New Britain herald., 1929-12-04
7276G and spend s4,102,9SS,700.
 CIfos SfattStjrS

IF asking that the corporation tax be reduced one per cent the secre- tary pointed to statistics which he said showed that corporations were taxed 24.46 per cent of their income whereas 2,059.00 individuals had an average rate Of taxation of 0.46 per cent.
 "The number of individuals con- tributing directly to the support of the federal government through the federal income tax has been strictly limited,' the report said. "and. of those contributing. the vast majority pay but an insignificant amount at a very low rate. Of 2,434,000 indi- viduals returning taxable income o05a,00 returned but s32.S61O00 Of income tax, while 3I5,000 indi- viduals returned a net tax of $l,- o9,0O0.OOo. The average rate of tax on tho net incomes of the 2,059,000 individuals was 0.42 per cent. whereas the million Of individuals who owned stock in corporations i2 per cent on the profits of the business enterprise in which they were shareholders" The figures were from a study of the 1927 returns.
 In 1927, the secretary continued, corporations paid s5,7S6.000,00O in dividends so that for every dollar in dividends they declared, they paid 46 cents in taxes.
 Mentions Federal Reservc
 Mir. Mellon declared the Federal Reserve Board had cndeavored to guard against undue extension of credit through speculative channels and 10 conserve the country's re- sources for the purpose of meeting he future requirements Of industry and trade. He called attention 10 the extension of group banking and urged that congress study the sit uation. It was hoped. however, he said. that any further extension of broup and branch banking twill proceed with moderation and that nasty legislation. either to liberalizc or constrict limitations, now in cf- feet. will be avoided
 Out of S.7O7 banks in the Federal Reserve System 3J4 were operating @.39l branches, he said.
 Lectures on the "proper and law full" methods Of prohibition enforce ment have been given to agents Tn every section of the country, SeCre- tary Mellon also informed congress and all agents new have specific in structions regarding the rights or citizens under the constitution.
 The secretary did not mention controversies which have stirred congress over the use of firearms by enforcement officers but he said that lecturers and instructors had en- phasized the proper method of se- curing search warrants and of eX- ocuting them. and the technique Of making investigations Of the larger and more important cases.
 Operations More Stable
 The operations of the treasury department in the enforcement of prohibition are becoming more stable and more effective" he said "Thc activity and cooperation of the several bureaus engaged in these operations arc making the business of violating prohibition laws more difficult and hazardous"
 During the fiscal year 1929, the report said, prohibition agents had arrested 66.S7S persons, seized au- tomobiles valued at $2,S19.01o and So boats valued at S260,S45.
 The prohibition bureau, it contin- ued was fast being placed under civil service and it vas expected that within short time all appointments of agents would be under civil serv- ice.
 The secretary said the policy Of limiting industrial alcohol produc- tion to the actual requirements of the nation. adopted last January, had proved successful, with the re- suit that diversion Of the alcohol for bootleg purposes had practical ly ceased"
 He noted, however, a substantial increase in the amount of industrial alcohol produced which he attribut- ed to the development of new fields Of use.
 There were 5,19S convictions for violations of the federal narcotic laws during the year and S3,7S9 ounces of narcotic drugs were seiztd or purchased as evidence.