New-York tribune., 1921-02-10

West and the South said that business
was poor at present, but thGt ell indica-
tlons pointed to an ending of the de-
preston and return to normal before
midsummer. On wholesale prices there
was a diversity of opinion and some
merchants said they were open minded:
others that prices apparently were ut
or near the bottom; others that, despite
slight advances since the beginning of
the year, they were for the present
content to operate in small lots, buying
only what they could turn over to the
consumer in the next few weeks, or at
most in the next two or three months
Apparently the retailers who engaged
in private discussion are determined to
operate with as small stocks as pos
slble for some time to come.
The session yesterday morning was
given over to the formal reports Of va
rlous committees and addresses by Pres
ident Salmon P. Halle. of Halle Broth
ers, Cleveland, and Edwin F. Gay. of
The New York Evening Post, former
dean of the Harvard School of Business
Administration. The afternoon meeting
was reserved for the presentation of the
assoociation's new plan for taxation and
discussion of the governments tax
problem by Joseph W. Fordney, chair
man of the House Ways and Means
Committee
Fordney for High Tariff
Mr.. Fordney, in discussing the tariff
question, asserted that he was an ar
dent high protectionist and that, in his
opinion, we need not be afraid of ruin
ing business in this country by impos-
ing high protective tariffs on imports,
by encouraging reprisais. "Our import
duties" he declared, "are the lowest of
any country on earth.
- Ill L
reduce taxation until our government
has reduced expenditures. Happily
Congress seems determined to do this"
Mr.. Fordney received vociferous ap-
plause when he vehemently asserted
that "the business of this country needs
government aid but not government
dictation," and that "for the good of all
concerned business man should be
placed at the head of the United States
Treasury" In this connection he said
that he had advanced this view to
President-elect Harding, who agreed
with him and told him that the con-
sideration of men for the post of Sec
retary of the Treasury had simmered
down to three men.
Wants War Debt Refunded
Regarding the ST 500 900, 900 worth of
obligations of the government falling
due within the next thirty months, Mr.
FoTdHey advocated IhaC tney De re-
funded and that other of our war debts
be extended, in order that the entire
burden may not fall on the present
generation.
"If we can defer paying for the war
for thirty years." he said, 1--WE will
have q population of 2,0OO,OOO,O 900 peo-
pie to hep pay the bill, instead of
1,0000oO000 as at present"
Passing from the tariff to internal
Al.
gress hoped to have tariff legislation
out of the way by April 20, and then
would pass on to that Chinese puzzle" "
the internal revenue law.
Il am in earnest" he said, "when
declare that 1 want to repeal the ex-
cess profits tax. In its place we should
have fiat tax on corporation profits"
Associations Tax Plan
The plan drafted by the associations
tax committee to revise the revenue
law of 1918 was presented by Carlos
B. Clark, of the J. L. Hudson Company,
Detroit. This plan, previously sub
mitted to the membership for refer
endum, has as it's main points the fol-
lowing:
Income from salaries, wages and
bonuses, etc. Gncome from manual or
mental effort), should not be taxed at
so high rate to the worker as income
from business or investments.
Income derived from business,
whether individual, partnership or cor
porate, should be taxed on the business
itself and be subject to no further tax
when distributed to partners or stock
holders.
"All other income, including profits
from the sales of capital assets, should
be taxed at a higher rate than income
from business and in still greater de-
gree than income from manual or men
tai effort.
There should be elimitade from the
revenue act Of 1918:
Excess profits tax on corporations,
the present surtaXes on individuals,
the tax on transportation, insurance,
etc, that part of Title VI. which ap-
plies to the tax on non-alcoholic bever-
ages, the tax on admissions and dues,
the excise taxes contained in Title TX,
the special and capital stock taxes, and
the stamp tax.
"All persons who reside in the United
States who have reached the age OF
twenty-one years. and are in receipt
OF All independent income, should pay
tax in support of the governments,
under whose protection they live and
whose privileges and opportunities
they enjoy.
There should be tax on the gross
Sdleb Oh al ROOQS, wares and merChan-
disc, sufficient, when added to all other
taxes herein proposed, and customs re-
ceipts, to aggregate the $4,000,000 900
necessary to support the government
There should be a uniform exemp-
tion to all businesses and an increase
in the exemption to individuals"
What will happen to American busi-
ness if the policy of isolation is main
tanned by the United States? was the
question presented by Mr.. Gay in his
address. Mr.. Gay pointed out the need
of the maintenance of the export trade
of the country if business is to con-
tinue to thrive in the face Of the ad-
verse condition of foreign exchange.
The practicability of the application
of methods of scientific research in
modern business was stressed by the
speaker. The day o. the business man
who was equipped with nothing but a
"hunch" he declared to have definitely
passed, and urged the use of up to date
methods to make the executives of
modern business big enough for their
Jobs.
Halle Optimistic on Future
In opening the convention President
Halle asserted that business condi-
tions are approaching normal and are
improving daily.
when will business be normal q"
Mr.. Halle said. "Ths question is con-
tinually being asked. and | can only
answer it in q general way. Business