Richmond Palladium (Daily), Volume 92, Number 35, 10 February 1922 — Page 9

THE RICHMOND PALLADIUM AND SUN-TELEGRAM, RICHMOND, IND., FRIDAY, FEB. 10, 1922.

?AGE NINE

SERVICE MEN FORM t CLUB TO BOOST HEW. FOR RENOMINATE

Former service men organized a "Service Men for ?Jew Club, with Attorney Strayer aa president, Thursday evening. . Other officers are: Taul A. Beckett, vice-president; A. E. Jenkins, treasurer; Dr. W. C. Squier, secretary. Ivan F. Moore, of Indianapolis, state

chairman of the club In an outline of

the stand of the organization said:

"The service men of Indianapolis

and Marion county, who come in per-1 sonal contact -with the senator from ' Indiana, are in a position to judge the Qualifications best suited for the man who represents us In congress. We have formed a club In Indianapolis, composed of 5,000 ex-service men to support Senator Harry S. New for reelection to the senate. Ideals and Alms. Ideals and aims of the organization were further outlined in a resolution, passed by the meeting members of the club. It follows: "After careful consideration of the

qualifications of our candidates for senator we, as 100 percent Americana believe it is our duty to support Senator New for various reasons, chief among them being the fact that he served the United States In the Spanish-American war. He ha3 supported all soldier relief bills that have come before the senate. He employed a clerk who does nothing but fight for compensation claims for our soldiers. He himself gives more time to these claims than any other senator. Time Is Needed. "There are 140,000 soldiers in Indiana and the biggest majority of these have filed claims for compensation 'in some form. It is physically impossible for one man to answer all these letters immediate?-. The vast veterans' bureau sometimes takes months to answer these letters." Another meeting of the club is to be held in the office of Attorney Strayer next Monday evening. Speakers from Indianapolis will be present to submit the record of Senator New on various

measures of interest to former service

men.

Circuit Court

ADMITS STEALING GUN George Chamberlain, arraigned in court Friday morning, pleaded guilty to a charge of larceny and his case was taken under advisement. Chamberlain had taken a gun from the home of an acquaintance, while that person was absent, and had sold the weapon for $5. JUDGMENT FOR- PLAINTIFF Judgment for the plaintiff in the sum of $456 was awarded by the court Friday morning after trial of the suit of the Continental Finance Securities company, against Joseph Peters and Louis Backscheide, for replevin, in the sum of $550.

DIVORCE SUITS FILED

Two divorce suits were filed Friday

morning. They were: Marcella Calvelage against Francis Calvelage, and Edna Ferguson against Fred D. Ferguson. Go TO PENAL FARM Arthur Miller and James Smith, found guilty of robbery in police court several days ago, were taken to the penal farm by Sheriff Carl Wadman Thursday. They will serve 60 day sentences.

tlon for extravagance on the part of

municipal, county and state authorities. 3. The fact thatxcapital can invest in such securities and obtain a tax fpee income of from three to five percent prevents capital from Investing In Inilimtrv. rrvitimprcft nnhllc utilities

and other enterprises, the income from

which Is taxed. 4. Tax free securities dry up the natural and legitimate sotirces of federal revenue and compel congress to devise other forms of taxation, which

are imitating, to say the least, and odious and burdensome in many instance). Loses Taxes Data presented to the house committee by treasury officials and tax

experts showed that even under pres-

i ent conditions the federal treasury is

losing $300,000,000 in taxes a year by the diversion of capital into tax exempt securities. It was also developed at. the hear

ings on the McFadden amendment that an important result of tax exempt securities is . to push up the Interest rate on taxable securities, such as mortgages on land and bond3 Issued by public corporations. Statisticians showed, the ways and means committee that farm mortgages of the country aggregate about $8,000,000,000, and of this amount the federal

land banks are carrying onlj $415,000,000, or approximately 5 per cent ,The Income from farm mortgages is taxable. The income from the securities of minor divisions of government is. exempt from taxation. As a result farm mortgages must pay the holders from 8 per cent up in order to enable them, after they have, paid their taxes, to have a net income equal to what they would have were

they to invest in non-taxable securities. In this way, it was pointed out, the farmer is being doubly penalized by the existence of tax exempt bonds. He is being penalized, the "committee was told, by having a heavier tax levied on his land, in order to meet the expenses of government," ad again by having to pay; a higher interest rate than he "otherwise would were not farm mortgages compelled to compete

with tax-exempt state, county and city bonds. - j i. Practically every farm organization was represented at the hearings on the McFadden amendment and. without any exception, they went on record in favou of .stopping the issuance of; tax- exempt, BecuritieB.i Tfrte recent farm conference alBo went on record against further "exemption of income from securities issued by states, counties and municipalities. !

GOVERNOR HAS INFLUENZA '

INDIANAPOLIS, Feb. 10. Gover

nor Warren T. McCray was stricken by influenza here Thursday afternoon

and is confined to his home. His con

dition, it was said last night, is. not

serious.

CORNS

POINT 00T EVILS

(Continued from Page One.) curities at $10,000,000,000. Many reliable authorities say that the amount is double this. The evils of tax exempt securities issued by states, counties and municipalities, according to nearly all the witnesses who appeared before the ways and means committee, may be briefly set forth as follows:

1. The exemption of such property

from taxation shifts the burden of all taxation to real estate and to incomes

from other sources, mostly income

from labor.

2. The ease with which these securities can be issued and marketed

is a constant and lrresistable tempta-

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