Newspaper Page Text
PAGE FOUR
: g 3 & ‘MR 1
~ ATHENS BANNER HERALD
ESTABLISHED 1832
Published Every Evening Except Saturday and Sunday and on Sunday Morning by Athens Publishing
Co. Emtered at the Post Office at Athens, Ga. s second class mall matter,
EB. BRASWELL raos wasn uase Seun el Gabl WHES Bl o 0 e, IDITOR and PUBLIDNNN
B. C. LUMPKIN and DAN MAGILL .... es¢s voov sveeem ssoson ssaess soee. ASSOCIATE EDITORS
NATIONAL ADVERTISING REPRESENTATIVES |
Ward-Griffith Company. Inc., New York, 247 Park Avenw Boston, Statler Office Bulilding; Atlanta,
23 Marietta St.; Los Angeles, 1031 South Broadway; Chicago, Wrigley Building; Detroit, General Motors
Building; Salt Lake City, Hotel Nehouse; San Francisco, 681 Market St.
—————————————————————————————— i i———————————— -————— R ————
MEMBER OF THE ASSOCIATED PRESS
The Assoclated Press is entitled exclusively to the use for republication of all the local news printed
in this newspaper, as well as all AP News dispatches.
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DAILY MEDITATIONS
Set your affection on
things above, not on things
\ on the earth,
For ye are dead, and your
life is hid with Christ in God.
When Christ whe is our life, shall appear,
then shall ye also appear with him in glory.—
Colossians 3:2-3-4. -
e ——
Have you a favorite Bible verse? Mail to
A. F, Pledger, Holly Heights Chapel,
Case Histories Point Out How
Tax Laws Are Side-Stepped
BY PETER EDSON
NEA Washington Correspondent,
WASHINGTON. — (NEA) — Good examples of
5w to beat the tax laws were given to Congress
hen Treasury Secretary John Snyder testified
1 President Truman’s tax reform program. His
ses showed how numerous slickers have been
‘ading tax payments of about $600,000,000 a year
rough legal loopholes that Congress is now being
.-ed to close.
rirst, take Secretary Snyder’s case of “Corpors
Lon D.” In 1944 it sold a departmrent store build=
1., reporting a loss of $7,400,000. This was allow=
.y as a tax deduction. But in this case, the sale
vas made to a trustee for a tax-exempt organ=
ization. The tax-exempt organization — which
could have been a charitable or educational outfit
—promptly leased the building back to the origi
nal owner. In this way Corporation D continued
using its building, while at the same time it got
the benefit of tax savings amounting to some
$5.,600,000,
Corporations aren’t the only beneficiaries of
this tax dodge. Secretary Snyder 1 attention
to the practices of cattle raisers : ymen who
regularly sell part of their heru. year, The
courts have held that gain from tic .uie of these
cu..s in a herd are taxable only at capital gains
ra.cs (25 percent) because animals have been
wsed in the taxpayer’s business. On the other
hand, losses from these transactions have been
held as ordinary business expenses which are
{ully deductible in computing net income.
COMING OUT AHEAD .
The “short sale” device for reducing taxes was
illustrated by the secretary in the case of a cotton
speculator who in eight months reported long
tetm profits of $485,000 and short-term losses of
$225,000. The short-ternr losses were deductible
in full. Since only 50 percent of the long-term
sains were taken into account for income tax
purposes, they were more than offset by short
term losses.
A major tax loophole was described by the sec
retary as “distribution of dividends in kind.” For
instance, Corporation A distributes to its parent
Corporation B a dividend of merechandise which
cost $3,000,000 but has a market value of $11,000,-
000. If Corporation A had sold the goods, it would
have had to pay a 38 percent tax on the $8,000,000
gain, or over $3,000,000. But by a dividends-re=
ceived credit on the merchandise, Corporation A
pays no tax and Corporation B pays a tax of only
5.7 percent on $11,000,000, or $627,000.
In order to promote business in the territories,
the U. S. government has granted certain tax
benefits to American citizens in those areas. Sec=
retary Snyder reports one case in which this was
used by a radio entertainer to make a tax clean
ing. He entered into an arrangement whereby he
agreed to make all his radio and television re
cordings in Puerto Rice, in exchange for exemp
tion from Puerto Rican income taxes.
INSURANCE BENEFITS CAN BE
JUGGLED AROUND
Court decision that insurance benefits are ex
empt from income taxes if paid in installments
instead of a lump sum provides another loophole
the government wants to close. The case of a
widow who received SIOO,OOO insurance on the
death of her husband is cited. Since the widow had
a life expectancy of 20. years, she would have had
a normal expectancy of spending the insurance at
the rate of $5,000 a year. But by electing to take
the insurance in monthly installments, she was
able to realize $7,000 a year. The $2,000 a year
difference represented interest on the policy pro
ceeds retained by the company. And taking the
payments this way, the court ruled that they were
exempt from income tax.
Dodging income taxes through creation of col
lapsible corporations was illustrated by Secretary
Shyder in the case of a movie producer. If he had
.. _de all his pictures as an individual, his tax on
i_come could have run up to 82 percent of net re
ceipts. If he made all his pictures through a single
corporation, the tax would have been 38 percent,
plus perscnal income taxes on dividends as dis
tributed. But by organizing a separate corporation
to produce each picture, then liquidating it after
the picture is mrade, the producer gets by with a
long-term capital gains tax of only 25 percent.,
Depletion allowance deductions, which run as
high as 27% percent on oil and gas properties, and
as low as five percent on coal mines, were intended
to permit taxpayers to recover their invested cap
jtal tax-free. But they now provide one of the
largest of all tax loopholes, because depletion al
lowances are deductible even after 100 percent of
the invested capital has been recovered.
Resurgent German Nazism
1
!
Must Not Go Farther
Tardy but welcome. That must be the verdict
on the warning against a revival of Nazism issued
in Stuttgart recently by U. 8. High Commissioner
John J. McCloy.
For a long time evidence has been mounting
that a new spirit of nationalism is rampant in the
West German Republic, The latest account comes
from Leon Dennen, roving European correspond
ent for NEA, who has just finished a broad tour
of that country. He paints an alarming portrait.
The story he tells is one of Nazis working be=-
hind the cloak of a democratic reginre to regain
power, Ruhr industrialists collaborating with them
and even plotting a deal with Soviet Russia in
hope of restoring Germany to a key place in Eu~
rope, and millions of ordinary Germans beginning
to listen again to the extremists because they find
no other voices convincing.
If’s a tale, too, of U, 8., British and French in
action, confusion and mistakes in Germany. No
real effort is being made either to teach democ
racy or create the conditions under which it can
flourish, Instead the western powers have watched
the re-establishment of the same unhealthy eco
nomic and political conditions that gave rise to
Hitler.
When McCloy was in Washington not long ago
he said the “evil embers” of German Nazism are
not yet a real threat, But in his Stuttgart speech
he suddenly switched to somber tones of warning.
He told the Germrans flatly they’ll get no army
or air force and won’t be allowed to develop polit
ical conditions that might threaten world peace.
He assailed the growing tendency to blame other
countries for their postwar plight.
McCloy added that Americans aren’t in Ger
many simply to feed the people and promote eco
nomic recovery. The main objective, he said, is to
help the nation gain political recovery as a dem
ocracy that will allow its citizens to live as free
men. .
This was a firm speech. As another reporter
observed, it reflected not so much a “get tough”
as a “show me” attitude, It notified the Germans
that hereafter their expressions of good intentions
won’t be enough; we’ll be watching what they
actually do.
But it's clear from McCloy’s later remarks that
the U. S. does not now contemplate any specific
changes in policy, although action is implicit in
his warning.
Perhaps our government first wishes to meas
ure the effect of its new attitude on German be
havior. If that is the idea, the test period ought to
be reasonably brief. Germany already has trav
eled far on the road back to its former dangerous
status. It must not be permitted to go farther, In
stead it must be turned into democratic paths and
drawn toward the West, even if that means keeping
a tight hold on the nations for 15 or 20 years more.
What's Sauce for the Goose . ..
The reporters who work in the press galleries at
the U. S. Capitol are jealous of their independence,
as well they might be. Their freedom is symbol
jze partly in a rule that bars anyone from the
galleries who has ties with government.
But this rule is now having a curious effect. It
is denying use of the galleries to reporters repre
senting the U, S. government, but allowing full
privileges to newsmen from Tass, the official Rus
sian agency.
Tass won a libel suit in Britain on the ground it
ijs an arm of the government and thus should
have diplomatic immunity. So there can’t be any
argument on its official status.
Yet the Washington press corps accepts Tass as
if it were independent. Meanwhile the capital
newsmen are refusing to allow our own State De
partment to have reporters in the galleries to
gather news for dispatch to foreign lands over the
Voice of America programs,
The department says the regular capital report
ers naturally stress news from the U. S. angle,
and it wants material more useful for foreign dis
tribution. The reasoning sounds pretty good. But
if the press corps remains firm in refusal, the least
it can do is to apply its rule with equal force
against Russian government men.
The shares of the U. N, are lower today than
they have ever been before. But I am sure we
will be restored.—U. N. Secretary-General Trygve
Lie, on Russian boycott of U. N.
We are asking Congress to retain Selective Serv=-
ice primarily because it 1s a vital element in mo=
bilization—Army Secretary Gordon Gray.
If Western Europe falls we will have to in
crease our expenditures $15,000,000,090 to $25,-
000,000,000 annually, — ECA Administrator Paul
Hoffman.
John L. Lewis is playing with the President and
the American people just as a cat plays with a
mouse. He turns off the coal spigot and lightly in
creases the flow the next day. Then the neit day
he stops it again. — Senator Harry F. Byrd (D),
Virginia.
THE BANNER-HERALD, ATHENS, GEORGIA
Young
Mofherg.).;
When your child eatches cold, relieve
dfli:.ig:t" even;:guehealeepal Rub his
back at bedtime vecxs
with warming..,. APORUB
VICK'’S PRODUCTS
Sold in Athens At
CROW’S DRUG STORE
Athens’ Most Complete
Drug Store.
et et M B 4 o et eAI
PALACE—
Sun. - Mon. - Tues. — “On the
Town,” starring Gene Kelly, Frank
Sinatra, Betty Garrett, Ann Mill
er. Candid Microphone. News.
Wed.-Thurs.-Fri.-Sat.—“Pinky,”
starring Jeanne Crain, Ethel Bar
rymore, Ethel Waters, Wm. Lundi
gan. Sheep Dog. News.
GEORGIA—
Sun.-Mon, — “This Time for
Keeps,” starring Esther Williams,
Jimmy Durante. Lion’s Busy.,
News.
Tues.-Wed. — “Merton of the
Movies,” starring Red Skelton,
Virginia O'Brien. March of Time.
Poor Elmer.
Thurs.-Fri.—~‘Chicago Deadline,”
starring Allan Ladd, Donna Reed,
June Havoc. Farther Down East.
Goofy Gymnastics. News.
Sat. — “Blondie Hits the Jack
pot,” starring Penny Singleton, Ar=
thur Lake. Hold That Monkey.
Anti Cats.
STRAND—
Mon.~Tues.—“Parole, Inc.” star
ring Evelyn Ankers, Michael
O’Shea, Turhan Bey. South of
Sante Fe.
Wed.—“My Friend Irma,” star
ring Marie Wilson, John Lund, Di
ana Lynn. Great Adventures of
Wild Bill Hickok—chapter 12.
Thurs.—“ Without Honor,” star
ring Laraine Day, Dane Clark,
Franchot Tone. Grass Is Always
Greener. Blue Prawaii.
Fri—“ Beyond the Pecos,” star
ring Rod Cameron, Gale Sterm,
James Bros. of Missouri—chapter
6.
RITZ—
Sun.-Mon.-Tues. — *“Massacre
River,” starring Guy Madison, Ro
ry Calhoun, Carole Mathews. Li-
Railroad Schedules
SEABOARD AIRLINE RY.
Arrival and Dcuparture of Trains
Athens, Georgia
Leave for Elberton, Hamlet and
New York and East—
-3:35 p. m.—Air Conditioned.
8:45 p. m.—Air Conditioned.
Leave for Flberton, Hamlet and
East—
-12:15 a. wy—(Local).
Leave for Atlanta, South and
West—
-5:50 a. m.—Air Conditioned.
4:35 a. m.—(Local).
4:00 p. m.—Air Conditioned.
CENTRAL OF GEORGIA
RAILROAD
Arrives Athens (Daily) 12:35 p.m.
Leaves Athens (Daily) 4:15 pm.
SOUTHERN RAILWAY SYSTEM
From Lula and Conmmerce
Arrive 9:00 a. m.
East and West
Leave Athens 9:00 a. m.
GEORGIA RAILROAD
Week Day Only
Train No. 50 Departs 7:00 p. m
Train No. 51 Arrives 9:00 a. m
Mixed Trains.
soPURE... -
so DEPENDABLESE 513055\ -
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IT'S ’“‘ ‘\\\\“ -
ASPIRIN .
AT ITS BEST &)
WORLD'S LA Ora 11
SELLER AT 10¢ l_u’/.“ira&”‘i‘;%‘f
ets. Easy f
St. Joseph mother toygix?el:
P3O easy for child to
take. Only 35c.
ST. JOSEPH ASPIRIN
Sold in Athens At
CROW’S DRUG STORE
Athens’ Most Complete
Drug Store.
R 1)) S
LRI 130 EARING THEATRES
T T
| mw:minzi:fifii!fiiiufmg
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Frank Sinatra i
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|,H_ ‘,ugl m“f. it i it ¥ ]H
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PALACE FEATURE STARTS:
1:04, 3:06, 5:08, 7:10, 9:12
GEORGIA FEATURE STARTS:
12:59, 3:01, 5:03, 7:05, 9:07
[;ixel Hampton and Orchestra.
‘Punchy de Leon. 1
| 'Wed.-Thurs.—*‘Stampede,” ltar-‘
ring Red Cameron, Gale Storm.
Ina Ray Hutton end Orchestra.i
Screen Snapshot. 1
Fri.-Sat—Western Renegades,” |
starring Johnny Mack Brown, Max
Terhune. Shocking Affair. Hur
ricane Express——chapter 7.
DRIVE-IN~—
Mon.-Tues. == “Easter Parade,”
o BD-Biue Days
L oWy e, |
A o ", : l
Z s, ook s ]
LR T o
;';fif;_&:;;-;?; % oy o
and BD means Black-Draught that thousands
:‘n”toelmnnl&tho blues "”“.".:‘&f&"::?.{:
| B .Hmfla' o Piy o Tn o ots
»s alrected for gentle action w W head«
fi'u“”"”w"‘sfi‘&i Tasty Syrup of Plack 1
ermt “kt lor‘" children, At your nearest dealer's
BLACK-DRAUGHT I'SSViVE
BLACK - DRAUGHT
Sold in Athens At
CROW’S DRUG STORE
Athens’ Most Complete
Drug Store,
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84 Years Of Banking Have
Produced Many Services
WHEN The National Bank of Athens began its career in this community
February 20th 1866 . . . 84 years ago today . . . some of the most important
services that characterize modern banking were unknown. ... .
FOR INSTANCE the personal loan department was not then in existence . .
it has been one of the developments of banking during the last 84 years.
Today it is one of our most useful services and we are happy to have had a
part in its growth.
The Founders of The National Bank of Athens sought to establish an institu
tion that would contribute to the we Ifare — social and financial — of Athens
and Northeast Georgia.
Throughout our 84 years of existence we are the oldest bank in the South
east operating under its original Charter . . . we have been ever mindful of
the needs of the individual, of industry, of business, of agriculture.
To meet these needs we have steadily expanded our services while we have
also followed a policy designed to conserve our resources and those of our
customers. _
Banking has made long strides during the last 84 years . . . And we have kept
pace with this progress so that today we are in position to do more for the
public and our customers than was ever before possible. . . .
We invite an opportunity to serve you. .. .
Dividends Paid Since Organization, $1,914,000.00
COMPLETE BANKING SERVICES:
Checking Accounts
Savings Accounts
Collection Department
Trust Department
Safe Deposit Boxes
Bank by mail service
Sale & Redemption U. S. Savings Bonds.
The National Bank of Athens
Member Federal Deposit Insurance Corporation. :
OFFICERS
W. R. Antley, President J. Ovid Bird, Vice-President
T. Evans Johnson, Cashier J. M. Mcßae, Assistant Cashier
‘ DIRECTORS ¢
W. R. Antley J. Ovid Bird Julian H. Cox
Carter W. Daniel Gordon Dudley Miiton Leathers
David B. Michael Sam H. Nickerson D. D. Quillian
Malcolm A. Rowe Walter A. Sams, jr. H. Paul Williams
starring Fred Astalre, Judy Gar
lafd. Long Haired Haves, News.
Wed~*loth Avenue Angel,”
starring Margaret O’Brien, George
Murphy. Dog of the Wild, Dr.
Bluebird.
Thurs.-Fri, — “State’ of the
Union,” starring Katharine Hep
burn, Spencer Tracy. All In a
Nutshell. News.
Sat—“ Law Comes to Texas,”
starring “Wild Bill” Elliott. Tall
Dark and Gruesome, In My Gon=-
dola, Devil Horse—chapter 5.
Who's Who Lists
's Who Lists
" "
University Of .
\
Georgia President
Dr. Jonathan C. Rogers, presi
dent of the University of Georgia,
will be listed in the new edition of
“Who's Who in America,” it has
been announced.
Dr. Rogers was riotified while he
was Presndent of North Georgia
College that a sketch of his pro
fessional career would appear in
“Who's Who in America” and
“Who's Who in the South and
Southwest.” Confirmation that
the sektch would appear in the
We Offer You:
next edition has just been received.
| The University president was
educated at Piedmont College,
Earlham College, and Columbia
University. He is past president
of the Association of Georgia Col
leges and a member of Phi Delta
Kappa, Blue Key, Omivgon Delta
Kappa, Kiwanis Club,” and the
Presbyterian Church.
Dr. Rogers formerly faught at
Oakwood Seminary in New York
and Piedmont College before he
became dean of the latter institu
tion. He served as president of
North Georgia College prior to his
appointment as president of the
Unigversity of Georgia in January
1949,
Dr. Rogers’ wife, Mary Black
shear Rogers, is a native of Athens.
m
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% *sl Ns *»* X
|'DRIVEIN ' %
TODAY and TOMORROW
FRED ASTAIRE — JUDY GARLAND
‘ in “EASTER PARADE”
COMPLETE LOAN SERVICES:
Commercial & Industrial loans
Agriculture loans
Personal loans
New automobile financing
Home appliance financing
Farm equipment financing
FHA Title 1| — Home Improvement loans
Qualified Lending agency
CCC Grain and Cotton loans.
MONDAY, FEBRUARY 20, 1950,
e Vs
i 1 f
TETTERY:
u:oa
-acne pimples, UINE
black
gg;g;;:'m{gpgfil;g_ BLACKe T Thid
l out skin (extemnally DINTMENT
caused). Black and
White Ointment is sooth
o diarml, Sl st -
] With Black and White Skin Soap, " *7
e,
BLACK & WHITE
Sold in Athens At
CROW'’S DRUG STORF
Athens’ Most Complate
Drug Store,