Evening Star Newspaper, October 1, 1936, Page 36

HOOVER TO TALK WTHEOL LANDON Leaves for Topeka After Denver Speech Attacking Income Tax. By the Associe ed Press. DENVER, October 1.—Herbert Hoover left Denver early today on & Topeka-bound train and his secretary, Lawrence P. Richey, said the former President would “meet with” Gov. Alf M. Landon, Republican presiden- tial nominee, this afternoon. Richey’s announcement came short- Iy after Hoover had assailed Federal tax policies in an address last night to the Metal Mining Convention of the American Mining Congress. Richey said Hoover had been in- vited several days ago to stop off in Topeka. He did not disclose the source of the invitation. Hoover boarded the train carrying & ticket routing him through to Kai sas City and by another line to cago. His secretary, however, quired about stops at Topeka.- Route Is Changed. Richey’s announcement of the To- peka trip altered one given praviously that Hoover would remain here until late this afternoon and then go to Battle Creek, Mich., to attend a meet- ing of the Kellogg Foundation. “We changed our route,” Richey said. The former President had planned to leave Denver at midnight, but his train (Union Patific) was late and he did not leave until 2:50 a.m. (M.8.T.). The train was scheduled to reach Topeka at 2:20 p.m. (Central time). In his address to the mining execu- tives, Hoover asserted the tax on un- distributed corporation profits “tends to stifle honest enterprise, to lessen national assets, to help the powerful instead of the weak, to cost men jobs.” Terror to Honest Citizens. He called the present income tax “a torment and a terror to the honest citizen,” and urged revision of Federal inheritance tax laws. He also advocated a constitutional amendment abolishing “all tax exemp- tions on Government securities.” Hoover specified he was not calling for a reduction of taxes. “That is not possible until the budget is balanced,” he said. Mr. Hoover disclaimed any partisan political motive behind the address, remarking, “No doubt any form of public expression can be distorted as politics except crooning. What I have to say is merely objective gociology and economics. If you get political emo. tions out of it, then that is the product ©of your mind, not of mine.” Erects Barriers. Thé corporation tax law providing @ tax on undistributed profits erects *“barriers which stop the honest and necessary activity of & multitude of honest men,” former President Hoover asserted. “The new law * * * says that if you use your profits to improve and build up this (mining) business, you must pay the Government up to over 40 per cent on these profits. * * ¢ “If the vernment is going to take up to 40 per ceni of the tem- porary profits from each ultimate failure, as well as the successes, the miner does not stand a dog’s chance. ® * ¢ This taxation favors the big mining corporations. These concerns ® * * can take up a dozen prospects and write off the losses against profit- able ones.” Situation General. “Much the same situation exists in all the smaller units of business gen- erally. They have been made from plowing in profits. Without doing that they never would have dodged infant mortality, * * * “There are times when every busi- Dess will lose money. It is at just such times that they cannot secure capital. If they have cash reserves they can hold staff and workmen together until things improve, * * * The industries of the United States spent billions of their reserves doing that very thing in this depression. If they have been forced to pay out all their profits in dividends to stock- holders in good times, bad times will mean vastly increased bankruptcy and many more workers on relief.” Hoover proposed four changes in Japan Bans Films Deriding Military Or Glorifying Kiss after from Japen, it was an- nounced yesterday. The order was the opening gun of & campaign of purification of motion pictures entering Japan which authorities feel have .a tendency to degrade the people’s morals, create dangerous thoughts, or misrepresent life in general. Pictures burlesquing the army and navy of any country which might impair popular opinion of the military profession also will be banished, as will films show- ing questionable aspects of life royal courts. ‘The Columbia cinema “Cecilia” was the first victim of the cru- sade. The home office declared it depicted in undesirable fashion features of European court life which, it was felt, might possibly be construed as an indirect re- -| flection on Japan’s own imperial the corporation tax law. They were: 1. A “reasonable” exemption from corporation taxes on profits expended for expansion and improvement of equipment and production. “It would make more jobs than all the boon- doggling of the Nation—and they would be honest jobs,” he said. “It would increase the national assets and not deplete them.” 2. To enable corporations to accu- mulate profits to meet contingencies of economic stress. “That is the greatest employment insurance that can be built up—not at the cost of taxpayers but at the cost of stock- holders,” he said. 3. Application of “such pressures for competition as increased improve- ments and expansion of plants” which, he said, would “produce more competition and lowering of prices in s day than all the anti-monopoly legislation will produce in a year.” 4. Changes to prevent “expansion of bonded debt of corporations who are forced (by the present law) to pay dividends on one hand and - borrow money for improvements on the other.” Reversal of Present Law. ‘The changes, Hoover contended, would be a “reversal” of the present law. “The Government would in the end get more taxes,” he said. “It would give the small man a better chance® * Referring to the income tax, Hoover said: “We attempt to tax capital gains and we allow deduction of capi- tal losses. No matter how compli- cated we make the industry of tax evasion, my observation is that in the long run the Government loses money on this tax, because more people can conjure up more losses than the Government can conjure up new rules which locate their profits. “But of far more importance * * * we place & dam against the free move- ment of property. The citizen refuses to sell real estate or mines or invest- ments because of the huge tax on any increase in value. We create shortages aof securities and we ac- centuate booms and slumps. It makes for vicious speculation. It is today contributing to a new stock boom.” CLEANED-A - SANITARY CARPST & ' RUG-CLEANING €O, 06-INDIANA AVE. Stein Bedding Co., l 1008 Eye SEN.W. = ME. 9436 HURSDAY, OCTOBER 1, 1936, THE HUB FURNITURE (O.. 7¢h AND D STS. [ 1oy v - i e ¥ 3-Pc. Walnut Veneer Modern Bedroom Suite ‘66 A The Hub's best modern value! Three Handsome pieces solidly constructed. of genuine walnut veneers. Full-size bed, large chest with hat and shoe compart- ment, massive dresser or fine vanity. 2 PIECES IN GENUINE FRIEZE 'GY 8-Piece Studio Outfit Consists of modern studio couch that opens to full-size or twin beds. Up- holstered in rust or green tapestry: Also included: Two studio end tables, two table lamps, bridge lamp, modern pull-up chair and modern coffe table. The 'lowest price in years for a genuine mohair frieze suite. Two fine pieces in the popular London Club style, expertly upholstered and fully guaranteed. See this amazing value! ol | % \ Occasional Rocker Upholstered in rust § 4.’5 or green tapestry with spring seat. 10-PIECE WALNUT DINING ROOM SUITE Sturdily built of genuine walnut veneers in combination with 88 other-hardwoods, the fronts are of Burl walnut. Includes a buffet, china cabinet, server, extension table and six chairs. 3-Piece Desk Outfit A gorgeous 3-pc. knechole desk outfit. Beautiful walnut-finished s '94 kneehole desk, desk chair and desk lamp. A real value at this price. No money down at the Hub! Oil Circulator wul end efficient heater, 3::"5::»,_;- P E. . k £ -Pe. Guest ll 0utflt Consists of a dresser, chest, poster bed . 2-Pe. Genuine Kinkameo Living Room Suite “Seldom if ever you find a-genuine 5-year guaranteed Kinkamo s master craftsmen for nicely finished and constructed in wal- : nut on hcrdumds;dmplgte witnz 532 ttress, guarant i $ e gy suite at such a low ‘price. Built by 1 ; years of luxurious. comfort. No.Money Down at the Hub.