Evening star., 1933-10-10

Success achieved by the New York
Stock Exchange in its battle with the
local city government over proposed
drastic new tax laws attracts the at
tention Of the country. with emphasis
on the question Of extravagance in gov
ernment. The exchange stays IN New
York instead Of moving to New Jersey.
Its strategy is viewed with mixed feel
ings, but it is felt that it has pointed
the way for others desiring to rebel
against high taxes.
Two bills adopted by the New York
City Assembly," the Rochester Times
Union explains, proposed to tax stock
shares and gross income Of security
dealers. Asserting Stock Exchange
transactions were already taxed to the
limit, that organization proposed to
move out Of the State and made
arrangements to rent q vacant city
market In Newark. This was at first
able that the move would have been
made If the proposed laws had not been
vetoed by Mayor O'Brien, who con-
fessed that he was facing q situation
that was beyond his control The city
sadly needs the 10 million dollars which
the proposed taxes were confidently ex-
pected to produce. But If the Stock
exchange should depart from the city
the damage to property and business
lions"
There was danger" says the Atlanta
Journal, mot merely of the Stock Ex-
change moving away, but Of the security
business being driven out Of New York
State and, hence. Of the loss Of great
public revenues to the State itself. The
New YORK Stock Exchange Is only one
o. nearly twoscore such organizations
chicago, including the Curb and the
Board OF Trade, and there are notable
exchanges in Boston, Philadelphia.
Pittsburgh. Baltimore, New Orleans, Los
Angeles. San Francisco, Milwaukee, st.
Louis, Detroit, Cleveland and Cincin-
natl. But the New York Stock Ex-
change exceeds all others In the volume
OF itS transactions, upward of 80 per
cent OF which are said to arise from
orders outside Of New York city"
1T Is q tradition as well as an in
stitution," according to the Port Huron
Times Herald, but as q business it is
something the most greedy Tammany
politician would hardly risk driving to
another city" That paper holds that
the exchange "is so much q feature of
the life and business Of the city that
1t might almost be imagined the city
would lose its financial standing II it
should move away" The Scranton
Times offers the Judgment as to the
essence of the controversy: "It is
repetition of the old story of q COM
munity losing by excessive and unfair
taxation. With this source of expected
income dried up and the bankers hold
ing out against advancing any more
money to the city unless assured Of real
economy, the OBrien administration Is
forced into . situation where It must do
something real in the way Of cutting
down expenses by eliminating sinecures
and unnecessary jobs and wiping out
other extravaSapces."
''The fable Of TIE goose that laid the
golden egg seems to 69vc been written
specially for this situation suggests
the Charleston (s. c. Evenink- Post,
recognizing that stock exchange bt3St-
ness 1s easy to tax, and most Of It
done by persons Of means who are
supposed to be able to pay the tax
without finching, and q great number
Of whom are people outside of New
York" The Evening Post adds that it
is made especially easy by the volumi-
nous and accurate records kept Of all
transactions"
1T seems to be clear" advises the
Newark Evening News, "that the threat
TO move the exchange penetrated deep,
y INTO the GeV y1sk consciousness"
~ . the enpseQ1onees q the proposed
m0ve. tn14 paper EdkB 8e eocenSe