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Kentucky Groups Unite Against Tax Measure All Business That Sustains Losses Would Be Affected Under Measure By HUGH J. McGUIRE Staff Correspondent LEXINGTON, ~Ry„ May 18.— -Thoroughbred, livestock, tobacco and farm groups of Kentucky united today in efforts to alert the entire country to possible adverse effects on agricultural and experimental industries of proposed federal tax legislation. The measure, now in the House Ways and Means Committee, would prevent owners of a secondary business from deducting losses In such business from their taxable gross incomes. Stressing that this is a national problem as well as a tremendous blow to local farm owners, Lawrence C. Brewer, of the Agricultural Committee ot the Chamber of Commerce, appointed a committee to draw up a statement showing the advene effects that the Jaw would have oh business generally. It would affect, he said, all business that sustains losses. Some of the points to be embodied in the statement are that the loss of such revenue from the agricultural area would affect all farmers as well as breeders by decreased land value, the loss of gains made through findings financed by such experimental farmers, upsetting of conservation programs and the increase in competition if breeding farms were abandoned as such and placed in cultivation. It was also pointed out that under the proposed measure any pioneering industries such as drilling for oil and coal could not T e financed by tax-deductible funds. Ellis Sutton, chairman of the committee, read a newspaper statement from representative Ifoble J. Gregory, of Maysville, Ky., a member of the House Ways and Means Committee, opposed to the legislation, to the effect that according to the Treasury Departments own estimate, the adoption of the bill would result in producing only a relatively small additional revenue. This revenue would be offset fry losses in taxes due to crumbling of dependent business and to unemployment
