Evening star., 1937-06-25


ready have another type of chain store
tax, based on the number of stores
within their States, but are consider
ing the Louisiana system. based on the
number Of stores anywhere.
Three States during legislative ses-
sions in 1887 adopted new chain store
taxation, where they had none before
Pennsylvania with its top tax of $500
already has driven many stores out of
business there, in both Philadelphia
and Pittsburgh. Souh Dakota has put
on a top tax of $3.50 for stores in
chains Of more than 40 stores, and
Georgia put on a levy Of 5000 top for
chains with more than 40 stores.
California Tax Repealed.
On the other hand California by a
State referendum repealed It's chain
store tax Of $500 top for chains Of
more than 10 stores, even before the
tax had q chance to be placed into
effect, The referendum defeated the
tax by majority OF more than 300 900
popular votes, when 81 out of So coun-
ties in the State opposed the tax.
Maine this year repealed its chain
store tax of $50 top In nine States.
proposals for chain store taxes failed
during this year. Three of these. Colo
rado, Florida and Iowa, defeated pro-
posals to increase existing chain store
taxes. but left the old ones in effect:
but six others defeated original pro-
posals Arkansas. Connecticut, Illinois.
Massachusetts, Oklahoma and Utah.
Here in the District of Columbia
there are 5000 stores owned by indi-
vldual merchants and l,l5O operated
by chain store companies in all lines
OF business. In 1885. according to the
Census Bureau, there were 1929 food
stores in the District, operated by in
dependent merchants, as against ATS
1ood stores operated by the chains.
The other stores making up the total
sell other commodities than food,
Figures Of the Department of Com
merce disagree with an estimate of
the percentage Of business claimed
for the chain stores here bv Repre-
sentative Dies of Texas, author of the
chain store tax. Dies charged chain
stores sold "a per cent of the food
here. The Bureau of the Census saws
that in 1885 the ATS chain food stores
sold 532 per cent of the total food
here. The Federal Trade Commits
sion in chain store report declared !:
1T may be definitely stated that
chain store prices on comparable
standard brand merchandise average
substantially lower than those on
independent retailers"
Taxes Now Paid.
In opposing the chain store tax.
representatives of the chain stores
will contend that the chain stores
already are large taxpayers. One
group OF food and grocery stores with
235 separate establishments last year
paid tangible and Intangible taxes on
inventories and bank balances amount
ing to sl4l.4 per store.
Another group with IS outlets here.
dealing in foods and groceries, paid
taxes averaging sl3o.06 per store. A
drug group, operating 35 stores here,
paid taxes in 1885 on tangibles and
intangibles, that is, inventories and
cash balances in the banks, Of s5l759
per store.
The chain store tax would not be
confined, however, to foods and gro-
ceries, but would affect all kinds of
chains, dealing in gasoline, ice cream,
hardware or any kind Of commodity.
The chain store tax is q super tax
which will be laid on all chains, in
addition to the business privilege tax
of three-fifths Of l per cent, which all
business and professions here must
pay.
The cost of living in the District
of Columbia already is higher than in
So other selected cities of comparable
conditions throughout the United
States, according to survey by the
Works Progress Administration. The
principal cause of the higher costs
here was said by officials to be due to
higher rents. The cost of food here,
however, was found to be higher than
in all but three of the SO cities.