Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-24
NEW HARBORS BILL
: D|SPLEASES WEST
n
Nine-Foot Channel in Upper
Mississippi Declared Eco
nomic Necessity.
By JOHN f. SINCLAIR.

Special Dispatch to The Star.
NEW YORK, April 24.-The North
west, centering around the Twin Cities
is greatly disappointed because the new
rivers and harbors bill does not include
a full authorization OF the proposed
9-foot channel in the Upper Mississippi
River.
The bill as it now stands provides for
the United States taking over the Os-
wego and Erie Canals, in New York
State, which will facilitate the move
ment for an all-American deep water
way to the sea and sidetrack the st.
Lawrence project. In addition, the bill
authorizes the deepening of the upper
parts of the Illinois River.
Northwestern shippers contend these
provisions clearly discriminate against
their section of the country. A leading
publicist states their case in this way:
1.-THE people of the Northwest cannot
understand why there should be dou-
BILE standard of waterway authorization
why there should be standard Of
comparative laxness for the rest OF the
country and a standard OF unexampled
severity for the Mississippi Valley"
Business men in the Upper Missis-
sippi Valley have insisted for years that
they have been shackled and held back
by transportation handicaps. The
"9-foot channel" they say, holds out
a promise of release from intolerable
conditions which have been sitting the
development and stunning the growth OF
the Northwest for a long time"
The sentiment In that section Is unan-
irnously in favor of the proposed cham
mel, but the United States Government,
apparently supported by President Hoo
yer, thinks otherwise.
Newton d. Baker of Cleveland, former
Secretary of War, has called attention
to the changing attitude Of the British
aristocracy toward the new idea-at
least for the British-of centrallzing
their wealth In securities rather than
in land. =.
be the landed aristocracy. NOW the rlcn
people of England are the people who
own stocks and bonds" says MI. Baker.
The intangibles, represented by STOCKS
and bonds, rather than the pnySicai
ownership of thousands of acres OF lano
are really the basis of the modern in
dustrial order.
Naturally, the high-pressure salesman
has learned to concentrate on this form
of investment. Millions Of dollars IN
worthless securities are offered and sold
every year. The amount seems to be
increasing rather than decreasing.
Look at the estates probated eacn
week in the United States. Nearly all
contain plenty of worthless securities
financial cats and dogs of all kinds. It's
part of the history of the country itself.
The gambling instinct undoubtedly has
something to do with this change.
Mr.. Baker contends that too many
people get into financial difficulties by
the lure and appeal Of getting much
more than a just return for money IN
vested. Few people can resist q 20 per
cent opportunity, even though the risk
is three times that of the ordinary
per cent investment.
1.-THE wise investor considers safety
of principal first. There are second,
third, fourth and more rules for in
vestment, but the safety of principal
will always be the first rule" said one
of Americas richest men Is years ago.
Whitney Coombs, agricultural econo-
mist, has issued treatise on Taxation
of Farm Property" which every student
Of farm conditions may well study.
Mr.. Cooinbs says that direct taxes
now paid by farmers amounts to more
than 5000, 000, 900 annually, of which
about 81 per cent is paid through the
general property tax.
In this admirable little work an anaiy-
sis is made of the various kinds of taxes
paid by farmers of trends in farm tax
alton, of taxes and agricultural income
from various types of farm tenure. Of
farm assessments and farm values. as
well as of the incidents and effects OF
farm values.
Here are few of Mr.. Coombs' con-
illusions:
About 80 per cent of the net rent Of
farm real estate goes into taxes.
From 1872 to 81 per cent Of returns
on farms operated by owners goes into
taxes.
The period of rapid rise in farm
taxes is past.
1.-The rate of increase in State and
local taxes will be less than it has been,
but no general reduction in farm taxes
is likely to come from a decrease in
local expenditures" says Mr.. Coombs.
"It may come either through new
methods of financing certain Govern
ment expenditures, such as more State
support for the schools, or through the
introduction of new sources of local
revenues to supplement the general
property tax"
Taxes have become one of the key
factors in the farming situation.
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