davidaulloa/AmericanStories huggingface dataset:
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1937-06-01

tax savings he thus sought to
obtain through the use Of the
holding company were $4,000.
"One wealthy woman has i'm
proved on the general plan of
evasion by causing her personal
holding company, which owns
her country place, to employ
her husband at a salary to man.
age it. She can thereby supply
him with pocket money, and in
effect claims a tax deduction for
theexpenSe of maintaining him.
Artificial Deductions
IS. The device or artificial de-
auctions for interest, losses, ETC.:
Taxpayers are seeking greatly
to reduce their personal income
taxes by claiming deductions for
interest on loans to them by
their personal holding conf
panies, or on loans to them ~
their family trusts. These trans
actions normally have no bust
ness purposes, but are merely an
artificial means of shifting in
come from one member of the
family subject to high Surtax
rates to another member of the
family subject to lower rates.
Thus, one woman claims 3
large annual deduction for in
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1937-06-01

SCHOOLS AND COLLEGES
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1937-06-01

terest on a loan made to her by
her husband as trustee of a
trust which she created for their.
children. The mother thereby
seeks to secure a deduction for
her contribution to the child
ren'S support, and since the
trust is revocable by her hus-
band, the parents still have the
desired control over the property
and it's income.
In the same category are
losses deducted by taxpayers
who claim that their racing
stables or hobby farms were
operated for profit, even though
a profit is never realized. Thus,
a prominent manufacturer seeks
a deduction of over $125 900
against his income for his busl-
ness, on account of his losses in
operating a chicken farm.
Splitting Up Incomes
IS. The device of the creation
of multiple trusts for relatives
and dependents:
Splitting income two ways,
between husband and wife, re-
duces income taxes and leaves
the family income intact. Split
ting the family income many
ways by means of many trusts,
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1937-06-01

all for the same beneficiaries,
may effect a much greater saw
ing, while leaving the money
actually in the same hands. For
the creator of the trust often
constitutes himself or his wife
as trustee, and thus retains full
control over the investment and
disposition of the fund itself and
of its income.
"One thrifty taxpayer has
formed 81 trusts for the benefit
of four members of his immed1-
ate family, and thereby claims
to have saved them over $485,-
900 in one year in taxes.
Another thrifty pair have
constituted 40 trusts for their
relatives, and a prominent
lawyer and his wife utilize Is
trusts for the same purpose.
The first pair maintains mum.
bered brokerage accounts, and
only at the end of the year are
the beneficial owners identified.
In this way innumerable trans
actions are carried on. often be-
tween accounts, which do not
actually affect the beneficial in
terests of their owners, but
which are designed solely to re-
duce tax liability.
Pension Trusts
~. The device of husband and
wife or father and children
partnerships:
The purpose Of these partner
ships, like the multiple trusts, is
to split the family income arti.
ficially into two parts; or, if the
children are taken in, into still
smaller fractions.
There are many instances
of this kind; but to illustrate
the point, it is sufficient to cite
the case of a New York brok-
erage firm which late in 1885
admitted into partnership the
four minor children, two boys
and two girls, of one of the
partners. The tax saving he
sought thereby in 1886 amounted
to over $4,000.
"8. The device of pension
trusts.
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1937-06-01
Text of Presidents Message Urging Congress Halt Tax EvasOns

For 10 years the revenue
acts have sought to encourage
pension trusts for aged en-
ployes by providing corpora
tions with a special deduction
on account of contributions
thereto, and exempting the
trust itself from tax. Recently
this exemption has been twisted
into a means of tax avoidance
by the creation Of pension
trusts which include as benefi-
Charles only small groups of Of
ficerS and directors who are in
the high income brackets.
In this fashion high salaried
officers seek to provide them
selves with generous retiring al
lowanceS, while at the same
time the corporation claims a
deduction therefor, in the hope
that the fund may accumulate
income free from tax"
other tax eVaSionS listed by
Secretary Morgenthau are:
The division of. income between
husband and wife in the eight
community property States.
Taxation Of nonresident aliens
President Indignant
The President added:
"A feeling of indignation on
reading this letter will, 1 am
confident, be yours, as it was
mine.
II am confident that the Con-
greSs will wish to enact legiSla-
ton at this session specifically
and exclusively aimed at max
ing the present tax structure
evaSiOn-prOOf.
II am confident also that the
Congress will give to the Trea-
sury all authority necessary to
expand and complete the pres
ent preliminary investigation,
including, of course, full author
ity to summon witnesses and
compel their testimony. The
qualifications and the geOgraph-
ical scope of a complete investi-
CATION make it necessary to util-
ize every power of Government
which can contribute to the end
desired"
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1937-06-01
TAX DODGERS UPBRAIDED

took into partnership four minor
children, effecting a tax saving
of more than $4,000.
Feeling Of Indignation.
After reciting these numerous
examples of tax avoidance or
evasion, the President said:
"a feeling of indignation on
reading this letter will, 1 am
confident. be yours, as it was
mine.
I'VE are trying harder than
ever before to relieve suffering
and want, to protect the weak,
to curb avarice, to prevent bOOmS
and depreSSiOnS-and to balance
the budget. Taxation necessary
to these ends is the foundation
Of sound Governmental finance.
Clever little schemes are not
admirable when they undermine
the foundations of society.
THEIR JOINT CONCERN
"The three great branches Of
the Government have a joint
concern in this situation. First,
it is the duty of the Congress
to remove new lOOphOles devised
by attorneys for clients willing
to take an unethicaI advantage
of society and their own govern
ment. Second, it is the duty of
the executive branch of the Gov
eminent to collect taxes, to in
vestigate fully all questionable
cases, to prosecute where wrong
has been done, and to make
recommendations for closing
lOOphOleS. Third, it is the duty
of the courts to give full consider
alton to the intent Of the Con-
greSs in passing tax laws and to
give full consideration to all
evidence which points to an OBJ
jective of evasion on the part
of the taxpayer.
every definitely, the issue i'm
mediately before us is the single
one relating to the evasion or
unethical avoidance Of existing
laws. That should be kept
clearly in mind by the Congress
and the public.
ITS FIRST DUTY
"But it seems to me that the
first duty of Congress is to en-
power the Government to stop
these evil practices, and that
legislation to this end should not
be confused with legislation to
revise tax schedules. That is a
wholly different subject.
"In regard to that subject, 1
have already suggested to the
Congress that at this session
there should be no new taxes
and no changes of rates. And
have indicated to the Congress
that the Treasury will be pre-
pared by next November to pre-
sent to the appropriate commit
tees information on the basis Of
which the Congress may, If it
chooses, undertake revisiOns of
the tax structure"
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1937-06-01
Auto Union Leader
To See Lewis Here

OFT, June 1 QN.S).
Homer Martin, president of the
United Automobile Workers Union.
today announced he would fly to
Washington tomorrow for a con-
ference with John L. Lewis, c. I. o.
leader, on the union drive to Or
ganize Henry Ford'S 100000
workers.
One topic will be methods for
the second distribution of union
handbillS to the 10000 Ford work.
ers in the main plant Of the COM
pany at Dearborn.
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1937-06-01
FOR YOUR
Old ST0VE
on THIS 80.
MODERN
CLEnW:00D
Gas RANCE

Hundreds Of ranges have been sold
in this outstanding sale! "a. MdnY
more women will discover the joys Of
Modern Gas Cookery before it is over!
Give yourself q treat. Learn what one
Of these Modern Glenwood G q s
Ranges can do to make your kitchen
cool and curefree! Time is getting
short-see them today!
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1937-06-01
VIRGINIA

VISIT virginia lets, tourist iniorma-
ton, address: Conservation and Develop.
ment Commission, Dept. ID. 914 Capitol
St., Richmond, Va.
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1937-06-01
ATLANTIC CITY. N. J.

ARKANSAS and PACIFIC
hnRWnnh Rooms, 81 up. Special wkly
rates. Bathing from hotel.
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1937-06-01
VIRGINIA BEACH

New WaVsrIsy Hotel p v,cflnl Va.
Finest Surf Bathing. Golf, Tennis. Riding
Dancing. Ocean Front. Write to Mrs.
B. G, Porter, Mgr, for Booklet W..
Evening star., 1937-04-22
AUTOMOBILES FOR SALE.

sTUDEBAKER 1898 6-cyl. coupe. with
planar front-wheel suspension; $425:
terms: Barnes Motors. 1879 14th st. NV.
Decatur $500.
sTuDEBAKER 1885 b-pass. sedan. Die
ho!st!ery; good tires and splendid motor;
tol CADILLAC Co 1922 23nd st. NV, Ma
tional $500. Open Sunday and evening
STUDEBAKER 1895 sedan. S3o5. Original
beautiful black finish: trunk. motor. rub
bel, interior like new: very low mileaee. A
real sacrifice. easy terms. Century Motors,
2O22 l4th st. Potomac 24O9.
TERRAPLANE 1898 custom IS" foqr-door
outlast outperform and run cheaper than
any car even near the, price; Gold Seal
Flemins Motor Corp: champlain st: At
kalorama I'd. half block east OF 2155 18th
St NV. Columbia 1920.
TERRAPLANE 1894 custom sedan, spacious
puiltlin twd I'm trunk; low mileage and one Of
guaranteed and personally indorsed: s345.
EleminR Motor Corp, Champlain st. at
kalorama I'd. half block east OF 2155 18th
st. NV. Columbia 1920
Evening star., 1937-04-22
AUTOMOBILES FOR SALE.

TERRAPLANE 1885 coupe: Al condition
throughout; original factory dnish aunr-
anteed; sos down. $25 month. PRY MO-
TOR CAR CO. Branch. 1897 18th st.
TERIRsAP14ANE sRIsA 1898 coach, $4es. a real
rubber. interior you'd say new; low mile.
age: carefully driven: easy terms Cen
tury Motors. 2O22 l4th st. Fot. 24O9. .
TERRAPIANs 1,ls RI 1884 coupe, rumble seat q
been checked and is In the pink Of condi-
ona tion from stem to stern; Gold Seal euarar,-
{eed and personally indorsed; only S345
Eleming Motor Corp. Champlain st. st
st. NV. Columbia 1920 " Aos1A
Evening star., 1937-04-22
ACREAGE WANIEn.

30 HCRES. m VIRGINIA. Miles wM
e; water. sewer. gas electricity: piatted
IeaoS to be sold In lots For full informs.
Non. call JESSE LOEB National pOOp.
Evening star., 1937-04-22

PONTIAC 1885 5-pass coupe: beautiful
gray paint; fine. clean upholstery; excellent
tires; this Is very clean car: special price.
only Si45: G. c. C.. guaranty Capitol Cad
lllac Co. 1222 22nd st. Nv. National $500.
Open Sunday and evening
Evening star., 1937-04-22

PLYMOUTH 1885 4-door de luxe touring
sedan. with large built-in trunk: original
Jet-black Duco: car Is In fact almost a
or tenders and runs like a charm: will
satisfy the most discriminating buyer or
for only $685. trade or terms 8 months
to pay. or longer if necessary This car
Is far above the average and we give you
9O-day guarantee. Come in and see this
car: you will like it. Standard Motor Sales,
1905 l4th ST. NV North 229S
Evening star., 1937-04-22

PONTIAC 1885 master Silver Streak A.
This car has had the best OF care and
shows 1t. low mileage; real buy at
$3.50. terms. Barnes Motors. 1929 l4th
Evening star., 1937-04-22

DODGE 1885 touring sedan. with large
immaculate and has Summer tailored seat
covers; has only been driven a few thou
on the car: the spare has never been used
Motor performs like charm. and this car
without doubt will satisfy the most dis
eriminating buyer. Priced as a genuine
barsaln at $685.: easy terms: low finance
rates to suit you. Standard Motor Sales.
1905 14th ST. NV. North 22aS
Evening star., 1937-04-22

STuDEBAKER 1885 Dictator sedan; orig
inal. attractive blue finish is just like new:
large built-tn trunk. fine tires spotless up
holstery: mechanically perfect; at S4s5
this is the nnest buy in our stock. Pohanka
service: 1l26 goth st. NV. District DIAL.
Evening star., 1937-04-22

PONTIAC de. luxe 1894 touring sedan:
Silver Flash motor Special price to re-
sponsible party. Only 500 down. Evans
Palmer. N. Y. and Fla. aves. ne.
Evening star., 1937-04-22

DODGE 1885 convertible coupe: original
| Jet-black Duco; car is unusually clean and
mas Smooth-runnlnR motor; rumble seat
has never been used; has excellent leather
upholstery In golden brown color, which is
a splendld contrast with the color of the
automoblie; this car is q sport model and
has fine smart. conservative appearance:
has had only one former owner: a real buy
at only S535. Standard Motor Sales 1908
18th st n " North 22Q2
Evening star., 1937-04-22

PLYMOUTH 1885 sport coupe: rumble
seat: original gun metal Duco. clean as
pin and runs like charm; will satisfy
the most particular buyer A genuine bar
gain for only S435; easy terms. Standard
Motor Sales. 1905 l4th st. NV. North
Evening star., 1937-04-22

DODGE '36 coupe, a rugged motor q
smart model. an all-around good car: one
that will give maximum performance at
Wans Better tGneTBsHPg BH ana As Ser Al
SUPERIOR MOTORS. 1920 14th st. NV.
Decatur 13OO
Evening star., 1937-04-22

PONTIAC 1887 4-door sedan with largest
trunk; 8 cyl; carefully driven In Chevy
Chase i 200 miles; radio, heater; dis
count S125. 1921 Conn. Clev. S4O1.
Evening star., 1937-04-22

PLYMOUTH 1896 de luxe coupe. S495: has
rumble seat; radio. heater; the motor.
Immaculate throughout: easy terms. Cen
tury Motors. GO22 I4th st. Pot 24O9 .
Evening star., 1937-04-22

PONTIAC 1884 sedan; the original dark
blue dnish Is Just like new. upholstery spot
less and shows no wear; fne tires and it
performs perfectly: real value at only
$345; Pohanka Service. 1925 Goth st. NV.
Evening star., 1937-04-22

PACKARD. 1885 5-pass. touring sedan
large large trunk ehit white sidewall tires: a yer,
Cadillac Co. 1929 o2nd st. NV. Nationa
$500. Open Sunday and evening.
Evening star., 1937-04-22

ESSEX 4door sedan, late 1882: appear-
aance excellent throughout: $4,000 miles:
thorough demonstra ton. Private owner
will sacrifice for S115 cash. Call Column
bia 0707-M after 4 80 pm 22s
Evening star., 1937-04-22

choice of two. both in new-car condition
IN every way: safety steel bodies, floating
power engines. hydraulic brakes: equipped
with nearly new tires: S475: aO-day guar
nntee. Smoot Motor Co.. 3342 NJ st. NV.
Evening star., 1937-04-22

PONTIAC 1885 de luxe 4-door touring
sedan; trunk, etc; driven $4,000 miles;
for quick sale, $475. Columbia 2075.
Evening star., 1937-04-22

PLYMOUTH 1895 sedan. S495 Original
beautiful gray finish. built-in trunk. dual
equipment; motor. rubber interior you d
say new: low mileage real sacrifice
terms. Century Motors. 2022 14th st.
Potomac 24Oq
Evening star., 1937-04-22
A Strict
UnderseIling Policy

BY pricing our cars under competition
We gain the advantage of quick turn
over Of our used cars and thereby keep
the road clear for the greatest New
Studebaker Sales In our history.
Evening star., 1937-04-22

BUICK SO series 81" 4-door trunk sedan
another one, of the Buick specials that
this car demonstrated; it will open your
eyes to the value received: S1,245. Al
ways better BUY and EASIER TERMS
at SUPERIOR MOTORS. 1920 14th st. NV.
Decatur 1900
Evening star., 1937-04-22

DODGE '36 trunk sedan. always q popu-
durability. outstanding riding comfort and
steering ease; $3.50. Always a better BUY
and EASIER TERMS at SUPERIOR MO-
TORS, 1920 14th st. NV. Decatur 1900.
Evening star., 1937-04-22

car for glorious outdoor driving; top
paint, tires. engine are all in excellent
shape; see and drive this bargain; $295.
Always better BUY and EASIER TERMS
at SUPERIOR MOTORS. 1920 14th st.
Evening star., 1937-04-22

DODGE 1881 coupe; looks and runs good.
miles Of fine service; Sl25. Pohanka Serv-
ice. 1126 goth st. NV. District ol4l.
Evening star., 1937-04-22

PLYMOUTH 1894 special six coach This
car has had the best of care: $3.50: terms
Barnes Motors. 1923 14th ST. NV. De-
Evening star., 1937-04-22

FORD 1886 5-pass. touring sedan: large
trunk. black paint. excellent tires, heater
radio; low mileage: special price only S495
&C. c. guaranty. Capitol Cadillac Co..
e222 22nd st. NV. National 5000. Open
Evening star., 1937-04-22

| PLYMOUTH 1884 4-door sedan de luxe
equipment; new paint: very clean: motor
oVerhauled: Al tires: 1895: S35 down:
| guaranteed. Toms Auto Service 637 N
| st. nv. Potomac o4NO
Evening star., 1937-04-22

BUICK 1885 late-model 4-door touring Sc
puco. Al condition; hasn't a scratch on
body or tenders. has spotless upholstery;
this car is above the average and will sat
fsfy the most particular buyer genuine
bargain at only S545: easy terms and trade.
Standard Motor Sales. 1905 14th st. NV.
Evening star., 1937-04-22

CADILLAC 1884 convertible sedan. 8 cyl !;
beautiful brown finish. perfect upholstery
6 wire wheels. trunk rack. excellent tires;
very clean car; Ss25: c. C. G. guaranty.
Capitol Cadillac Co.. 1929 22nd st. NV.
Evening star., 1937-04-22

AUSTIN de luxe coupe: beautiful silver
gray. red wheels: condition like new: lady
must sacrifice. S110: terms. SO down, or
best cash offer. Evans Palmer. 4432 Conn.
Evening star., 1937-04-22

BUICK 1885 club coupe: attractive green
finish. knee action hydraulic brakes, tur-
ret top. Fisher body with no-draft ventila-
tion like new in every respect. S725:
new-car 90-day guarantee. Snoot Motor
Co 231o st n " West 1870
Evening star., 1937-04-22

BUICK 1881 2-door sedan, driven since
new by major in U. 9. Army: real value.
S13Q. 4221 Conn. Clev. S401.
Evening star., 1937-04-22

De! SOTO 1886 AlrStream de luxe touring
sedan. with large built-in trunk and radio;
golden beige color: car has been driven
only 5000 miles and spare has never been
possible and will satisfy any one in the
market for a new car and wishes to save
$500: fully guaranteed by our 9O-day war
ranty. Come in and see this car: you will
like it. You can have it inspected at any
garage in town. We assure you that it
cannot be told from. new automobile.
Easy terms and trade. Standard Motor
Sales. 1905 14th st. NV. North 229S.
Evening star., 1937-04-22

CHEVROLET 1884 4-door. master; spot
less interior. mileage low. quiet motor. new
tires, heater. original finish. Terms cash
$325; 3713 35th St, Mt. Rainier. Md.
Evening star., 1937-12-13

In the housing plan, in tax revision,
in the budget balancing effort, they've
got 1t. But their idea Of the right way
TO accept friendly overture is to tell
the man who's making it that he's
insincere. How can any program sue
coed under such circumstances?
Every business man in this country
ought to see that it's time for us all
to forget our differences, put our
shoulders to the wheel and push to-
gether. If we don't all push together,
the economic situation may well be-
come really serious"
Kennedy Gets Mad.
Mr. Kennedy is an emotional fel-
low, with a capacity for losing his
temper with an Irish thoroughness.
After a couple Of minutes talk he
was hopping mad. giving the long
suffering top of his big desk terrific
pounding. Yet he was making no
snap judgments.
In the past weeks he has talked
with many Of the most important
business figures in the country. They
opened their minds to him. For while
they disagree with him on many points,
they respect him for his notably
shrewd and successful administration
Of the Securities and Exchange Com
mission and the Maritime Commits
sion. Some OF them he had found
helpful and wise, yet from his talks
with them he had gained q clear pic
ture OF the hopelessness Of any effort
to beat depression in which business
and the administration could not CO.
operate.
THAT sort Of nonsense is three
quarters Of the trouble. There's noth-
ing the President can do to help mat
ters, so long as some Of the business
men in this country are determined
TO believe that nothing the President
does will be beneficial The reaction
to the housing plan is an example.
It's a good plan. It ought to work,
and it's the kind Of plan which should
please business. But instead Of taking
it for what 1t is, business men are
continually pointing to its defects"
Warns Of Class Feeling.
Mr.. Kennedy added that now, with
q disastrous depression threatening
the well being Of every American
citizen, class feeling and class division
should be thing OF the past. He
recalled sardonically how business
people have attacked the President
for rolling up class feeling. and he
argued that class feeling could not
be more sup.dly displayed than N
the hysterical attitude Of business
toward the administration. No coun-
try, he said, can successfully confront
Evening star., 1937-12-13

a great problem in complete disunion.
Every one wants to see this thing
licked" he went on. "Tlle trouble Is
1t can't Be licked unless every one
shows some intelligence. The busi-
ness men tell you that the admin
istration Is to blame for the recession,
although there have been plenty of
recessions before which weren't blamed
on the administrations Of the time.
They say that governments like q
man with . window shade. He can
pull his shade up, and everything's
bright and pleasant in the room, or
he can keep 1t down, and everythinz's
dark and gloomy
"The administration has tried to
pull the window shade up in the way
the business men ask, and they 70
right on moaning that eve-ything's
still dark and gloomy. I don't call
that intelligent. It doesn't make
sense, and I tell you the business men
OF this country have got to make
sense, Just as much Is the admins
tration has, before We can get any,
where"
Copyright. 1887, by the North American
Newspaper Alliance, Inc.)