The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1938-07-21
$50 Blue CHIP
CORPORATIONS
TAX DOUBLED
Establishments Have AS.
sets of az Billion; En-
ploy 3 Million Persons
Telephone
Numbers
90 or 9l25

WASHINGTON, July q. (UPl
The tax burden on $50 blue CHIP
corporations which had total as
sets of $42,OOO,000.000 and en-
ploved 3,17l, 900 persons in 1887
has been doubled under the New
Deal. survey by the American
Federation of Investors, Inc, has
revealed here.
These corporations, including
giants such as L. S. Steel cOrpor-
alton. American Telephone and
Telegraph company, and General
Motors corporation, paid total
of 1881, 100000 in taxes IN
1897, or an average of S2.62 on
each share Of common stock, &C
cording TO the survey. In compar-
ison, il was shown, total dividends
paid to the 100000 holders OF
common stock amounted to Sl.9o
a share. ,
The analysis also showed total
taxes paid by the $50 corpora
tons last year averaged $29l per
common shareholder or $5l4 per
employc. In the case of li3 OF
the corporations, it was stated,
the tax load increased 10 per cent
from 1886 to 1887. These enter
prises paid $1.494 ,4S4,34S IN
1887 as compared with Sl,25S,-
43S.606 in 1886.
Tax statistics could not be OBJ
tanned as far back as 1882 Tor
all corporations involved, the
federation explained, but in that
wear 124 corporations paid IN
taxes $6S1, 64S,2S6 and Sl,422,..
67O,S53 in 1887, an increase OF
100 per cent. d,
The comparative figures deal
with taxes paid at thedepth OF
the depression and at the peak Of
the business revival in 1887. EX-
perts said the corporate tax load
would have risen naturally and
in proportion with the increased
amount Of business done even
though the New Deal had not
boosted the rates. The statistics
also show that in the case of some
of the corporations involved, a
Sizeable chunk of their tax bur
den embraces excise levies.
The federation refuted the
theory that the capital of the
giant industrial enterprises Is
furnished by few wealthy citl-
zens. More than $4,000, OOO,OOO
invested largely in the securities
of American industry, the survey
said. is owned by 64,000,000 life
insurance policy holders and A.
100000 savings bank deporitors
mostly working people.
These facts prove that millions
of common people are vitality In
terested in the success of Amer
lean industry, and that when in
duStry suffers from burdensome
taxation the depression results
! fall directly upon these common
people" the federation said. "Fol
the welfare of all, our nation
must b emaintained on a SounC
economic basis and the purchas
ing power of the dollar preServ
ed"
Warning that 1.-THE power to taa
is the power to Destroy" the fed
Grafton conceded the govern
ment'S spending program ma!
stimulate business temporarily
but it cautioned that "a depress
ing reaction is certain to follow
with constantly mounting deb
to be paid by ever increasing tax
alton"
The analysis was made public
as treasury and congressional ia.
experts studied additional chang
eS in the revenue laws to be sub
mitted to congress when it meet
again in January. Among revi'
sions reported to be under consid
! Grafton is a proposal by Senate
Robert NJ. LaFollette, which
would widen the income tax base
by reducing exemptions and in
creasing the normal levy on in
comes between $4,000 and SIS,
900.
LaFollette and others favoring
his plan contend wage earners j,
this class do not now pay thei'
proportionate share of the tota
tax burden and that they hold the
only hope of increasing the ma
tons revenues to meet the stead
! lily rising cost of government