New Britain Herald Newspaper, February 10, 1923, Page 13

LOWER TAXES NOT YET IN SIGHT, lf CHEERLESS NEWS FROM BABSON Statistician Reports On Tax Situation in Washington For - Wellesley Hills, Mass, Feb, 10— “When will taxes be reduced " The problem is upperm in the L) the American buiness man vestor as he figures his report for 1922, Toget the answer Roger W, b son, statisticlan hes spent a week in Washington studying the tax situa- tion, His first hand findings and ua- biased report is of vital interest, “Future taxes" says Mr. Habson, “depend, in part, upon future expen- ditures, The figures for the past year on this score, at least, are very hope- ful, Whatever eriticism may be made of the present administration it muat be admitted that It has exerted a con: tinuous effort to reduce expenditures, An honest attempt is being" made to introduce apd opegate a budget sys- tem. At the conference of bureau chiets, held recently gt the Continen- tal Memorial hall, sonte 600 mer®met to affect further ecqnomy in the op- eration of the government business “Fixed charges interest rates, and provious obligations, of course, cannot be changed and in spite of the splen- did work done to cut down current expenditures, the expenses of the gov- ernment for 1922 reached a total of $3,795,302,499.80. Nearly one billion of thl; amount was paid out as inter- est on the pgblic debts such as Lib- erty bonds and other outstanding se- curities in the United States; $263,- £00,000 was used' in pensions to 801+ diers, or thelr dependents, of the War of 1812, Mexican War, Indian Wafts, Civil War and Spanish-American War, whilé $450,000,000 was pajd for com- pensations, care and training of vet- erans of the World War, Approxi- mately $455,000,000 ‘went for the army and $475,000,000 for the navy. About 50 per cent of our total ex- penditures go to the payment of in- terest, sinking funds, pensions and the relief to veterans. “During thé fiscal year of 1922, the government. collected $4,109,104,150.- 94. Present prospects, however, indi- cate that no such amount will be col- lected in 1928. The excess profits tax has been removed and general busi- ness is not as prosperous, and there= fore will not yield as much in taxes as in preévious years. To meet this situation, President Harding has ear- nestly requested that expenditures be cut by $92,000,000 more. “If we look at the United States government as we would a corpora- tion, there is no cause for alarm. Ex- penses have increased to be sure, but expenses have increased in all busi- nesses. On January 1st, 1923, we had in the United States, in gold $3,938,- 475,615, about 45 per cent of all the gold in the world. Of'this, over three and one-quarter billfon 18 held in the treasury, mostly in the form of bull- lion. If we look at the ledgers, we find that 3,600,000 tax payers and 101,300 corporations contributed $2,- 068,128,192.68, in 1922. While only $356,443,387.18 was recéived from customs and duties. “Further study indicatés that the problem during-the next few years is not one of trying-to decrease the present budget, but rather of trying to hold it where it is ‘and keep it from going much higher. “Unless a miracle happens, some sort of bonus bill will be passed in 1924. If not passed with the presi- dent’s consent it will probably be passed, over his veto. This will call for a%l‘lge additional sum of money. Then there is a tremendous road building program, the proposed na- tionalizdfion/of coal mines and the demands upon ‘the treasury by, the farmer. bloe. * . “When I taiked’with financiers re- garding possible measures of taxation to meet these additional expenditures and proposed increase in our national hudget, the suggestions are as fol- lows: 1—A saleg tax. 2——-A tax on light beer and wines. 3—Further customs and interhal revenues. 4—Collectfhg from Purope the $10,000,000,000 owed us and 5—The restoration of the ex- cess profits tax. ““The keener students of taxes al- rost universally recommend the sales tax, but politically there scems to he little chance of the new congress put; ting it through. A tax on light beers and wines at the present time is cer- tainly out of the question. Toth cus- tom and internal revenue taxes are as high as the public can stand, Hence, by the process of elimination the poli- tical leaders strenuously refuse to cancel the European debt for fear of :hc reenactment of the excess profits ax. “Their fear in this regard is well founded not from a purely selfish point of view on the biusiness man who must pay such a tax, but because of its effect on the prosperity of the whole country. The reenactment of such a tax would be a distinct setback to every one. Natural resources, available labor, nor even capital, is sufficient to make a country prosper- ous. Russia is rich in nafural re sources. Africa abounds in a Business Men and Investors, laber and in every eountry where money 18 cheapest business is at its worst, Prosperity is really the result of initiative courage and hepefulness These intangible but all.important forces are the result of encouraging business. We ecannel get prosperity by putting a bail and ehalw on the enterpriser, “Inheritance taxes may be increas. ed without affecting business. Con- gress may even inorease the tax on incomes from stocks and bonds with- out hurting the farmer, but a re- enactment of the excess profits tax, which paralyzes efficlency, enterprise and initiative would be distinetly harmful to all seetions of the eoun- try and to farmers, businessmen, and wage workers alike, “These figures on government re- ceipts and expenditures have a direct relation to investors, They mean that the present demand for non-taxable bonds will continue. A good many people who have their money in tax-. able securities have continued to hold these securities and pay a tax on them with a subconscjous hope that some time, some day, some how, som« where, their taxes would be reduced, A statisiteal study of the situation leads one to belicve that higher taxes are here to atay and that it will be a real feat to Keep them down to pres- ent figures. A “Arr interest in tax-exempt securi- ties may also be increased by a stn- stitutional amendment preventing the sale of any more ‘tax-exempts’ A resolution to this effect is before con- gress at the present time. If it is ssed, it will go before the states for ratification, It will be a long time, however, before such a bill will get the necessary two-thirds of the states to sign it, that it may become a con- stitutional amendment. Even if en- acted it, of course, could not be re troactive and cannot affect the “tax exempt securities already issued. The very agitation may tend to bring out a rush of new issues which will have a depressing effect on the municipal bond market in spite of the strength- ening. tendency which many people expect. “All this means,” concluded Mr. Babson, “that the very large investors will continue to hold tax-exempt se- curities but there is no reason why the average investor should stampede to secure such issues. The bond crop {s one crop that has never yet been known to fail. Many people believe that owing to the improved conditions, money will be much higher and that all bonds will decline in price during .the next few months, This may be true, but I seriously doubt it. Al- though the Babsonchart stands today at three per cent above normal, which would ordinarily signify that we are entering another period of in- flation, a statistical study strongly suggests that this present optimism figure is only temporary. The great readjustment which started over. two years ago is only about 60 per cent complete. My prediction is that bond prices in 1923 will average about the same as the bond prices in 1922, and the ‘tax-exempts' will follow the gen- eral market. “It will be safest for investors to count on preséht high taxes continu- ing, even if congress has sense enough not to reenact an excess profits tax.” DISCUSS CO-EDUGATION / ‘Undergraduates of Johns Hopkins Are Voting Today on “Attitude Toward Admitting Women stmlcms, Baltimore, Feb. 10.—Undergradu- ates at Johns Hopkins university will vote today to determine the attitude ot the student body as regards co- education. The vote was inspired after a letter published in the News Letter, a college publication, demanding that women, who are taking special courses at the institution, be accorded a place in the social affairs of the college. Among the questions to be upon are: “Would competition with women stir you to harder study or would it distract you from study altogether? “Do you know whether co-education has helped,or hindered other univer- sitles of Hopkins size and character? “If Hopkins had been a mixed un- dergraduate school would it have in- fluenced you for or against enrolling 2" Retail Price of Food Shows Slight Decline Washington, Feb., 10.—The retail cost of food in 16 of 19 representative cities of the United States dropped be- tween December 16 and January 15, the department of labor announced today. The decline in Denver was 4 per cent in Peoria and St. Louis 3 per cent; Butte, St. Paul, Salt Lake City, Seranton, Seattle and Washington 2 per cent; Baltimore, Cleveland, Omaha | and Providence one per cent voted | » . EW BRITAIN DAILY HERALD, SATURDAY, FEBRUARY 10, 1023, .- market to.the street. and German marks from a corner million at this unique “curb market.” at 10 cents a SCHOOLBOY BANDIT KILLED IN FIGHT Robs Garage and Wounds Police- man in His Efforts Kansas City, Mo., Ieb, 10,.—His face smeared with charcoal and clothed in overalls and a jumper, Ray C. Bishop, 19 years old, popular student and member of the Central High Schoool football squad last night turned bandit robbed two filling stations of approxi- mately $22 and was shot to death in a gun battle with a policeman after wounding the officer. Lawrence W, Ferguson, 25 years old a chauffeur at the Sheffield Police Station, wounded by the youth is in the General Hospital with a bullet in his groin. He will recover. Through tear-dimmed eyes youth's gray-haired month, Mrs. Wil- smudged face of her son in the Ey Brothers' undertaking rooms two hours after the tragedy. “I can’t belleve it is my boy,” she said brokenly. “He was too good for that.” The news came to Otto Dubach, Principal of Central High Schosl, as a shock. His voice grew husky as he narratdd the virtues of young Bishop, shom he characterized as *‘a splendid type of young manhood—rugsad, bashful, athletic, studious and loved by his companions.” Yet on the desk of the sergeant at the Sheffield police station lies a 32- caliber revolver taken from the lad's nocket;, a jumper and a pair of over- alls, the former stained with blood, which he wore when he fell, and $22 in bills. In the General Hospital, T'crguson, | a bullet through his right groin and the red streak of another across his chest, testifies between groans that | Bishop fired first. [Mystevious Eggs Exposed; | | Each Has Metal- | Crystal Falls, Mich, Teb. 10— | geven eggs, dark blue in color and about five inches in diameter, were | unearthed on a farm near Mastodon, | recently by Ivan Petrotski while en- gaged in blasting stumps it was learn- ed today. Shells of the egg gave out a sound when struck with a them wa | metallic sledge hammer. One of preservation, it was said. The Smith- sonian Institution will be asked to | analyze the eggs, one of which is to be | incubated by Petrotski. | CUTTER RESCUES STEAMER | Boston, Feb. 10~—The British steamer City of Canton which struck a shoal southeast of Cape Cod late last night was pulled off by the coast guard cutter Acushnet early rently little damage: A Chicago peddler has taken foreign exchange from the stock He's selling soviet rubles, Austrian crowns the | liam H. Bishop, looked atthe black-| ar Like Shell| | broken and showed a perfect stage ofl s | stand. Rubles go like hot cakes W. C. T. U. LEADER WILL SPEAK HERE TUESDAY In Morning Mrs. Wilson Will Award Essay Prizes—In Afternoon She Will Discuss Prohibition Work. The Women's Christian Temperance Union will holl a special meeting on next Tuesday aftrnoon. The meeting | will be held in the Methodist church at 2:80 o'clock. The speaker of the | arternoon will be State President Mrs. | Mary B. Wilson, and her subject will | be “The latest News From Washing- ton.” Before coming to Connecticut, Mrs, Wilson was the national superintend- ent of work among foreign speaking | people, her work being especially | among emigrants. She has visited | every station in the United States, ex- | cept one. 8 | Mrs, Wilson is a talented womah | and regarded as a good speaker. The public, both men and women, is in- | vited to hear her. She will answer | questions asked her. | At 10:45 o'clock Tuesday forenoon Mrs. Wilson will present prizes to the | pupils in the Grammar school who have won in the prize essay contest. There are three prizes given by the local W. C. T. U. COAL CO. OF OWN $15,000,000 Involved — Public, May Benefit Too Detroit, Feb. 10.—The incorporation of the Fordson Coal Company, an- nounced at Dover, Del,, was a step by the Ford Motor Company to centralize its coal properties in a single unit, officlals of the motor company were | quoged as saying here last night. The new corporation, with a capi-| | talization of $15,000,000, is to operate | conl properties purchased by Henry Ford in Kentucky and West Virginia. The organization of the coal com- pany may result, it was said in Mr. | 1ord selling coal to the public. This | depends upon the quantity of fuel pro- duced and the requirements of the Ford industrial plants. The Ford Mator Company has for | some time been selling fuel to its em-| ployes here at price considerably low- | er than those asked by retailers, the present price for bituminous being | $8.50 a ton. Statements by Mr. Forfl during last year's mine strike indicated that the public might expeet a cut rate if the Yord fields yield a surplus. During the strike Mr. ord criticzed the retailers well as the operators of mine union chiefs, declaring that a conspiracy existed for the purpose of retarding production and inflating FORD FOUNDS BIG | siderably lo manded Deover, Del, Feb, 10~ been filed at the Sate Department here for the Ferdson Coal Company, sutherized to mine the sell coal and | cokie. The incorparaters include Doug- 1as Brown, of Huntingten, W, Va. The State department announced that the capitalization is §15,000,000 for taxa- ton purposes. WALL STREET STOCK EXCHANGE REPORTY Quotations furpished by Putnam & company, Am Bt Bugar,, 47% Am Can ,...., 804 Am Cotton OlI 1% Am Loeo ,,..,1264% Am Bm & Ref,, 64 Am Bug Ief com 83 Am SBumatra Tob 32% Am Tel & Tel,, 122 Am Tob + 18 Am Wool 101% Anaconda Cop (L1 Ateh Top & 8 I" 102 At Guif & W1 ¢ Baldwin Loco . Balt & Ohlo .. 2% Beth Steel B, .. 66% Can Pacifie ,..148% Cen Leather Co 36% Ches & Ohio .., 76 Chi Mil & Bt P 25% Chi Rock Isl & P 3613 Chile Copper 20% Chino Copper .. 25% Con Gos ...... 66% Corn Prod Ref 135% Crucible Steel ,. 79% Cuba Cane Sugar 19 dicott Johnson 91 13% . 204 L 187T% "y 8% 178 126 6N $0%% L 122 168% 101y 1% 101% % 0% 17% 137 irie 1st pfd n Electrie Gen Motors 14% Goodrich (BF) 37 Gr. Northern pfd 77% Inspiration Cop 34% Interboro Con .. % Int Mer Marine 11% Int Mer Mar pfd 44% Allis Chalmers. . Pacific Ol . Int Nickel Int Paper Kelly Spring T'r Kennecott Cop.. Lehigh Val Midvale Steel Mis Pac . N ¥ Cen .. NYNH && Norf & West North Pac ..... Pure Oil .. Pan Am P & Penn R. R .. Pierce Arrow .. Pitts Coal ..... Ray Con Cop... Reading ....... RepI &S ..... 55 Royal D, N Y .. 51 Sinclair Oil Ref 34 South Pac . 02% South Rail 3 Studebaker Co .119 Texas Co .. Tex & Pac Tob Prod Trans Oi 1.. { Union Pac .. United Fruit ..165 United Re St .. 15 U S Indus Also. 68% U S Rub Co ... 61% U S Steel ......107% U S Steel pfd..121 Utah Cop 66 Willy Overland. .7% Mid States Oil .. ‘Westinghouse Nat Lead .... H 22% A 79% 31% 80 46% 127% 64 14% 80 T 487% 23% 817 11% 140% 165 75% 66% 6014 106% 120% 65 % 114 6214 (Putnam & Co.) Aetna Life Ins Co ..690 Am Hardware ve. B0 Am Hosiery ........ 40 Bige-Hfd Cpt com .....135 Billing® & Spencer com. Billings & Spencer pfd.. Bristol Brass Colt's Arms .. Conn Lt & Power pf Eagle Lock Fafnir Bearing 5 60 Hart & Cooley ........ 75 Hfd Elec Light .......158 Ianders, Frary & Clark. 89 J R Montgomery com.. 90 13 26 113 |J R Montgomery pfd New Britain Gas ... New Britain Machine New b Machine pfd Niles-Be-Pond com North & Judd i Peck, Stow & Wilcox Russell Mfg Co .. Scovill Mfg Co .. Southern N E Tel Standard Screw Stanley Works Stanley Works pfd Torrington Co com . Traut & Hine Travelers Ins Co Union Mfg Co . U. 8. Treasury: WOMAN_SHI Liverpool, England— s Victoria Drummond, davghter of the first Lord Amherst of Hackney, claims to be the only woman marine engineer. prices. Coal would be sold at a profit at prices co! ‘A Leather Bound Book Bank 00 will start an new regular, Book the children to save For each one of the Kiddies. A new deposit of $1 account and we will provide you with one of these, Banks. You will be surprised how easy it is for " with one of these Banks. ; .Start Them Right Now " Burritt Savings Bank arrived here on a trip from A charter has were then de- | Members New York Stock ¥ Members Hartford stock Fa lange (Sueeessors 10 Richter & Ta.) Stanley 1. Eddy, Manager 81 West Main S, TH, 3040 —— 50 Stanley Works 50 Landers, Frary & Clark 50 American Hardware [ JUDD & CO. Members New York Stock Exchange MEMBERS HARTFORD STOCK EXCHANGE HARTPORD: NEW BRITAIN: rtford - Conn, Trost Bidg, Tel, 3-6320 28 Wost Main St, Tel, 1815, NEW BRITAIN Telephone 2580 Members Hartford Stock Exehange We Offer: LANDERS, Waterbury Danbury Middletown Foreign Exchange to Bank by mail. It is Australia, having missed watch on the voyage. Of This Number, 500 Are Children, According to Doctor’s Report to Committee, Chicago, Ieb. 10.—There are ap- proximately 46,500 persons in Chicago addicted to the use of “dope”, Dr. Ben L. Reitman told the Council Health committee. The figures mak- ing up this number arc as follows Juvenile users, ten to sixtecn years of age,"500. “Amateurs” who are narcotics for “fun port,” 1,000, “Temporaries,” 1,000 . “Legitimate” or those persons suf- fering from a chronic ailment, 3,000, Young professional users, 2,000, Old professional users, 4,000, Professional persons, including phy- sicians Criming “It cost for one ‘shot",”” Dr. Reit- man told the committee,” and a habl- tual drug user needs $30 a day. There are few who are ahle to obtain that| amounf,” so the addicts turn to crime.” New Britain Ngtional Bank Bldg. JOHN P. Member Consolidated Stock Exchange of New York STOCKS BONDS Direct Private Wire to New York. G. F. GROFF, Mgr.~Room 509, N. B. Nat'l Bank Bldg.—~Tel 1018 We Offer and Recommend Colts Patent Fire Arms To Yield 7%; Per Cent Thomson, e & To. HARTFORD 10 Ceantral Row Telephone 2-4141 Members New York Stock Exchange Donald R. Hart, Manager FRARY & CLARK NORTH & JUDD COLT’S ARMS We Do Not Accept Margin Accounts KEOGH Bridgeport New Haven The Hartford-Connecticut Trust Company Old State House Square, Hartford, Conn. Safe Deposit Boxes, $5.00 and upwards. all parts of the world. LETTERS OF CREDIT — GENERAL BANKING safe and saves time, ot °“"1TWO TUMBLERS OF WHISKEY 16,600 DRUG ADDICTS g REPORTED IN CHICAGO, IS HIS “PLU” PRESCRIPTION Hot Bath, Hot Lemonade and Deep Sleep Is Also Part of Cure. Chicago, Feb. 10.—Prescription: A hot bath, a drink of hot lemonade, two water tumblers of whiskey and a deep sleep, well covered up in bed. “1 used that remedy for the flu when I had it four years ago, and cured myself in 16 hours,” said J. K. Robinson, 80, of Bismarck, N. D., for- mer justice of the supreme court of THinois, re today. There is no rea- son wl ny one should suffer long from influehza if he adopts a few kitchen remedies. Judge Robinson did not reveal his method of obtaining the kitchen rem- edies, GERMAN STUDENTS WORK 3erlin, Feb. 10.—(By the Associat- ed )-—Ten thousaid students have been given special permission by the trade unions to work in the vari- ous factories of the Berlin district as an aid in meeting their university ex- penses. The students are employed a few hours each day. and to which, you only have the key. and family valuables. You can secure the protection of our .Fire proof and Burglar proof Safe Deposit Vault. An individual Box to which you alone have access, A good safe place for those Insurance Policies; Deeds, Stocks, Bonds Open Tonight—7 to 9 O’clock