| OCR Text |
SEEN SEN an n Ll and nd t tN tl e N CAPI CAPITAL CAPITA TA P vy Carter Field Washington A n.-A n. A sharp boost to In liquor taxes li II a being seriously con con- by bl a considerable number of senators and members of ot the house bouse No concern whatever about what this may mal do to the It legal liquor industry or how It may blow the breath of life Into what has been an n apparently apparent dying moonshine and bootleg Industry I. I In lie being manifested The Tue whole reason for tor this new ne move Is I. that the national legisla legislators ln tort tors coming up for tor re election re-election this fall talt are afraid to 10 vote Tote the excise taxes tOle recommended by President and In addition find Ond that thattie tile tie Corporation tax tn plan suggested by bl the White House blouse must be riddled with lib exemptions unless unItS It Is I. to play havoc with business Various different amounts of ot Increase Increase In In- crease are being considered Most popular apparently Is I. the thought of boosting the tax tal on distilled liquor 1 1 a gallon which would make malle It 3 on domestically produced liquor and ro on Imported liquor And along with this to boost the federal tax ux on beer from 5 5 to 0 G 0 Ga a barrel Whereas some ome time back Federal Federal Fed Pod eral Alcohol Administrator Joseph Josph II 11 Choate Jr urged forcefully that eyen even the present federal tax tal of 2 a gallon should be reduced In order order or der to crush out cut the bootleg Industry In I At that time Mr air Choate said laid As AI concerns concern liquor the United States StottS w Is II living In a tools tool paradise paradis We know that Prohibitions Prohibition's Frankenstein Frankenstein Franken Franken- stein monster the bootleg trade Is I. still till with us us but we refuse to see lee Its iti size alze lad and od power Particularly we weare weare were are are re blind to the enormous growth of et f the of ot the monster monter Il Illicit ii 11 licit hell Jr distilling compared to which smuggling and Industrial alcohol dl dl- have been mete mere trifling excrescences ex on Its 11 gigantic frame Later tater In the same lIme statement Mr Ir Choate recommended There should be such reduction In taxes and Import Import Import Im Im- port duties dutle as 81 will wilt enable the legal legal legal le le- gal producers and Importers Importer to compete Import Duty Cut Since that statement the reciprocal cal treaty with Canada resulted In reducing Import duties on distilled liquors from all countries from frolD 5 a Jall gallon o to a gallon alloh Rut nut the federal tax tn on domestic liquor nun baa remained unchanged this Is II added to 10 the tariff duty on Imported liquor of ot course while actually the tax tu has Increased etl In many states due to a general tendency to Increase local lo Iu- cal ral charges chareL Maryland for tor Instance has hu added a small manufacturers manufacturers' tax tn pe pet per gallon within the last few tew months Secretary of ot the he Treasury Henry Jr Jr la II not In sympathy with the move moy on Capitol III to boost bonat liquor taws He lie thinks It might easily defeat the drive hitherto hith erto fairly successful of the en en- agencies to break up the Illegal tram traffic Representatives of or the legal Industry In here are very verI much dis dis- They had been well pleased with success In removing rem removing re re- m moving their Illegal competitors but feat fear that with thus th the tremendous I boosting In profits for tor and bootleggers which the threatened threat I ened new tax lax would bring their own business would suffer heavily As AI a Ii d matter of ot tact fact some ome of ot the officials who have hare to do with en enforcement enforcement ent t tell the writer privately that they do not Dot believe en n Increase In ta tax would put a II single nIle additional dollar Into the treasury that treasury that the shrinkage In le legal sales would com om completely completely offset the additional tax tu per lIer I gallon lallon I The buyers strike attitude of the public against any ant sharp harp price raise alae Is II cited Alto Also fear tear that It might b become ome smart to know a bootleggers bootlegger's phone number Hut But the lena senators torI and representatives represents enta tires tins cant can't be worried about all this They want to put through some lame sort of tat bill and go home bome Restore Excite Taxes Talea President Roosevelt will Insist on the senates senate's restoring the excise taxes tales the place of ot the out lowed Jawed processing taxes which taxes which he tie suggested for tor the new tax bill but which the house ways and melon merna committee has thrown over over- board Present expectations are that he be will get his way In 10 the senate despite des pit pile the fact tact that Individual senators len sen are axe DO no more anxious to vote ote to Impose taxes which may prove NO unpopular In melt states than are members of ot of the bouse house Hut But there are several real reasons nl why the senate will yield to so the President and why th the house will wW then yield to the sea len ate On One Is U rather obvious The house bouse baa has already Indicated a determination determine tion Uon to to write In so 10 man many exemptions exemptions In th the tax on undistributed earnings of corporations that Ihal It tins Ana betom a joke Jok 4 as a revenue pro pro- producer ducer In fact fatt net It Is I. pretty welt we agreed now that the present cor eor Income tax tu will III have hue to be retained for tor this reason The other oilier rea reason on and the one that will actuate the President In 10 Insisting on the acceptance of ex n. else taxes taSt's Is II much less leal obvious but very verI clear cleat once It Is u stated It Is II simply that this II Is not the last tax tn bill There must be another very shortly after election The point Is that the present tax tn bill does doel not even eYen aim at balancing balanc balanc- ing lag the budget It alms aims only at producing pro pro- during enough nough revenue to finance nance the additional cost of ot the tho Immediate immediate Imme Imme- diate payment nt of the bonus bonu plus the lost lost past post It present and future future- processing taxes tues Which puts the deficit after this tax IU bill has hu pasted passed and assuming It raises ralael the required revenue at a billion and a half holt for next year year year- the amount spent for tor relief In addition addition addi addi- tion to what Is hel held over from this year ear Actually It will not even do du that t for congress has h. boon been boosting appropriations over bud budget et estimates estimates esti esti- mates mats all ell the way down the line Face Huge fluKe Deficit When congress congre's faces the budget situation next January It will face facea a deficit of a very huge sum lum even with the tax tu laws law then operating One part of ot It will be whatever the government figures It will spend the following year beginning July 1 1031 for tor relief Another Item will be about interest I Interest on the debt to be Incurred next nest year despite the Increased tax tar bill A third will be the Increased ed appropriations congress Indicating no nu Idea whatever of or economizing This Is II why the President did not oot want to put all ali the new taxes on corporations this time lime He Ite wanted wafted to leave a little tat fat for tor the next time If It he put It all on the corporations corporations cor cor- this time before election the nfl Republicans might be able to scare the voters this tall fall by bI pointing painting out the certainty that another tax bill was coming and make male the point that next time the only place to get the money would be from the small Income taxpayers As AI n R matter of ot fact tact Senator La LaFollette LaFollette LaFollette Follette has been Insisting instating for more than ban a year now that this Is the logical place anyhow to get the additional additional ad ad- money needed to run the government so 10 that It would not take ake much persuading by the tho critics of the New Deal to throw a general scare Icare Into a very large group of or vot- vot a ers rs a group large enough to swing awing most of ot the doubtful states Actually the President has no thought bought of recommending a tax boost joost for the smaller Incomes Popular dame Game Button button whoa who got the button buttons promises promise to become a favorite fa a. a game In Wn Washington The District Supreme court solemnly holds In the Hearst telegram suit that It could enjoin the federal communications com corn commission but could not enjoin the senate another branch of ot the government This on the heels of the Supreme Court of the United States giving a l tongue lashing to officious and In in- In Inquisitorial bureaucrats In which some folks here bere suspected the six Bix justices who concurred In the majority majority ma ma- opinion had hall their tongues In their cheeks talk talking In about the securities se so and exchange commission but thinking of the Ul black rk commit commit- tee tte So the situation Is II something like this Lower courts courtl admit that they might have bave the power to protect an Individual whose private telegrams were seized b by the federal communications commission nut But It If the button were quickly pal passed ed on so 10 that by the time the Individual attracted at a courts court's attention some lome senate enate or hon horse e committee Is scrutinizing Peru Peru- the telegram Its It's just loo bad Nothing can be done about It It Of Ot course the Hearst case rOSf In which came clime this opinion by the District Die Dis Supreme court Ourt will be taken to the District Court of Appeals and then to the Supreme court coutt so 10 the present Is not the gnat final word but as a matter of or fact tact If it a congressional congressional committees committee's Investigators investigator once get ret their clutches on a telegram or ora ora ora a letter leller or a report It doesn't make much difference what may be decided decided ed later by the courts courtL nest Rest evidence of this was WOI the reading of William Randolph Hearst's telegram to o James T. T Williams Wil llama liams Jr former editor of at the Doston floe Dos ton Transcript and now DOW Hearst editorial editorial edi edi- writer on the floor of or the bouse house b by Representative of af South Carolina weeks before the decision of the court What I Is Important The fact tact that the telegram was real read so publicly Is not what Is I. Important Im portent In this situation What Is Important la is that when anything Is II seized b by congressional Investigators In tors torI It Is II passed all nil over Capitol Hill for the Interest of any member of the house This Hearst telegram for tor Instance was wal read by bl McSwain He lle Is II not nota a member r of ot the Black committee He lle Is not eves even a una senator tor He lle Is a member of the house Yet be obtained ob Db tamed possession of the telegram ram Documents seized for congressional al ai committees are always passed around AIa Always were and always tI will III ll be The Investigators investigator naturally natural natural- ly II are political appointees They Thel are ate seeking to curry favor with the themen themen men who have the power to give Iu them better betler jobs to 10 have their sal sall salaries cries aries raised sad and to have them tIred fired So If it one of them notes something which reflects on a senators senator's enemy time the senator Is II pretty apt III to 10 have a of the document copy pronto Cop servie |
