Evening star., 1924-10-26
.LAFOLLETTE PLANS
TAX-DODC|NCPROB
Figures of Sinclair and Nor
gan Called SinguIar-Hopes
Walsh Is Reelected.
BY the Associated Press.

By the Associated Press.
AIKEN, Md, October 25.-On his
arrival here today for a week enc
| rest. Senator Robert NJ. La Toilette
Independent candidate for President
issued a statement in which he de-
clared that 1.-The information regard
ing taxes paid by income taxpayers
which already has been published in
cation of the long fight that has been
made by the Progressives to open tax
returns to public inspection"
Mr.. La Toilette also made public q
telegram sent by him to Senator
Thomas j. Walsh. Democrat. Montana
advocating reelection of the pros
ecutor" of the Senate oil inquiry.
In his message to Senator Walsh
Mr.. La Toilette said:
Defent Rated Calamity.
II trust that the Progressives OF
Montana will unite in their support
of your candidacy for reelection to
the United States Senate. We have
not been in agreement on many mat
ters and measures, but your signal
service in prosecuting the Teapot
Dome investigation transcends all
other issues i'll this campaign in Mon
tered their fire upon you and your
defeat would be a national victory
for the despoilers of the Nays oil
reserves. l urge all Progressives in
Montana to join, in rolling up ma
jority for you in the election that will
be an admonition to wrongdoers anC
an encouragement to every public
servant in the full performance OF
his duty"
With reference to the publication OF
income tax returns. Senator. La Fol
lette declared that the revelation
that Harry F.. Sinclair pays only 3215
income tax is in itself sufficient to
demonstrate the extent to which Fed
eral taxes, have been evaded by in
come tax dodgers.
IAN interesting and perhaps produc
tive line. of investigation" continued
the Wisconsin Senator, lis opened by
the showing that J. pierpont Morgan
pays only s9s,643.
Expects Good to Result.
Declaring that he believed these
revelations will result not only in d
large increase in the Federal revenue
and a consequent decrease in the tan
rate upon honest taxpayers. but will
also tend TO promote greater respect
for law on the part of all classes OF
tinued:
THE publication Of these lists is
merely the first step in cleaning uI
the widespread tax lodging which
has been permitted by Democratic
and Republican administrations. W.
mean to find out the methods which
Harry +. Sinclair used to eYade pay
ment of income taxes upon his real
income. We already know some OF
the met IN niS Wa 10
Corporation, the book of account OF
which Sinclair refused to produce be-
fore the Senate investigating com
mittees, was one of his schemes for
cVadinE taxes, well as covering uT
corrupt transactions. By this device
Sinclair sought TO pay the corporation
tax of l2l2 per cent instead Of the
supertaN which should properly be
imposed upon his income.
Probe Is Promised,
hen Congress reassembles We
intend to go to the bottom OF this
matter and find out just exactly how.
Harry +. Sine air managed to escape
with only S213 personal income tax.
We are also going to find out what
Secretary Mellon and the other Off
Gals of the Treasury Department
have done to stop this form OF tax
dod ging
We will also inquire into Mr. j.
+. Morgan's tax returns. 1t may be,
of course, that Mr. Morgan lost
very heavily in foreign securities and
was entitled to write off these losses.
but when he is engaged in the busi-
ness of peddling the securities OF
foreign countries to the American
people they are at least entitled to
know just where these losses were
incurred
The fundamental principle that
underlies this whole question Is very
simple; it is this: Taxpaying is pub
lie business, and public business
ought to be public. Dishonesty and
crime thrive in the dark. An efficient
lighting system is of greater value in
the protection of a city from crime
than thousand policemen. In the
same way, the light Of publicity will
promote greater returns to the Fed
eral Treasury and greater honesty ir
the payment Of taxes than a horde
of internal revenue collectors 1t is
also cheaper.
Will Speak in baltimore
Il believe that with the effective
publicity of tax returns we could dis
pense with large number of the
tax agents who are now living on
the public pay rolls"
Senator La Toilette stopped here on
his way from Syracuse, N. Y, where
he spoke last night, to Baltimore
where he will launch his final week
Of campaigning with an address Mon
day night His train was shunted on
siding, and the Senator planned
either to remain on his private car on
the bank of the Susquehanna River
until proceeding to Baltimore Mon
day, or to go to a hotel in the nearby
town of Havre de Grace.