The Washington times., 1915-12-08

taincd heavy losses through declines In
the price of cotton. Every power OF
the situation. and I believe that It il
not incxact TO say that but for tho
active agency of the Government in
protecting and conserving the business
critical period grave disaster would have
resulted.
Business Aided Government.
1T Is pleasure to acknowledge that
the efforts of the Government were Sec
onded 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
has been steady, healthy. forward
movement in every line Of activity, until
now prosperity has been firmly estab-
llshed throughout the country
The Secretary incorporated special re.
ports from A. W. Ferguson. general
manager of the mercantile agency OF
dent of Dun & Bradstreets, and from
Roger W. Babson, president OF Bah.
sons Statistical Organization, ell OF
them tending to show that the country
is on the full tide of business prosperity.
and iron and steel Improvement. and the
bountifm crops OF the past year.
Would Change Tax Laws.
The Secretary calls attention to the
need of number of amendments to
the income and corporation tax laws
recommended by Commissioner of In
tcrnal Revenue Osborn, to strengthen
these measures and secure fuller coll
lections. Most of them arc designed
to catch tho tax evaders.
In connection with the preparedness
program, plans are being made for the
corporation of the coast guard with
the navy in time Of war. Secretary Nc
Adoo says:
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.
coast guard with the 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-
tative plan has 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 uniustifiable waste Of public
money through building appropriations"
particularly omnibus public building
acts. that have become famed as pork
barrel" APPROXIMATIONS. He directs at
tention of the Congress and of ihe
nation to what he terms not only a
great waste and loss of Government
money. but to the economic loss OF
putting expensive Government struc-
hAp
are not needed and where the cost OF
upkeep Of such structures, not to mem
tion the original outlay. would be great
er than the yearly rental Of. private
quarters. n
The Secretary asks that omnibus
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
are INDECENT and cannot secure treat
ment. The Secretary asks an appro-
priation Of $4,000 for an increase in the
personnel Of the Public Health Serv-
ice be ecause of the increa ased 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-
clarins that with. 1.-THE increased tide
Of immigration that is certain TO follow
the cessation Of hostilit!es 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.
ations of the Federal reserve system
the report says that its existence has
been beneficial to the entire country
The Federal reserve act Is character.
ized as "a piece of constructive legis.
lation of. the best quality, because Il
confers reciprocal benefits upon al
elements OF the community. 1t carries
benefits for the banker. the farmer, the
merchant, the manufacturer. the work,
'ngman. and everybody engaged II
lee innate activities
Emphasizing the f~>t that many per
sons are beating" the income tax law
and that additional funds and an ad
ditional force are necessary to enforce
collections from delinQuents. Secretar,
| Nc doc asserts =.
There has been decided improve
ment. both In the adn'inistra ton OF TIN
income tax law and in the genera
knowledge and understanding OF tn.
| law by tho public. which has simplifieC
matters to r. large extent. but there Il
still room for Improvement. Many in
| accurate returns are made, some de
liberately and some ignorantly. an'
there are. without doubt. wholesa al
evasions Of the law throughout tn
! country. The remedy for thi, is to clar
| ify and strengthen the Jaw wher
| needed. and to provide a larger AM
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 ant
have failed tn make returns.
1T ts absolutely certain that tn
Government Is losing. through inac
curate returns and eva sions of the law
a sum many times greater than the cos
OF the necessary field force to investi
gate and check the returns and I
bring to account those who are failir
to make returns as required by law"
Returns Need Investigation.
Attention is called to the fact tina
, Of S57.5lS income tax returns made,
per cent showed OH their face that the
required investigation. and that of Sss
S6l corporation tax returns Is pc
cent showed on their face that the
, needed invsstigation. II will take thre
years for the present force To check u
End make examinations for the preser
fisc9l wear. The report coNtin"as:
"The Commissioner OF Internal Revenu
has informed me that taking the toti
number OF agents reports Of examine