South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-04-29
APRIL %. 1920.
THE PRESS. DIVIDEND STOCKS, AND
LABOR DIFFICULT TIES.

ExLerts are things Naturally they are supposed
to know it all; particularly in their lines
otherwise what IS the OF experts? Within their
little spheres Of activity as for instance prep
aration OF tax statements for those who have ain
comes sufficient to justify employment of
perts services. the expert should have everything
pertaining 10 taxaton-vvth theories on how best
serve his elents.-right his fingers ends. When
they get outside their sphere, however. they fire.
quently get beyond their depths that their help
lessness becomes almost pitiful
Reference is made to a communication IN
Public Pulse" column Monday. from one Of these
experis-tax exLerts.-here IN city Our respect
opinions taxation. it affects payers
such he serves, is accordingly good for the
fact that ne has become wound in it that he
seems TO think running counter to his judgment bids
certain to upset the whole economic industrial
cosmos. It is the difference between looking at
thing from public angle or from that Of particu-
lar interests-the particular interest always imagin
ing that the public veal must OF necessity be
secondary consideration. We are accordingly asked
by our expert" correspondent believe that
suanoe OF stock against the profits fund Of "A
poration tr7sfer OF the value of such stock
to capital fund. is different in effect, than it
would be Fay the profits in dividends the
stockhoider then reinvestng it in more stock-and
then we are told that skepticism that point
capital and labor"
Pardon the slang. but we cannot suppress il:
some sequel With reference to the stock problem,
the expert" to have the affirmation of the
United States supreme court exempting such divi-
dend stocks from taxation under the income
law: that e. he has It least from legal stand
point. When the treasury department at Washing
ton tells US. however. that there has great
avalanche OF stock dividends declared since the
cison was rendered, corporations indulgng It that
never did before It TO that there may be a
legitimate discrepancy between the legal fiction and
the economic fact; that the corporations issuing
such stock and the stockholders receiving it, re-
gard it easy method of tax-dodging whether
the supreme court and its expert sponsor does or
not
But the sequel II we remember rightly. we had
unrest and feeling between capital labor" Ions
before this question raised the decision
dered The effort 10 make it appear that newspaper
criticism of that decision. the conduct OF corpora
lions under 1t, provokes labor Difficult
ties reminds Of the propaganda Of the liquor in
terests who would have appear that all the unrest
and labor troubles are due TO the absence Of the
saloon. They haven't explained why they have been
having unrest in England. France italy, Germany,
etc. and labor troubles too with the saloons run
ming wild there-but then. our expert friend
in his criticism OF the press did not limit its respon
sbility its comment tho dividend stock ques-
ton alone It Is the "supe rfcial thinking reflected
the daily newspapers generally. that
'lamentabls"
II then. why try 90 burden farther, Mr..
Expert? 50 important a problem as the double
taxation required by present local law"
can hardly safely be trusted to such superficial
thinking" Guess we had better leave it TO the
paign orators in the coming canvass Else it stir up
unrest and feeling between capital and labor"
maybe the CAMPAIGN orators had better leave it
alone too, and let critics clients ramble and
pay the double tax. Queer how 1t always stirs up
and feeling between capital and labor when
comment or criticism falls upon capital. 10
taxes, and then at once becomes constructive and
angelic, promotve OF great calm and affection. when
It pattng capital the back-especially
Icy helping Il dodge its taxes
We have heard that double "squak' before.
u is old taxation. You find il even under the
federal income tax law which critic SAYS is
working well. which point in the main,
quite agree However when a corporation pays its
income pays its Eroats, and if it then pays
those profits out IN dividends instead OF dividend
stock. the stocSholder pays another his share
OF IL as a part Of their individual incomes. Double
taxes Why. or course, our tax systems young and
old f,,lf ofer