The Carbon County chronicle. [volume] (Red Lodge, Mont.) 1924-1924, 1924-10-15
LINDERMAN CONDEMNS DEMOCRATIC WASTE

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yards which never built a single ship
the erection of powder plants tha
made millionaires but not pound o.
powder. Why they even bought foul
or five branding irons for each caval
~ horse and mule in the army, ant
for some that weren't in the army, 20,
900 sets Of horse-harness for motol
ambulances and 45 bread cans fol
every soldier in the army.
But there Is no good In whining ov-
er what the Democratic party, as oui
selected agent. did in eight years. II
conr capY.r.i exmnarm 7sdeta SIS
contracted debt that we must pay
much Of it with taxes. In 1891 when
the Republican party replaced the
Democratic Administration the peo-
pie Of this country were paying the
highest tax ever levied in its history
year And this year. the revenue act
- were reduced one billion dollars per
and before 1921 had passed federal tax
reduced the taxes four hundred mil
lion dollars. President Coolidge has
insisted upon further reduction Of
taxes, especially of the high sur-tax-
es, because they are not productive.
This lat Is not essentially Republican
doctrine. President Wilson believed
In It, and SO did Mr.. Carter Glass, the
Democratic Secretary Of the Treasury.
But the Democratic party does not be-
lieve in Il, or 1t says that 1t doesn't.
Lat VI spend a minute here.
According to the records of the
United States Treasury Department
the total net income Of all classes Of
citizen has Increased 2SS per cent from
1872 inclusive, while the total net In
comes Of $Soo,0oo or over reported
TOR taxation have decreased 62 per
cent in the same period. This Ii not
becuse there are fewer rich men. but
because the rich are investing their
n,oney In tax-elespt securities and
- nvoi1lpo - n ug<1u
n6kfine : million doI12rs 81 over ~
rscords Of Che Treasury Department
show that tax-exempt securities rep
resented only 2.2l per cent In 1917.
and that in 1923 the percentage Of
tax-exempt securities In these estates
had risen to 1897 per cent. Exper-
ience has taught us that the high sur
tax, aimed at great wealth as 1t was,
has not brought satisfactory results.
Capital has gone on strike, and to
avoid the high surtax has hidden be-
hind the tax-exempt securities or
drifted abroad TO find employment,
We cannot force it into open invest
ment any more than we can obIige la
Dor TO remain at employment under
conditions which it deems oppressive.
Capital argues thus-'If under the
high surtax go into business and lose
the Government will not help me bear
my losses, but on the other hand, If /
venture and am successful the same
Government that would not help me
in case Of failure would take half my
gain The high surtax has not ac-
complished its purpose. Whenever the
surtax Is raised the incomes reported
for taxation wealth hides
goes on strike, while whenever the
surtax has been lowered capital pays
the Government more in dollars and
cents. Besides 1t comes out In the
open. works, gives employment to la
Dor, and increasing, pays more and
more of taxes to Uncle Sam thereby
reducing general taxation
As the matter stands today I be
lieye that every tax-exempt security
issued Is just that much debt added to
the backs Of the people. The increas-
ed debt at once begins to draw inter-
est from the taxpayers, and someday
the debt must be paid. No matter
how we argue or trot around this
truth with reasons why 1t is not good
policy, the tax-exempt security must
go, or we must cut the surtax. Under
present conditions, with the surtax
working, the average citizen is paying
more than his just proportion Of tax
es while the rich man is successfully
lodging taxation. Somebody must pay
the taxes and If, with his wealth the
rich man can lawfully invest in tax-
exempt securities, then the poorman,
with no money with which to buy
such securities, must and does pay the
rich mans tax. so far as his invest
ments In tax-exempt securities are
"To sum up-The Republican party
has reduced taxation 81 ,25O, ,000,0 900
per annum, it has reduced the puphc
debt s2,432 100000. 1t has decreased
~ -@~'nnt's expenditures from
$500, 100000 to s3,400, 100000 per
annDn, WI. Government securities.
have, under its management, increased
In value more than SO ,000, 900 900. Be-