The Bridgeport times and evening farmer., 1922-03-27
$15,OOO, GOO, 900 of Tax Exempt Securities Issued Congressman Urges It Is High Time to Call Halt In
 Tax Dodging.
By T. BART CAMPBELL


 Int. News Service Staff Correspondent Washington. March. 27-It is esti- mated that approximately $15,OOO. 1 ties have already been issued by the Federal Government and the States. cities and other political subdivisions of the country.
 In the judgment of Representa- tive Louis T. McF'adden, of Pennsylvania. chairman of the House Banking and Currency Committee. it is high time securities hec onsiders a ''gross vio- Iation of social justice in permitting the evasion of taxation by weaIuhy tax dodgers.
 1 that more than $1,OOO.OO0. 900 of State and municipal tax-free securi- ties were issued in 1920 alone. In that year, if these securities were held by the wealthy whose Federal income tax was 73 per cent of their i total income, the loss to the Govern ment was over $35, 1000. if the in- terest rate on these securities aver aged per cent"
 McFadden, who was formerly pres. ident of the Pennsylvania Bankers one of the foremost financial experts in Congress, is seeking to have the Constitution amended So that Con- greSS. would have the power to tax Inc income from securities issued by the States and their political subdi- visions, and the States would in turn De permitted to tax securities Issued by the Federal government
 Proposes Referendum
 He has Icint resolution pending in Congress to provide for a nation amendment, which would have to be ratified by three-quarters, or thirty six, of the States, for tax-free securi- ties to be made taxable.
 In response to his request for an expression of their attitude. the Gov srnons of Idaho, New Mexico, Ari- zona, Colorado, Kansas, Michigan. Montana. Nebraska, New Hampshire. ware, Utah and Georgia replied that they were favorably disposed toward McFadden's proposal to prohibit the economic evil of tax-free securities in conformity with the Presidents suggestion to that end in his mes sage to Congress in December.
 The Governors of Mississippi, Lou isiana, Oregon. Vermont. West Vir- ginia, Wisconsin and Missouri sent While the Governors of but six States Rhode Island. Maryland and Massa- chusetts-expressed opposition.
 McFadden is confident that once his resolution is passed by Congress ment will receive the approval of an overwhelming number of States.
 "Worlsers Bear Burden' ties makes possible the creation Of two classes" McFadden stated, ''the wealthy, free from burdens of taxa tion, and the workers, who are fore ed to bear the burden from which the wealthy are relieved.
 '"This unquestionably constitutes violation of social justice which is crystalizing in widespread disco1- tent. If the issuance of taX-free se- curities is permitted to continue a so- cia1 upheava1 will occur which may be so far-reaching i1 its effect as to undermine our constitutional Govern ment.
 "In the last few years we have seen the personal wealth of the country so rapidly segregated Into the tax-free class that, whereas the tax able income of individual taxpayers under the Federal income tax law was $992,972,9S5 in 1916, the anaor- decreased to $731, ,372, ,053 fin 1917 and