Evening star., 1932-04-06

the. volume of such transactions in
normal times.
In view, however, of the present
conditions existing in the security
markets." he said, 1T is a doubtful
wisdom to attempt an experiment OF
this kind Indeed. those men compe-
tent to know advise us that such tax
will seriously curtail legitimate and
necessary activity on the security
markets.
THE provision intended to effect the
application of the stock transfer tax to
transfers occurring outside the United
States calls for close study. Obviously
there is doubt as to the legal power to
give the tax eXtraterritorial effect and
doubt as to whether the provisions OF
this section are capable of administra-
tion or of Just application.
From the administrative standpoint,
there is some objection to basing a
stamp tax liability upon consideration
of selling price of value instead of the
simpler consideration of number or par
value Of shares, which permit the tax
to be most readily and definitely de-
termined."
Suggests Excise Taxes.
To supply the revenue which the
changes he suggested would cut out of
the bill, he suggested the Finance Com
mittee resort to some of the Selective
excise taxes embodied in the Treasury
program he resubmitted.
Departing once from his prepared
statement, Miss estimated that incomes
of more than 100000 amounted to s4,-
500,000000 in 1928 and to s550000, 900
in 1881.
Mills took with him a staff of Treas
ury experts and gave his testimony to
the committee in executive session.
Outside the Finance Committee room
swarm of representatives of various
businesses awaited an opportunity to
get in word on the measure.
The calendar for hearings issued by
the committee contained more than 50
names of witnesses and the schedule
ran until April %.
Sharp criticism of the proposed tax
on stock transfers was put before Chair
man Smoct by two New York real estate
men in an informal conference lust
before the committee began its session
They were Richard G. Babbage. chair
man of the board of the United States
Realty & improvement Co., and Ed
ward p Doyle, director of the Bureau
of Public Affairs CT the New York Real
Estate Board.
They said the tax was too large and
if put into effect it would drive many
brokerage houses out of business and
would throw more than 100000 en-
ployes out of work.
Detailed Plan Asked.
Senator Harrison of Mississippi
ranking Democrat on the committee,
asked Mills for his specific program.
The Secretary said he felt the COM
mittee could take the Treasury's orig
inal recommendations to supplement
revenue lost by elimination of pro-
visions against which he complained.
Harrison proposed that Mills submit
a new and specific program.
Frankly" replied Mills, Il much
prefer the Treasury's original program.
think the bill proposed by the Ways
and Means Committee was all right,
but I prefer our first program"
Chairman Smoot and Harrison asked
Mills to submit in detailed form Just
what he would cut out of the bill and
substitute.
Replying to Senator Connally Demo-
crat of Texas, the Secretary opposed
any attempt now to impose a retroac-
years income payable this year.
Won't Urge Sales Tax.
THE Treasury believes the time is
past for levying retroactive tax in
crease" replied Mills The income
taxes were paid on March Is. 1t is out
of the question in our mind 1t is i'm
practicable and you do the taxpayer an
injustice We favored such a move
prior to the first tax payments on
March IS"
The discussion turned to the general
sales tax which was stricken from the
bill by the House.
Let us get it straight" said Senator
Gore. Democrat Oklahoma In view
of the decisive House vote against the
sales tax. we aren't going to waste time
and try and revive it."
The Treasury" replied Mills firmly
will make no recommendation for the
manufacturers sales tax now"
Mills declined to express an opinion
on the policy of putting tariff rates in
the revenue bill as was done by the
House in levying import duties on coal
and oil
Democrats pressed him closely for a
commitment on these rates, but he
declined to go on record