The Washington times., 1915-12-08

In Europe. Our Industrial situation was,
for time, seriously hurt. and the
cotton-growing States of the South sus-
tSine6 thn ,, ,ncavy losses . thr1nsh dee.Snes ~
the Government was eXerted to mitigate
the situation, and believe that Il IL
not incxaet to say that but for tho
protecting and conseryIns the business
interests OF the country during that
CRITICAL period grave disaster would have
resulted.
Business Aided Government.
1T is a pleasure to acknowledge that
the efforts of the Government were sec
pnded and supported by the earnest and
patriotic cooperation OF the business
interests OF the country.
What extraordinary results have
been achieved IN the brief period since
December, 1914! During the year there
movement In every line OF activity, until
now prosperity has been firmly, estab-
lished throughout the country
ports from A. W. Ferguson. general
manager of rho mercantile agency of
r. @. Dun & Co.; Henry p. Dun. presi-
dent of Dun & Bradstreet's, and from
sons Statistical Organization. ell Of
them tending to show that the country
is on the full tide Of business prosperity.
He also dwelis on railroad, Industrial
and iron and steel Improvement. and the
bountlfm crops of the past year.
Would Change Tax Laws. {
The Secretary calls attention to. the
need of a number of amendments TO
the income and corporation tax laws
recommended by Commissioner of In
tcrnal Bevenue Osborn, to strengthen
these measures and secure fuller coll
Iections. Most of them are designed
to catch tho tax evaders.
In connection with the preparedness
program, plans are being made for the
cooperation OF the coast guard with
the navy In time Of war. Secretary Nc
Upon my direction the captain COM
mandant of the coast guard has con-
ferred with an officer detailed by the
Secretary of the Navy to outline gen
eral plan for the cooperation of the
coast guard with tine navy in time of
war, or whenever necessary, in order
that the resources OF the new organiza-
| ton may be utilized to the fullest ex-
| tent in the national defense. A ten
tatlve plan. he's been arranged. and
when the details have been definitely
worked out the necessary orders Will be
promulgated by both departments"
Waste In "Pork Barrel"
In connection with the general ques-
ton OF revenues the Secretary calls at
| tention in forceful terms to the need
less and uniustiflable waste Of public
money through building appropriations"
particularly omnibus public building
acts. that have become famed as pork
barrer' appropriations. He directs at
tention of the Congress and Of the
nation to what he terms not only a
great waste and loss of Government
| money. but to the economic loss OF
putting expensive Government strue-
! lures in, cities and towns. where they
are not needed and where the cost OF
upkeep Of such structures not to men-
tion the original outlay. would be great T.
er than the yearly rental Of private
quarters. N
public building bills be discontinued. and
that each public building be considered
or !.s merits.
with respect to the Harrison anti
narcotic law. the Secretary urges an
amendment providing for treatment by
| the Public Health Service or some other
agency OF all habitues or addicts, who
are INDECENT and cannot. secure treat
| ment. The Secretary asks an appro-
priation of $4,000 for an Increase IN the
personnef of the Public Health Serv-
/ ice because Of the Increased demand up
on this service for health and sanitary
protection. He also urges national
control OF all quarantine stations for
the protection OF the entire public, de-
claring that with "tl1e increased tide
of immigration that is certain 70 follow
| the cessation of hostilities abroad. the
prevention of the importation OF these
diseases will become matter OF vital
] Importance"
Reserve Board Aids Country.
In dealing with the first years oper.
/ .,
| the report says that its. existence has
been beneficial TO the entire country
The Federal reserve act Is character
tied as "a piece of constructive legis.
lation Of. the best quality, because Il
confers reciprocal henetlts upon al
elements OF the community. 1t carries
benefits for the banker. the farmer, tht
1 merchant, the manufacturer, the work
ingman. and i,,.,s'. everybody engaged n
| Emphhsizing the f.sSt that many per.
sons are beating the income tax law
| and that additional funds and an ad
ditional force, are necessary to enforce
Nc 4 doc asserts, -. - go.
There has been a decided improve
ment. both I'm the naturalization OF thI
income tax law and la the genera
lnowiedae and understanding of the
Law by tho public. which has sinplifeC
matters to large extent, but there Il
still room for Improvement. Many in
accurate returns are made, some de
iiberately and some iknorantfy. anC
j there are, without doubt. wholessl,
evasions Of the law throughout tn,
country. The remedy for this is TO clar
ify and strengthen lue law wher
needed, and to provide a larger ant
moro effective field force for the In
vestigation and checking up Of incom
tax returns and for the discovery o
those who are liable for the tax an,
have failed tn make returns.
1T n absolutely certain that tn
/ Government Is losing. through mac
, curate returns and eve sions OF the law
! a sum many times greater than the cos
I OF the necessary field force to investi
! gate and check the returns and I
! bring to account those who are failinI
to make returns as required by law"
Returns Need Investigation.
. Attention is called to the fact tina
E Of 57.5lS income tax returns made,
per cent showed ON their face that the
! Required investigation. end that OF 90
r g6l corporation tax returns Is pe
! I -