davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11
An Easy Way to Raise
Billions for the War
Small Percentage Levied on Gross Sales Would
Not Burden Consumers and Would Reach
All Who Escape Income Tax

and not susceptible of evasion From
the standpoint of administration they
can undoubtedly be assessed and col
iected with little difficulty. From an
economic standpoint large amount
CT revenue may be derived at a Low
rate of tax and the tax passed on to
large class of persons who otherwise
would not be taxed nor contribute in
any way 10 the financing of the war.
From a psychological point of view.
they have the advantage of besag
easily borne by the consumer withaut
the realization that he is paying a tEx.
During the Civil War Congress i'm
posed tax on gross receipts of rail
roads, express companies, theatres and
advertisements, and the result was
that IN nearly every instance the tax
WAS paid by the consumer and not hy
the corporation. In connection with
these taxes it was said that there was
no general complaint against them.
The consumer paid the taxes in mast
instances, but he either did not notice
them or felt that as a rule they were
too light for complaint The taxes M
posed during the Civil War. howev8f.
did not attach to corporations dealiae
IL commodities. A very light rate in
posed on gross sales of commodities
would multiply, and in many instances
be high, when paid eventually by the
consumer.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11
Way Taxes Gould
Be Collected

There have been two ways sugge sted
by which such taxes may be collected
first, by afixing stamps to each pug
chase, and, second, by the addition Of
the tax to the purchase price and s.e
amount collected returned and paid 30
the government by the seller. Tie
first method is impracticable. 1t wcu;d
be imposs Bile to enforce pavment in
many cases, and there could not DC
adequate supervision over the use of
stamps. The tax would be forgotten
or omitted on many purchases, nnd
there would be a wide opportunity FOR
the use of the same stamps mary
times. By this method of collection
the tax would be paid by the honest
consumer, but in cases in which the
purchaser was inclined to be lax amIie
opportunity would be afforded FOR
evasion The second method is sim.,,e.
certain and effective. 1t matters not
whether Congress imposes the tax sn
gross receipts of the manufacturer or
seller, or tax on purchases to be paid
by the purchaser In either case ;:e
amount of tax must be based on gra3s
receipts and not the individual par
chases, and the seller made responsible
for the payment of the tax to the gs,-
eminent. The gross receipts may &c
easily checked up and the amount u
tax due assessed without difficulty
From the standpoint of the govern
ment the procedure is simple and fee
from complications or intricacies usu-
ally incident to other forms of taxa
ton. At the same time, the manufact-
urer or seller may compute the tax due
by merely referring to his gross re-
ceipts.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11
Might Burden the
Small Consumer

From the point of view of the cor
ton is not without objection IL IS
questionable whether it is possible -
pass gross receipts tax of l per ceat
on to the consumer without burdeeirR
the small purchaser with considerably
more than would be paid to the gover RI
ment by the seller Il this tax vefs
to be assessed only on large purchaseS,
or to be imposed at high rate instead
of a rate not exceeding ] per cent, tho
same difficulty would not be presented.
AS it is, the whole purpose of the tax
is to reach all alike and widely dis
tribute the burden by assessing all re
ceipts and all purchases, regardless q
size.
The receipts from the sale Of a So
cent article will be subject to tax "a:
the rate of l per cent, just the sane
as an article sold for $40 The ses!er.
in order to reimburse himself for the
tax on the sale of the l0-cent article.
must add to the price the sum of one
cent, the lowest amount which may be
added. In this case the purchaser pays
an increase of 10 per cent of the os;g-
inal purchase price, only one-tents of
which, or l per cent, is paid to ;he
government. This injustice weald
necessarily result in the assessmens of
g per cent tax on gross receipts from
purchases of less than 81 if the tas is
passed on TO the consumer.
A tax on gross receipts or purchssss
should not be considered as a suhsSl-
tute for the excess profits or *sr
profits taxes. but as a separate and
distinct source for raising revenue Ear
war purposes Income taxes and excsss
profits taxes must be continued u, .9r
the basic principle of contribution sr
cording to the ability to pay. tas
gross receipts tax must be imposed 4.
a low rate for revenue only. The los
rate and the universally of incidercs
Of the tax will make the burden ligas
and thus minimize the inequalities nee
essarily incident To consumption
taxes.
BY the payment of this tax the pooc
and the rich would contribute alikf.
but the man with the large inco,se
would pay, III addition, an income 81
excess profits tax, or both, based uEor
his ability to pay. Thus, the class e.
persons who will not be reached by rae
income or excess profits taxes will cse
tribute millions to the support of ice
government by the imposition Of "a
gross receipts tax. At the anne tuss
each individual will contribute Wy
little-in fact, so small an amount tAst
it will hardly be felt or noticed r
must not be overlooked, however, t,at
gross receipts tax is subject to w..
same objections and abuses as COS
sumption taxes generally,
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11
Banker Approves of
Chicago Traction Rate
Says 500 Per Cent Guaran-
teed Interest Should Sat-
isfy Investors
Especial Dispatch to The Urban

CHICAGO, Aug. 1o.-According to E.
Hubert, president OF the Merchants
Loan and Trust Company of Chicago
19b per cent should be a satisfactory
rate of interest for traction security
holders. While slightly higher rate is
considered standard nowadays, this
banker says the traction interest rate
would be guaranteed. and that when
interest Is guaranteed to be safe in
Vestors can afford to accept little less
than when their money is in securities
dependent upon market ups and downs
and other outside factors.
1T seems to me the ordinance is
fair one Mr.. Hubert said 1T is one
OF the first instances where the city au
thorlries and security holders have ar
rived at a common understanding and
Il would seem that the public in the
election in November will probably be
guided by what their representatives in
the council have done OF course. the
general effect OF this deal on the lnan
clal world cannot be estimated at this
time. because the new arrangement is
too lar off. 1t viii be a year and
half before the trustees car get down
to real action see no financial dis
turbances due to this deal at this time,
and see no reason for any in the fut-
ure. In fact. | would say that such
settle ent or tentative settlement Will
make FOR more stability in financial
affairs finally. 1t means coming TO-
gether Of the people and the utility
companies in way that works for bet
ter business. The trustee plan is now
working in Massachusetts, and so far
apparently is entirely satisfactory to
the financial and business world, as
we'll as TO the public. The one differ
ence, believe between the Boston and
Chicago situation is that in Boston
The Governor CT the state appoints the
trustees.
There seems to be just little fear
IN some financial quarters that the
placing of so many bankers on the first
ooard Of trustees may prejudice the
case before the people IN November
on the ground that the public is not
sufficiently represented On the othel
nand, it is pointed out that bankers
viii make good members OF this
board and should be preferred to per.
sons representing utility corporations
on the theory that the latter become
too expert and have sort of mega
tive effect
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11
Grace China Manager
OF for the Far East
Stewart P. Elliott VIII Be Fol-
lowed to Shanghai by
American Staff

Stewart p Elliott, managing di-
rector of the new Grace China Com
pany, subsidiary organization to
handle the business of W. r. Grace &
Co. in the Chinese market, has started
on his journey to the Far Eastern
republic, It was announced yesterday,
and will establish HEADQUARTERS at
Shanghai. Later an American staff
will follow him into the Orient, and
branch houses will be opened at Han
kow and Tien-tsin.
The formation of the Grace China
Company took place, according to the
officers Of the new concern, FOR the
purpose of centralizing in transpa-
cihc organization the various activi
ties in the Chinese market of w. R.
Grace & Co." A statement regarding
the latest move of the Grace interests
to organize more efficiently for after
thewar trade said in part:
While in the popular mind W. r..
Grace & Co. have been chiefly asso-
ciated with Latin American trade,
their activities in the Far East have
steadily increased, particularly in the
heavy Importation of Oriental produce
through their San Francisco house
The organization of the Grace China
Company is in line with the develop
ment of foreign markets through
their own organizations of trained
men on the ground. The main activ
ties of the new company will be con-
centrated in North China"
All the officers and directors of the
new company are associated with w
R. Grace & Co. The officers are:
President. j. P Grace; vice pres idents,
John H. Rosseter, of San Francisco
u - 7 u, or IL
treasurer. J. Louis Schaefer; secre-
tary, II. J. Roig; directors. J. P Grace
J. Louis Schaefer. l.. Fl. Shearman, D.
S. Iglehart, Maurice Bowler. John II.
Rosseter. Stewart P. Elliott and John
{ phinDS
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11
Average Wholesale
Grocery Profits

1t is estimated that some businesses
are conducted on profit of 2 per cent
or less of gross receipts, and in such
cases the entire profits from the bust
ness might be wiped out by a tax of l
per cent on gross receipts. In this
connection it was stated in the recent
hearing before the Ways and Means
Committee that the average wholesale
grocer IN this country makes about
per cent profit on gross sales, but that
the capital of the business is turned
over number of times during the year
and on the actual capital invested the
profits are very much larger If such
concerns were taxed on their gross re-
ceipts at the rate of per cent their
net earnings would be unreasonable
and unjustly decreased, and particular
ly so if their profits were normal.
gross receipts tax also, if borne by
the seller, manufacturer or producer.
would work great hardship on num-
Der of concerns which are deriving no
profit from their business For example.
the returns of the Treasury Department
show that between 100000 and $50 600
corporations in 1917 had no profits. In
such cases gross receipts tax borne
by the manufacturer or seller would
be very heavy burden. At the same
time concerns whose profits are very
high would be taxed lightly and thus
not bear their proportionate brrden.
The above objections to the gross re-
ceipts tax are merely theoretical, and
the inequalities outlined would not re-
suit from the imposition of such a tax,
as the tax would be passed on to the
consumer IN every case except where
prices are fixed by law If the tax is
thus shifted to the consumer it, of
course, makes no difference to the
manufacturer or seller whether the net
earnings are large or small so far as
the tax is concerned. 1t must, how
ever, be borne in mind that if tax
of l per cent on gross receipts should
be imposed by Congress for the en-
tire year 1917. the tax could not be
shifted to the consumer on amounts
received prior to the enactment of the
law. If, on the other hand, Congress
should impose tax on purchases with
specific direction that such tax shall be
paid by the consumer, the assessment
would affect only those purchases on
which the tax could be collected from
the consumer.
A tax on gross receipts or purchases
Possesses undeniable advantages. Such
taxes are certain. easily ascertainabls
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11

ORR
TAXES on gross receipts or pur-
4 chases have been urged number
OF times, and as simple and easy
means of raising large amount of
revenue more productive source can
probably not be resorted to. A gross
receipt tax, as has been suggested, gen
orally implies tax imposed upon the
manufacturer or producer. whereas a
tax on purchases is referred to as a tax
paid directly by the consumer at the
time of purchase. The effect. however.
IN the case of both taxes is the same.
N that they are eventually passed to
and paid by the consumer
Many estimates have been made as to
the amount which might be raised by
the imposition Of gross receipts tax
at per cent. Il has been stated that a
tax at that rate would more than equal
the amount collected on excess profits
Tor 1917. Other estimates place the
amount at $4,000 900 900 Both Of these
figures would seem to be entirely too
low according to the estimated value
of goods bought, the latest available
figures for which are for the year 1916.
According to Professor Irving Fishers
statement, the value of goods bought
in 1916 was 1852 600 600 900. Based upon
this statement, and after making due
allowance for non-taXable receipts, the
revenue to be derived from per
cent tax may be conservatively esti-
mated TO be greatly in excess of 81
100000, 900
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11
Objections to Tax
Paid by Seller

The objection tc a gross receipts tax
when borne by the manufacturer. PRO
Queer or seller is that it results III
gross inequalities. The most notice
able defects are that it is not proper
tlonate to the real earning capacity. it
takes no account of the original cost
and does not pay any regard 10 current
expenses which may be necessary and
just.
An extensive business does not mean
proporuonately extensive gross re
celpts. Similarly, a large business from
the point of view of gross receipts
does not necessarily mean lucrative
business. The tax on gross receints
does not recognize these distinctions.
Such tax, if not borne by the con-
sumner, would fall on concerns doing a
business upon small margin of profit.
as we'll as upon concerns deriving a
high rate OF profit from their business.
The burden would be particularly heavy
upon business the profits of which
depend upon the volume of turnover
and not upon a high percentage of
proht- When two corporations are
doing the same kind of business the
conditions under which the business is
carried on may be such that the one
with the larger gross receipts would
have smaller net income than the
other with much smaller gross receipts,
On the other hand, of two corporations
which have equally large gross re-
ceipts one may be in a naturally dis
advantageous position which unduly in
creases the cost of operation and man
agement. Clearly, in the case of the
latter corporation its ability to pay
tax is not so great as that of its rival
IN possession of natural advantages.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11
Linseed Crushers MaySuspend

Linseed crushing is an infant Aus
tralian industry which is suffering
from shortage Of raw material. Most
Of the latter used in this industry at
the Antipodes came from India. Re
Gently receipts have been so small that
stocks are near exhaustion and crush
ers may have to suspend. This will
mean Il shortage of linseed, oil, cakes,
etc, in Australia.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11
Curb Market

Note The Tribune assumes no RESPONSE.
biilty for tho accuracy or authenticity of curb
market quotations. Transactions and prices
Saturday reported as follows:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11

limit of trade on this exchange. 10 sharesl
transactions and prices yesterday for the
more active shares follow
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11
Yesterdays Transactions in Listed Stocks

dollars share Annual dividend
is based or regular
High, IovD Net
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11

Consolidated Exchange

nlisted Sells cents per share
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11
BY Morris F. Frey

Guaranty Trust Company of Nesc
York
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11

ydend ST Paul times deferred
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-11

'Prices include interest.
The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-11-01
DEATHS.

In Portland, Me, Oct. %, Dwight
Parker, -, native of East Putney.
The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-11-01
BRATTLEBORO LOCAL.

Copies of IA booklet containing over 10
pages of postal information were placed
IN all the boxes in the local postoffice
today. They were sent here from Wash
ington for free distribution and contain
a large amount of interesting matter.
Rev. r. X Marvin of Franklin, Mass.
formerly pastor of the First Universal
list church in this town, who was to have
spoken for the Brattleboro Woman's
club Oct. l6 on his Y. NJ. c. A. work in
France. will be here Tuesday evening,
Nov j.
\ copy of a booklet entitled 800 . y =
Men at Sea has just been received by +.
{. Crosby of this town from Harry GRAY.
who i business manager of the party en-
route for war service abroad. 1t reveals
the many phases of life and comradeship
of the y men en- route for foreign war
service. The edition was limited to 900
copies Mr.. Gray is a well-known Brat
tleboro man.
The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-11-01
PUBLIC MEETING
IN FESTIVAL HALL
Three Speakers of Prominence to Be
Present Monday Afternoon in In
terest of War Work Drive.

\ public meeting in the interests of
the United War Work campaign will
be held in Festival hall, Brattleboro,
next Monday afternoon at,2 clock
when addresses will be made by three
prominent speakers to be sent here
from Boston by the New England head
quarters.
This meeting will be open to every
body, but especially are the Windham
county workers and the officers of the
Brattleboro War Chest association re.
qucst6d to be present
1t is hoped to raise $l70,500, 900
throughout the country, and this means
a large quota for Windham county,
much larger than the amount raised in
any previous drive. The figures show
ing the quotas are not now available.
So far as Brattleboro is concerned the
War Chest was supposed to cover the
war work quota, but whether this will
be done in full, in view of the largely
increased amount which the town will
be expected to give, cannot be stated
definitely,
The meeting will be one of much in
terest.and Importance and it is hoped
that people from all the surrounding
towns will be present.
The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-11-01
BRADLEY CONCERN
PLACING MACHINERY
Office Open and Part of Stock Arrives
Part of Plant May Be Put in
Operation Next Monday.

Three carloads of stock and machinery
for the c. L. Bradley corporation has ar
rived from Springfield, Mass, and is be-
ing unloaded and shafting is being put up
IN the Carpenter. organ building on Elliot
street preparatory to beginning operations
IN the toy-maklng industry which is being
brought here The interior of the build
ing is being whitened and benches are be-
ing constructed Already an office force
is at work, and it is hoped to have some
part of the plant in operation by Monday.
B The three lower floors will be devoted
to the manufacture of mechanical toys,
for which the concern is crowded with
orders This branch will be in charge of
George G. LaSares, who with his family,
is moving from Springfield to 50 Green
street The lumber will be cut into planks
at the Putney factory of the Bradley cor
poration and shipped here to be worked
up. Thomas j. LaSares, father of George
{. LaSares, has come to be sales manag-
cr, and his wife will come later
The two upper floors will be devoted to
the manufacture of penholders and artist
brush handles. which business will be
brought here from Putney, the manufac-
ture of fiat brush handles to be continued
at the Putney factory l. c. Bradley, who
plans to buy house here, will be in
charge OF the brush handle branch until
Mr.. LaSares Acquires knowledge of that
business
There is every indication that the con-
cern will do a prosperous business and
will be a valuable addition to the local
industrial life of the town.
The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-11-01
PERSONAL.

Mrs. Lester Barber, stenographer in the
Vermont National bank, is having a 10
days vacation
Mr.. and Mrs. George Anderson of Ca
nal street, who were i'll with influenza,
are out again
Miss Beryl Atherton has returned
from a two-weeks visit in Springfield,
Mass, with her mother.
Miss Rene Lyston has resumed work in
I. l. Brittan's insurance office this week,
alter an illness with influenza.
ID, Frank Shea, who is critically ill
with pneumonia, has shown a slight i'm
provement in the past y hours. 81
Miss Florence Allen is expected to-
day from Greenfield to spend the week
end at her home on Canal street.
Mr. and Mrs William L. Haskell went
yesterday to Chicopee Falls, Mass, called
there by the death of Leon Duquette.
Mrs. George f. sherman returned last
night from Boston, where she had been
to visit her daughter, Miss Kathryn Sher-
man.
Mrs Louis d. Harris and daughter,
Miss Viola Harris, are spending the day
IN Mlllers Falls with Mr. and Mrs. Frank
Harris.
Maj. I. W. Childs and family, who had
been occupying their summer home on
Ames hill several weeks, have moved back
to town.
Mr.. and Mrs. f. c. Tenney and son,
John, moved yesterday from the Scott
farm to Birge street, in Z. f. Perry s
house
Miss Philippine McKeegan. who has a
position in the Holstein-Friesian associa-
ton offices, will go tonight to West Town
shend to visit over the weekend,
Elsie Gladys Duquette, daughter of Mr..
and Mrs, William Duquette of Chicopee
Falls, Mass, is visiting her aunt, Mrs.
Frank E. Barber of Western avenue.
Mrs. John L. Pike and granddaughter.
Miss Grace Pike, closed their home ON
Western avenue today and moved to Mrs.
I. r. Frink's on High street, where they
VIII spend the winter
Fred j. Adams of Hartford, Conn. is
visiting here few days. Mrs. Adams
and three children will spend the winter
here in the home of Mr. and Mrs. Eli
Bruce on Elliot street
Donald kibbe of East Longmeadow
Mass, who was for some time in hos
pital in France as the result of "a shell
shock, has not been recalled TO the fight.
ing line, but is at work in the hospital
Mr.. klbbe has many friends in Brattle-
boro and has been frequent visitor here
The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-11-01
BOY SHOT LAST NIGHT.
15-Year Old Pittsfield Lad in Hospital
AS Result of Halloween Prank.

LUDLOW, Mass, Nov Alex Lowe,
aged Is, is in a hospital here with a rife
bullet in his abdomen, as the result of a
halloween prank in which he and six
other boys figured last night. Approach
ing the house Of Mrs Rose Malone. they
were fired upon by Mrs Malone, it is
alleged, the woman supposing they had
designs upon her rabbits. Chief-of- Police
o. c. Cash said today that warrant for
Mrs. MalOne's arrest probably would be
issued
The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-11-01
WEST DUMMERSTON.

Mrs. Cora Field is a guest at Sam
Clark :.
Robert Thayer of Fort Hancock is
visiting his parents, Mr.. and Mrs.
Otis Thayer
Mrs. Nellie Wilcox of Brattleboro
was a guest of her brother, S. s. Wash
or, last week
The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-11-01
KILLED SEVEN SONS
Cuban Woman Crazed by Grief Then
Tries Suicide.

HAVANA, Nov. l.-Grieving over
the death of her husband who had died
of influenza, Mrs. Carmen Lavera
aged 81, Of Near Camaguey yesterday
killed her seven young sons. She then
placed the livestock of the farm in a
hut and after setting il aire leaped IN
to the blaze She was rescued in 4 Sc
rious condition.