The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1918-05-27

The chief business of the country now is to win the a and secure
an honorable and permanent peace. We are going to win the war. The
We must remember that property is subject to the call of the nation
as well as men, and especially we should remember that those who are
coming large fortunes off of this "a should be required to give freely of
their a profits in this time of need.
conditions. The profits of m of the big corporations are almost I'M
For instance the net profits of the U. s. Steel Corporation arr nearly
800 per cent; Armour & Co, $50 per cent, and Swift & Co, nearly 400
per cent greater than before the war.
Relative increase in profits of other corporations are greater even
than these. We read of the rapid increase of mnionares in the country,
5000 more in 1917 than in 1916; also that the records of the Internal
Revenue Department show that there are now about 400 people each of
whom enjoy a income of more than $1OOOO0o a year.
These large war proffs-exces profits due directly tic the war
should be heavily taxed to provide war revenue. AT least rs n so per
cent should have been taken rs a tax
When the Revenue Bill was before the Senate there was a determined
effort or the part If a number of Senator'S Republican and Democrats to
increase the tax on big incomes and ascertained "a profits. Their efforts
a course.
Senator Sterling persistently voted against every proposal to lay an
adequate tax o swollen incomes and war profits, thus voting to generously
leave to these corporations enormous profits due directly to the war.
In the case of the U. S. Steel Corporation this exces is nearly or
quite $aOO,OOoOOo OO-$1oOO,O for every working day in the year
above their pre-war earnings.
The law seems to be designed to favor the large corporations with
great aggregations of capital, and bears heavily o n the small corporation.
whose chief asset is the industry and energy of the owners
Take Armour & Co. Last year. their "a profts-the excess over
their peace time earnings-amounted to $17OOO,OOO.Oo. This should be
taxed at sol definite rate, probably at about 80 per cent as sin England
but at ONE adequate rate. But it was not
The president of Armour & Co, a reported in the Public Press in a
statement accompanying the annual report said:
The net of s21. 2ss ,562s7 is equivalent to 81 per cent of
our capital stock and 1A5 per cent N the average net capital
investment. The usual dividend of 2 per cent has been declared,
payable January 18th, 1913. the balance of the years earnings
reinvested in the business"
The law provides that that part of the net income n exces of the
deduction and not Exceeding Is per cent of the invested capital" shall
Ibe taxed 20 per cent; inasmuch rs this companyis profits are held to be
only las per cent of the met invested capital" it is required to pay only
20 per cent IN any part of its wa profits, and it is allowed to deduct an
amount equal to 7 per cent of its invested capital" II s1O000OOOG 60
without tax.
On the other hand, consider a corporation organized and run by men
lin this state, the capital stock of which is 100000 but whose chief
capital is the energy and personal effort of ne man. In 1917 the business
lprospered and the profits were around $4,000 90. This company paid
on all OF its profits, above the deduction, a war tax of 60 per cent.
So does the law favor "a big corporation, with great aggregatfons of
capital, as against the small corporation whose principal asset is the energy
land industry off its owners.
In thus voting against every amendment to adequately tax the war
profits of big corporations, Senator Sterling did lot represent the sentl-
nent of South Dakota.
Pork Barrel Appropriations.
Many millions Of dollars are regularly appropriated by Congress in
River and Harbor Bills" Some of it, of course, for worthy public pur-
rivers, with no traffic, with little water, and which for purposes of com
Imercial navigation could not be considered seriously.
Such waste of public money is reprehensbe.
Senator Sterling never failed to vote for these pork barrel bills during
Ibis term in the Senate.
Mr. Byrne made good al governor and a member of the state legisla-
lture. Mr.. Ringsrud said: He represented the people at all times and
stood firmly for their interests. / favor his nomination and election as
United States senator because ! feel that during the remainder of the war
and during the readjustment period which will come after the ar impor-
tant taxation questions will arise and big interests will attempt to evade
their own just burdens and shift them to the shoulders of the people
Mr.. Byrne, IS senator, would fight against such evasions. 1t is a cold, bust
ness proposition. The people of South Dakota need a la in the United
States Senate who will represent them rather than the individual and or
ganized profiteers of the New England states"
ExGov. Byrne has always stood for the interest OF the peope-his
record proves that Hasn't he demonstrated that he is entitled to your
vote at the Republican Primaries May 2Sth?
BYRNE FOR u. s. SENATOR