The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-06-03
BUSINESS AFFECTED
BY TAX LEGISLATION
But Many Are Causes For Optimism
Prices In General About
Same

Two Of the uncertain factors which
have kept business men guessing Tor
some time were in nowise disposed OF
during the week just past. One OF
these In the amount and kind OF tax
alton the people are to be subjected to,
which are likely to affect their IN
iative and their purchasing power.
and the other Is the duration OF the
unreasonable weather. The last men-
toned. taken In connection with the
sudden zeal for excessive economy. has
affected the retailer, and through him
tho primary markets. Under circum-
stances of this kind there Is reason
for some irresolution and a caution in
future commitments, although there
is none for the pessimism that Is oc-
casionally voiced and that may. II
taken seriously, result in bargain
counter selling. and consequent sacri-
fce. ahead OF time. There will yet be
plenty OF call for seasonable merchan-
disc and, should any staple goods re-
main unsoId, II will pay TO keep them
for the future when they will COM
mand higher prices. since practically
none or them can be duplicated for
what they cost. When il comes 10
considering the effect of pending and
proposed legislation the more recent
Developments are of a character high
ly encouraging to business.
some Reasons For Optimism.
First and foremost must be re-
xarded the suggested control and dis
tribution OF the food supply. And. in
connection with this, the beginning OF
the prosecutions against those sus-
pected OF having cornered certain
necessa ries Is bound to have very
decided influence Mention was made
The other day OF the start of the work
OF gathering this years wheat crop
which will in few weeks add ma
terisiiy 20 the stock of this grain on
hard II the weather prove pro-
piiious the corn crop Will be very
large and the yield of potatoes and
other yegeta bies promises TO be record
breaking. I. is already apparent that
the apex In the high prices OF food
stafrs has been reached and passed.
and that the general trend henceforth
rust be toward lower levels. This is
bound TO have its effect In counter
sct.rg the ttusidity which has been so
much of an active inffuence as a prod
toward parsimony. Another eircum
s.arre which win prove decidedly
helpful in business 10 the assurance
that the tax legislation will be much
s.ss drastic and radical than was out
lined In the bill which passed the
mouse III REPRESENTATIVES, ft9S -
especially the case as concerns the
plan TO pat tax OF 10 per cent on
{ try efqseassgg assssnsasHee ~ SIZE nreseas
free lis Such a tax would tend 70
make raw materials dearor and would
to an extent handicap all manu-
features The retroactive income tax
provision and the one for an excess
profits tax both OF which will prob
ably be stricken out would further
hamper business by reducing the
capital Of industrial ventures. A more
--atimistic feeling mas been shown by
business men since II became apparent
that some of the most objectionable OF
the provisions IN the tax bin viii fail
of enactment.
End of Contingent Fec Case.
As was expected. the court of cus-
9ons appeals decided the so-calied
contingent fee ties. case In favor OF
the importers. Ii was difficult to see
how there could he any other outcome.
In the framing of the tarFff act a pro-
vision was inserted declaring that no
agreement for a contingent fee should
be lawful and that this was "a con-
fition precedent to the vilidity of the
protest and to any rafund hereunder"
While this legislation was within the
power Of congress and would. II en-
litigation, the weak point about II was
as TO how to prove the existence Of an
agreement whereby an attorney was
to get percentage OF the amount re-
covered. or necessity the knowledge
of such an agreement would be CON
fned to lawyer and client. both OF
whom would be interested In keeping
IL secret The treasury department.
however. thought 1t saw way out
A. ~.
hes seeking to get refunds of duties
should, at the outset. before being al
lowed to proceed further. aver and
prove that they had not entered into
any Armament for A contingent fee.
The theory. apparently, on which this
was based was that, until the con-
trary were proved 1t must be pre-
sumed that the parties had violated
the law and that It was for them first
to prove their innocence. This is, of
course. Numerically opposed to the
general rule that innocence and not
guilt Is presumed and that the bur-
den OF proof against alleged violators
Of law rests on those making the ac-
cusation.
More About Trade Acceptancee.
In response to the declaration OF
the. Ohio retail dry goods men against
trade acceptances. Mr.. r. III. Tremain,
deputy governor OF the Federal Res
serve bank In this city has issued a
statement, He takes up in succession
the various arguments made and gives
the other side. Al with other .adyo-
Gates OF the acceptance method. Mr..
Tremain makes out good case for
the seller. When Ii comes to the
buyer II Ia not SO strong except so far
as the latter's interests coincide with
those Of the general public. Thus.
one objection was that the present
method OF payment was satisfactory
10 the retailer. To this Mr.. Tremain
retorts:
1t IL probably true that the retailer
may be satisfied. but II is because
under the lax methods OF the open
book account be has been permitted In
many caaAa I'd take from sexenty to q
hundred days instead OF sixty days
foR payments and while that may be
satisfactory To. the retailer. II Is not
MT Or satisfactory 10 the manufac-
4ufor ~ 30bbers nor II II for the best
fSEefeo4e 81 the. public at large. The
S hT Saktne : long period for
u saap ~ ~ 6it Athat much
\ q gnnsss 1silars n