October 10, 1921 



HARDWOOD RECORD 



23 



The amount suggested from import duties may be correct. 



The next item, $1,200,000,000 from proposed manufacturers' tax, 

 maximum 3 per cent, is excessive even if it were possible to apply 

 the tax upon the finislied product, which, as stated, is impossible of 

 determination. I assume that the term "manufacturers' tax" 

 would apply to all manufacturers, whether corporations, copartner- 

 ships, or associations, as it would be manifestly unjust to impose 

 a sales tax upon corporations upon any different basis than the tax 

 to be paid by co-partnerships and associates. 



Would Yield Four Billions 



A tax of 2 per cent on .-ill tangililes, with deductibles as sug- 

 gested, and a similar tax upon all intangibles — that is, service 

 charges — together with a moderate income tax, such as suggested, 

 will yield a revenue of approximately four billion dollars per 

 annum. In effect, such a tax would be a burden of only $20 a year 

 for each thousand dollars spent by the individual; and in the event 

 of an increase or decrease in the necessary income or revenue, all 

 that would be necessary would be to change the basic rate higher or 

 lower; and each individual would be in position to know within a 

 fraction of what their taxes would be. 



Permit me to cite one comparison of the difference between this 

 plan and the plan under which we are now operating. At the 

 present time we have tens of thousands of railroad clerks figuring 

 a separate tax charge upon millions and millions of freight bills. 

 We have hundreds of thousands of consignees tiguring and verify- 

 ing these freight charges upon millions and millions of freight bills. 

 Last, but not least, we have an army of government inspectors 

 figuring and verifying these various charges, the aggregate cost of 

 all of which is appalling to contemplate. 



Under this plan of a tax applying to service corporations, the 

 freight tariffs would be established with respect to the tax to be 

 paid, without one dollar of additional expense; and the total 

 expense of collecting the tax would be a check from the railroad 

 company in payment of the tax of 2 per cent (or whatever was 

 agreed upon) based upon payroll covering a given period. And 

 under this plan all American citizens would be relieved of render- 

 ing an income tax to the government, except those whose incomes 

 were in excess of their exemptions, which in my opinion should be 

 liberal, upon the theory that we should shift as much of the burden 

 as possible to those who are able to pay. 



There is nothing complicated about this, and the only reason 

 that people cverj'whcre have thrown up their hands in tax matters 

 is that the whole tax scheme has been inaugurated with a total dis- 

 regard of any basic principles; and the result is a hodge podge 

 from beginning to end; and inasmuch as a radical change must 

 be brought about, it is to be hoped that those in charge will go 

 all the way in establishing a broad and equitable basis. 



John H. Kirby Names Principles Necessary to 

 Health of American Industry 



In an interview given out October 10 on the unemployment 

 situation, John H. Kirby of Houston, Tex., president of the 

 National Lumber Manufacturers' Association and the Southern 

 Tariff Association, as well as a member of the President's unem- 

 ployment conference, said: 



"Since the unemployment conference can only give advice, its 

 highest possible service to the country would be performed by the 

 adoption of a declaration of principles essential to the permanent 

 health of industry — such a declaration as would command itself, 

 by reason of its truth and claritj', to thoughtful men in all walks 

 of life. 



"The causes of the situation with which this meeting is attempt- 

 ing to cope are not mysterious. Anyone who considers our tre- 

 mendous investment in unproductive enterprises during the war, 

 the heavy burden placed upon production by high taxes, the over- 



manning of our transportation system and consequent high freight 

 rates, the serious effect of the fall in prices of farm products on 

 the country's purchasing power, the intimid.-ition of business by 

 numerous attacks on property rights, and the uncertainties in which 

 both production and distribution have been involved by strikes, 

 will understand why thousands of men in our large cities have been 

 sleeping on park benches. 



"As agriculture is the basic industry of this country, with prac- 

 tically half of our people engaged in it, it is not possible for our 

 other industries to dispose of their normal production when the 

 liurchasing power of our farmers is seriously impaired. It there- 

 fore follows that, before normal labor conditions can be restored, 

 all prices and all wages should be brought into harmony with the 

 prices of agricultural products. 



"Onerous taxation is a fruitful cause of unemployment, because 

 it discourages the establishment of new industries and the exten- 

 sion of old ones. Few men are willing to incur the risk incident 

 to all industrial enterprises when they know that the total loss mil 

 fall on them if the enterprise fails, while the government will take 

 an unreasonable percentage of the profits if the enterprise succeeds. 

 Before this country can again employ its full man power at fair 

 wages taxation must be reducedr 



"I believe these simple truths should be put before the country. 

 Also, while anxious not to provoke controversy, I favor a declara 

 tion along some such lines as the following: 



1. Civilization rests upon the right of the citizen to enjoy all he can 

 honestly earn and to be protected in the ownership and control of the 

 property he may acquire. 



2. The regulation of employments and of conditions of labor, insofar 

 as any government has power to reguhite Ihcni, belongs to the States, ami 

 any effort on the part of tlie Fetleral government to exercise sucl^ authority 

 is a usurpation violative of the Constitution and a menace to the lilierty 

 of the citizen. 



3. The right of the citizen to take employment and be protected in the 

 peaceful pui'suit thereof, regardless of his membership or non-meml>ership 

 in any organization whatsoever should not be violateil. 



4. Orderly and dependable transportation is essential in both production 

 and distribution, and for that reason railway corporations have been 

 invested by law with certain elements of sovereignty, including the power 

 to take private property for their use in serving the public. All citizens 

 who seek or accept employment with the railways know of their obliga- 

 tions to the public and by such acceptance take upon themselves like obliga- 

 tions. No citizen can be or should be compelled by law to remain in an 

 employment against his wish, and his liberty of action in retiring from 

 such employment should never be restrained. This freedom of action, how- 

 ever, does not carry with it n right to enter into a conspiracy to cripple 

 or impair the power of carriers to perform the service to the public for 

 which they are created, and such conspiracies should be prohibited by law. 



¥ 



Lumber Trade Customs 



'Decisions cstalitisliiiifj tlit-sr ■■vu!<tains" arc rendered bf/ the Arbitration 

 Department of the Amirienn Wliolesiile Lutnber Asttoci^ition. 



Liability for Interest on Overdue Account 

 The Facts : On January 8, 1920, a wholesaler in Pennsylvania placed 

 an order for a car of spruce siding with a Coast shipper, through a com- 

 mission man. After an exchange of correspondence, the deal was finally 

 closed on .lanuary 31, on which date buyer wrote seller agreeing to all 

 terms and conditions, specified by the latter as to terms, delivery, etc. 



The agreement as consunmiated was that sliipment coulil n*»t be made 

 under four to six weeks and that payment in full was to be made within 

 fifteen days from date of Invoice, less 2% cash discount. 



Shipment was made on .March 10. About thirty days later buyer's cus- 

 tomer, a retailer, notified him that shipment would not be accepted due 

 to long delay in delivery. Thereupon the buyer on April 14 wlre<l seller 

 he could not handle the shipment on account of his customer's refusal of 

 same. A few days later, however, buyer found another customer for the 

 car at a less price and on terms of ninety days. Buyer then notified seller 

 he would accept the car provided latter would allow him terms of ninety 

 days, no payment having been made on same. Seller advised he would 



