Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-01-30

in the right direction but they
should do some 'pioneer work on
the road.
With taxes two and one half as
high in England as here, with the
debt OF France even greater than
that OF England, and with Germany
and Russia beyond paying their
debts, II stands us all In hand to
look, carefully to public expenditure
4hi7to question the wisdom OF is
suing bonds for improvements that
can wait. especially when deflation
may at any time set in. Personally.
l am strongly OF the opinion that
we should adopt the general policy
OF pay as you go.
1.-THE so called Mellon plan for re-
ducing taxes by repeating the tax on
telephone messages, some luxury
taxes and general reduction of in
come taxes, has struck very
popular chord, not because 1t is
especially we'll understood, because
it sounds good to have taxes reduced,
especially by Congress.
THE various detailed plans pro-
posed by different groups in Con-
gress are designed for campaign
material to be used in the coming
election, each party to show Its fol-
lowers that its particular plan was
the best. 1t can hardly be discussed
now without being partizan.
The least understood of all tax
discussions is the so called tax eX-
emption securities, and because of
this misunderstanding there is
popular opinion growing that no
more tax exempt securities should
be issued. Before giving up uni
versal national wide custom that has
n OF hn dot; ,,,
of our government, We should care
fully look into the real merits of
the case.
when this question is spoken of,
there is a general feeling that some
rich person who is well able to pay
is escaping his Just taxes by invest
ing in government, state and NUM-
cipal bonds, and in order to make
him pay we should make those
bonds taxable. This, however, may
not be the way this will work out if
the proposed constitutional amend
ment is adopted.
"All bonds now issued will not be
affected by any change in the law
as the bond is a contract on the
part of the government. the state or
municipality that must be carried
out.
AT present without any change in
the constitution of the United States.
the government can tax all it's
future issues of bonds. The state. if
it sees fit. can tax all its future is
sues of state and municipal bonds.
THE proposed amendment of the
constitution of the United States
provides further that the govern
meht can tax the income on state
and municipal bonds as well as gov
CT 10
the income on government bonds,
which seems like a fair exchange.
But since the governmet issues
bonds only in time of war, there will
be no more government bonds for
states to tax until another war or
such as may be refunded which will
grow less and less.
While states and municipalities
will constantly have to issue new
bonds tor improvements. and the in
come of these bonds will be taxable
by the government. it is estimated
that making the income of these
bonds taxable will raise the interest
on the bonds from l lilo per cent
to CLIO per cent.
nus. II town wishes to raise
money for q new SchoolhOuSe or
needed bridge by selling bonds, the
interest instead of being five per
cent would be six or six and one
half per cent, and the extra one or
enc and one half per cent interest
pad by the property tax payer.
1T simply gives the government a
chance to come into your state and
town and collect n tax on the
property. Some will say that this
higher interest rate will encourage
thrift. Try it on yourself and see
how you like this method to en-
courage thrift"
Resolutions were adopted and
speeches composed the program for
the afternoon session. Henry F.9
Merrill of Portland talked on the
State Pier" James q. Gulnac of
Bangor gave a splendid report on
the work of the immigration COM
mittee; Charles f.. 1'Iagg of Port |
land. former president of the State
Boart of Trade, spoke briefly in OK
PLANTATION of his reasons for favor |
ing the so-called Mcdonald plan of
railroad consolidation. and William
G.. Hunton of Portland. head of the |
industrial department of the Maine |
Central railroad, spoke on the Tn |
fuences tending to retard agriculture |
al development in Maine"
Mr.. Hunton told the members of |
the State Chamber of Commerce |
that similar local bodies in the cities
and towns of the state are RESPONSE |
bic in a considerable degree for the |!
exodus of the young people from the |
farming communities to the city. He |
said that the city was. advertised /
SO attractiveIy and wages were on |
so much higher scale that the young |
men and women are drawn from |
10
of the city they lose sight of the !
development which is going on all |
the time in the home town.
Resolutions Adopted
The followina resolutions were
adopted:
Whereas, the State Chamber of
Commerce and Agricultural League
has advocated certain changes in our
immigration laws, and whereas the
Davis bill covers most of these chan T
ges, /
Resolved. that the State Chamber .
of Commerce and Agricultural Lea
que indorscs this bin advocating in !
it n retention of the present three
per cent restriction, passed upon the
1910 census. and that this restriction .
shall not apply to Canada. Mexico, |
Central America or South America.
Resolved. that copies of this reso-
luton be sent to each member of our .
Maine delegation in Washington and /.
that they be urged to actively aid In ,
its passage.
Resolved. that It IS the sense Of this
meeting that greater efforts be made /.
toward the improvement OF Names
lumber interests and a greater de-
veiopment Of industries using hard
woods in the manufacture of their