Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-05
Washington Ticker


By the Associated Press.
American business and industry must
look for future substantial relief from
its postwar taxation burdens, in the
belief of the Chamber OF Commerce OF
the United States, to retrenchment OF
expenditures and moderniZation OF the
revenue systems of States and tneirN
local political subdivisions. :.
The chamber and its LOO constituent
member organizations for some montns
have been directing q Nation wide cam
paign to promote less and wiser spend
ing by State and local governments"
Realizing the seriousness of the
present situation of steadily increasing
State and local taxation, the chambers
program Is not being carried on with
"broadsides' against waste ana ex-
travagance, but Is founded on the basis
Of stimulating cooperation between
business organizations and ofncials OF
State and local governments In JOINT
effort to reduce the governmental costs
without inpairing efficiency.
The status of State and local taxa
ton was outlined by Morris Edwards OF
the finance division of the chamber
who declared that "in the past decade
total tax payments for the support of
all governmental enterprises have IN
creased by more than $4,000 600 600
until they now aggregate approximately
$40 900 900 900; during the same period
Federal expenditures have decreased
slightly less than $4,000, 900 ,O00. ms
has resulted, according to Mr.. Edwards,
in the imposition by State ana local
governments of-two-thirds OF the totai
tax burden, while in the past their
proportion was measurabiy smalier.
In its analysis of the situation the
national chamber is not taking the
position that O considerable portion OF
the increased governmental expenol-
lures Is unnecessary. as local improve
ments delayed during the war period,
huge highway and school programs
commenced in recent years and the
shift Of population from rural to urban
areas all have had prominent roles In
bringing about the upward trend. But
the chambers attitude is that the pres
ent taxation burden absorbs approx
mately one-eighth of the Nations in
come-"a staggering first lien upon the
Nations productivity"
Although distinctly national In its
cumulative effects. this problem is sim
ply the aggregate of similar problems in
every State every city and at every
crossroads" Mr. Edwards declared. Ell
fective treatment can come, not from
Washington or from national agencies,
but from intelligent action and skillful
administration in the States and cities
themselves. That Is why the TOO local
chamber of commerce and State and
local trade associations, whose tax COM
mittees of business men ar examining
local budgets, scrutinizing local bond
issues, trying to help rehabilitate broken
down assessment systems, seeking con-
stantly to promote the use of modern
and economical methods and generally
attempting to bring sound business
judgment to the aid of public officials
In meeting the purely business problems
Of Government, constitute probably the
most effective and hopeful approach
ever made to this long standing nation
al problem.
THE situation required years to de-
velop to its present acute stage and
cannot be expected to respond instantly
to treatment. But this business type of
approach to taxation problems Is accom-
plishing remarkable results. Some of
them have been reduction of Sill ,000.-
900 In Ohio State expenditures follow
ing expert surveys and six months Of
intensive work: retrenchment In ex-
penditures of los Massachusetts, cities;
$7,000,0O trimmed from budgets in
seven, years work in Indianapolis. and
thousands Of dollars saved annually
through improved ONCE organization
and use of mechanical equipment in
Chicago, Baltimore and a score Of other
cities"
In q few years the manufacture of
rayon, the newest of the major textile
fbers, has become q prominent industry
of the United States, the textile division
Of the Department of Commerce shows
in a survey. The survey said that pro-
duction in 1927 resulted in an increase
of $4,000, 900 pounds over that of the
previous year and that the 1929 pro-
duction is estimated to be between
rs ,OO0, 900 and 80. 000, 600 pounds heavier.
A still greater enlargement in productive
capacity Is expected in 1880.
although Europe was the birthplace
of the industry and more than a decade
elapsed before the manufacture Of the
fiber was introduced into the United
States" the survey said, greater prog
ress, has been made in this country than
In any other Nation, and at the present
time the productive capacity Of Ameri-
can rayon plants 10 approximately 100
per cent greater than that Of our
nearest foreign competitor"
The rayon industry was inaugurated
in the United States in 1911. but the
growth was slow in the first decade
with average annual gains Of 100000
pounds. From 1921 to 1925 the annual
output rose from $4,000, 900 pounds to
So ,O00, 900 pounds and since then the
advances have been extremely rapid.
The production of crude petroleum In
the United states is reported by the Blu
reau of Mines to have reached In July
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