Evening star., 1936-10-01
HOOVER TO TALK
W|THG0v.LAND0N
Leaves for Topeka After
Denver Speech Attacking
Income Tax.
By the Associe .ed Press.

Oy V0k 1erUSlG SC0 Coos
DENVER, October 1.-Herbert
Hoover left Denver early today on
Topeka bound train and his secretary,
Lawrence P. Richey, said the former
President would meet with" Gov.
ALI M. Landon, Republican presiden-
tial nominee, this afternoon.
Richey's announcement came short
~ after Hoover had assailed Federal
tax policies In an address last night
to the Metal Mining Convention Of the
American Mining Congress.
Richey said Hoover had been in
vited several days ago to stop OF in
Topeka. He did not disclose the
source Of the invitation.
Hoover boarded the train carrying
Q ticket routing him through to Kan
sas City and by another line to Chi
cago. His secretary, however, in
quired about stops at Topeka
Route Is Changed.
Richey's announcement Of the To.
peka trip altered one given previously
that Hoover would remain here until
late this afternoon and then 60 to
Battle Greek, Mich, to attend meet
ing Of the Kellogg Foundation.
I'VE changed our route" Richey
said.
The former President had planned
to leave Denver at midnight, but his
train (Union Pacific was late and he
did not leave until 2:50 am. IN. s. TJ.
The train was scheduled to reach
Topeka at 2:20 pm. Central time).
In his address to the mining execu-
tives, Hoover asserted the tax on un-
distributed corporation PROFITS "tends
to stifle honest enterprise, to lessen
national assets, to help the powerful
instead Of the weak, to cost men Jobs. I"
Terror to Honest Citizens.
He called the present income tax
"a torment and terror to the honest
citizen" and urged revision of Federal
inheritance tax laws.
He also advocated q constitutional
amendment abolishing "all tax exemp-
tions on Government securities"
Hoover specified he was not calling
Tor reduction Of taxes. THAT Is not
iOSo3oAS AA4S&A G4AC bhd6Ct - 0dlok1CCO,
he said.
Mr.. Hoover disclaimed any partisan
political motive behind the address,
remarking, mo doubt any form of
public expression can be distorted as
politics except grooming. What have
to say is merely objective sociology and
economies. II you get political emo
tions out Of it, then that is the product
Of your mind, not of mine"
Erects Barriers,
The corporation tax law providing
o tax on undistributed profits erects
barriers which stop the honest and
necessary activity Of o multitude of
honest men," former President Hoover
asserted.
THE new law says that If
you use your profits to improve and
build up this (minirig) business, you
must pay the Government up to over
DO per cent on these profits. 80
IF the Government is going to
take up to 40 per cent Of the tenn
porary profits from each ultimate
failure, as well as the successes, the
miner does not stand . dogs chance.
"a This taxation favors the big
mining corporations. These concerns
'' can take up a dozen prospects
and write OF the losses against profit
able ones"
Situation General.
Much the same situation exists in
oil the smaller units of business gen.
orally. They have been made from
plowing in profits. Without doing
that they never would have lodged
infant mortality. ="
There are times when every busi-
ness will lose money. 1t is at Just
such times that they cannot secure
capital. II they have cash reserves
they can hold staff and workmen
together until things improve. .
The industries of the United States
spent billions Of their reserves doing
that very thing In this depression. If
they have been forced to pay out all
their profits in dividends to stock
holders in good times, bad times will
mean vastly increased bankruptcy and
many more workers on relief"
Hoover proposed four changes in