Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-11-27
REIMBURSEMENT OF TAXES
IS ADVOCATED BY MORGAN
Frcsident Of Fertilizer Company
Thinks Business Situation Demands
Helpful Action 10y Congress.
IEARs RESULT or BIG I,IposT
III Capital Tax Reaches Amount Out
lined, Manufacturers Would BE
iSsPnralyzcd, He Snys-Cannot Pro-
greSs Under Heavy Loss.

l'nralyzcd, He Snys-Cannot Pro-
greSs Under Heavy Loss.
erSChange in industrial conditions due
fp',the abandonment OF war work and
& the return TO peace operations VIII
$ compel radical adjustment OF the
Z tax measures now before Congress. ac-
q cording to Samuel 7. Morgan. president
z of5the Virginia Carolina Chemical Com
iian$
r sfEntirely new conditions are being
Il established very rapidly" said Mr..
s Morgan. in an interview yesterday.
land these make it urgently necessary
that new plan OF taxation be inn
& mediately considered by Congress. Tn
der the program on which Congress had
been working up 10 the present time
an excess tax on capital and profits
& was provided. This program will now
haveNto be considerably modified and
brought into line with the ability OF
the nation to meet such 4 tax.
5.It is my fear. as We'll as the fear
Of many manufacturers and bankers
: with whom have discussed the matter,
that any unduly large impost on the
3 profits of industry VIII contribute, more
than any other single factor. to bring
about severe depression in American
business. Were the capital tax to
reach the amount that was outlined
for 1t short time ago I am sure that
manufacturers from one end of the
& country to the other would be para
q lyzed in the endeavorS. They could not
i successfully expand their business. but
would be forced TO contine their efforts
{, to bare minimum.
THE NATION Requires
ksirs'- IMMEDIATE EXPANSION
What we require more than any
s thing. else in the immediate future is
an expansion of the nations normal
business aud speeding up Of the
wheels OF peacetimc output to abs rh
into normal employment the hundreds
of thousands of men who are released
from war work End from General Per
shing's army. No duty that confronis
us to-day is greater than TO prepare
toSreabsorh in peace-timn industry the
plen who in coming months are re-
leased from wartime employment. We
cannot meet that duty unless industry
has removed from !, every possible
and prosperity.
lin the period aheed of us industry
double load OF high taxes .nd high
wages. We cannot afford wholesale
unemployment. nor can we afford any
radical adjustments downward in wage
scales in the months TO come But it
Congress were to proceed on any pro-
gram that compelled manuiae,urers
the labor situation might quite concciv-
ably be made acute. What we need
Il
not only maintain hu, increase our
peace-time activity: that * absolutely
necessary II We are TO rcahsorb labor
that is released from wartime indus
Therefore wan, TO suggest a form
of taxation not now in existence. but
which the needs ot the government APP
pear TO me 10 nccess!tate, simply ani
!grnIit.i i! a. reconstrnction measure;
properly be called consumers pur-
chase tax: OF course. no unreasonable
amount should he raised by 4 tax o!
th!s Kind, but u is the only method
of taxation that know Of under which
every consumer would pay a portion,
ana portion based entirely on the
amount consumed.
'rANES AprORTi0NEn
ACCORDING no sIZr:
Under this plan. II a mans consump-
ton was small. he would pay hut lit
Tie; II his consumption was large. his
YAK would be proportionately heavy.
No one could easily cvadc il. 1t would
be paid day by day. as purchases were
made. II would not be a particular
burden or hardship, aud would produce
large revenue governed hy the
amount of per cent taxed against the
PURCHASER.
In no way could i, be made
debt producing obligation. 81 the
time. of the purchase the consumer
would pay the tax. Ice it cents or
$4,000. There is no man who is de-
serving OF citizenship who would not
eS, willing 10 make the necessary sac
N
Ielp support his SoverMmcn; under
present conditions This tax is no,
swing until it hurts, but i, gives
toIthc man who paws /, a d,r.cT In
ierest in his government and makes
MN more manly man 1t makes him
leel tnat he is part and parcel Of the
government and equally deserves with
All other citizens The care and pro
iection which the government can and
does give.
The consumers purchase tax is in
l.. (, i'm
one class OF all We neither want nor
need class legislation for the support
OF ,,, tne government The rich and poor
anke have fought in the trenches. side
ny side. each doing his whole duty
nhen why not everybody, 10y this pur-
nnaSe IAN pay portion OF the i;.Xcs
necessary TO support our soldiers"
WOULD TEACH ECONOMY
AND CoNSERN ATluN
This tax would teach conservation
ana economy, and to purchase only such
,setnss AS were so to speak. needed or
less expenditures. At the same lime
IL would produce revenue astonish-
insy large Being paid day by day. IL
would not isturb the financial situa-
non, as is now necessarily done by the
, collection OF enormous income and war
nIonts TAX. do not mean by this that
either OF these taxes ough; TO or
should he abolished. They arc abso-
IutciE necessary and if not unreason-
aeE severe no one ought TO complain
. N''N''' ~ pay MS cons
eIs purchase tax would simply be an
ADJUNCT TO taxes collected in other
Ways. and would not be intended I'm
Any way 10 be substituted for them
though II might enable some reduction
~ these taxes where it ~ found they
are oDnressvcly heavy and working
ildieIiaI injury TO tile business OF M.
eDuni'y Saiesuards and regulations
touid he enacted as would make the
law easily administered. all the details
OF winch could be carried out IL an
m
IS is uone now by The Internal revenue
department.
CIVIL SERVICE EXAMINATION
Hnii"n! Mail Clerk Applicant. "a