Evening star., 1924-05-06
BARNES RAPS SENATE
FOR TAX BILL ACTION
Tells U. S. Chamber Uncertain In
dustrial Outlook Is Ag-
gravated.
TRADE BOOM IS IN SIGHT
More Chain Stores Needed, .Conven-
ton Is Told.

tax schedules in favor of the Simmons
rates, involving higher surtax levies,
was characterized today by Presi-
dent julius Barnes of the United
States Chamber of Commerce as an
untimely and unfortunate incident
tending to aggravate the uncertain
industrial outlook.
The action, he said, was doubly de-
plorable because it came at a time
when virtually all economic factors
pointed to an era of healthy expan-
sion of world commerce.
Addressing several thousands busi-
ness leaders in the opening session
of the annual convention of the
chamber, Mr.. Barnes expressed the
view that the Senate action was dis
couraging, but not final"
Surely there will yet be an accord
on a reasonable basis of tax revision
before it is too late, he said.
Rnps Action on Measure.
In voting the Simmons schedule
of surtaxes, Mr.. Barnes said the Sem
ate had rejected the ''matured
recommendation of a public servant
of great experience and ability in
favor Of a rate manifestly the prod
uct of the obstinacy of INFESTED in
dividual opinion or of partisan con-
sideration.
This is discouraging. but not
final The great engine of American
industry by which American living
standards are maintained the highest
in the world has been slowing up
To-
distrust as to the ability Of our
Congress to appreciate the effect on
industry when tax laws destroy the
inducement to venture and stifie the
individual impulse to try" =.
We may not expect the radical
group to be Sobered by the response
bility which accompanies this &C
ton"
Virtually all economic factors point
to the expansion of world commerce as
soon as business confidence in America
is restored by a. clearer definition of
governmental relationship to business,
Barnes declared
Rehabilitation of European COM
merce. which is expected to result
from the operation of the Dawes re-
port on German finances, was pointed
to by Mr. Barnes as perhaps the most
hopeful sign on the horizon of world
industry. At home. he pointed to the
recuperating agricultural industry
and a perceptible stabilization of the
public sentiment toward business as
tokens of continued prosperity.
BIames Situation Here.
The present tendency toward re-
trenchment, he said, was due almost
growing out of the present govern
mental situation in Washington, in
which policies in taxation and trans
portation, two fundamental factors
,.~I 80
are awaiting determination. The
decision will clear the track for bust
ness to proceed at full speed-if it
is not made too late, Mr.. Barnes said.
Almost without exception, the coun-
tries of Europe today are making
and economic stability, the speaker
said.
Development of the chain store idea
toward mass distribution, the status
of trade associations under the anti
trust laws, and suggestions for JIM
provement of the postal service were
considered today at group meetings
marking the opening program of the
convention.
Sees Trade Bodies Handicapped.
The conflict of opinions as to the
legitimate activities Of trade associa-
tions, was declared by Lew Hahn of
New York, managing director of the
National Retail Dry Goods Associa-
tion, to have left these organizations
in such a condition of uncertainty
that many of them have ceased do
ing anything, rather than run the
chance of being forced into court"
Recent opinion and court decisions
relating to the gathering and distri-
button of trade statistics, Mr.. Hahn
said, have given him the Impression
that "the actual state of the law, or
even the judicial decisions based upon
4 ha 10 n hn nf los ir,r 10
than the question as to who admin
listers the law-aS to who decides upon
which suits are to be brought, and
how these suits are to be presented"
''We complain about the law" he
said, but believe that we could ad-
laws than are on the statute books
If the administration OF these laws
were anything but a game of battle
dore and shuttlecock."
Favors Chain Stores.
Edward A F'ilene Of Boston advo-
Gated the organization of department
and other stores into chains for mass
buying to reduce the costs of distri-
button and to meet the competition of
the chain stores already established.
Competition in production" he
said, has developed to such a degree
to pay increasing attention to the
cost of distribution, for producers
realize more definitely now that the
most successful producer will here
after be the one whose goods reach
price, quality considered Just as in
the case Of production, efficiency in
lies in the direction of
mass operation-mass selling"
The chain store, he asserted, rap
small stores dealing in sta
pie goods and may s0pplant them"
unless they weld themselves into
chains, in which each local manager
owner retaining his full interest in
the profits of his store"
Cites System Deadred.
ssThe coming successful department
store chain" he predicted, will be
an aggregation of department stores
under one ownership. of which the
similar departments of all the stores
will themselves constitute a chain
within the main group.
Under mass production and mass
high standards of wages
will be maintained, for 1t will be
most profitable to the producer, as
Ford has shown, that the reduction
in price should come out of the elm
ination of middlemen and the present
wastefulness of production and dis
tribution-not out of wages and sal
aries"
Lucius Teter of Chicago. chairman
of the committee on postal service.
in. presenting his report declared
Business men cannot accept the
present conditions in the postal serv-
ice as satisfactory"
New Directors Chosen.
Seventeen new members of the
board, one-half of which is elected
annually, were named by the council
meeting today. The sessions were at
tended by approximately 1000 mem
hers, representative of the entire
country. The newly elected directors
are:
Alvan T. Simonds, president, ST.
mond's Saw and Steel Company, Fitch
burg, Mass.