Evening star., 1919-11-30
INCOME TAXES FOR 1919
WILL BE ON LOWER BASIS
Normal Tax on First $4,000 Income Is
Per Cent-Over That It Will Be
8 Per Cent-Some Facts.

stituents about the food of worthless
stocks in circulation.
Representative Taylor has asked
Chairman Volstead of the judiciary
committee for another hearing. He
has received encouragement from the
authorities in more than two-thrds of
the states. There are now thirty-eight
states which have some sort of laws
against fake stock promotions. but
out of these Mr.. Taylor finds that
only sixteen make this a misdemeanor
and as neighboring states require a
felony charge before they will grant
eXtradition all an offender has to do
is to walk across the state line and 60
free.
Not TO Interfere With Legitimate.
The proposed national "blue-sky"
law is not intended to interfere with
investment or even with speculation.
1T would require that a promoter tell
II the man with money wants to take
a gamblers chance" it is for him to
decide. The Taylor bill requires a
swon statement by the promoters to
five things:
/. what the assets are: 2. what
sums are to he derived from the sale
OF what is to be produced; 3, the
rate of commission or bonus given
promoters or their agents; 4. what
proportion of the money the investor
puts in actually goes into the opera
ton of the concern; 5, what is done
with the proceeds.
We want to show how much is
used in promoting the enterprise"
said Representative Taylor. I'VE
want to show the public where they
can get facts about the enterprise
in which they propose to buy an in
terest. | figure that now there is
nj
stock being put out.
The light prevents many crimes.
The worst crimes are committed un-
oer cover of darkness. We must let
in the broad sunlight upon these
murky stock-selling schemes"
Follows British Precedent.
The Taylor bill is framed along
the line of the British act of par
Lament in 1908. and takes advantage
or the amendments since that time,
SO that it is an up-to-date adapta-
ton of the principles of that bill as
applicable to the United States
They Want the Cash.
1t is remarkable the schemes the
criminal class. seekers after cash. will
resort to to obtain it, 1t is more or
less doubtful II any new scheme will
be uncovered in the near future. The
fake letter of advice. the fake tele-
phoue call. WIRE aQVlceS, registered
letters. kilograms ordering payment
without dentif1cation-these and
score of other tricks of the trade
are old and readily recognized.
The banker who makes q success
full effort to land this class of thieves
should be commended, but few there
are who have been apprehended at
their work.
The Washington Loan and Trust
Company has been successful in de-
tecting and causing the arrest of
some check forgers. and it is hoped
that other workers" of this char
acter will be gathered in.
The wonder is. that it is AS easy as
1t is for the legitimate owner or
holder of a document calling for
money to get it. and this may be
credited to the fact that legitimate
ownership is not hard to prove, while
fake checks. orders, etc, lack the
"corroborative details"
Liberty Bond Weakness.
Liberty bond weakness during the
the tremendous liquidation by corpo-
rations in preparation for their in
come tax statements. They may de-
duct their actual losses from their
gains. and their liberty bond losses
have been severe.
At the going prices investments,
savings banks, conservative investors
and the general public are very In
yiting. The selling next week may
put them a little lower. but they
should recover by the first of 1920.
when many. corporations will take
them on again.