The Union times. [volume] (Union, S.C.) 1894-1918, 1918-06-27
INCOME TAX IN CONNECTION
WITH FALSE CHARGES

(From Manufacturers Record.)
Baltimore, Mr., June 8, 1918.
Hon. William G.. McAdoo,
Secretary of the Treasury,
Washington, d. G.
My Dear Mr.. McAdoo-Will you
permit me to trespass upon your time
and press upon your attention one
phase, of our revenue work which
needs to be very carefully guarded.
I refer to the impression that is being
created throughout the country that
all large profits are a species of prof.
teering, and that the manufacturers
of the country or other business in
terests must be penalized, not only by
a heavy income tax, but by being
classed as profiteers if they make
moderate profit on their business.
The manufa curing industry of this
country could never have been de-
veroped in peace times if those who
have had the skill and the capital to
create our vast industrial activities
had been limited to any small rate of
gain. The chances for loss in all in
dustrial enterprises are great. To
all such interests there come years of
depression when profits are small,
years when they are unable to make
a profit and when they even show a
loss. Every well managed concern
must take into account these condi-
tions and set aside surplus from
years of prosperity for the lean years
that are always inevitable, and al
low a full margin for depreciation
and for the sudden change which
often takes place in plant equipment
by the fact that new inventions make
old machinery valueless.
= 'mhese are among the dangers
which constantly confront every man
ufacturer who does not take due
,cognizance of these facts will sooner
or later end in bankruptcy, to the
loss of individual stockholders and
to the nations loss by the destruction
of capital and industry.
The profit of manufacturing and
of all other business interests must,
therefore, be studied from this point
of view, and especially at the present
time, when abnormal expenses and
the high cost of equipment will en-
danger the future of all industry
when the war is over, unless ample
provision is now made by manufacture
ing concerns to wipe off large part
of their plant investment and allow
a full margin OF depreciation for
equipment which, crowded to it's ut
most capacity today, will few years
hence be. worth but little if anything.
There is another point to which
would also ask your, attention, and
that is the danger to the very life of
the nation which will come through
the creation of the impression that
sthAf Abpsiness 8 men of =thec country
are engaged in profiteering.
Statements , to this ecect are
being used by the Socialistic pro-
German Bolshevistic agitators found
among the press and the people
everywhere. Though you may ques-
ton the accuracy of this statement, /
want to go on record as saying that
this nation is facing exactly the same
dangers which brought ruin to Rus
sia through the German propaganda
which destroyed the morale of the
Russian people and brought about
socialism and anarchy. The same in
fluences are at work in America. Dis
patches are being sent out from
Washington from time to time which
are absolutely misleading. They ere
ate false impressions. Apparently
they are written for the express pur-
pose of bringing about dissatisfac-
tion and promoting spirit of un-
rest and of hostility to all business
interests of the country.
Crowded to the limit of your time,
as you are at present, you cannot
watch all of these conditions, for ]
presume you rarely see the dispatch
es and that you do not, therefore, un-
derstand the adverse influences which
they are having upon the thought of
the nation.
While there may be here and there
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