New-York tribune., 1920-10-01
Urges u. S. Free
Citizens Abroad
OF Income Tax
Trade Council Says Ameri-
cans Suffer Disadvantage
I'm Competition With Resi-.
dents of Other Nations
Farrell for Expansion
Asserts Producers Must De-
velop New Outlets for
Goods in Foreign Fields

exemption of American citizens liv-
ing abroad from the burden of United
States income and excess profits taxa-
ton was urged strongly yesterday by
the National Foreign Trade Council at
its seventh annual meeting, at the
Biltmore Hotel.
Prior to yesterdays meeting il had
beon rumored that when the merchant
marine act was brought up for con-
sideration, a lively debate would re-
suit because of the recent declaration
by President Wilson that he would
refuse to enforce certain of its provi-
sions relating to foreign trade treaties.
Yesterdays session was executive.
0. X. Davis, secretary to the council,
announced at the conclusion of the
meeting that, while the Jones set had
been considered, no definite action
would be taken until after the appoint
nent of the comm ssioners, who will
comprise the United States Shipping
Board
1t was the opinion of members of
the council that, in the cases of Amer
lean citizens resident abroad, income
ished in order to place these citizens
on basis Of competitive equality with
the nationals Of other foreign coun-
tries.
Investigation Ordered
The council ordered a thorough in
vestigation of this matter and it was
decided 20 cooperate in every way pos
sible with the American chambers of
commerce in Rio, Sac Paulo, 8uenos
Ayres, Mexico City, Barcelona, Shang
Kai and London, all of which have been
actively advocating relief from unde-
sirable taxation.
H. c. Lewis, member of the Coun
ell and head of the National Paper
and Type Company, was one of the
leading advocates in urging the abolish
ment of taxation of American citizens
abroad.
"American citizens living and doing
business abroad are row subject to
tremendous disadvantage III competi
tion with the citizens of other nations"
said Mr.. Lewis. "a British subject in
Mexico, for instance, pays no tax to
the British government on his business
or property in Mexico. The same thing
applies to the Frenchman, the Japan
ese or the citizen of any other foreign
country living IN Mexico.
"An American citizen resident in
to the United States on his whole tax
able income. To be sure, he can credit
his United States taxes with whatever
income taxes he pays to the foreign
country. IF, however, the foreign tax
is less than the United States tax, the
American is forced to pay the differ
ence between the two to the United
States"
Farrell Prods Producers
James A. Farrell, president of the
United States Steel Corporation, was
chairman of the meeting and in his
opening address made an urgent ap
peal for a more active interest on the
part of American producers generally
in foreign trade.
The foreign trade in the United
States, in common with domestic busi-
ness" said Mr.. Farrell, "is suffering
from the general contraction OF credit.
In many cases American exporters have
been unable to finance an extension of
their existing trade; in other eases they
have been unable to grant to foreign
customers the credits necessary to in
sure continued foreign purchases,
THE situation has been aggravated
by the low purchasing power of many
European nations continued the chair
man. "Frequent disturbances in rail
way transportation facilities also have
proved injurious"
Leaders in Commerce Present
The Foreign Trade Council is an
organization of about seventy-fve of
the leaders in foreign trade interests
from all parts of the country, repre-
senting commercial, industrial, fnan-
cial and transportation business. 1t
is engaged in the study of foreign
trade problems and the promotion of
foreign trade as a national service.
Among those present at yesterdays
meeting, beside Mr.. Farrell, wero f.
A. S. Clarke, president of the Consol-
dated Steel Corporation; Frank O.
Wetmore, president of the First Ma
tional Bank of Chicago; Charles A.
Hinsch, president Of the Fifth Third
National Bank Of Cincinnati; Freder-
lex J. Coster, president of the Cali
fornia Barrel Company; j. G. Culbert-
son. president of. the Wichita Motors
Company; E. G. Miner, of Rochester;
P A. S. Franklin, president Of the In
ternational Mercantile Marine Com
pany; d. y. Cooper, president of the
Henderson Cotton Mills; John S. Law