Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-11-17
MELLON TAX PLANS
BIG 1924 FACTOR
Business Expansion in Scores
! of Lines Hinges on
Possible Changes.
BY J. C. ROYLE.

6pecial Dispatch to The Star.
NEW YORK, November 17.-Future
plans OF scores of industries are
hanging on the tail OF the Mellon tax
revision kite.
Bankers. manufacturers. merchants
and industrial leaders have extended
a remarkable approval Of the pro-
posal. declaring that its adoption
would set new blood coursing
through the arteries Of commerce and
industry. They are not however.
counting their chickens until Con-
gress and the President have Matched
the Mellon egg. Many plans for ex-
pansion in 1924 therefore are held in
allegiance.
Opposition Expected.
Indications are that tho Mellon
proposal will not lack for opponents.
Some Of those against the measure
take the stand that the revision the
secretary outlines would not lift the
burden of taxation from those least
able to bear 1t, but would Tighten the
load Of the rich, Still others feel that
the majority of the members OF Con
gress are bound by their pledges TO
constituents to q course OF action
which would make reduction or tax
alton impossible and which might
even require additional government
financing.
Scores of business enterprises are
contemplating expansion in iva
Their plans undoubtedly would be
furthered by adoption Of the Mellon
policy, but their attitude shoulo the
proposal meet defeat Is expressed by
Lewis L Clarke. president at,nna, OF na Ihe
who said: with taxes as they are
now one cannot expect business 70
expand This stand WAS confirmed
by Judge Z. H. Gary OF the Uniteo
states Steel Corporation, who de-
"lared the effect of the adoption Oh
the Mellon plan would be larger rev.
srues and increased prosperity. add
ing that burdensome taxes had been
u great hinderance to development
progress and prosperity.
More Liberal Purchases.
The effect of the operation Of the
plan which business mon see, If 1t
should be made effective, Is on the
ultimate consumer. They expect tho
saving In income tax to individuals
would be translated into more liberal
purchases.
The s325,000.oo0 which Secretary
Mellon states would remain in pos
session of the taxpayers and in gen.
Cral circulation II his policy lS tol-
lowed, is the smallest factor business
men see in the situation. What they
chiefly count upon IS the volume OF
capital which would be released from
tax-eXempt securities to move into
Industrial investment. Industrial Sc :
curitivS carrying q normal rate OF
interest have been unable to compete
In attractiveness with investments In
taX-exempt securities with people of
great wealth.
Philadelphia. Chamber Of Commerce,
says that the relief which those of
moderate incomes would receive from
the tax revision would send a flne
flow of capital into channels from
which. it will reach industry, and
make Industrial and railroad bonds
more attractive
dore Funds for Invektment.
industries of the country Will be COM
PEELED to go to the public for funds in
1924, as they have determined to con-
tinue the tremendous campaigns Of
expansion and equipment buying OF
the past year. The release of capital
under the tax revision plan. It Is felt
by railroad men, would provide funds
for these expansion programs at a
moderate interest rate.
The program of the electric rail-
roads Is even more extensive. E. E.
1<oomis, president of the Lehigh VAL
ley railroad. outlined the attitude Of
the carriers by asserting that there
was tremendous opportunity for le-
gitimate expansion If taxes could be
so adjusted as to restore confidence
q a al