Evening star., 1925-06-11

DullQ1nS a morale tndL rests upon
proper observance"
"Disapproving regulations of an un-
necessarily restrictive character" and
suggesting to Congress "the wisdom
of giving to business the encourage
ment that is possible even though
placing about 1t a regulation to insure
good faith and equity in all of its
operations"
Want Taxes Revised.
Favoring revision of State and Fed
eral revenue laws. including inherit
ance taxes, "as will protect our busi-
ness interests and our citizens against
that which might amount to confisca-
ton of property and which will rem
der less attractive the investments in
non-taXable securities of funds which
would otherwise be utilized for the
promotion Of our commercial and in.
dustrial activities"
Approving the World Court and rec.
ommending that the United States
Join with such reservations against
'entangling alliances as the Secretary
of State has proposed"
Commencing the attitude of the
Chief Justice of the United States and
of the associate justices in relation to
bankruptcy administration, and of the
general orders in bankruptcy recently
adopted.
A dinner is to be held tonight
to be attended by several men,
bers Of the diplomatic corps and to
be addressed by John Moody, presi-
dent of Moody's Investors Service of
New York. and Alfred P. Dennis,
member of the United States Tariff
Commission.
Sees Bad Effect.
Undersecretary Winston, in discuss
ing idle funds in the hands Of a rich
man." said the rich man was mot
interested in risking his money and
his energy in a new enterprise where,
If he wins, the Government appro-
PIRATES half his winnings, and IL he
loses he stands the whole Of his loss.
An investor does not desire productive
assets when he can let q property
lie idle and its increment in value
Is not reachable by the tax collector
All this is wrong. Its effect ultimate
fy is to increase costs and to narrow
the margin upon which the credit Of
business rests"
Mr.. Winston said waste and conse.
Quent lessening of credit was gener.
ally caused by "a taxing system which
forces business and investment out of
its normal channels and uselessly in
creases the expenses Of business and
cost of obtaining capital
This" he said - Is a wholly unnec-
essary destruction of the wealth of the
Nation by which the entire people suf.
fer"
Under excessive income tax rates.
the undersecretary continued, indus
try cannot function normally but is
constantly being forced into wasteful
channels. This unnatural diversion
yields no revenues to the Government,
and is costly in industry. Excessive
rates cost the taxpayer 81; the Govern
ment gets one and the other Is thrown
away, resulting in a loss to the ac-
cumulated wealth of the country upon
which alone the continued prosperity
of us all depends. 1t is the economic
ally unsound basis of surtaxes which
Is alone responsible for this loss.
Asks Reasonable Rates.
"If, however, we cut down these
tax rates to a reasonable figure, the
high differential of a tax-exempt over
a taxable investment is brought with
in proper limits and funds seek
normal investment; initiative and new
ventures are not SO heavily penalized,
and we can expect movement ahead;
artificial restraints on business, arti-
fcial methods of handling industry,
no longer are worth while, expense is
saved, and we have a greater margin
ton which is within the power Of the
country to make, and which I feel
must ultimately come"
Mr.. Vauclain declared the conduct
of domestic business is child's play
compared with the conduct of business
with foreign countries. In order to
advance your foreign business you
must learn to do business as business
is done by the countries in which
t{tTn
You must have representatives who
are familiar with the habits and GUS
toms of the people, and who have con-
fidence in their business integrity.
You must also be prepared to give the
same credits to the business men of
these countries that you would to
those of similar Importance in your
own country.
Merchant Marine Needed.
What this country needs now more
than anything else toward the devel.
opment of foreign trade is to have
available a suitable merchant marine
for the shipment OF our goods, suit.
ably designed and so constructed that
a minimum rate of freight can result
in profit to those engaged in the serv-
ice. Freight rates by water to all for
eign countries are today the greatest
obstacle that confronts the business
men of the United States.''
Curtis r. Burnett of Newark, N. T..
led forum on discussion of Relation
of Taxes to Credit and Property" fol.
lowing Maj. Winston's address. The
world trade session was under direc
tion of c. c. Martin of New York.
chairman of the foreign credit com.
mittee; w. S. Swingle, manager of the
foreign credit department, and b. b.
Tregoe, manager of the Western divi-
sion.
Entertainment for Women.
An entertainment was planned for
this afternoon for the visiting women
Of the convention, under the auspices
of the women's convention committee,
headed by Mrs. Helena D. Reed. Wis.,
1ting Soroptimists were the guests Of
the local Soroptimist Club yesterday