The Washington herald., 1918-12-05
WOULD PLACE
TAX ON BUYING
Holland Argues for Plan to
Replace All Excess Prof
its Levies.

Samuel Tate Morgan is by birth a
son7of North Carolina. and his early
business career, when he was feel
ing his way toward achievements
which at this time are recognized as
smong the greatest gained by any
American of large affairs, was
passed in that State. In view OF the
fact that the chairman of the Ways
and Means Committee of the House.
Mr. Kftchin. represents a North Car
oIina district. Mr.. Morgan's views
respecting taxation acquire interest
additional to the purely economic
and fiscal questions involved.
It is reasonable to presume that
Mr.. Morgan fairly well represents
the views of leading business men
nd especially those engaged in inn
portant Industries in the United
States. He is one of them. He is in
frequent association with many of
than with them he has discussed
the Federal taxation and he has
found that they are in full agree
ment with him with respect to the
danger to business interests of some
OF the features of the present tax
Ia wand the contemplated revenue
laws.
Mr.. Morgan created and built up
the largest fertilizing company in the
World. II had, a year or two ago.
ti6coo. 600 of capital and il manufae-
tured a million tons of fertilizer a
year. He also became the president
of the Southern Cotton Oil Company.
He Is a citizen OF Richmond. al
though necessarily a considera BILE
part OF his time is spent in New
York. II was the understanding that
his company did last year a business
amounting to nearly sl5O0oo.000 How
large a percentage of the business
was represented by profits available
for dividends is a surmise, because
II is known that the government col
lectors of taxes received a very large
sum. on account of the war and ex-
cess profits taxes. The corporation
did not object in war days to return
ing to the government a very large
percentage Of its earnings. Neverthe-
less, the feeling from the first was
that the war PROFITS and excess
profits taxes contained a very dan
zerous influence II these feaures of
taxation were to be retained after
the war.
Fear of ImpalrIng Industry.
A few weeks ago Mr.. Morgan while
in conversation upon this subject
spoke earnestly. saying that in the
period of readjustment which will
immediately begin after peace has
been declared by treaty it is vital
that nothing be done to impair in
dustry, to affect the employment of
labor, to cause men to refrain from
investing capital in new and i'm
portant enterprises or to compel
them seriously to curtail their in
iustriaI opera tions.
1t was apparent that he had been
giving deep thought to this subject,
although at the time the conversa-
ton fook place he did not intimate
that he had any purpose of making
his views public. However. he must
have been greatly impressed with
what he regards as the dangers as
soSiated with excess profit taxes.
Otherwise he would not have been
persuaded-for he is not a man who
,ares publicly to unfold his views
10 have made recommendation or
suggestion, although he is sure
that his plan is supported by all the
leaders in industry. all the infuen-
sal bankers and all Americans who
think clearly and thoroughly.
MT Morgan suggests that there be
written into the revenue bill. or he
snacted some time herea fter in the
regenue regulation. a clause provid-
ng for the imposition of what he calls
4 purchasing service tax. The idea
8 not new one, nor does Mr.. Nor
gan claim for it originality Of con-
,eptton. But he does think that IL
me public were clearly to under
stand what tax of this kind would
mean and how easily and instantly
y could be collected. how large a
revenue II would furaish to the gov
Tnment, and how free il would be
rom serious burdens upon the tax
payer. then there might be created
public opinion which would be felt
Ind acted upon in Congress.
Tax on All Purchases.
Mr.. Morgan's suggestion is that
sVery time a purchase is made
arge or small. a certain tax. grad
lated so as to be proportionate to
he purchase, be exacted from tba
purchaser in addition to the amount
ie paid for the commodities he
,ought. In no case would the tsx
,e so heavy as to impose a payment
which might cause irritation or dis
latisfaction. A tax of this kind. Mr.
Morgan. says. would be instantly
'oliected and at trihing cost. Prob
toly much the greater, part of IL
would come from those who pur-
.hase articles at low prices. Thes.
n the aggregate constitute much
he larger part of purchases in the
United States. One cent or two
~nts exacted upon each purchase
Il this kind would yield very
arge sum and would make il pos
IDLE for Congress completely 10
liminate excess profit taxes OF
sther taxes of that kind. II this
rere to be done then the Industrial
eaders and business men would
md that one of the influences which
ereafter would tend to impair their
;rowth would be eliminated.
The public has not complained
eriously Of the imposition of a
omewhat similar tax upon those
rho use the telephone or upon those
rho purchase theater tickets. And
they do not complain of these
AK exactions they are not likely
complain OF so trifiing a tax as
4