Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-03-18
MELLON AND GLASS.
CONDEMN SURTAX.
Secretary and Senator, Ad-
dressing Bankers, AssaiI
Provisions of Law.

BY the Associated Press.
RICHMOND. Va. March 1S-Sec-
rotary Mellon and Senator Carter
Glass of Virginia, who was Secre-
| tary of the Treasury in the Wilson
administration, assailed from the
same platform here last night the
income surtax rates in the present
revenue law as tending to dry up
their sources of revenue.
Mr.. Mellon and -Undersecretary
| Winston of the Treasury, another
speaker at a dinner of the Bankers
! Club of Richmond. appealed to the
American people to put partisantsm
aside in considering tax questions
and approach them singly from an
economic and business basis. The
Treasury head, making his first
speech in the South in support of his
| plea, took occasion to point out how
| often the present policies of the
Treasury have been in accord with
/ and Glass.
Senator for Reduction.
After Mr. Winston had assailed
| both the surtax rates and the inheri-
! lance taxes in the present Federal
! law, senator 1ldSSJ III HIS htul
declared he favored reducing the sur
tax maximum to 20 per cent, as we'll
| as reducing the Legislative burden of
the man of moderate means. and
hoped this would be done at the next
session of Congress.
Referring to Secretary Mellon as
probably the outstanding figure of
the administration at Washington"
Senator Glass declared the Secretary
did not regard the Treasury as a
playground for partisan politics. but
considers it as a great business in
stitution."
Speaking of the relationship be-
tween Federal and State tax ques-
tions. Mr.. Mellon declared the mount
ing costs of government in States
and municipalities had developed the
necessity for apportionment of the
fields of tax. sources between the
Federal and State governments. He
recalled that the President recently
had spoken in favor of the Federal
Government leaving the inheritance
tax field to the States, and added that
such a proposal of returning to the
doctrine of the sovereignty of the
States could we'll be appreciated in
Virginia.
Dual Assessments Attacked.
THE efforts of two governments
to tap the same source of revenue in
inheritance taxes" the Secretary
continued "have resulted in over
tapping systems which impose undue
burdens upon the taxpayers and a
consequent destruction of the very
sources of revenue, which mean com
paratively little to the Federal Treas
ury, but much to the State.
AN unintelligent use of the tax
TO- ho1 u i-ac frn
sequences. 1t is for this reason that
We must come to some understand
ing, particularly as regards high sur
taxes and in the field of inheritance
taxes, by which overlapping and I'M
fair taxes shall be eliminated and
the future welfare and prosperity of
the country shall be assured. This,
1 am confident can be done, and in
helping to do 1t and to bring about
a better understanding of the funda-
mental principals involved in tax
alton you are rendering the country
a great and lasting service. We must
not let partisan or sectional or class
prejudices blind our vision or halt
our determination to achieve what
will be for the welfare of the coun-
try as q whole.
Cites Instance of Injustice.
Yet does any one stop to figure
what may be the effect upon this
organization If it's owners should die
tomorrow and the Federal and State
death duties be paid out of the princi-
pal assets of the decedents' estates
capital stock of the company itself?
The value involved is SO large and
its ownership so conferred that it is
conceivable that the collection of in
heritance taxes may check, If not
destroy, that unity of policy which
has created and expanded that in
dustry, and thus prevent it's future
prosperity. OF what avail, then, is it
to any government if it collects
100000, 900 once in estate taxes and
destroys source of income upon
which it can rely for revenue year
after year?
$50, out of our experience we are
able to say that any tax rate, income
or estate, the burden of which either
directly or Indirectly seriously dis
turbs business, distorts investments
or prevents the growth of industry,
is inherently unsound and should be
reformed"
Picking up the argument where his
chief left off, Mr.. Winston recalled
that President Coolidge in his recent
inaugural address had urged tax
legislation that would encourage
rather than impede business. He
turned them to a message to Con-
gress by President Wilson in 1919, in
which the wartime Executive OBJ
served that the higher surtaxes were
certain to be destructive to business
activity, and urged that Congress re-
wise taxes so that they would not
discourage business development.
What President Coolidge said is
not Republican doctrine" said Mr..
Winston. What President Wilson
said is not Democratic doctrine. Both
are merely the truth. This truth
is not an attribute of any one party
but is the possession of all who have
studied this question without partisan
ship"
The Undersecretary assaIled the
high surtax rates and directed par
ticular fire at the inheritance taxes
in the present Federal law. These
rates, he asserted, take SO much of
an estate for Government use that its
value as future revenue source
sometimes is reduced to naught and
very frequently is impaired for years
to come.