Vernonia eagle., July 24, 1925, Image 8

VERNpNlÄ EAGLE
Largest MHI in the Wett
DEATH TAXES AS
BUSINESS KILLERS
Assistant Treasury Secretary
Tells Fable of Fate of Two
Successful Men.
Mon cannot be expected to continue
to work, day after day, Increasing the
productiveness of this country and
benefiting others. If they know that
on death the major portion of their
earnings will be dissipated In Federal
estate and state inheritance taxes, de­
clares Charles S. Dewey, Assistant
Secretary of the Treasury. In the
American Bankers Association Jour-
nal. He says:
“I aui going to relate a fable In
terms of modern business conditions.
John Henry and Walter Brown were
aggressive, hard-working men, ano
each had started business for himself.
“At the time this history opens.
John Henry had just died, leaving his
entire estate to his son. John Henry,
Jr., end had appointed ills old friend,
Walter Brown, as executor. Prior to
his death John Henry had moved to
California, leaving his business tn the
hand- of his son under whom it had
continued to make excellent headway.
The father had been doing a little
spec dating in oil. This venture had
not proved successful and he was ln-
debt< d in the sum of $50004)0.
“E ecutor Walter Brown, on exami­
nation of the estate, fouud the follow­
ing situation:
Capital stock of Henry A Co..
Ise. a Michigan Corpn............... 35 one son
Personal debts due banks .........
500.000
“Walter Brown soon made the un­
pleasant discovery that In addition to
the personal indebtedness of $500.000,
and administration expenses of $250,-
000. the following death-duties must
be paid:
9497.50«
595.700
122.000
Federal estate tax ......
California inheritance tax
Michigan Inheritance tax
Total
................................................... |1 305.200
“Added to the personal debt and ad­
ministration expenses, this made a
grand total liability of $1,955.200.
The year was 1920 Money was tight.
Other manufacturing companies in the
same line which might have been in­
terested in a purchase had no money
for extension« nor were the banks in
a position to handle a loan of this
type. Here was a most successful
business, built up from small begin­
nings by one man and carried on to
further successes by hi« son, about to
be placed under the hammer.
“Is there any justice In taxation that
may force a man and his family to
lose the trnlts of his entire life’s labor,
and permit others to benefit? As a last
resort, Henry, Jr., was -forced into a
bond Issue.
A loan, to settle the
debts, administration expenses and
death duties, of $2.250,004) was nego­
tiated, upon the following basis:
"The capital stock of the company
was left at $5,000.000 represented by
50,000 shares. First mortgage 8 per
cent bonds were offered the public
with a bonus of two shares of stock
with each $1,000 bond. The banker,
to protect his bond customers, kept
30,000 shares to assure control of
management, and John-Henry, Jr., re­
ceived the- balance si 15.600 shares.
John notf bt^B a good job as general
manager of his father’s old company,
but they do not pay him very much.
"Nov' we must return to.^Waiter
Brown, executor of John i Hmfiry. Sr.
Waiter had always ker*
tpt 4ricM to hl«
own mapuf?rturing bfisfitexs
bi_.
The
mor» he fonsldef^ii his own sitnation.
Hie mor» closely it seemed to him to
ffesemble" that of his old friend. ‘
. "He therefore railed a lawyer and
Made a complete seb
le of his as­
set«. requesting
in .¿estimate of
admini^ratinn
e« ■ and death
duties be
e schedule of
■''"‘lets was
’ Capital stock. A'slter Brown Co..
Mich Corp. ......... ft*.'..................... »4.000.000
CaliforrMs real aetata ..................... I.000 000
Tax-axrmpc bonds, Mhm., Mont.
■ ' _ and Colo..............................................
900.0«0
By WILLIAM E. KNOX
President, American Bankers Aeeo cl o
tlon
The American standard of living,
the highest in the world, came easily
in the past from the abundance of our
natural
wealth,
but it can be
maintained in the
future only by
drastic
national
economy in the
use of that
wealth. We havs
grown up to our
resources. We can
not afford ta
waste them any
William E. Knox
longer.
Industry
ally we have got to stop wasting, but
even more so have we got to stop the
wastefulness of our personal habits.
The paramount challenge to educa­
tion in America today calls tor the
effective teaching of personal eco­
nomics—for education in the manage­
ment of personal Incomes so that they
will give every Individual a good liv­
ing during his productive years and
provide certain security for the non­
productive years of his old age.
Forty-four million people, two-fifths
of our population, are gainfully em­
ployed In the United States, earning
more than $60,00«.000.04X) annually.
The management of the expenditure
of this 160.000,000,000 annual pay
check is the biggest and most impor­
tant business In America, it has been
estimated that upwards of flO.OtM,-
000.000 of this personal income is
wasted annually. More than a billion,
it Is estimated, disappears la foolish
speculation in fake schemes.
The spirit of waste in America is
a heritage of the past, but today the
country has more than one hundred
and fourteen million people to support
and no nation’s resources can with­
stand extravagance indefinitely. An
Increase In population will mean a re­
duced average of personal wealth un­
less intelligent management main­
tains a progressively more economic
utilization of the national income.
To teach our people this is the task
of education and it can not begin to
meet the task a moment too soon. The
advance of civilisation makes man's
existence a more and more serious
business. Human responsibilities and
duties increase each year, if progress
has made life more abundant it has
also made It more ex peas Ire. It la
impossible for most men to increase
their real wages.
Therefore they
must meet their added responsibilities
out of more economic employment of
what they get.
TJhe schools must teach our young
people so to manage their own per­
sonal affairs as to Insure that they
will lead lives that have an economic
worth to society and to themselves.
Business mast provide pleas for its
workers to enable them not only to
earn but also to save so that the
teaching of the schools will not prove
an Ulusion In practice.
Do these
things and we will have no pauperism
in America. Neglect to do them and
ww Will ultimately develop pea-
perlsm,—a nation’s worst social crime.
STRAIGHT TAUS
WITH AUNT EMMY
"Within a few days Mr. Brown’«
la wye/ made the following report:
babts ■ and admJn. expenses
isoe.ses
F-d fctate
<
tax.....
9714),«25
tax _
Cal. It Inn. ritsnee
__________
443,194
Mich. Inheritance taX.
^■'nn hthertt.irtce tax.
Inheritance tax.
•
V.Jo. inheritance tax.
STOP WASTIN6--0R
FACE PAUPERISM
BANKERS HELP
Manna County, Mich., bankers are
backing the county move to replace
scrub stock with purebred cattle The
plan an outlined by the county agent Is
to purchase young purebred sireB and
tbeas wherever a farmer is
who la wilMag to undertake the
pro goeit
The bankers will ad­
vance the purchase price and take a
note for one year without interest.
The idea io to make It as easy as pos­
sible lor the farmers to procure thor­
oughbreds.
♦
LOCALS
Picked Up About Town
♦------------------------------------ ♦
2M.4O9
4.299
ON HAVING MONEY ON HAND
tot
Total expanses .................... .... 91 .925.701
“On this basis the estate suffered a
reduction from 15,500.000 to approxi­
mately $3.574,000. thus wiping out all
assets except the corporate stock and
placing a heavy loan on that. Mr,
Drown had one son and. as he thought
of John Henry, Jr., toiling away with
little hope of opportunity he deter­
mined that he would not subject hl«
own son to the same tribulation«.
"Boom times having come, there
wa« no difficulty obtaining a pur-
chaser for Walter Brown A Co., and
the California real estate was sold at
a good price. The whole was Invested
In tax-exempt bonds which yielded a
••«T7 sfifp return of about 4% Der cent.
I
of beach scenery. These pretty suits
»re not so revealing as the regulation
iwlmmlng suit which follows the linee
tt the figure—whatever it may be--
with merciless fidelity. Beach stilts
undertake with greet success, to do a
little flattering.
Among them have appeared the new
'futuristic” silks, in vivid and beauti­
Evary valley has its hills. Every ful colors, and the reader la referred
success has its hard climbs—but, to the picture for details of approved
the green, fertile valley of success patterns. They are much mixed up
is to design, and only the futurist can
is worth every honest effort.
«plain them, but why worry about
------- «--------
»plaining beauty? Often short, black
Beach Suit« Reveal
iatln tunics are worn with the colorful
Gay “Futurist” Silk« »verge onent.
Just as long as there is a service
to be supplied, just so long will
there be possibilities for improving
service. What was good service one
year ago. stands a chance of being
considered ordinary Bervico today.
A dramatic critic
h
feller that
failed to make a hit
ns a playwright I
Co-operation is the act of labor­
ing together with others for n com­
mon end. It is to so conduct your­
self that others can work with you.
The eo-operative spirit today dots
not aim at cutting out any wing of
an industry, the middle man or any
other man, but rather aims at hxip-
ing each wing properly to fulfill itsj
particu’ar function.
FOR SALE— Lot 80x100 near high
schol; all cleared and fenced.
Thehorn.
$54)0. E. C. Schubel,
6Q-2t
--------- 4----------
40 ACRE FARM FOR SALE
I will sell my 40 acre farm at an
attractive price for a quick deni,
Lies one and one-half mile from
Vernonia, just beyond the city
reservoir. A 7 room good house, two
good wells, place all fenced,
18
acres in hay crop, good garden,
family orchard. A place we want to
show you. Am offering place for
(3000. Give good terms.
John
Hall.
W-2t
ad-
--------- ♦---------
Lester Sheeley was a county i seat
visitor Tuesday.
Born, to Mr. and Mrs. P. J. Ship
ley, July 4th, a girl.
Miller Mercantile Co
--------- 4----------
INCORPORATICI
Columbia C./unty Pomon". meets
with the Clatskanie grange in tie
city of Clatskanie, Saturday, Aug­
ust 1st. Governor Pierce will be with
us, states Maud J. Mills, secretary
and may we have evety grange tn
our county represented. Subordinate
grange secretaries should send n
their reports at once
•TORES AT
STORES AT
NEWBERG
SALEM
SHERIDAN
VERNONIA
CORVALLIS
HILLSBORO
McMINNEVILLE
MONMOUTH
--------- W—1-----
For your pocketbook’s sake, be-
sure and rea<j the ads in this week’s
Eagle. Some mid-summer offerings
you can’t afford to overlook.
----------- *-------
In city street work and county
work at edge of town, Vernonia Is
adding 100 men to its pay roll for
the next 60 days.
Our July Clearance
----------♦------
Better take in the ball game at
the Vernonia grounds Sunday.
It
promises to be a peppy, interesting
contest and the home boys need
your support to help them win.
SALE
--------- 4----------
Some of those Chinese Generals
“ain’t Gonna Reign No Mo”
--------- ♦---------
Mrs 'S. C. Morton and Miss Olga'
Heiibom, of the St. Helens Mist,
were
Vernonia
visitors
Tuesday1
evening.
The Vernonia postoffice is all
dolled up with new paper and new
paint, Shines like a new top and
looks much better.
—*-----------
Mrs. A. Lester returned this week
from an extended visit with relatives
in Washington.
FOR SALE—Cow. F. E. Sipe. 3rd
and Nehalem.
Vernonia. 50-lt
--------- 4---------
|
CHURCH NOTICES
J
Now on in full Swing
YOU CAN ALWAYS DO
BETTER AT MILLERS
CHRISTIAN CHURCH
Sunday school in the Rose Thea­
tre at 10 and the morning service
at 11 a. m. Endeavor at 7 and the
evening service at 8 p. m.
Wo wish to thank all who helped
make our picnic a grand succtv«.
----------- ♦-----------
WANTED— Old cotton rags at the
Eagle office, must be clean, cash
paid.
40-tf
1
TOO LATE TO CLASSIFY
--------- 4----------
Mr. Bajteman has built an
dition to his residence.
I
-♦
WANT ADS
--------- 4----------
--------- 4----------
“Aunty, why is it such a good thtag
to have cash In the bank?" asked Jane
of Aunt Emmy. “Mr. Wilkins was
talking to father yesterday and be
said that every one ought to have a
certain amount of cash on hand.“
"He meant that If you keep some
of your money In the bank where it
can be had any time you might be able
to nse it to excellent advantage,” said
Aunt Emmy. "Every now and then a
good opportunity presents Itself to
make a nice profit In some business
deal if you only have the cash on hand
so you can act quickly. Don't yoa
remember about that quarrel the
Brown brothers bad over their Inbert-
tance and to settle It sold that house
In.f'sntef. Rt$eeJ* Old Peter H»<Hn»
on the lowest rounds of the ladder,
of a marvelous «jiripsllihg power,
whose use had an Irresistible effect.
The marvel wus its simplicity, for
this mysterious power was “courtesy
and politeness.”
A. S. Dudley, in
“Oregon Business.”
History demonstrates that most
Here is pictured another of those
Bom, on Monday, July 2Q, , to
men who hnve climbed highest. agwlj. arrived beach suits of printed
Mr. and Mrs. Charles Ratke, a girl.
i
2.700
Total death duties...
OX. mat uo so much toward uAiking
learned when their feet were yet their wearers highly decorative parts
A farmer was one day driving a
Dr. Cole and Lloyd Thomas were
Portland visitors Wednesday morn team of horses attached to a culti­
vator, and a stranger stopped to
lug.
look on. “Your horses work well to­
--------- ♦----------
gether,” said the stranger
‘•Yes.
J. S. Culbertson
was
charged
replied the farmer, “ 'one
I
is willing to
with carrying concealed weapons
do all the work, and the other is
this week, and trial held Thursday
willing to let him.”
morning,
The warrant apparently
was not properly made out or
The greatest »rame in the world
signed, no date or place mentioned,
is success and every man who is a
and no trial, as the whole things
man is playing his cards to win.
was thrown out of court.
----------♦---------
Total ................................................. »5 500 000
w
Walter Brown tfien moved' W legal I nought K in MV »3,900 and the next
ISN’T IT A FACT
residence to the more friendly climate week sold it for $4.100. If be hadn't
of Florida, where state inheritance bad the cash on hand he never could
(have auule that handsome profit."
and Income taxes are forbidden.
Attention to personal appearance
“Yoe, Aunty, that’s all right for Mr. IH absolutely necessary if a man ex­
"The country suffers by the loss of
effort which Walter Brown might have . Haskins. but Ha never likely to have pects to make the most out of life.
continued to expend under a more la-; $8.000 or $4.04)0 on hand.”
Always look your best. This applies
tolllgent system of taxation. Wo must'
"WsU tber«_are other mtio
to the Individual, to the store, to
reform the tax system in such a way
the community, to the state of Ore­
that business and industry shall not (
gon.
be hampered
We must make sure
that Americtui cltlsens shall not be
deprived of the Incentive to work and
It is easier to push a wagon on
accumulate and that this country shall
the move than one standing still.
not cease to be a land of opportunity.
Associate with active, successful
A tax system which discourages Ini
business Bien. Success inspires suc­
tiative cannot be the right system tor
cess.
America.”
_____
Vemonias Leading Store