The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1921-10-21
GREATEST LEGAL eaAFrras.

1
What "Get-Rich-Quick' Walhngford
might call Legitimate graft" plays a
very large part in modern financial
deals and dickers. There is q wide
spread notion that many pillars Of
society systematically stae' as close
as they dare to the line tnat separates
jailable from unjailable gswindling.
But the government itself is respopsi-
BILE for the sanction given TO me legit-
innate graft of tax-exempted bonds.
Probably as a survival of the days
when taxes" meant tribute cxacted
by the rich and powerful from the
poor and weak, there is even at this
day no very strong public condemra-
ton of tax-dodgers. We compass
heaven and earth to punish draft
dodgers years after the war for which
they were drafted, even to the ex-
tent Of pillorying In public print the
names of man men who, ear from
lodging, served their country nObly
and contracted wounds aud disease IN
its defense. This we do in the deter
mination that not one guilty man
shall escape, even if we have to sac
.rifice a thousand innocent men. Most
of us have sneaking sympathy for
the moonshiners, or for the psuedo-
sailor who sells us alleged Havana
cigars for which no duty has been
paid to Uncle Sam. The average tour
list returning from a European trip,
Irather brides himself on getting by
the custom-house inspector In fact.
an interesting book might be written
on the tricks and devices resorted to
all along the. line by ordinary honest
and respectable citizens in the effort
to eyade paying their just share Of
the public tax burden.
Yet all this illegal graft would prob
ably prove but drop in the bucket
compared with the legal graft enjoy
ed by investors in tax-exempt bonds.
This tax exemption must be extreme
ly attractive to people having money
TO invest, if we may judge from the
advertisement OF banks and bond
houses floating such bonds. They
consist in large part of state, county
and municipal obligations, usually
paying good interest. Bankers regard
them as "gilt edged and are happy
to accept them as collateral for loans
Secretary Mellon in his last report
advocates as one means of raising
necessary revenue in the present fl
nancial crisis. 1t is believed that the
total amount invested in such tax-ex-
empt bonds today is not far short
Of twenty billion dollars. Some esti-
mates place It as high as $4,000, 0O0,-
600. A tax Of only one per cent on
the lesser sum would produce an adj
ditional revenue of $2O0,O00.O00.
This in itself should be sufficient
reason for revision of Federal tax
laws that would include prohibition of
tax-exempt securities. A further rea-
son of much cogency was suggested
TO the Senate Finance Committee the
Hother day by Philip H. Gadsden, of
Philadelphia. who appeared as chair
man of the joint tax committee repre-
senting the American Electric Rail.
way Association, American Gas Assoc.
ciatlon and National Electric Light
Association. He pointed out that the
abolition of the exemption would en-.
able regulated public utility industries
90 dispose OF their securities and raise
badly needed money. THE most seri.
Gus question which confronts public
utilities" he said, SIS their inability
70 secure the necessary new capital
required by them annually in compe-
tition with tax-exempt municipal Sc
curities." And he added that the
present policy was one under which
the country was rapidly drifting into
Socialism.
Let us be frank and recognize tax
exemption of this sort as merely an
immoral legalization Of tax lodging
The tax which one man lodges an.
outher and probably less wealthy man
pays. Someone must pay always.