Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-04
GEN. LORD DEVISED
LOWER TAX PLAN
Story of Confidential Idea,
Subject of Two Meetings,
Told After Death.
BY WILLIAM PICKETT HELM.

A vision of far greater service to the
American people than the tightening
of the Federal tax burden alone daZzled
the eyes of Herbert M. Lord, the
worlds greatest paymaster," and the
great Federal taX-cutter, at the zenith
of his active and busy career. Now,
with the passing of Gen. Lord, who
died Monday, it can be revealed.
His eyes giimpsed the possibility OF
reducing the entire burden of American
taxation-State, county and municipal
through active local agencies dis
tributed throughout the United States,
in much the same way that he, with the
backing of two Presidents, had sue
ceeded in lowering the Federal tax rate
three times.
Gen. Lord placed his ideas before
some of the leading bankers and busi-
ness men of the country in executive
meetings in New York and Chicago
four and-one-half years ago. Before
taking the step, he told his chief Calvin
Coolidge, then in the White House, what
he purposed doing, and obtained Mr..
Coolidge's sanction to make the move.
Gen. Lord at that time was director OF
the United States budget.
Planned Small Bureaus.
The capitalists with whom he talked,
engrossed in their own affairs, and
prospecting, failed to catch the vision
his eyes had seen. They did nothing.
The plan fell through. And the burden
of minor taxes has continued to rise
from that day to the present, until 1t
stands at the highest total ever reached
in the history of the country.
It was this writer's privilege to know
intimately of Gen. Lords close study
of the Use in minor governmental tax
rates and Of his plan to check the rise.
Briefly, the plan called for the creation
of State, county and city organizations
to carry through in their own localities
the general idea Of budgetary control of
public spendings, which had worked 90
we'll for the National Government.
These organizations, to include large
and small taxpayers in every COM
munity, were to function under a ma
tional body, which Gen. Lord himself
was to aid with the ripe experience he
had gained in reducing taxes at Wash
ington.
The idea, slowly forming in his mind
over several years, assumed definite form
and proportions when a group of tax
burdened manufacturers in Akron, Ohio,
headed by Jacob Pfeiffer, president of the
Miller Rubber Co., called on him to help
them In their struggle against rising
local taxation. Mr.. Pfeiffer and his
associates found sympathetic and will
ing cooperation in Gen. Lord and raised
a modest fund to enable them to further
the proposal.
No portion of this fund went to Gen.
Lord. On the contrary, he paid his own
expenses incidental to the work out Of
his own modest resources.
Met Secretly.
In furtherance of the proposal Gen.
Lord caused meeting to be called in
New York in December, 1925, at which
to discuss the proposal and the local
tax situation generally throughout the
Omitted States The meeting was held
at the Bankers Club behind closed
doors.
Otto Kahn, Gerard Swope, president
of thu General Electric Co.; George w.
,Wickershan, Irving It. Bush, John T,
Pratt Of Standard Oil millions (now
dead; David r. Houston, former Secre-
tary of the Treasury; former Ambassa-
dor Gerard and about IS other capital
lists attended. Gen Lord placed before
this meeting figures to show that,