Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-01
"'T00 HIGH TAXES"
ARE ATTACKED BY
C. OF c. SPEAKERS
Continued From First Page

only occasionally upon the simple. OBJ
vious equities Of the present situation"
McWhtrter said that business men
In fairness to themselves and to
the business activities Of the country
ut large, permit their attention to Fed
eral revenue policies to diminish until
the ratio Of Federal tax upon corpo-
rate income Is reduced to reasonable
point and until they have obtained the
in income tax administra-
ton which are $50 patiently desirable"
Such improvements, he added, include
effective decentralization of internal
revenue authority and improvement of
the personnel Of the income tax unit.
Settlement Of long-standing tax cases
also was urged as needed reform.
Holds Policy Is Economic Fault.
Discussing what to do about the
Nations tax muddle," Sargent declared
that IL the Federal tax burden is to be
held down in the face of increasing
public expenditures, 1t Is essential that
the Government keep out of the private
business and avoid taxing all the people
in order that 1t may carry on private
business In competition with some OF the
people.
coi1fiscate the property of its citizens by
destroying the business of its COMPETE
tors" he warned. Such policy is not
morally wrong, but 1t is economically
wrong. It takes the citizens money
through the process Of taxation and
uses It to destroy his own business. It
violates the Constitution which pro.
hibits the taking Of property without
compensation.
the committee on resolutions, which
had been in session all morning, was
not ready to make its report before
noon, and consequently the chamber
viii take no definite action on these
matters until later in the day. With
many Of the delegates anxious to leave
on early trains. general discussion OF
taxation matters after the formal ad-
dresses was sidetracked.
Richie Scores Government.
An echo Of yesterdays turbulent ses-
sion. when business leaders scored gov
ernYnental competition with private en-
terprisee, was heard last night from
GOV. Albert 4. Richie Of Maryland,
who spoke at the dinner meeting OF
state Chambers Of Commerce.
Speaking on his favorite topic OF CEN
trslized power in the Federal Govern
rnerit, Of which he Is an outspoken OPP
ponent, Gov. Richie flayed abuse" OF
the sixteenth amendment, which. he
said, permitted the Government TO
take as much Of the citizens earnings
as It pleases."
government has an entirely proper
place In business, and that Is to check
the abuse Of industrial power" Gov.
Ritchie said. But 1t Is quite another
thing for Government to go into b,isl-
ness In competition with private enter
prise. Government Is doing this in ship
building, airplanes, warehousing and In
numerous forms Of manufacture. This
makes It difficult for private enterprise
to compete, because the Government
paws no taxes and no interest, and Is
not under the necessity Of showing
profit"
that it is in the field of strictly gov
ernmental functions that Federal CEN
tralization is most obvious.
"Disregards Protection"
The sixteenth amendment, he said,
"diSregards the protection which the
Constitution gave the people against
arbitrary taxation when 1t provided that
direct taxes must be apportioned among
the States according to population.
refer to this not in criticism OF the prin-
ciple Of income taxation, but to show
What departure ps 1t FspTssenss from
With reference to the eighteenth
amendment, Gov. Richie said, 1T is a
complete repeal, so far Is intoxicating
liquors are concerned, Of the tenth
amendment, which reserves to the
States all powers not granted the
Nation.
an enforcing this prohibition against
Intoxicating liquors, the Volstead act
prohibits liquors which are not intoxi-
eating at all. The amendment relates
only to liquor for beverage purposes. but
Congress has deprived the States Of
scribe liquor for medicinal purposes.
Congress also has prohibited the use
of liquor for industrial purposes. in the
case Of denatured alcohol used a. q
substitute for gasoline"
Gov. Richie warned that the Gov
eminent "is ut the political crossroads"
Sees Setting Sun Of States.
"Unless we have a new political
incarnation" he added, I'VE face the
setting sun of State sovereignty and
local Self-government. This issue means
much more than whether this or that
political party shall dispense the powers
Of ONCE. Democracy itself Is facing
crisis, and the real issue Is whether
democracy and democratic government
shall prevail"
Gov. Richie said the change In the
conception of American law Is in itself
an amazing thing. 1.-THE time was when
the purpose of the law was to protect
life, liberty and property" he said.
''Now the notion is that law is system
of social control, to secure the moral
wellbeing of the individual by forcing
upon all the people the social ideas OF
groups and classes Of the people"
Prof. Thomas r. Powell of the Har-
ward Law School and Gov. Harry q.
Leslie of Indiano also addressed the
State chambers of commerce, the latter
at the meeting on State control and