davidaulloa/AmericanStories huggingface dataset:
Evening star., 1931-12-18
GIFT TAX RETURN
SEEN BY EXPERTS
Substantial Amount OF HoIi-
day Buying Expected to
Yield Revenues.
BY JOHN r. MILLER.

although the gifts that will be made
| thls Christmas may not be as large as
IN some former years there will be
some very substantial ones, tax ex-
pertS predicted today. 1t is now al
most certain that the old gift tax will
! be reinstated, they pointed out.
mat levy was first imposed under
Sectlon 3l9 OF the revenue act OF 1924
and was repealed as of January |, 1926
Inc rates were graduated and ranged
orl9lnany from l per cent to 40 Der
cent. They were later reduced 10 make
the maximum levy 25 per cent.
Object of Tax.
Ihe return Of the gift tax. unlike
some OF the other 1924 leyieS will not
pc que primarily to the fact that the
government needs this source of reye-
nue.. but to prevent evasion of the
estate tax. Under the law gifts made
IN contemplation of death are subject
10 the death tax, but for some reason
the Government has never been able
70 make any use Of that provision. In
Almost every case in which the point
mas neen an issue the courts have ruled
IN favor of the taxpayer and held that
death was not the impelIinq motive
When the gift tax was repealed In
1870, Congress foresaW that such
hltuatlon would probably arise and at
tempted 10 provide for it by a statute
under which all gifts made within two
years before death are conclu,fv-lv
presumed to have been made in con.
temptation of death In other words
person made gift and died within
t"O years, the amount of the gift was
70 De subjected to the death tax
nat statute is arbitrary and uncon-
SCltutlonal, several of the Federal courts
nave neId, and the question is now be-
dole e the supreme Court of the United
states. Any doubt that it would AFFIRM
the decisions of the lower courts VIZ ~,
dlSpelled few days ago when Justice
ROBERTS cited case in point with evi-
cent approval That case. decided bv
me supreme Court several years ago.
Ai'oiVeo a Wisconsin statute under
"Alch an arbitrary period of six wears
was set Justice Holmes registered the
only dissent in the recent opinion bv
Justice Roberts
Apparently the only way to take care
OF the situation is to do away with the
t"o-year llmitation-in other words In
make all gifts taxable regardless of
Wnen made and regardless of the mo-
tive. VAN Aii0-
Retroactive Clause Unlikely.
Ihere will be no difficulty in getting
congress to approve such a measure
oeVera! OF the members have already
expressed themselves in favor of the
ieVy' pointing out that the Government
mas lost a large amount of revenue
onrough us failure to collect a tax from
certain large estates.
In all probability Congress will not
attempt TO make retroactive anv law
winch 1t may enact In fact such
statute would probably be held invalid
NO tax will be imposed on gifts already
maze or. on those made between now
dno the date the new law becomes ef-
lectlVe, tax attorneys believe.
CCopyright. l93lD
Evening star., 1931-12-18
BY DR.. MAX WINKLER.

Special Dispatch to The Star.
NEW YORK. December 18.-Con-
gressmen do not hesitate to make
sensational statements so long as 1t
keeps them before the public particu-
larly before their constituents. The &C
curacy Of such statements they rarely.
if ever. 90 to the trouble Of verifying
The latest example IN this direction IS
the outburst of Representative Louis T.
McFadden. who accuses the President
of proposing to sell the United States
to Germany.
What the Nations Executive actually
proposes to do is to make possible re-
vival of business and an early return
to prosperity He feels. and in this re-
spect all serious minded people Will
share his views. that intergovernmental
debts, including reparations constitute
the principal obstacle to speedy re-
Mobilization 1t is, however, unfortu-
nate that statements such as that of
Mr.. McFadden gain wide publicity and
cause irretrievable damage.
The Representative from Pennsylva-
MIA and many of his colleagues do not
apparently realize that a default on
German commercial loans will hurt the
investing public who hold these bonds,
and not the interests who merely sold
them.
MKT 10 Show Margin.
The Missouri Kansas Texas lines are
expected to earn their fixed charges
this wear, with a margin OF about S7OO.-
600. according to a statement issued by
the COMPANY. This will be achieved
through economies and improvement IN
efficiency.
The statement also calls attention 70
the Improvement which took place in
October, adding that if it had been
maintained in November and through
December the road would have made a
most noteworthy showing for such
year as this. The foregoing comment
was made in connection with the pass
ing of the quarterly dividend on the
preferred.
An official of the Baltimore & Ohio
recently estimated the roads earnings
for 1881 at 81 a share. Thus the divi-
dend would seem covered. Quotations
on the common stock. however, clearly
indicated that payment would be omit
ted at Yesterdays meeting and only the
preferred dividend was declared. This
should please some of the spectators
who are understood to have been heavy
sellers of common for the past several
weeks.
Dollar Weathers Storm.
AS to the roads funded debt, 1t is
worth pointing out that the service
charges are being earned by an ade-
quate margin.
The American dollar, the Federal Re
serve and the American banking system
have weathered the storm triumphantly,
according to Col Leonard P. Ayres, vice
president of the Cleveland Trust Co.
and one of the country's best known
economists and business forecasters.
Col. Ayres also points out that public
confidence in money and credits has
been increasing again and that hoard
ing has slowed to small proportions
The two main forces, the colonel
adds, which have caused the business
Evening star., 1931-12-18
GLOOM SUPPLANTS OPTIMISM
IN WORLD FINANCIAL CENTERS
Special Dispatch to The Star.

opeclal DlSpatch t0The Star.
NEW YORK, December 18.-How
times have changed! Less than two
and half years sufficed to convert the
world from place of cheer and op-
timism into one Of gloom and pessi-
mism.
In 1929, economists and statesmen
on both sides OF the Atlantic could see
nothing but a continuation of pros
perity. They could see a securities
market moving in only one direction
namely, higher. Any one who dared
hold different view was looked upon
as a traitor To be bearish on the
American securities market, despite the
fantastic quotations which obtained,
was tantamount to high treason. Dis
counting the future growth Of the
United States was the slogan of the
day.
Analysis of prices revealed, however,
that not alone the future. but the
hereafter was being discounted 1t was
futile to issue warnings. No one took
them seriously, and shares went mer-
rily higher.
Buying Was Universal.
Men abandoned their business and
joined the army of worshipers of Apis
-LTe sacred DULL Az HIS dltdT tHe
Nation-nay, the whole world-brought
sacrifices. Even transatlantic liners,
where one could ordinarily rest from
the hustle of Wall Street, had fully
equipped brokerage Offices, making it
possible to buy and sell even while
away from home.
The rise in shares was greatly helped
by the enormous number of So-called
investment trusts which we're being
organized They Immediately entered
the market on a large scale and pur-
chased the so-called leaders.
The result was that the portfolio Of
one was almost identical with that of
another. They all began with Air
Reduction and ended with Woolworth
Some started with Abitibi Paper and
ended with Zenith Radio. They were
quoted at substantially above the So
called breakup or liquidating value.
This premium, SO it was said, rep
resented the ability of the management
to make money. Bonds were anathema
to the trusts. If it happened that one
or two bonds were contained among q
trusts holdings, their presence was ex-
cused on the grounds that they were
either convertible or had certain stock
purchase privileges
A wave of speculation, unparalleled
in the history of finance, engulfed the
Nation. Many who had withstood the
temptation at first succumbed sooner
or later.
Evening star., 1931-12-18
|STR|CTER BUDGET
POLICY IS URGED
Business Organizations in
Movement to Reduce Gov
ernment Expenses.
BY CHAS. p. SCHAEFFER.
Associated Press Business Writer.

Foundation for drive to increase The
purchasing power OF the tax dollar was
laid in Washington recently at con-
ference participated in by IL promi-
nent business organizations of the
country
Held under the joint auspices Of the
Chamber of Commerce of the United
States and the BrookingS Institute, the
parley stressed elimination of waste and
increase of efficiency of public services
as the most promising means of avoid
ing tax increases, and of bringing Gov
ernmental finances onto basis consist
ent with current taxpaying ability.
Extent of Recommendations.
recommendations of the conference
covered a wide field. Among the most
important Of them are:
Budget systems should be made to
provide adequate control of expendi-
lures.
Public officials, citizens and business
and civic agencies should cooperate in
the appointment Of voluntary commits
sions to advise with officials as to possi-
BILE Curtallments and improvements of
public services and as to temporary
suspension Of secondary activities.
Studies should be made of possible
moderniZation Of administrative prac-
ticeS
States should furnish financial advice
to local governments and assume more
direct supel vision over their fiscal af-
fairs
The terms of bonds for capital i'm
provements should not exceed the life
of the improvements.
Local governments should be con-
solidated to eliminate overlapping and
duplication.
Other Participants.
Other organizations participating in
the conference were: Detroit Bureau CT
Governmental Research, Governmental
Research Association Of New York, Mu-
nicipal Administration Service, New
York National Association Of Real
Estate Boards, Chicago; National Com
mttee on Municipal Standards, Chi
cago National Institute of Public Ad-
ministration. New York; National Mu-
nicipal League, New YORK; National Tax
Association, New York, and Public Ad-
mlnistration Clearing House, Chicago.
Evening star., 1931-12-18
COPPER PRICES ADVANCED,

NEW YORK, December 18 CP,-Fol-
lowing yesterdays advance Of /. cent
in the domestic price of copper to 7
cents Copper Exporters, Inc, today ad-
Vanced the price of copper abroad y
cent to the equivalent of ia cents On
this basis the domestic price would be
7l4 cents, or Il cent higher than the
quotation in effect when the market
closed last night.
The copper trade expected the
domestic price would soon be revised
upward to conform to the new foreign
price.
Evening star., 1931-12-18
Dividends and Non-Divldends.

NEW YORK, December l8 (Specian.
The stocks that are weakest are those
that are paying dividends, but which
rumor says will be. reduced or passed.
Those that show the most resistance are
from the group that either has paid
no dividend or has had its dividend
omitted The worst that could befall
these issues is known. A case in point
is New York Central, which declined
with little check from above 100 to
below 25, but has since Wednesday been
one of the strongest shares on the list.
Evening star., 1931-12-18

Seventeen months the orgy lasted
Then came the crash. The sacred
bull died and, with him, countless wor-
shippers The wiser than thou" man
sgement trusts were quite as helpless
as all other ordinary mortals who were
not regarded as experts on securities
prices, and who were not known to
possess the rare gifts of being able to
forecast accurately future price move
ments. Stocks collapsed and shares of
trusts declined even more violently.
They were now selling considerably be-
low the liquidating value, the dis
count apparently representing the abil-
lty OF the management to lose money.
Pendulum Swung Too Far.
The pendulum admittedly had swung
too far in one direction in 1929. 1t has
swung too far In the other in 1881
Fundamentals, to be sure, still leave a
good deal to be desired, but the recess
sion unquestiQnably has gone too far
No one rang the bell signaling the
end of the bear market. 1t will come
when least expected
Economic crises are not new phe-
nomena They have occurred at all
times throughout the ages. 1t may
seem strange to call attention to the
fact that earlier crises were almost
always regarded as the worst which had
occurred up to that time.
Every one deemed it his duty to sub
nit plan to remedy the situation.
Every one blamed the Government
for its failure to provide profitable
orders to industry and employment
for all
Threatened shortage of gold and de-
probation of silver were almost inyari-
ably cited as the chief cause of eco
nomic difficulties. Executives of nations
ordered Investigations. Conferences
were convened and resolutions were
adopted
But prosperity could not be brought
back by DEGREES, just as the depression
had not occurred as the result Of legis-
lative acts Just as war and peace fol-
low each other with more or less regu-
larity, so do CRISES and boomS
The present depression is not much
different from previous panics. 1t is
not The worst Others have been just
as severe. And just as others have
come to an end SO will the present
crisis collapse, to be followed. as it
happened on previous occasions by an
era of prosperity Of much longer dura-
ton than the preceding period of stress
Those who have courage in the midst
OF general diSmay are bound TO reap
substantial profits.
(Copyright 1881. by the North American
Newspaper Alliance. IncD
Evening star., 1931-12-18
POTATO MARKET,

CHICAGO, December 18 P.-
UNITED States Department of Agricul-
ture) Potatoes-Receipts, 4s cars; on
track, 225; total United States ship
ments, AT; dull trading rather slow:
sacked per hundred-weight, Wisconsin
round whites, 75a85 unclassified, few
sales, 10: Idaho Russets No. /, l.45a1 IS:
few higher; commercials, few sales,
100; Nebraskan Triumphs, LOCAL .l21,.
Evening star., 1931-12-18
SUGAR FARLEY ADJOURNS.

PARIS. December 18 lP).-Leaders of
the International Sugar Control con-
ference said today the conference has
been adjourned until January 5 and
that no agreement to limit sugar pro-
ductiOn was reached,
The adjournment, they said, was
taken to await further trade figures. It
was made necessary by the lack of
complete production statistics from
some countries
Evening star., 1931-12-18
2eceivership Asked.

BALTIMORE, December 18 (Spe-
claD.-A petition asking that receiv-
ers be appointed for the Appalachian
Corporation. engaged in the investment
business, was filed in the Circuit Court
yesterday by B. Edward Cohen, stock
holder, who alleges that the corpora
tion has lost sl,8sO,O0o, or s5 per cent
OF its capital since August 80, 1929
Evening star., 1931-12-18
CALLS CERTAIN STOCKS
IN BUYING AREAS

While not all stocks and bonds are
now in buying area, and while some
are likely to experience further de-
clines, there are numerous issues which
can now be bought with the confident
expectation that they will not greatly
oepreclate from now on and will show
good profits to investors in the rea-
sonably near future, accrding to
recent market advisory bulletin of r.
W. McNeel, director of McNeels Finan-
clal Service of Boston.
Evening star., 1931-12-18
New York Cotton

Specln! Dispatch 10 The Star,
NEW YORK. December ls.-Cotton
prices were little changed at the open
ing OF the market today. Trading was
IN slow volume with trade purchases
Just about offsetting professional offer
ings
December opened at 6.04. of /: jan
vary, 6O8. up l; March. 625, un-
changed; May 646 I'D 2: july, $50
up l, and October. 6.88. up |.
Evening star., 1931-12-18
Petition in Bankruptcy.

BALTIMORE. December 18 CSpeciaD. .
Samuel NJ. Mcmillan Of Riverdale,
Prince Georges County. has filed a pc
tition in the United States District
Court, asking to be declared bank
rupt. The petitioner has Sl8.403.75 as
sets and Sl238O.O7 liabilities
Orders were signed adjudicating him
q bankrupt and referring the case to
Daniel M. Murray, referee.
Evening star., 1931-12-18
PARIS BOURSE PRICES.

PARIS, December 18 (P.-Three per
cent rentes, 79 francs Is centimes.
i Five per cent loan, SO francs As CEN
| times.
Exchange on London, 85 francs "a
Is francs 4lA centimes.
Evening star., 1931-12-18
through reckless and willful expendi

Judge Albert S. j. Owens signed an
order requiring the corporation to show
cause by January 2 why the petition
should not be granted.
The petition also said that officers
and employees of the corporation were
paid excessive salaries and that the of.
flcers had purchased stock at high and
excessive prices, leaving assets of onlv
about $4,000. Cohen likewise re-.
Evening star., 1931-12-18

quested that the officers be restrained
from disposing of the corporations as
sets and that an accounting be rem
dered.
Evening star., 1931-12-18
-" Com Edison. 70 l

fub Svc N II Feb 1s 2s 2ls Us
na rates in dollars quarterly Of semi
'Ex dividend +Plus 4Ts stock.
dividend 81 in stoek Phyaps % s in tosk fins IN IN
stock' Pus % stock plus in stock m
STOCK Plus stock Pais sst yeano regular rate
Evening star., 1931-12-18
BONDS.
20
TrIuc<~l

Copyright, 1881, Standard Statistics co.,
Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-26

been beguiled into membership by
an appeal in the sacred name of
peace, q peace which all the think
ing world holds as an ideal, but q
peace which probably cannot be
even measurably attained until
human nature has undergonesa most
complete transformation"
Senator Moses finds no severity Of
criticism" for these sincere and mis-
guided thousands" but he Is less chart
table with the high-presSure statesmen
and saleswomen engaged In "seducine
by false. pretenses" a large number OF
well meaning American citizens, who
are led to believe that their cash is
helping to buy peace in q world highly
reluctant to place its faith in anything
but steel and shell.
Close observers Of the pacifists'
Vaccinations at Washington will con-
cur in Senator Moses caStigation. They
are out to smash the treaty navy. II
a vocal and skillful minority is not to
prevail on Capitol Hill again next Win
ter, the friends Of American prepared
ness at sea will have to bestir them
selves.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-26

BY THE RIGHT REV. JAMES E. FREEMAN, D. D.. IL. D..
Bishop of Washington
Tert: 'Whdt shall q man 0iue tn
exchange for his Hte?"-St. Mat
theU, Ttf.26.

Tert: "What shall q man 0iue tn
exchange for his Hte?"-St. Mat
theD, TUf.26.
AS the Master came to the close Of
His ministry EO talked moro intimate
ly with His immediate followers and
His teaching became more personal.
He has been saying here. "If any man
will come after me, let him deny him
self and take up his cross daily. and
follow me-" Following this, He places
a fresh emphasis upon the transcend
ent worth and value Of life. Repeat
eddy in the course Of His teaching he
talked Of life as mans chief concern.
Again and again He affirmed that his
great quest was its enrichment and full
fillment. He thought of it not alone
in terms Of the physical but of the
spiritual. He sought to expand mans
vision by defining life in terms of its
highest and fullest attainment. In the
above text He is literally saying what
Is a man prof1ted II he gain the whole
world at the cost OF his life, and having
gained it. what shall he then give in
exchange for the recovery of that which
he has loSt?" In another place He asked
the question, Us not the life more than
food, and the body than clothing?"
Where the value Of life Is properly
understood He could not conceive that
a man would sacrifice it for any ma
terial advantage the world might give
him.
His query brings up before our vision
many observations we have made of
men and women who, for the passing
satisfaction Of some desire or passion,
have sacrificed that which was most
precious to them, namely, life itself
Once it Is forfeited they are prepared
to give in exchange for its recovery
all that they possess. The homely
phrase. You cannot have your cake and
eat it." Is suggestive of this. We con-
stantly meet individuals who, for the
acquisition Of that which they desire,
or the satisfaction Of their appetites
and passions, have literally paid the
price in terms Of health and strength.
When once they realize they have for
feited that which Is most precious to
them for "a mess OF pottage," they
Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-26
Paciists and the Navy.

Senator Moses spoke a useful and
Enthusiastically vigorous word before
the Daughters of the American Revolu-
ton on Friday night when he called
attention TO the activities Of the profess
sional pacifists-"patriots," the Presi-
dent pro tenn Of the Senate said, who
throng Washington and receive pay for
their efforts to undermine national de-
Tense"
It is lamentably the fact that the
foes Of adequate preparedness at sea,
though they do not by any means
represent a majority Of the American
people, have, through their lobby in
Congress, been largely responsible for
the inability of successive administra-
tons to secure necessary naval legis-
lation. Senator Moses gave the D. A. r.
an insight into the methods Of the well
organized pacifist movement.
THE purpose Of the various groups
which comprise It," the hard-hitting
solon from New Hampshire declares,
rs to render the United States
wholly defenseless except from the
panoply which virtue provides. The
officers Of these organizations are as
alert as they are fanatical. as plau-
sible as they are impudent, and far
more effective than either their
cause or their number warrants.
1T Is true that they assume to
speak for many thousands, and 1t
probably is true that these thou
sands will be found upon their mem
bership rolls. But / believe that no
inconeiderable number OF these
thousands can be shown TO have
Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-26

speedily betake themselves to some
"cure." hoping thereby to recover that
which they have lost. A striking in
stance Of what we mean came under
our personal observation several years
ago. A man Of rare culture, who had
come to occupy an outstanding place
in his chosen profession, came to tell
me that all he had accomplished had
been sacrificed for the satisfaction OF
a ruling passion that had left him ut
terly impoverished and stripped of
everything that he held dearest. I
reminded him Of the words of Christ
where he said, II am come to seek and
to save that which was lost" to which
he responded that he felt himself SO
far gone he was wholly incapable of
recovering the position and honor he
had willfully sacrificed. It was only by
long and careful cultivation, covering
q period of several years, that we
brought him to a position where he
could feel himself restored, and that
only by persuading him that in the
teaching Of Christ there was no such
thing as "no-hope case" saw the
his profession, but actually so COM
pletely renewed in mind, body and
spirit as to recover the distinction he
had lost in the days Of his profligate
living. 1t was one of those miracles
that do more to strengthen ones
faith than all else.
Christ insists that every man is
largely the architect Of his own SPIRIT
ual fortunes; that 1t Is within his power,
II he so wills it, to survive the in
fluenceS Of heredity and environment.
but this only when he recognizes at
its full worth the deep meaning and
significance Of life itself. The prayer
of the old Scotch woman comes back
to us, 20 Lord, help me to have a
good opinion of myselfl'' In his ad-
dress to Queen Victoria at her dia-
mond jubilee. the poet laureate said:
20 loyal to the royal in myself"
To be loyal to the royal in our cwn
nature means to recognize that our
chief business here Is the development
of character Of such sort and kind
that 1t is worthy to survive.
What shall man give in exchange
for his life?"