davidaulloa/AmericanStories huggingface dataset:
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-08

rated Business Franchise Tax.
The exemptions cover any
trade or business which by law.
customs or ethics cannot be in
corporated or any trade or
business In which more than
80 per cent Of gross income re-
suits from personal services Of
the operators. These include
doctors and dentists who argue
strongly against Mr.. Martins
views.
He contends, however. that
"there should be no excep-
tions" for unincorporated busi-
nesses because all Of them
benefit from services rendered
by the District" And. he adds,
the well-to-do proprietors Of
these businesses are moving TO
the suburbs and the District is
closing more and more revenue
in the form Of individual in
come taxes formerly paid by
such persons"
Larger Tox Rolls
One other major loophole.
though, is likely to be closed
very soon.
AS part Of their $40 million
o year tax increase program.
the Commissioners are asking
for a reduction Of the Dis
trict's $4,000 personal income
tax exemption to $1,000. This
will bring q lot Of nontaxpay-
ers into the Districts clutches
and add $4,000 Of taxable in
come to the figures Of all those
who do pay taxes. The bite
win be quite considerable.
The high exemption was
established in l948 when the
District sales tax was enacted
as the result Of q congressional
compromise. It came about
because Of fears that the sales
tax would hit hardest at low
income families. The income
tax was amended to free them
from that levy. Now, Of course.
they stand to be caught COM
ing as well as going.
Mr.. Martins old friend may
get caught, too. because the
new rates will make District
income taxes quite comparable
with those Of other jurisdic-
tons. Previously. where he
might have owed his home
State 5000 and the District $50.
the District got nothing. Now,
II he still owes 5000 at home.
but 1901 to the District, then
he would have to pay 81 to the
Washington City Government.
Like death, taxes seem from
day to day to be increasingly
inevitable.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-08
MARYLAND
New Weapon to Trop
Elusive Tax Dodqers

State Controller ]. Willard
Tawes said his staff viii begin
late this month comparing the
lists of wage earners' names
with the master file Of persons
who have been paying their
taxes In years past.
Mr.. Tawes promised leni-
ency for persons who volun-
tarily come In and confess
that they have been delin-
quent in paying their taxes.
Many income taxpayers, Of
course. do not come under the
Withholding system and they
are required to pay their taxes
in quarterly installments based
on estimates Of their annual
income. People in this cate
CORY include farmers. profess
sional people and Marylanders
working in the District or Vir-
ginia.
Maryland has a check on
the latter group because Of
arrangements with the, Dis
trict and Virginia govern
ments for exchanging infor-
nation on taxpayers. But
farmers. professional people
and military men. generally
are subject only to the spot
checks Of the investigators
from the controllers ofi1ces.
No one would estimate how
much extra revenue the State
can expect from It's breakdown
on income tax evaders.
Probably the most widely
evaded Maryland tax in this
area is the liquor tax. Because
District liquor prices are gen.
orally and sometimes substan-
TALLY lower than those In
Maryland, there are frequent
violations Of the Maryland law
against bringing more than
one quart Of alcoholic bev-
erages at Q time into the State
and more than two quarts Q
month.
The Maryland Legislature In
1858 created q special unit,
known popularity - the border
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-08
DISTRICT
Legal Evasion Made
Easy by LoophoIes

that rouse Mr.. Martins ire.
Senate and House District
Committees will consider ways
to close some Of these loop
holes on Wednesday when pub
lie hearings will begin before
Joint sessions Of the District
Fiscal Affairs subcommittee.
Under consideration will be
a bill that would raise several
District taxes, including the
income tax and that on alco-
holic beverages. The proposed
legislation also would increase
the Federal Governments pay
ment to the District from its
currently authorized $40 mil
lion to $22 million for the next
fiscal year.
Illegal tax evasion, Mr.. Mar
tin says. is rather minor be-
cause Of the many checks we
run to stop evasion" He in
sists there is very good en-
forcement." partly because OF
q recent increase In his Staff
Of assistant assessors.
The star. however, will
have to be enlarged soon TO
keep UP with expected in
creases in the work load slated
TO result from proposed boosts
in income and sales taxes.
Another sore point with Mr..
Martin is the tax exemption
granted to servicemen sta
toned here under the Soldiers
and Sailors Civil Relief Act.
Under q recent Supreme Court
decision, according to Mr.. Mar
tin. military personnel are to
tally exempt from the payment
Of income taxes except in the
States where they are domi-
ciled. even though they do not
pay taxes where domiciled."
In this case. Mr.. Martin arr
gued, the Federal act should
be amended to require at least
the payment of local taxes II
taxes are not paid In States
where domiciled. The loss Of
revenue involved is substantial
but cannot be estimated accu-
rately."
Another sore point Is a series
of exemptions under the Dis
trict's 5 per cent Unincorpo-
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-08
THE SUNDAY STAR A-2g
Washington, d. C.
SUNDAY, JANUARY ., 1853

patrol. to enforce the impor-
talon law. However. except
for several arrests during the
1854 and 1855 Christmas holi-
days. the unit has been rather
inactive.
Maryland taxes liquor at
$50 a gallon compared with
81 in the District. In addition,
the lack Of "fair trade" laws in
Washington permits District
liquor dealers to make further
price reductions.
State fiscal officials con-
cede that Marylanders, partic-
ularly those living in border
areas. frequently evade paying
the States 2 per cent sales
or use tax. but they believe
that those levies are being coll
lected about as completely as
possible.
Soles Tex Rule
Technically, a Marylander
has to pay the sales or use
tax on any item he buys for
storage. use or consumption In
the Free State. It makes no
difference whether he buys it
in or out Of the State.
Most District merchants.
who have to collect a local
sales tax anyway. also collect
the Maryland sales tax on
items purchased for delivery
to Maryland. They get to
keep 3 per cent Of all they
collect for their trouble.
However, since Virginia mar
chants have no sales tax Of
their own to collect. they do
not extend that courtesy to
Maryland. But this loss to
Maryland is slight.
The other big tax area that
provides Maryland with an
enforcement headache Is in
the matter of automobile
registration fees.
The law says that once q
person settles in Maryland,
he has 80 days to buy Mary
land tags for his automobile
and pay an excise tax Of 2
per cent Of the market value
Of the car. Military personnel
are exempt from this law.
It's enforcement is left up to
local, county, and State police
departments and varies from
one area to the other.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-08
BY GERALD wARING

OTTAWA. ~ The Canadian
Parliament win open its doors
for business Tuesday after a
five months recess during
which the Liberal administra-
ton ruled without the wordy
counsel of the Senate and the
House of Commons.
The 1856 session. likely to
last until July, will see politi-
cal opponents Of the govern
ment Of 74-year-old Prime
Minister Louis st. Laurent
trying to single out the adj
n1inistration's sins and mis-
takes. This year marks the
start Of a build-up for the
federal election campaign ex-
pected next year. when the
Conservatives once again will
seek to end the Liberals 81
year tenure of office.
The session will be launched
in pageantry borrowed from
Britain, but streamlined and
Canadianized. In London the
Queen rides to Westminster in
the gold state coach to read
her speech from the throne
opening Parliament. In OF
tawa her personal representa-
tive, Gov. Gen. Vincent Mas
sey, a Canadian appointed for
a five-year term, will read the
throne speech. which is pre-
pared for him by the govern
ment. It is a counterpart of
the "state-of the Union" mes
sage.
If the weather is good, Mr..
Massey will drive up to the
Parliament buildings in an
open landau coach wear
ing his state uniform Of
silver-frogged blue with
cockaded hat and dress
sword. and escorted by a troop
of scarlet-coated Mounties
riding matched black horses
and armed with lances. II the
weather is bad, he will use q
closed limousine with motor
cycle police escort.
After receiving a royal salute
of 81 guns and inspecting an
honor guard, the Canadian
chief of state will take his
place on the throne in the
red chamber" of the Senate.
Then he will send the Gentle
man Usher Of the Black Rod
to the Green Chamber" TO
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-08
MARYLAND
By GENE GOODWIN

The new payroll withholding
system for collecting State In
come taxes has given Mary
land o powerful new weapon
to use against tax dodgers.
And Of all the various kinds
Of tax dodgers In the Free
State. the evaders Of the in
come tax cost the State the
most money, ofncials say.
Other State taxes frequently
evaded, particularly by resi-
dents Of the Washington sub
urbs, include liquor taxes, the
sales and use taxes, automobile
license tag fees and auto title
transfer fees.
Complete Index
The pay-as-you-go system
for collecting income taxes.
which went into effect July /.
has given the State controllers
ONCE the best and most COM
plete index Of taxpayers it has
ever had.
With 1t, Investigators believe
they will be able to trace State
income tax evasions all the
way back to 1887. when the
State income tax law went
into effect. There's no statute
Of limitations, either. to pro-
tect the fellow who thought
he got away with 1t 10 or IS
years ago.
The better-than- ever index
Of taxpayers results from the
fact that all employers now
have to deduct the State In
come tax each payday from
the pay checks of their en-
ployes. Then at quarterly In
tervals, the employers are re-
quired to turn their collections
over to the controllers office
along with q complete list of
everybody on the payroll.
These Lists can then be
checked against the income
tax returns the taxpayer must
file each spring.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-08
DISTRICT
BY HECTOR MCLEAN

District Tax Assessor James
L. Martin has an old friend
who irritates him considerably.
The gentleman, Mr.. Martin
complains with regularity, has
lived in Washington for some
As years, but has never paid
the city's income tax. Never
theless. he has raised q fam
lily here and also seen grand
children 60 through the Dis
trict's unsupported public
schools.
The explanation, Mr.. Mar
tin says. Is that the gentleman
is technically "domiciled" in
one of the New England States
and maintains his voting resi-
dence there.
In doing so, he pays in
come taxes in his home State.
Under District law. he files q
return here every year. re-
porting the taxes paid in New
England. II his payments
there were lower than the
District tax for which he is
liable. he would have to 10y
the difference to the District.
Unfortunately. in Mr.. Martins
view, the home State taxes
are always higher, so his
friend winds up owing the Dis
trict nothing.
Old loophole
This is a loophole Mr.. Mar
tin has been trying to plug for
several years. 1T would be
equitable" he argued recently.
ito require such persons to pay
income taxes in full in the
District of Columbia. even If
they. for one reason or an
other, pay taxes elsewhere.
The amount OF loss Of revenue
involved is substantial. per-
haps $165, 900. even though an
accurate estimate is impos-
sible. The number Of nom
domiciliaries residing in the
District proportionately far
exceeds the number in other
jurisdictions"
This is the first of several
loopholes in District tax laws
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-08
VIRGINIA
By MARY LOU WERNER

Tax-dodgera beware. Viz
ginia has Q new pay-or-you-go
plan for people who neglect
their State debts.
The idea 10 10 pay-oR you
go to jail.
Six Fairfax County residents
who failed 10 file State In
come tax returns learned al
about the new plan recently.
They spent the night in jail.
Two Alexandria residents
were given jail terms for their
tax "oversights."
Other sections of the State
have started dishing out jail
terms to show the Old Do
minion means business when
it announces that May in
come tax filing deadline each
year.
It's all part OF . stepped
I'D drive to seek out those
people who scoif ct Virginia's
tax laws-or just plain ignore
them.
The State income tax 10 the
major tax that Virginia resi-
dents pay directly to the State.
1t accounts for roughly $40
million Of the States yearly
budget. Real estate and per-
sonal property taxes 90 TO
local governments.
lenoronce No Excuse
A favorite alibi OF Virginia
tax dodgers Is that they didn't
know the State had an income
tax law.
II paid my Federal income
tax; I didn't know there was
another one," Is the tax
evader's theme song.
That doesn't 60 over very big
with the tax collectors. They
know that VMginia's income
tax law had whiskers before
the Federal Government
latched on to the idea.
But collection methods were
as whiskered as the law itself
until recent years.
The division Of delinquent
tax returns was set UP seven
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-08
VIRGINIA
Poujodism Means Jail
South of the Potomac

years ago to 60 after people
who failed to file State forms.
It was not until 1850. how
ever. that the State put any
teeth into It's tax collection
law. It was revised along the
lines Of the Federal income
tax law. A sitter penalty for
delinquents was adopted, au-
thoriEing courts to jail guilty
tax dodgers for one year and
fine them up to $1,000.
With the 1850 tax law re-
vision as q weapon, the de-
linquent tax division got busy.
The STAN was expanded to 80.
and eight field men were bor-
rowed from another depart
ment-the division Of indi-
vidual and iiduciary taxes.
Their efforts have been
bringing noticeable results in
the past two years. Using
Federal income tax returns
and payroll lists as a check
list, the tax bloodhounds have
tracked down thousands Of
tardy taxpayers in 1884 and
1855.
Any one with q gross in
come Of $1,000 living in Vir-
GINA on December 81 in any
year is required to file a State
income tax return for that
year, and bills are sent out I'VE
months later. Next May /, for
instance, is the headline for
flling returns on 1855 income
and bills will be due next fall.
The State income tax rate is
2 per cent on the first $4,000
Of taxable income. 8 per cent
more on income between $1,000
to $4,000, and 5 per cent on
that part Of income over
$4,000.
Plenty Of Wornins
Residents who haven't filed
returns get two and sometimes
three warning letters before
warrants are issued to haul
them into court. In Northern
Virginia alone, tax men esti-
: mate 10000 letters have gone
out in the past two years. A
majority pay up and don't
have TO be served with war
Evening star., 1956-12-05
Academy Eyes
New Planes

The Navy Department said to-
day it is considering replacement
.of the antiquated seaplanes now
being used for flight indoctrina-
tion Of Midshipmen at Annapolis.
Use of the old biplanes at the
Naval Air Facility at the Acad-
Iemy was pointed up in a Sunday
Star story which said the young
est Of the long-outdated N3Ns
lis l6 years old.
The department said today 1t
is considering three types Of
more advanced and certainly
younger training craft to replace
the 40 N3Ns now in use at the
Facility. Any replacement would
require modification of land
based trainers to floats because
the Air Facility has no "airfield"
except the Severn River and
Chesapeake Bay.
A spokesman said the trainer
considered most feasible and
economical would be the Marine
designated OE. made by Cessna.
Two others included in the
study were the T-34B made by
Beechcraft and the T-28B made
by North American. All are sim
gle-engine.
The Navy's eventual hope Is
for authority to build an airfield
on which the modern, land-based
training planes could be used.
Efforts to get authorization on
such a field were beaten in Con-
gress during the last session.
Evening star., 1956-12-05
Mrs. Fitzhugh, 68,
UDC Member

Mrs. Robert Lee Fitzhugh, q
resident of Washington for
longer than so years, died OF
pneumonia yesterday after a long
illness, a day after her 68th
birthday.
Born in Newbern, Va, she was
the former Champe Geraldine
IFitzhugh. She was employed for
many years with the surgeon
generals Office of the old War
Mrs. Fitzhugh was a member
of the Robert E. Lee chapter of
the United Daughters of the
Confederacy; the Daughters of
the American Revolution and the
Order of the Eastern Star.
Her husband died several years
ago. She is survived by five sis
tiers, Mrs. Byrd Ferneyhough,
1923 Dogwood drive, Alexandria,
Va; Mrs. George P. Winfree OF
Richmond. Va; Mrs. George p
Grant Of Bristol, Va; Mrs. Rob-
'ert H. Barton of Hagerstown,
Md, and Mrs. w. S. Barton of
Pulaski, Va.
Private services will be held
here today. Burial will be in
Newbern.
Evening star., 1956-12-05
Hotel Man Dies
In Traffic Crash

Joseph Macy, 81, property
manager of the Woodner Apart
ment Hotel, died yesterday from
injuries received in a car-trucK
accident on Route / a mile north
lof Golansville in Caroline
County, Va.
Virginia State police said Mr..
Macy was dead on arrival at
Mary Washington Hospital in
Fredericksburg.
A spokesman for the Jona-
than Woodner Co. said Mr.. Ma
cey was on a business trip to
Richmond at the time of the ac-
cident.
He was a resident OF the
Woodner at 1886 Sixteenth
street NV.
A native of st. Paul, MINI,
he came here in 1914 when the
Jonathan Woodner Co. was
founded.
Besides his wife, Mrs. Ella H.
Macy. he is survived by two
daughters, Mrs. Harold Krieter
and Mrs. Wolf Eikan, both of
New York; a son, Robert Ma
Icey. Chicago; his mother, Net
tie; a sister, Mrs. Thomas Kap-
Ian, and a brother, DR.. H. P.
Macy, all of st. Paul.
Evening star., 1956-12-05
Mrs. J.I. GuyettX
50-Yeur Resident

Mrs. J. Irving Gayetty, 81. a
resident Of Washington for
longer than so years. died Mon
day in Sibley Hospital after a
short illness.
Mrs. Gayetty was a member
of Columbia Chapter No. is OF
the Order Of the Eastern Star
for so years. and belonged 10
Trinity Episcopal Church.
She and her husband had
celebrated their 55th wedding
anniversary. Mr.. Gayetty was an
engineer with the Geological
Survey before his retirement.
The former Ella Bachelor
Mrs. Gayetty was born in Weed
sport. N. Y. She lived al 2s0
Tuckerman street NV.
She is survived BY her hus-
band, a daughter. Mrs. z. Mil
ton Eshleman. Of 230 Tucker
man street NV: two grand
children. and four great-grand-
children.
Services viii be held in the
Huntemann funeral home s732
Georgia avenue NV. at 2 pm.
tomorrow. Burial will be ia Rock
Greek cemetery.
Evening star., 1956-12-05
D. H. Proctor, sc, Examiner
rs Years in Civil iIService

Dee H. Proctor, 66, a Civil
Service examiner for more than
Is years, died at work yesterday
in the Pension Building between
Fourth and Fifth streets NV.
Mr.. Proctor came to Washing
ton with the Civil Service Com
mission in 1880. He was a spe-
cialist in examinations for super
visory trade jobs. A native of
Marion, Kans.. he grew UP in
Kansas and Oklahoma. He at
tended a junior college in Ton
kawa, Okla, and a teachers COL
lege in Missouri.
Early in his career, Mr.. Proc
ter was a coach and mathemat-
les teacher in a high school in
Cheney, KanS. He later became
a mathematics and manual
training teacher and coach in a
high school in st. Joseph, Mo-,
for nine years before coming to
Washington.
Evening star., 1956-12-05
Frank Montgomery Dies;
Auto Agency President

Frank c. Montgomery, SO,
president of Colonial Oldsmobile
Co. for the past four years. died
Monday night in Doctors Hos
pital after an illness of several
years.
He lived at 5110 Marlyn drive
Sumner. Md.
Mr.. Montgomery came to
Washington in 1884 from Dem
yer. Col, where he ran a storage
garage. Until the outbreak of
World War II, he was a sales
man for Emerson Orme Buick.
During the war. he was in charge
of the collection of scrap, for
the War Production Board, from
the District, Virginia, Maryland
and parts Of West Virginia and
Pennsylvania.
After the war he helped found
the Montgomery-Stubbs Motors
Inc. in Silver Spring. In 1851, he
left Montgomery-Stubbs to take
over the management of Colonial
Oldsmobile.
Evening star., 1956-12-05
Miss Lambert, 80,
Former Teacher

Miss Maria A. Lambert, a
French teacher on the faculty of
Gunston Hall from its early days
until her retiremnt in 1885, died
yeserday at Lone Acres Nursing
Home in Fairfax. She was SO.
Born in Paris, France. Miss
Lambert came to Washington
with her mother and stepfather,
Pierre Dumaine, in 1885. Mr..
Dumaine opened school of
languages that year at Eigh-
tenth and K streets NV.
Miss Lambert began her teach
ing career with Mrs. Cabell's
School, then went to the then
new Gunston Hall, a fashionable
girls boarding school. 1t closed
in 1912, shortly after the cele-
bratin of its 50th anniversary.
Miss Lambert is survived by
two half-bothers, Joseph G.
IDumaine of Fairfax and Andrew
". Dumaine, 312 jefferson street
IN. W., with whom she lived.
Services will be private.
Evening star., 1956-12-05
Frank Beveridqe,
Brush Moqnote

WESTFIELD. Mass, Dec.
(P).-Frank Stanley Beveridge
n, internationally know home
products manufacturer. died last
night in Noble Hospital.
He suffered a cerebral hemor-
rhage several months ago and a
relapse last week.
Mr.. Beveridge was president OF
the Stanley Home Products. Inc,
until 1851, when he was elected
board chairman.
He started his multi-million-
dollar business in a tobacco shed
Is years ago. The firm, which
manufactures brushes, cleaning
equipment. wakes and poiishes
now operates in every State and
in Canada, Alaska, Hawaii, Puer-
to Rico and Mexico.
He began his business career
as a or-to-door salesman with
the Fuller Brush Co.
Evening star., 1956-12-05

During World War I, Mr..
Proctor served in the Army as
a lieutenant with the 3O9th
Cavalry.
He was a member of the Civil
Service Post of the American
Legion.
Surviving are his widow. Mrs.
Olive Proctor of the home ad-
dress, 1884 South Eighth street.
Arlington, and four children,
Spencer p, COL Woodlawn ave-
nue.. Falls Church; Jesse D., 1860
North Twenty-firs road, Arline-
ton; Charles w., and Mrs. Flea
nor L. Castle, 1000 South Nine
teenth street, Arlington. Nine
grandchildren also survive. as
well as a brother and two sisters,
Jess Proctor and Mrs. Cecil Will
cox Of Lamont. Okla, and Mrs,
Niva Ritter of Gunnison, Colo.
Funeral arrangements. which
are incomplete. are being ham
died by the Ives funeral home
Evening star., 1956-12-05

Born in Sheridan County
Kans., where his father wa;
county attorney, he attended
Randolph-Macon Academy al
Front Royal. Va, and Nationa
University, He was county at.
torney of Sublette County. Wyo
before coming here in 1881.
During World War II Mr.
Hopkins was field director Of
the Red Cross national military
staff.
He is survived by his daughter
Mrs. Elizabeth Gillian, 1921 San.
ford Court, Falls Church: hi.
father, S. G. Hopkins. 1900 T
street NV: two brothers. Grant
OF Richmond, Va, and Philip S
OF Mortified, w., and foui
grandchildren.
Services will be held at 8 pm
tonight at Gawler's Chapel. l75t
pennsylvania avenue NV
Graveside services will be held al
2:3O pm. tomorrow at Broad
way, Va,
Evening star., 1956-12-05
William G. SeIby.
Pioneer Oil Man

SARASOTA. Fla, Dec. S up
William G. Selby, 70, pioneer
oil man and one of Florida's s
wealthiest citizens. died last
night after a long illness.
Mr.. Selby, long time resident
of Sarasota. was a large stock
holder in the Standard Oil Co
OF New Jersey, the Texas Co
and Standard Of California. He
also had extensive mineral in
terests in the West, mostly in
the Rocky Mountain area OF
Colorado.
Born in Marietta, Ohio. Mr.
Selby and his father founded
tine Selby Oil Co.. which had
producing wells in Oklahoma
and Texas. When his father
died five years ago. he sold his
interest in the firm TO the Texas
Co.