New Britain Herald Newspaper, December 6, 1922, Page 14

MELLON SUGGESTS SURTAX RATE FROM 50 Secretary of the Treasury Would Make Up Differ- ence by Closing Possible Avenues of Escaping Pay- ment. ‘Washington, Dec. 6,—Reduction of the maximum income surtax rate from the present 50 per cent to not more than 26 per cent and the clos- ing up so far as possible of existing avenues of escape from federal taxcs are urged by Secretary Mellon in his annual report, transmitted today to Congress. No general revision of the CUTTING INCOME P.C.TO25P. C. chases a bond for $1,000 which ap- preclates in value may exchange that bond for another of the value of $1,000, together with $100 in cash, without the realization of taxable in- come, “This provision of the act is being widely abused,” ho adds. Aslde from his recommendations for, tax revision, Mr, Mellon deals in his report with conditions generally over the country and with the opera- tions of the various divisions of the treasury. He sounds an optimistic note as to the business outlook and reports substantial progress both in the reduction of the public debt and in economy in public expenditures, The past twelve months, he says, have been marked by further liqul- dation and recovery from depression, and, more recently, by a substantial revival of business. Prices of com- ! plea; NEW BRITAIN DAILY HERALD, WEDNESDAY, DECEMBER 6, 1922, G. Woods, defanit for fallure to com« ply with order of court; John Aus. manus, by Freedman & Freedman, vs, United Lithuanian Society, Ine, by B. ¥, Gaffney, answer by defend- ant; John H. Lynch, by Kirkman, Cooper, Hungerford & Camp, Vs Mrs, Jullar Harnum, pleading or des fault; Aaron Danielson, by Alfred LoWitt, vs, Emilio DiBellis, by Atftor. ney Steel, pleading by defendant or default; David 1. Nair, by 1. B, Hungerford, vs. 8, Zacks, by Attor- neys Trusky and McGrath, pleading by defendant or default; City Coal & Wood Co., hy B, I, Gaffney, vs, Angelo Berti, judgment; Civic Im- provement, by J. G, Woods, vs. G, Palmierl, et als, by Attorneys Nair and Sexton, default for fallure to LaSalle Extension University, by A. W. Upson, vs. James ¥, Moore, by I, B, Hungerford, pleading or de- fault; Henry Miszkiewicz, by J. G. Woods, vs. Teofil Woidal, by M. D, Saxe and I, I, Rachlin, permission to file answer; Edward Lipski, by J. G, Woods, vs. Joseph Kalatka, by M. A. Sexton, taxation of costs; New Eng- LADY SKEFFINGTON | TO LECTURE HERE Widow of Irish Patriot to Appeal For Funds For Destitute Women and Children, Mrs. Hannah Shechy-Skeffington, widow of Francis S8heehy-Skeffington, Irish pacifist journalist, who was ox- couted in 1916 by the English govern- ment for complicity in the FEaster week rebellion in Dublin, will speak In Judd's hall on Main street tomor- |row evening, in the interests of the dependents of the interned republican prisoners in Ircland, She is one of a large committee ‘of Irish women who |ure touring the country asking for ! funds for the support of the women |and children who have been left un- provided for, She was born in County Cork and was first heard in the U. 8. in 1016 Hartford g Ivory Pyralin THIS FAMOUS TOILETWARE AT INTERESTING NEW PRICES Toilet Goods Counter—Main Floor revenue laws is proposed nor arc ad- ditional taxes suggested, Mr. Mellon when she toured the country speaking ugamst what was then termed “Brit- 'ish Militarism in Ireland.” She re- | turned to England in 1918 and was | refused a passport into Ireland. She | stowed her way across the channel, but upon arrival in Ireland, she was | deported to the Halloway jail. Shej| | was released after a long hunger| | strike and has since been artested and | |again released. She was editress of | the “Irish Citizen,"” a newspaper founded by her husband, until 1921 when the paper was supressed by the English government. She will give many interesting facts on the situation in Treland at the pres- ent day, and the committee on ar- B y rangements extends invitation to the o public of New Britain to be present to hear her. land Merchandise Company, by H, H. | Milkowitz, vs. Manuel Atashian, by 1", B, Hungerford, default for failure to plead; Harry Maxen, by D, L. Nair and I I. Rachlin, vs. Harris Brown, et al, by B. I, Gaffney for the Com- mercial Trust, motion for specific modities have risen materially, the expressing the hope of meeting any | Yolume of business has been mount- s P 8 M ling to higher levels and labor indicated government deficit through collection of back taxes and income | E“rg]\:fi‘mm the country is again fully "?rnl;eo'ht:::a?rryma.aocremry informs|, 'The vear is closing with bountl- ful crops,” the report continues, “and T e teva s oy |the severe depression in_ agriculture |statement; Herman elkin, by David lvnldn,npce of tax payments to the gov- has been relieved. Banking condl-|I. Nair, vs. John Yonor, judgment; ernment will not be enought because tions generally are sound, money | Sophic Daniedczeck, by M, A. Sexton, the. existing rates 'Dl sl’frla.x p utlmt" are reasonable, and there is'vs. Benigna Ludorf, by J. G. Woods, anah" b v‘ RRe T bRk A "" sufficient credit available to meet all | judgment for failure to comply with Ratia ea { P d Hhale tax m“rf legitimate demands. | order of court, and hearing in dam- apar r:h ‘: TRANS BAEIL alxda b 'l" “In the treasury the year has secn |ages. b gt at new ones would Surely|, requction in the gross debt amount- be found. He adds that the high|y,o 4, apout $1,000,000,000, a bal- rates “sound productive,” but that the |, n0aq pudget for the fiscal year, 192 fact remains that they are becoming |ghowing a surplus of over $300,000, increasingly ineffective and are yield-| 509 gbove expenditures, and substan- ing less and less revenue each year.|tja) progress in the refunding of the; Then bluntly he tells congress the|ghort-dated debt, which has now time has come to “face the facts peen reduced to manageable propor- What could more appropriately adorn your dressing table or add more to your cons venience than an exquisite set of Pyralin? And what toiletware has such a splendi value as Pyralin at the new prices we are featuring ! X It will delight you just to see our Christmas display of this exquisite ware and to have a set of Pyralin of your own, will give you everlasting satisfaction. And it’s so easy. Start with just a few pieces, if you wish, and let us match them, from time to, time; until the entire set is complete. Come in and see our beautifyl Christ- mas assortments. You'll especially admire the exquisite Du Barry pattern or decorated; also the shell and amber both plain and decorated. y s {it is wisdom to make selection from these articles at once ‘as the lines are soon de- pleted. Bldh an BAte: apbCIHA oy ey Prices are decidedly economical. tebrates capable of flight, flying squir- rels, lizards, snakes, fish and lemurs moving through the air by great swooping leaps. squarely” and to correct the artificial conditions which now prevail and which, he asserts, are not wholesome from the point of view of business or industrial development, and, at the same time, are impairing the revenues of the government. How to Reduce The more important of the methods used by the taxpayers to reduce the amount of income subject to taxation are listed by Mr. Mellon as follows: | Deduction of losses on sales of capital assets, with the failure to real. ize on capital gains. ' Exchanges of property and securi- ties s0 as to avoid taxable gains. Investment in tax-exempt securi- ties; and Division of property, trusts and the like. “Not all of these things can be controlled by law or by regulation,” he continued, “‘and most of them lead to unnatural and frequently harmful economic results. To reacH the evil the thing most necessary is the reduc- tion of the surtax rates themselves, in order to reduce the pressure for avoidance and maintain the revenues derived from the surtax. “Until some such readjustment is made the yield of the higher sur- taxes will tend, in the ordinary course of events, to drop toward the vanish- ing point. - The wise course-is to re- form the surtaxes now while the sys- tem still functions and at the same time to close, so far as possible, the gaps which now exist. On this basis the revision can be madeé without loss of revenue, and, in,the long run, with material benefit to the revenues.” Against High Taxes To support his argument that the high surtaxes gradually are ‘“defecat- ing their own purpose,” he calls at- tention that while net incomes of all classes during the period from 1916 to 1920 increased from $6,298,577,620 5 in 1916 to $23,735,620,183 in 1920, and the number of returns from 437,- 036 in 1916 to 7,259,944 in 1920, the number of returns of incomes over $300,000 decreased during the same period from 1,296 in 1916 to 396 in| 1520, and the amount of incomes over $300,000 from $992,972,986 in 1916 to $245,354,585 in 1920. In “earnestly urging’ prompt adop- tion of the proposed constitutional amendment against the further is- suance of tax exempt securities, the treasury secretary says these securi- ties, now reaching the market at the rate of about $1,000,000,000 annual- 1y, form the ‘“‘outstanding avenue” of escape from the surtaxes. “With these securities available for investment, fully exempt as they are from federal income surtaxes” Mr. Mellon continues, ‘“investors who; would normally put their surplus funds into productive enterprise, are automatically driven under the pres- sure of high surtax rates into invest- ment in tax-exempt securities, with| the result that the federal govern.| ment loses the revenue, business and industry loses the capital, and funds badly needed for productive purposes are diverted into unproductive and frequently wasteful expenditure. “This is a sitwation which can not be permitted to continue without grave danger to our economic struc- ture, as well as our system of taxa- tion.” Pointing out that the present law limits the tax on gain in capital trans- actions to 12% per cent of such gain, but puts no limit on the deduction of losses in sych transactions, Mr. Mellon urges that the amount by which the tax may be reduced on ac- count of losses from the sale of capi- tal assets shall not exceed 12% per cent of the amount of such loss. *This would, to a large extent,” he asserts, “check one of the methods widely used by taxpayers at the pres- ent time for decreasing their yearly income. The alternative is to refuse to recognize either capital gain or capital loss for income tax purposes, and if the present situation is al- lowed to continue there is no doubt| that it would save revenue to adopt his course, This is, in' fact, the prac- tice which has been followed in Eng- land for many years.” As to the avenue of escape afford- | ed in the section of the law dealing| with exchanges of securities, the | treasury socrotary urges that the | statute be amended so as to limit the cases in which securities may be exchanged for other securities, with- out the realization of taxable income. | to those cases where the exchange is in connection with the rcorganiza-| tion, consolidation, or merger of one or more corporations. Provision Widely Abused. Tilustrating the actual workings| under the provisions of the existing| law for the exchange of property| held for investment for other prop-| erty of a like kind without the realization of taxable income, Mr, creation of tions. These developments are all helpful, and afford the basis for a revival of business and industry on sound lines.” Note of Warming. Into this situation, however, Mr. Mellon injects a note of warning. He says the restriction of immigration | and the general resumption of indus- | § trial activity have resulted in a scar- city of labor embarrassing to some lines of business. | railroads are suffering from under- |z maintenance and inadequate equip- ment, and are finding it difficult to move commodities to meet the de- mands of business. As a consequence farm products are selling too low at the farm and too high at the distrib- uting centers. The Secretary also declares that the increase of $1,000,000,000 in the gold | holdings in this country since 1919- 1920 has a tendency to expand credit and create an unnatural ease of money for the purposes of expansion and credit. Then too, he calls atten- tion that the uncertain state in| Europe has impaired the corrective forces which used to operate in nor- mal times and has so reduced the buying power of foreign countries as to destroy or endanger the foreign markets for many American products. “Enough forces are operating,” he continues, “to make us cautious in estimating the prospects for the fu- ture and to take care lest we build on a false basis. Business in this coun- try can not progress indefinitely with- out its foreign markets, and under expansion now, with rising costs and artificial. values, would inevitably sow | the seeds of reaction and make more difficult the reestablishment of nor-| mal relationships abroad. i “The Treasury aims above all to keep its house in order in the belief that a sound financial structure here will in the long run afford the best| basis for extending needed assistance to Europe and for a healthful revival of domestic business on constructive lines."” FIFTEEN CASES ON DOCKET Short Calendar Session Friday After- noon in City Court—Civil Cases to Be Aired. When city court opens for short calendar session Friday afternoon at 2:30 o'clock there will be 15 cases' on the docket as follows: Ida Goldsmith, by Alfred LeWitt, vs. Meyer I'eldman, hearing in dam- ages. Louis Gourson, by W. M, Greenstein, v . H. Ritchie, by J. B Fox’s—Sun, Mon, Tues, Wed. HAROLD LLOYD in “GRANDMA’S BOY” Some Boy! Some Joy! SALEOFFANCY WORK HAND MADE GII7 FOR XMAS Thursday, Friday, Saturday Mrs. Lillie Stotts 15'WI PEARL ST. HAND PAINTED GIFTS AND ST ‘I WORK Table Runners, Burean Scarfs, Coun- | terpancs, Pillow Tops Any design on any cloth, Near Johnson & Peterson's Studio. i COLD WEATHER NEEDS We have a tull line of new and second-hand stoves, oil heaters, gas licaters, cte. A, LIPMAN New and Secondhand Furnitus 34 Lafayette St Tel. 1320-2 —_DRINK — Ayers’ Soda Water Calt for it by name and get the best, For Sale at Your Grocer's Three Size Bottles—5-10-15¢ INTERNATIONA CORRESPONDENCE SCHOOLS | Phone 888 For Appointments Room & He adds that the |32 Mellon says a taxpayer who pur- Fox Theater Building Our real desire is to serve est motives. Our merchandise sales for 52 Thermax Heaters, 11 TEL. 230 xX P USED FOR DEMONSTRATION ONLY AND GUARANTEED A NEW 3 WASHING MACHINES $60.00 $75.00 $93.50 1 IRONING MACHINE $75.00 THE SPRING ELECTRIC CO. 75-77-79-81 Church Street & $25,000 TO LEND ON SECOND MORT- GAGE AT REASONABLE RATES SCHULTZ & COSTELLO TEL. 24-4 Volz Floral Co. “Say it with Flowers" 92 W. Main St. ‘Thanksgiving’Has Gone The Spirit Still Lingers We would like to take this opportunity of thanking our clients for their continued and increasing patronage and to have them know that by every means possible we are going to try to keep their good will. ways merit your approval and to have you feel that in our business dealings we are actuated only by the high- increase over the same month last year. New Britain leads all other districts of our Company in total volume of Electrical Appliance Sales. Nearly every Electrical Appliance we sell is made by Landers, Frary & Clark and our records for November include such items as 53 Universal Vacuum Cleaners, Ranges, many dozen Universal Hair Curlers, Irons, Toasters, Grills, Heating Pads, etc. We must thank “Universal Quality” also for a great measure of our increased business. 98 Table Lamps another item in November totals. Increased Service, increased Satisfaction to you should be and will be our every day, every hour endeavor. The Connecticut Light & Power Co. Headquarters for Usefyl Xmas Gifts at Special Prices you in a way that will al- November showed a 2009 Universal Washers and N 92 WEST MAIN ST. ' THE SAME AS MACHINE BUCKLEY MAIN ST. Tel. 1116 Estimates cheerfully given on all jobs Suggestions for Christmas Gifts Art Needlework and Gift Shop A complete store in itself is the Art Department and Gift Shop on the second floor; and who yearns for something to give that is unusual and exquisite should come and re- vel in this corner of the great FOX STORE. Our Mail Order Service Can Do Much of Your Christmas Shopping We employ experienced shoppers who fill mail or- ders as satisfactorily as customers can; perhaps more so, as they learn of the new things as soon as they are re- ceived in the store. Try this service if you are a shut-in, or if you can-, not shop with us in. person as often as you would like. Satigfaction is guaranteed as merchandise purchased by mail is practically sent on approval. - OYSTERS CLAMS CRAB MEAT SHRIMP CALLOPS LOBSTERS HONISS’S 24-30 STATE ST. HARTFORD 272 Main Street Wrought Iron Bridge Lamps $4.95 Well made lamps; com- plete with adjustable arm cord and socket; decorated parchment shade. A choice gift. Seventh Floor 2-Family house on East street at a low price. ! All finished over new inside. All you’ve got to do |is to move right in.. Electricity just installed. We want to huy some good second mortgages CAMP REAL ESTATE CO. Phone 343 Rooms 305-6 Bank Bldg. M CROWLEY BROS. INC. PAINTERS AND DECORATORS 267 Chapman Street TEL. 755-12 272 MAIN ST.—~ROOM 208 FOR SALE Grocery and Meat Business, Central Location. Fine Business Chance H. D. HUMPHREY NATIONAL BANK BLDG. For Quick Returns Use Herald C'Iassifi_ed Adots. THE OLD HOME TOWN HOLD ER DINE NEWT SKES AREARIN 7] THERE 1SnT an Anaay WORD IN A GALLON * ALY TR AW W - V' | REMEMBER. TH” BADGE WAS MISSING, BEFORE | FELL INTO THAY PESKY CISTERN'! : 'u"l Wro, MARSHAL OTEY WALKER LOST HIS BADGE WHILE CHASING \ SOME BoYs ouUT OF AUNT SARAN PEABODYS YARD LAST AIGHT- UPTOA LATE HOUR THE SEARCHERS HAD NOT FOUND THE BADGE