Evening star., 1929-07-02
TAX CUT IS SEEN
ON EARNED INCOME
Treasury Surplus Is Given
for Belief In U. S. Reve.
nue. Reduction.
BY JOHN F. SINCLAIR.
cial pispatch 10 The stsr,

special Dispatch to The star.
NEW YORK, July "A nation can
spend s10,0o0,ooo o day without disas-
ter If its receipts from taxes equal that
amount.
In the case Of the United States, the
expenditures for the fiscal year end.
ing July were q little more than
$4,000, 900, but the receipts were sle,-
500, 900 day. No problem there. Any
one could be Secretary of the Treas
ury under those circumstances.
But the situation Is very difdcult
when q government takes In 81, 1000, 900
in taxes and spends 10000, 900 o day.
That extra s5,000,000 o day IL what
causes generalization and currency
chaos. Briefly, that has been the trou-
last two or three years. Their receipts
from taxes. usually we're less than their
expenditures.
The United states Government has
just closed It's fiscal year with receipts
Of S4,033, ,o00, 900, while Its expenditures
were .A3, ,e4S, 100000 90 Secretary Mel
lon announces there ie q surplus for the
year Of s1s5,000,0 900.
And the public debt was reduced by
se73, 100000 in the expense figures.
To Mr.. Average Citizen IL looks like
.
The big outstanding achievement this
year has been the tremendous increase
IN individual income tax receipts
about 1000 000-due largely, the
Treasury believes, to the reduction of
the surtax, prosperity and prof1ts made
In the stock market.
The big fight is on. Yesterday, when
the Wabash Railway filed with the In
kA ,ieS
plication for fifth independent trunk
line in the East to unite 7,044 miles OF
railroad, with o capital investment OF
little over $3.50 100000, Il mixed ur
the Eastern railroad situation still
more.
Briefly. the plan contemplates con-
troll Of the Lehish Valley, Wheeling &
Lake Erie. Pittsburgh & West Virginia
western Maryland, Lehish q New
England, Akron, Canton q Younss-
town. Toledo, Peoria a. western and
In addition, joint use with the
Nickel Plate and the Erie Of the Elgin
Joliet d Eastern ie asked.
Also one-sixth interest In the
Montour- -Monongahela connecting rail-
road, Union Railroad Of Pittsburgh and
the Newburg b South Shore. Also q
one-seventh interest in the Toledo Ter.
n1inal R0tlr0ad,
In addition the wabash desires track
age rights over the Pennsylvania, Grand
Trunk, western and Reading at various
points. =.
A study Of the plan shows 1t has
been worked out carefully, built UP piece
by piece and submitted In an effective
way.
The Taplin family Of Cleveland. are
in It. The Van Sweringens are distinct
ly out No opposition TO It FROM the
Pennsylvania system Is likely.
One thing stands out. It objects tc
a former plan to absorb part OF the
Wabash into the proposed Baltimore
q Ohio system. Such an arrange
ment would cut OF all wabash lines
West Of the Mississippi and would make
wabash lines feeders for the B. b o.
the wabash insists.
TO an outsider. the Interstate Com.
naefce Commission will have TO take
o hand In ironing out the Eastern rail-
road situation, for II Is more involved
today than 1t was year ago.
Ray Prescott, American statisticiar
specializing in the automotive industry
doesn't. think much Of the all too corn.
mon practice Of predicting depression ir