New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-01-10
Quits
Senate; Willis
To Get Place
Continued from nrst page

Continued from frst page
productive because there are uayo 80
keeping profits from being so large.
The tendency then is to put capital
into the vast amount Of tax exempt
securities that are in evidence.
II have a computation which shows
that when the peak of excess profits
goes above 80 per cent it becomes
profitable to avoid it by transferring
investments to this class of securities
This is automatically demonstrable
and l would like to see SO per cent
made the limit, though I am doubtful
whether Congress will be willing to
place it below 40 per cent.
AS illustrating how earnings of
capital will inevitably be lessened
when the tax burden is too hirh. it Is
found that the number of people re-
porting annual incomes OF 81 100000
or more is now only about one-fourth
what it was at the highest point"
Senator Smoot discussed the inheri-
. 6 tax, saying that he doubted if
it could be done away with, but en-
pressing his own conviction that, as it
is really tax on capital, rather than
on earnings. it must inevitably be a
serious burden whose effect can onl1
be unfortunate.
Drawbacks to the Inheritance Tax
The imposition of fixed percen-
tage OF taxation on inheritances. he
SAD, means that when the head Of
an estate dies those who succeed to
th's management must Immediately ar
range such measure of liquidation as
may be necessary to take out that pro
portion Of capital which is REQUIRED to
meet the tax. This is not only ser;
Gus imposition on growing business,
put 1t is the more serious because it
comes at a time when the manage
ment is passing to new and less ac-
customed hands. Thus the difficulty is
accentuated" "
The Senator expressed confidence
that by proper employment and ad-
Justment of taxes on business gains
ehe entire system of revenue raising
can be greatly simplifed, and that the
$4,000, 100000 that the government an
nually. needs can be produced with
much less expense and greatly reduced
annoyance to people in business.
turning to the tariff, Mr.. Smoot said
ne did not favor attempting to raise
more than 5O0,0Oo,OOO through it.
II do not favor very high tariff
rates merely for the purpose of pro-
duclng revenue" he said 81 would try
to make them as low as possible con-
slstent with proper protection to
American business and labor, but no
higher"
Senator Smoot also discussed the
plans of departmental reorganization.
aiming to do away with duplication
and waste in the administrative de-
partments. He explained that Congress
already has provided for joint Con-
gressional commission, which will
begin work at once surveying the de-
partments.
"In my Judgment" he said, "the
proper reimbursement in these regards
VIII save the government about $780,
100000 year. / recall that Senator
Aldrich once said that if government
business were transacted as private
business would be we ought to save
figure altogether too high. At that
time we were spending only abou.
sSoO,000,000 annually, and such an
economy as he suggested would hardly
have been possible. But / am CON
vInced that we can save 100000, 900
cy adopting proper business methods
II was very much gratified to find
how deeply Senator Harding is inter
ested in this subject and how thor
oughly he has been able TO inform
himself about it,"
Electoral College May Meet
"A. meeting of the Electoral College
of 1920, the like of which has never
been held since the adoption of the
Constitution, is to be proposed by the
twenty-four Ohio electors. On Satur-
ator Harding to pay their respects, and
later they took under consideration
the proposal that invitations be issued
to the electors Of all the states to
meet in Washington at Inauguration
time. When Senator Harding was in
formed of the suggestion he gave it
his enthusiastic approval.
There is no provision of Constitution
or law whereby the electors represent
ing all the states are required to meet
together at any time. Some inquiry bv
the Ohio electors convinced them that
in fact there never had been such
meeting. 1t would, Of course, have no
legal Significance whatever because Che
formality Of electing the President is
carefully provided by law Neverthe
less, the Ohio electors determined that
IT. would be a most interesting historic
event If the entire membership Of the
Electoral College could be assembled
At Washington, and when the proposal
was made it Immediately received
unanimous approval 1t was pointed
out that such an invitation might m ost
appropriately come from the Ohio
electors, In view Of the fact that this |
year Ohio furnishes not only the
resident-clect, but his leading oppo-
nent in the polling
There was some discussion as to
whether the. entire membership of the
Electoral College, or only the Repub
iicans. should be invited, but opinion
was that the occasion should be made
IN entirely partisan one, and thpt
Democratic as we'll as Republican
electors should be invited
1t Is understood that the Electoral
College will be given prominent part |
In all the ceremonies in Washington in |
connection with the inanguratIon
probably constituting section in the
inaugural parade.
A banquet, to which President
Harding and Vice President Coolidga