000. Nor was this all. The property system of taxation also had caused more than one million acres of land to revert to the State because of non-payment of taxes. The lature after a long and bitter fight resorted to the retail sales tax system, which was put into effect ible for Mississi) to er outstanding obliga- tions in the way of bond issues and interest and at the same time defray the ordinary expenses of the State gov- ernment. Mississippi is thereby more nearly out of debt than any State in the Union. Her present financial condition is de- clared due largely to the adoption of the retail sales tax system, which has ‘brought in more revenue than its pro- ponents figure would be possible under such a system. Bill Passed by Slim Margin. When he presented this system of taxation to the Legislature, Gov. Con- ner was assailed on all sides, and only succeded in putting the bill through both Houses by narrow majorities, To- day he has received invitations to visit 32 of the 48 States in the Union where Legislatures are now in session and give them facts and figures concerning Mississippi’s experience with this system. “I cannot possibly accept all of these {nvitations,” the Governor said, “but the State Tax Commission is forward- ing to the various States the cold facts and figures concerning our experience, and legislative committees can analyze them as they see fit.” Speaking on the general subject of taxation, Gov. Conner said: “The property tax system grew up in our country as a chief source of Tevenue in providing membership in an exclusive social and political club. ‘That has not only been outgrown, but it has become ridiculous. Seventy-five per cent of the State and local revenue in Mississippi has been coming from taxes on property and only 15 per cent of the population has been paying it. “For all of the people to pay Ir share of taxes, as in a sales tax, is wholesome. It is an antidote to soclal- ism and paternalism. It gets the little fellow and it gets the smart ‘big fel- Jow,’” who has reduced his property to cash and put it into tax-exempt se- curities.” Reaches All Classes. “Do you favor a retail sales tax to replace all other taxes?” the Governor was _asked. “No,” he replied, “privileges and pos- sessions should be taxed, but a sales tax will produce all the revenue re- quirc., although it should not. How- ever, it can and should serve to reduce the tax load on property. It is a tax on consumption; it reaches all classes of the population in proportion to their scale of living. “In this State we have 30,000,000 acres of land, 10,000,000 of it under cultivation. We have good weather, long growing seasons, good rain con- ditions, but we can not develop our land resources with the settlers that ‘we want as long as the tax on that land exists at a per cent rate.” “Has your sales tax reduced the ad valorem rate?” was the next question. “No. But so far it has prevented an increase for State purposes, Our pres- ent ad valorem rate for State levy is 8 mills per $1,000 of assessed valuation. ‘Had we not adopted a sales tax the State ad valorem rate would have been increased to 12 mills. The sales tax has permitted a 21 per cent reduction in total assessed valuation, however.” “Do you favor the proposed increase to 5 cents per $1 sales tax?” “I must coft pedal that until we can finish a survey to determine what the Tesult of such an increase would be,” the Governor went on. “About 6 of our 82 counties have indorsed a proposal to increase the State sales tax to 5 cents— 2 cents for the State and 3 cents to be turned back to the counties. Difficulties in Returning Modey. “There are a lot of things I want to know about the workability of a 5-cent tax—3 cents to go back to the coun- ties—before I agree to support it. In the first place, there are difficulties in returning that money. Fcr instance, ‘we have 5,331 school districts, each with the power to levy taxes. Each would Teceive a share of that returned money. Couple these school districts with all the other taxing bedies and you see the problem of returning money by the State 100% PURE PENNSYLVANIA... THE FINEST wears better Nutocrat EUROPE e / $98.50 up 1This enables you to be at the opening of Leipaig Folr March = HAMBURG -AMERI 9 Broadway £ STABILIZED SHI FRAHM ANTI-ROLL TANKS — counter balances against the push of waves — reduce rolling to @ minimum on the “Famous Four” sisterships. S. S. ALBERY BALLIN . .. FIB. $. S. HAMBURG ... *S. S. DEUTSCHLAND ... FEB. 16 5. S. NEW YORK. Rare Sculpture Une PERSIAN PALACE TREASURES AP 330 B.C. by Alexander the Great discovered in Asia to surpass pre: the greatest and most important in the FTER digging two years into the black lime soil of Persepolis, capital of Persia, University of Chicago archeologists have uncovered two rich chapters in the story of man’s rise from savagery. Under 36 feet of rubbish and masonry from the , anclent w‘l which were fired during & dn;’::]t.::' debauch, the ell!l':’: | tors have uncovered a wealth of magnificent sculpture, dating back to Cyrus the Great, which is hailed as containing the earliest specimens of art ever .- Within two miles of this find, the scientists unearthed a primitive Stone Age village about 5,000 years old in a state of preservation said vious discoveries of the period. The history above photo shows a amall stairway, with relief sculptures uncovered, two great monumental stairways just discovered in the Persepolis palaces. The lower picture shows old Persian relief sculptures of one of the great monumental stairways on the front of the palace. ‘The clearance is still incomplete. —Wide World Photos. to all of them would be a large and| complicated one.” | “What is the State's condition now?” “We have come through the last year with a $500,000 excess of current Teve- nue over current expenses. If conditions get no worse we will finish 1933 with $1,000,000 excess. The 2-cent sale tax is producing at the rate of $2,500,000 a | year now. If cotton prices get up| around 15 cents, which would increase | trading in this State three to five times, | it would produce at the rate of $6,000, . A 5-cent rate would pre- duce around $30,000.000, which woul still be less than half of the total ta bil for all purposes—State, county and “In 1920 a general property tax ac- counted for less than 90 per cent of all revenue in less than 11 States. In 17 States 95 per cent of all revenue came from property taxes. We've simply got to get away from the sort of confis- | catory property tax in the United States. It is one of the many things holding the country back—that and the $218,000,- 000,000 in public and private debi sad- dled on us all. If it were not for that huge debt the United States would come back fast. “Government now is not operated for profit. It is operated for political power. Unless public officials are will- ing to forego that power and the build- ing of political machines with unnec- essary and expensive jobs, Government MOTOR OIL 30° QUART in SEVEN DAYS of SOLID COMFORT PS 2 FEB. 9 $77 wp 5. CAN LINE New York economy is going to continue to be im- | Ppossible. “In this State since time begany, all appropriation bills have been on the | Governor's desk before revenue legisla- tion was prepared. He had to approve | or veto these bills within five days or | they would become a law without his | signature. In my first message to the Mississippi Legislature I said I would approve no appropriation bills until I knew where the revenue was ooming ' hed by Americans YEARS’ DIGGING. from and that the revenue would bal- ance the appropriations. I did not have to veto one appropriation bill. In the next biennial session, 1933-34, we will have our budget plan to work on, which will still further simplify a balance. “I believe in taxation on the ability to pay. “If a sales tax alone was called upon to support the Government there would be some justice in objecting to it. As it is, the merchant has no complaint. He is' a past master at passing along all his overhead and all his taxes. Why should he believe that two cents on the dollar would break him when he already ?-el on every other cost?” (Copyright, 1933, by North American News- o Alliance, Inc.) R LOCOMOTIVES COLLIDE Trainmen Escape Injury, but Rider Is Slightly Hurt. PRINCETON, Ind, January 24 (#).— Both locomotives and several cars fell down s 20-foot embankment near Patoks yesterday when two Chicago & Eastern Illinois Railroad freight trains collided. All the trainmen escaped in- jury, but one man stealing a ride was slightly hurt. “Sure, I'll sing with your Bud- get Bunch Tonite.” . . . Listen in, Folks, to lovely MARIE DUVAL, ed singer, now appearing at Fox with Si Mari She' elp tell you about “Old Woman Who Lived in a Shoe”—Tonite, WMAL at 7:30. D. J. KAUFMAN, Inc. 1006 Pa. Ave. 1744 Pa. Ave. 14th and Eye s all you need to open a famous Kaufman Budget Account! CENT CASH!!! Pay the balance in 12 weekly, or 6 semi - monthly REDUCTIONS All $28 Suits, Top- coats and Overcoats, All $30 Suits, Top- coats and Overcoats, WOW . iumntsdes on S\ \ \\! w 1575 W T . FREE "~ (C A great, big, juicy 15-pound Armour “STAR” BRAND HAM ABSOLUTELY FREE Topcoat or Overcoat . . . Budget Account! with every “Dig “Eat Sunday Dianer on Us!” HIGHER STANDARDS OF U. 5. LIVING SEEN Factors of Natural Re- sources, Population and Technology Cited. By the Associated Press. e NEW YORK, January 24.—Pactors of population, natural resources and tech- nology are moving the United States toward a higher standard of living, Dr. William F. Ogburn, director of re- search for the President's Research ONFIATION LA AINGHEDINTTAL Corporate Chamber of Depu- " ties Forecast by Senator Silvio Longhi. Bereir 2 g Committee on Social Trends, declared { th yesterday. Speaking before the National Social Work Council, he took issue with some of the findings of technocracy ‘and visioned s nation without poverty. He was Jess confident of the near fu- ture. he said, and explained he saw no hope of “immediate recovery.” Must See Both Sides. “Technological unemployment is a 97 VOTES ON MACHINE By the Asociatea Press. Nebraska House its the but it required more than to com| the “tine mring: Gevice i ¥ £ UTILITY SUIT AMENDED Complaint Chafges Telephone Coni- pany Tra rred Stocks. CHICAGO, January 24 (#)—Pederal Judge George A. Carpenter permitted yesterday the §ling of ard amended bin of complaint seeking adjudication in benkruptcy of the Amocisted TFelephane & Telegraph Co. The amended peti- tion charged the public utility is in- solvent and made a transfer of stock 19 to the Briti REQUIRES 30 MINUTES LINCOLN, Nebr. Jan 24—The Representatives used s & il of $19,000 electric first time to pass & machine for hail an Do and other ‘assets last Beptember Columbia Telephone Orchid in Europe that most of that produced there :u‘ &ruent consists of synthetic substi- very serious matter,” he said, “but we | the have to look at both sides of the pic- ture. Machines take away employment, but they also give it.” Referring to technocracy's forecast of greater future unemployment, he said he once took population figures for New York City and New York State and by | * "y curves far enough ap- projecting parently proved that eventually there | federations, f¢ would be more people in the city than there would be in the State, including the city. “You can take birth rate statistics” he said, “and show that apparently at some time in the future there will be no bables born, and that after awhile there will be only negative bables.” He pregicted that the next 25 years will see more great inven affect! industry favorably than in the past 25 years. Am them he listed “talking e mpect‘ ors etime and disregard “1 ex more e AN of law,” Dr. burn said, “and the abolition of prohibition would increase the work of the social service forces It is a mystery to me why business men should favor repeal.” : Sees Stationary Population. He predicted the possibility of life exgecuncy lengthening from the pres- CEEU OISR coun! ving & ula- uonhetorelhemdnlmmpw.fle also p! the rise of in- surance. difficulty in raising “The greatest the level of lll:i" he said, “is the eco- that organization has nomic organiza He asserted ‘many serious weaknesses,” but added he did not think it in any danger of collapee. e Make your stay in New York doubly enjoyable. Enjoy a sunshiny out- side room with bath, radio with your choice °fmdmNEWhuul conveniences at rates that start at §3 for ohe for two. Want 100 Experienced For Temporary Positions in Following Departments: Linens Furniture Draperies Lamps & Gifts Rugs & Carpets Ready-to-Wear Accessories Apply Wednesday . 4th Floor, Rear 9:30 to i Store Closes Ang | quplicates the Council Salespeople (Men and Women) ederations and syndicates | # of employers and employes that make | % up the corporative state. It settles all | % industrial, labor and wage problems, regulates business, and in general con- d“gf:. the commercial life of the na- il ‘The argument in favor of its amal- gamation with the Chamber of Depu- ties is that on certain points one body other. The National originates a labor law, for in- which the chamber discusses and approves. Were they united, these two functions would be merged. National Council Relation. Purther, the chamber grows out of the National Council, since nearly all its 400 members are nominated by the confederations, federations and syndi- cates, approved by the Pascist Grand Council, and then submitted to the general electorate. . It 'is understood that no change in the system of electing the Chamber of Deputies is contemplated. Every five years & list of 400 names is submitted to the voting public, to be voted on | “yes” or “no” as a whole, without scratching a single name. 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