The Washington times., 1924-01-19
BRANDS HIS
FIGURES
LIE"
Senator Denies That His Own
Wealth Is in Exempt
Securities.
BY VIM. X. HUTCHINSON.
International Ne,.s soruine

By VIM. X. HUTCHINSON,
International News Service.
A direct challenge to Secretary
Of the Treasury Andrew w. Mel
lon to tell the public how much
he is worth and how much he
personally would save under the
reduction of surtaxes proposed
In the Mellon tax reduction pro-
gram was issued today by Sena-
tor James Couzens (Rep.) of
Michigan.
COuzens Revealed Wealth.
Senator Couzens wrote Mr.. Mellon
q letter. declaring that he. Couzens,
had revealed the extent of his
wealth and the taxes he had paid,
and he felt it was not more than
fair that Mr.. Mellon should do the
same.
The Michigan Senator also re-
newed his challenge to the Secre.
tary to engage in public debate
with him on the merits of the Mellon
tax plan. proposing that they hire
q hall and go fifty-fifty OIL expenses.
Couzens originally made this offer
week ago, but it was ignored in
the reply that Mr.. Mellon sent to
him.
In his letter today, Senator Couz.
ems warmly disputed the figures
and argument advanced by Mr..
Mellon in support of the Mellon
program, and accused the Secre.
tary of making absolute mis-state-
ments."
How Will Mellon Benefit?
So long as you have entered into
the record of my securities" said
Couzens, will you please tell us
what your securities are, how much
you own Of each, and how much
you will benefit by the reduction
OF surtaxes as proposed by your"
You refer to newspapers saying
that all my capital is now in tax.
exempt securities and you assume
that 1t Is true because l have not
denied it. Certainly I cannot enter
into a denial of everything the
newspapers print, but I wish to
point out to you that such a state
ment is absolutely untrue-that I
have millions of dollars invested in
buildings, real estate and building
operations, ana asktif this is more
productive than money invested In
distilIeries and breweries?
~. Calls Statements False.
IT do not know why it is neces.
0ary to tell absolute untruths in
saying that my wealth is all in
tax-exempt securities, and that
pay no tax. I have already pointed
out some of the taxes 1 have paid
and there are some years, of course,
when my losses have exceeded my
taxable income. In addition / gave
to hospitals and crippled children
In 1919 nearly 400 shares Of Ford
Motor stock of a market value of
nearly 100000 on which 1 was
receiving 35 per cent dividends on
par value of 100000 or $150,000 per
year, on which I could. readily
have paid a so per cent income
tax and had a comfortable income
besides.
ST do not want in any way to
convey the impression that 1 am
ashamed of the fact have been a
large purchaser Of State and mu-
nicipal bonds. A considerable part
OF these were Detroit city bonds.
which I took at time when there
was difficulty in securing the
money needed for schools, sewers,
and other most essential public
works.
May I point out further that the
effect Of making these State and
municipal bonds subject to tax
would be to increase their interest
rate. and hereby simply add to the
tax burden Of cities and States. In
effect it would amount to taking
money from local public treasures
and transferring it to the Federal
Government
Senator Couzens accused Mr.. Mel
Ion, Of abandoning his original ar.
guments.
"The two fundamentals used by
you in recommending reduction Of
BIlrtaxes, first, the present surtax
is reducing Government revenue
from that source, and, two, that it
1s diverting money for necessary
Industrial purposes-have evidently
been abandoned" he continued. 81
am delighted that l have convinced
you of the fallacy of these two
fundamental reasons. However,
you have not answered my inquiry
as to which are the most produc-
tive enterprises to put money into.
SCHOOLS, water works, sewers
hospitals, good roads, lighting
plants, street railways and col
leges, or, theaters, ball parks,
breweries, distilleries, cosmetic and
chewing gum factories and office
buildings.
1.-THE country would be glad to
have your opinion and I urge you
70 give it to us.
Repeats Debate Request.
"You' have failed to accept my
Invitation to debate publicly these
questions. and repeat my invita-
tion."
II. his letter to Couzens Tuesday,
Mr.. Mellon cited the stagnancv of
railroad stocks as one proof that II
Is difficult to get money into pro-
ductive enterprises.
COuzens replied to this today by
declaring the reason people wont
buy railroad stocks Is that the rail-
roads are constantly crying about
and exhibiting their poverty"
''The purpose Of this campaign Is,
Of course" he said ito. increase
freight rates."
The Michigan Senator also de.
clared there was plenty Of money
now going into building activities,
and cited figures to show there was
moro building In 1923 than In 1921.