Show r 7 7 UTAH TIIE GUNNISON VALLEY NEWS GUNNISON see the picture h 'I ' around i tlc national jcapital Carter Field in Washington— Very Interesting connection with all the talk from the White House that only fear is restraining investors from going inand particularto new enterprises ly in connection with the administration charge that the electric industry has been withholding exetc at penditures for expansions the rate of a billion dollars a year for the last three years are some recent actions by the federal power commission Act 1 was the application of the Carolina Aluminum company for permission to construct a hydroelectric project on the Yadkin river" N C This was near Tuckertown denied on the ground that the Yadkin river was a navigable stream and hence a license must be ob tained But the convention that the Yadkin river was navigable seemed kbsurd not only to the Aluminum company but to the state officials of North Carolina in view of the fact that there were already three dams below the proposed site on the Yadkin river and one above it So North Carolina joined the company in appealing 17 the commission On December rejected the appeal and also in a for an inaction provided separate quiry into the other four dams insisting that they be required also to obtain licenses Why all this stress on licenses? To read the statements of the commission one might suspect it was all Prein the interest of navigation sumably the commission might tell the operators of the plant on some occasion that they could not operate because that might reduce the depth of water down in the navPreigable part of the stream sumably the amount of water evaporated by being run through a hydroelectric plant would be sufficiently in excess of that evaporated if nature took its course to affect this depth farther down j h Gets Power to Intervene but It seems a little that's how the federal government h 7 i if gets its power to Intervene under The federal govthe Constitution ernment has Jurisdiction over navigable streams The original idea of the founding fathers of course which unless concerned bridges there were some regulation might be built so close to the water that ships could not pass under them But actually that is a lot of apple sauce so far as the present contenWhat the power tion Is concerned commission wants is to force these plants to have licenses in order to Under impose recapture provisions the federal power act as amended in 1035 a formula is set up for the taking over any ligovernment censed hydroelectric plant at the end of fifty years It is to pay under the provisions at this act precisely the amount outlined by President Roosevelt in theory-mo- ney his prudent Investment honestly and wisely invested howtor mistakes —no allowance ever honestly made no allowance for bribes no matter how wise It seemed to pay them no allowance tor promotion costs and no allowance for any increased value in the land! With the further retroactive provision that if it shall be discovered when the government is taking them over that the companies charged too much during the fifty years the amount of this excess profit shall be deducted from the amount paid the owners by the government Needless to say if the project was a losing one the government does not have to take it over So it's the old "heads you lose tails the government wins" formula So some skeptics here think the Investor" will have no "prudent part in anything the "prudent investment" theory governs Trouble Ahead Plenty of trouble impends for President Roosevelt in the regular t j This was made session of congress certain in a recent press conference In which the President stated his Views about what was causing the "fear” on the part of investors The point is that Mr Roosevelt's Ideas are widely at variance with what a very large number of senators and representatives think is the reason This will affect the very essence of a number of measures which the regular session of 'congress must consider— all of them in fact which have anything to do with business Of these taxation is the most important The President in his remarks to the press strengthened the hands of those senators and representatives— apparently a majority— who think that the liberalizing of the tax on undistributed earnings of corporations should go a great deal further even than the house committee has provided The particular point here Is to provide exemptions for any money As the put into plant expansions conservative members of congress the present poficy of ‘the government is a tremendous deterrent to Investors contemplating putting their money in big corporation! in general and utilities in beparticular Big corporations cause of the President’s antipathy for bigness in business— utilities because of his alleged bias against them and because of his frank ext pressions as to what returns the should be allowed to earn The point of the whole thing is that Mr Roosevelt making no allowance for any money "unwisely" invested by a utility corporation or any money spent for bribery or any other "dishonest" purpose and not being willing to allow even increases in land values if they were "unearned increment" or if the value had advanced through no effort of the company these conservatives do not look for any rush of unOr employed capital to the utilities to any other business on which the of the hand government heavy might fall BILLION FOR DEFENSE Budget Message President Wants Bigger Navy Reveals Larger Deficit Less Revenue ytr j!-': V "sV - ! j" i'VyV Sv V court by Dixie Bibb Graves wife of Governor Graves but it was as agreed that she would resign soon as an election was held e years Mr Hill who is old will be one of the youngest He has members of the senate been serving as chairman of the committee affairs house military i 7 ! '- -3 How They Reason reaHence these conservatives son the only way that money can be employed and thus provide jobs for the unemployed is to permit going concerns to use some of the surpluses for expansions without a punitive tax This does not mean these conservatives point out that this particular money would escape taxation On the contrary it i$ sure to be taxed at least twice by the federal government Thus if the Niagara and Hudson to use a specific case company one should though an imaginary earn ten million dollars above its and prudent dividend requirements should desire to put this money into a new hydroelectric it plant would be permitted to do so without paying an undistributed earnings But it tax on that teq millions would pay at least 16 per cent in regular corporation earnings taxes This figure of 16 per cent is the lowest any one in congress is thinkIt contrasts with the ing about present normal corporation income tax of 15 per cent Probably when the law is enacted it will be nearer 20 per cent and some want it even higher ten millions this Presumably would eventually be distributed as When that happened the dividends stockholders would of course have to pay their individual income taxes on it And meantime any additional earnings occasioned by this investment would of course be subject to the 16 per cent or larger regular corporation earnings tax V £AMAV bonfire flames is being gathered from the to feed N Y where the shapely limbs of girls at Vassar college Poughkeepsie Union delegates to the third annusl convention of the American Student stockstaged a demonstraUon for a boycott against Japanese goods Silk burned were neckties and ings shirts SUk fo Be Alabama Senafor EP LISTER HILL administra-tion adherent la to be the new the In Alabama senator from forprimaries he defeated mer Senator Tom Heflin and that seat The Is equivalent to election Huhe will have formerly filled by since go Black has been occupied Black’s elevation to the Supreme Hill Kelts Review of Current Events No New Deal Retreat message on READING hisof annual the nation before the senate and house at the opening of congress President Roosevelt declared his purpose to advance upon the same fundamentals of the New Deal that have hitherto been He said : proposed I do not propose to let the people down I am sure the congress of the United States will not let the people down We hold our principles and our objectives to be sound We will never go back on them" The President again urged concongress to enact legislation for trol of wages and hours of work He asked that all segments of the nawith the government tion to achieve better economic balance Reasserting his approval of proposed changes in tax laws he said: THE WORLD’S WEEK Three things should be kept In C WttUra Nawapapar Union First the total sum to be demind 517000 rived by the federal treasury must averaged Employment Budget Message Summary decreased 16 as a result of any above cent be not and ever per ORE vitally important than his largest Second in schedules 1929 changes annual message on the state of or corporaindividuals the abuses was The automobile by industry the nation was President Rooseonly one having an increase in la- tions designed to escape taxpaying velt's budget message to congress bor cost per unit of output since by using various methods of doing 0 In it he forecast a deficit of otherwise-abu- ses 1929 Weekly earnings of workers business corporate and for the current fiscal year which we have sought with $3204 for first eight which ends on June 30 and a deficit averaged to end— must not be success of 1937 months great of $919606000 for the 1939 fiscal Third we should rightly At present dealers have on hand restored year about 400000 new cars highest change certain provisions where There was no promise that the since 1930 have they are proven to work definite manufacturers budget would be balanced in the very large inventories of parts and hardship especially on the small the national revenue near future business men of the nation estimates being reduced because of "But 30 speculative income should Hourly wage rates are per the business depression cent above 1929 all direct manufac- not be favorgd over earned inNearly a billion dollars was asked turing costs equal to 1929 but auto come" for national deby the President Speaking of his attitude toward prices per pound are still 13 per fense because of "world conditions cent below 1929 the nation’s business as a whole over which this nation has no conMr Roosevelt declared: trol" and more may be called for Sutherland Retires "The overwhelming majority of soon for the same purpose business men and bankers Intend An Old Story LJ AVING passed the retirement to be good citizens Only a small President’s the Summarized Asof seventy-fivage There is a story dating back to budget statement said: years minority have displaced poor citi1033 right after Franklin D RooseRevenues for the next fiscal year sociate Justice George Sutherland zenship by engaging in practices notified the President that he would which are dishonest or definitely will total $5919400000 a decrease velt became President that some fisof $401076000 from the present bankers in New York who hapquit his seat in the harmful to society This statement cal year Supreme court on is straightforward and true pened to be the trustee for his fathLike exclusive of debt January 18 er's estate wrote him a carefully "No person in any responsible Expenditures Justice Van Devan-te- r place in the government of the Unitwill total $6869000000 retirements worded but perhaps indiscreet inwill the he from still be ed States has ever taken any posia of decrease be to it would as safe what $539600000 quiry in to put his money in in view of what eligible for duty tion contrary to it” present fiscal year the lower courts at National defense appropriations the government might do He called for prompt agreements his own pleasure will total $991300000 an increase of on a farm program— now in conAccording to the story Roosevelt SutherJustice ference between the house and senlaconically answered: "You are the $34300000 Later the President may land a former Unitask for additional funds to construct ate— and asked specifically that contrustees" ed States senator gress "keep the cost of its adminisAlso according to the story the several extra naval vessels from Utah and a tration within the figure of current Relief expenditures for the next bankers wired back: "We have put former president of government expenditures in aid of fiscal year will total roughly $1138- the money in government bonds 304000 the American Bar agriculture" a decrease of $841356000 Now you are the trustee" from fiscal the association was appresent year is now because That story apropos will be financed pointed to the Supreme court by Pwer Loans OK The deficit of the recent statement to the press through Social Security and other President Harding in 1922 He was THE Supreme court ruled the gov-- 1 by President Roosevelt of his ideas trust funds and not through public born in Buckinghamshire England on what return should be permitted ernment could make loans and and was brought to the United borrowing on capital invested y private pergrants for publicly owned electric The deficit estimate for the fiscal States in his infancy He was iden- plants He was speaking particularsons 30 tified with which ends has been the June of conservative year wing ly of the utilities and he was disSecretary Ickes the public works raised from $695000000 to $1083- - the court administrator said the decision cussing the '"prudent in- 100000 because of the business reImmediately upon the announce- would affect construction of 52 powvestment" theory ment of Sutherland's retirement ev- er projects cession If you put that statement together costing $84026288 for for new highways Expenditures eryone began guessing as to his which his agency had allotted with the very ideas of new successor rivers and harbors projects It was taken for granted as loans to be repaid and Mr Roosevelt on interest rates new new reclathat Mr Roosevelt would select a $21674408 as federal grants there results a situation which to mationpublic buildings liberal and other new pubprojects Justice Sutherland delivered the would lic any "prudent" investor works will be reduced sharply Prominent among those menopinion of the court seem to indicate that the sensible The public debt will reach a rectioned for the place was Senator thing to do would be to put ore's ord Minton of Indiana high of $38528200000 on June Sherman EsFinds a Surplus money in government bonds 30 1939 steadfast of the supporter New Farley pecially if one had an income large Deal If the appointment goes to TIM FARLEY in his annual reenough to put it up in the high as port the Middle postmaster general was Gov West For National Defense Frank And that surtax brackets of of Michigan seemed to stand a abie to show a surplus of more than course is where a lotof the money D EFORE the reading of the 13 millions for his chance To good department for the Except fact if not most of it for all sorts of budget message In congress had New York state already has do this however he deducted an ex new ventures and expansions comes been concluded the President was that three men in the court Senator pense item of about 60 million dolfrom In conference in the White House Robert F lars calling It a "nonpostal" item Wagner would be near the He The point is that Mr Roosevelt's with men who will have most to do charged off the air and ocean top of the list of possibilities Solicipattern for private investment con- with putting into effect his plans tor General mail subsidies and all free mail Reed Kenof Stanley tains no calculation for losses It for strengthening the national dewith Dealing the was the activities of the favorite of many tucky an investor puts money into five en- fense These were Assistant Secpostal Inspection service but there are two Farley terprises and one of them is a flop retary of the Navy Charles Edi- on the bench Othersother southerners 88 the in spurious lottery suggested were tickets is resulting in a complete loss there son and Admiral William D Leahy believed to have been Judge William Denman of Califoris no way under the Roosevett forchief of naval operations Chair- nia Lloyd K Garrison of the Uni- broken up with the arrest and conmula for one of the others to be a man Edward T Taylor of the house versity of Wisconsin and Donald viction of a band of racketeers in the bonanza thus enabling the inves- appropriations Chair-ma- n committee Richberg former general counsel East who disposed of more than 10 tor to come out even He is just Vinson of the house naval and later chairman Crl million dollars’ worth of such tickof the NRA out of luck affairs committee nd Representathe Hugo Black ets in the last few years Remembering tive William B Umstead chairman Roosevelt's Ideas episode the senate will carefully of the appropriations scrutinize the President's nominee China Reorganization Let's look at Roosevelt’s own on naval appropriations ideas of "prudent investment" as The group considered additions to JNSTEAD of surrendering to the And one the expressed to the press Ford Won't Comply Japanese invaders the rovern-J”b"- n navy building program Includmust bear in mind that it is Roose- ing recommendations for EFUSED beginning D a organized velt's ideas about the famous Bran-dei- s construction on five reopening of its case ‘ COnMnUed rC- -M®r battleships to the labor decision not what the justice relations replace all obsolete American capi1 aistance against the board the Ford Motor really said that is important company r tal vessels ten to fifteen cruisers ' enemy Chiang Kai- served notice it would not : If any of the money was invested comply and additional submarines W destroy- with the board's order to "cease Pre foolishly that does not count That ers and ' dlcted and desist" from alleged auxiliary craft aorne time is just a loss If any of the money violations of the Wagner labor act and ago In this column was spent crookedly that does not to has dropped all his reinstate certain discharged workSonatori Hear About Autoi count The President did not n civil duties and will A FTER listening for two days to ers The board decided to ask a promotion but he docs not like devote himself 1 of to to appeals promotion so that does not count enforce officials sengovernment the building tip 8 on nd the case If the company bought some land ate committee studying unemploywill be carried up to the probably which increased In value through no ment and relief turned to Industrial fading the army Supreme He Is now commandcourt merit on the part of the company leaders for Information and advice er in chief of the It began with the automotive Inthat does not count land forces and Chiang So it’s only the money actually dustry receiving a Limit Can't and Strllcj? long at the head put in and then spent wisely— "pru statement from the AutoTHE national labor relations orth navy Finance A board ently" is the word— on which a re- mobile Manufacturers' H H association Informed congress In its hi‘ brolh"- turn should be allowed Of course Which includes all the most Imporannual report that legal limitations if a company invested a few million tant concerns in the Industry ex- on the of th Present right to strike would be un T cr PrtIler dollars and then encountered a cept the Ford company tnd olhtr iSi constitutional— The statement city council or legislaMajor points in the statement made in the face of a reviv “tautrin ing drive ture whatever had to be spent to a ere: tnd k'7 to amend the Wagner ct under post save the entire investment would 'In 1937 4800000 which the board operates automobiles and to be sheer loss wore produced in the United States take steps to increase trades un to support Cwrtht-WN10 per cent less than In lSO Bervlca ions responsibility 900 nnn°I u0®'0'50 ho are com- bating th jep eeaeemi WMUr S3 M MUorai gm jr a e FURNITURE etc W B ADAMS A SOr Un 1S4 Sa 8Ut si Now liquidating tha famous Voss Wos'i iJj Z modaTs iT 475 nib proms trim full fuarante “ tory crates carload H'1 l' taJ TeVteS HOTELS HOTEL PLANDOME Sal 4th Ba— 8UU— QUUST— KE8rLtTABl!££4 BARBER SCHOOLS LEARN BARBERING In Naw classes now forming Molar Barbar Caller BEAUTY CULT! is? Daraaa Baaaty Clay CltinZT'1 moves wrinkles baa u household product T!? CasldweU Labarstary Cuitt PERSONAL ALCOHOL Treatment— fttiH Only 3 days at INrEttMOl)NiiT’ TOKIUM 1149 E tl 8a lag 7 Jlsk Me A General O VMilfiUMMARIZES 1 Why pointed? 2 When ceive this 3 What do stars seem h did the White Hot name officially? is the curvature earth per mile? j 4 What is the highest dam ination of postage stamp i& by the United States? j 5 Is water m a pail perk' level at the top? j 6 How long was the orifJ Greek marathon race? Answers I 1 Their apparent points art to the scintillation arising trtmi of the earth’s ik equalities j phere 2 The name "White House k came official during the edmL tration of Theodore Roosevelt 3 The earth’s curvature jr mile is approximately 8 inches 4 Five dollars 5 It is slightly concave dial capillarity and surface tenm 6 The runner who carried! message of Greek victory & the Battle of Marathon t about 24 miles ARE YOU ONLY A 3 74 WIFE! Mco eta mnt nndenttnd t tluwwt wilt— a wife who la lovabl lor thiwwai the month— but a tb lowtk No mattar how your back ac- bhow loudly your aery out oa your husband for tnrau feuarationa on worn ta another how to go “tmiUng throofl Lydia E Plnkham'l VegcUbl Conpoutl helps Nature tone up tba ytia the lag tha disco mi orta from tha fuaduM order which women mint codura Maka a Bote NOW to rH Plnkham’l today WITHOUTFAlI Mag druggist— more than a auUtea ' Written la latter reporting benefit PINOUT Why not try LYDIA E VEGETABLE COMPOUND? J One Right Wy If it Is right there is no way— Theodore Roosevelt HOT LEMOriAI- - u mm n't Menthol Cough Drop loth thu hotel hawa aa Alkaline helps roi 5 °°71 lo::p deii D lnj 'v Mi" ” i”" '“ OCDEN UTAH I1 Ream— US Bathe nFamily Raama far 4 yeUt j J Air CeaUd Loawre Caffes CrtU Raaaa 7n7— fcrhaag— af Cammarra Chamhar fiOTIL IEN a yea X a4 LOMOSSl £ Qa u |