The times-news., 1938-10-26
NEWSPAPERS OPINIONS
EATEN BY TAXES

+hot government in the United States "digs deep
into the earnings of industry, nearly hall OF the
,orr;nos of $50 typical companies being taken by
s+ete. and federal taxes Government ate first and
bareboIders had to be content with leavings at the
second table.
- Fron Investor Americas list are taken these
co,,nan;es which paid no dividends on common or
rreferred stocks in 1887, but which paid taxes as
stated:
Associated Gas and Electric Co., $15,754,41O
f;rclud;no excise taxes); Baldwin Locomotive
Works. Sl,s11,092; Baltimore Ohio Railroad Co.,
$40 e1s.554 (excise taxes not lncluded); Chicago
& Northwestern Railway Co., $5,996,63O; Cities
Service Co.. S44 SGT 900 texese taxes included) !;
ulinoE Central System $9,65S161; Lehlgh Valley
Coal Corp, 81 ,5O5,657; Middle West Corporation,
So, ,35yO59: Missouri Pacific Railroad Co., $685.
$50; tSsg York Central Railroad Co., S32,592, ,731 !;
United Light & Power Co., $1O,S24,7l6.
Taxes come first Government colleets-or else.
What attraction does company unable TO pay
dividends hold for persons with funds to invest?
If taxes consume too much OF the earnings, is gov
ernment not endangering sources OF revenue? Can
government expect industry to go forward II the
tax burden crippes it? In the language of Investor
America:
''Your home your savings your life insurance
whatever you have accumulated as acprotectlon
against future dependence want-these precious
possessions menaced by present day political
trends in our country. Determined defense against
the impoverishment of the great middle class
through wasteful dissipation of the nations wealth
is imperative. AS protesting individuals we are
like voice in. the wilderness. Only by working in
harmony with millions of others can we become
am nf1uemtiafs factor in the restoration of sound
policies and practices in the affairs of our govern
tment" - ,sSg- .-.s .. ssY =
The thrifty, the Industrious, are being penalized
by the prodigal spending. Federal tax collections
are at the peak, but they are sadly inadequate to
meet the bills the Roosevelt administration has
contracted. The national debt increased steadily
with no effort to fulfill the Democratic pledges of
reducing the cost of federal government, of bal
ancing the federal budget, of eliminating boards,
bureaus and commissions. Business and industry
pass on the taxes to the consumer, but there is a
point at which profits cease and deficits begin.
In the Investor Americas list are great railroad
companies which cannot pay dividends after gov
ernment has collected These great railroads are
making heavy weather of it. They have striven for
economy without abating efficiency. They are not
free agents, for they are regulated by the inter-
state commerce commission, which makes their
rates and conditions for them. Some of the impor-
ant railroads are in the hands of receivers if their
tax loads were lightened, they would come into
chance to regain their financial footing
The power to tax is the power to destroy. That
truth cannot be refuted by the spending politicians
When taxes are too great in relation to earnings
destruction is over the horizon and in plain sight
The federal government calls on business and in
dustry to go forward, to increase employment, but
it takes business and industry by the throat when
should be giving them freedom sufficient to gain
strength. This grave problem concerns every man,
woman and child in the United States. 1t imperils
their future. Government has only what it collects
from its citizens. 1t has no Midas touch, no magic
wand. 1t spends prodigally because it is bleeding
its ctizens.-Charleston News and Courier.