Show MONEY MARKETS MAR By J James mes McMullin Th Th Ih T l gf m Along W ll NEW YORK Muddying up the already troubled C CIO I 0 waters water is a serious personal rivalry between be between between be be- tween Sidney Hillman and David Dubinsky Both are working toward a peace treaty with the theA theA theA A F L but from different angles angle Dubinsky would not be averse aver to a virtual surrender of the in insurgent In unions As head Mad of one of ot the oldest and most powerful former A F T. T L units he would be certain to gain a position of great authority In the event of ot a are re reunion reunion re- re union on such terms He t Is il displeased Insiders report because he does not enjoy such auch sucha a position in C I 0 O councils Hillman has taken the limelight as an adviser not only to John JohnL L L. Lewis but also to the White WhiteHouse WhiteHouse House Hullman Hillman wants peace with the A F L too but he wants a peace without victory Dubinsky Is reported to fear tear that this sort of f settlement would leave him playing second fiddle New York legal authorities view last weeks week's supreme supreme- court decision on federal taxing power 4 as an making epoch-making reversal of old century-old judicial precedents precedent In granting to the United States power to tax of the port of New ew York authority authority- an instrumentality of two states New Jersey and New York York the the court may have paved the tM way for federal taxation of ot all AU state officials OffiCial although it studiously avoided the question of taxing state or municipal securities The ruling Is in line with others delivered de de- de- de livered In Ih th the present term broadening broadening broadening broad broad- ening the governments government's tax ta field The whole theory of ot state Immunity immunity Im im- Im- Im from federal taxation may be broken down by it The supreme court will soon be asked to try the issue on the theother theother theother other f foot Ot New York state stat has imposed an income tax on officers of the H 0 O L C the F H A and the tt ft F C 0 who WM reside here If its authority to do this is upheld d I it may next try to collect Income taxes from post office Most significant aspect of the courts court's ruling is the reasoning of Justice Stone He denied validity of the old dictum that The power to tax is the power to d destroy stroy The states are protected against destruction he argued because their representatives in congress alone have the power to impose taxes But the federal government government government govern govern- ment has no protection against state taxes Save rave the supreme court Astute observers foresee the thep p possibility if tie the rule works both ways that a state might tax such sucha a federal agency as TV TVA A right out of ot existence deal leaders are much Intrigued by this this' angle On the other hand the courts might decide that the federal federal fed fed- eral g government 0 v ern men t should be shielded against any ny such attacks by the states on its sovereignty This presentation of the supreme supreme su su- su- su preme prenie court as the strong right arm upholding the federal government government gov gov- is regarded as helping to restore its former prestige This time it has moved to strengthen r rather ther than to weaken national authority New v York commercial banks will almost certainly oppose S SEe SEC E C Chairman Douglas Douglas' plan for a astock astock astock stock exchange trust company They fear that this fiduciary agent would pick their pockets Brokerage houses at present hold about of customers customers' custo custo- mers' mers balances Lumped together in the hands of ot a trust this would constitute a tidy sum for Investment investment Invest invest- ment merit or lending purposes The commercial bankers dont don't believe it would be allowed to lie Jle idle even though that were solemnly promised at the outset An important important important im im- im- im part of ot their business consists con con- of ot collateral loans to brokers They dont don't want to lose it The trust idea Is not new It was broached by a stock exchange group in 1932 1032 At that time the commercial banks put the skids und under it But they do not now have the hold over the brokers which they had then In 1932 most brokers were up to their ears earsin earsin earsin in debt to the banks This time banker opposition is not likely to count for tor much British apologists are taking the attitude regarding the Mexican Mexican Mex Mex- ican lean oil expropriations that they are not angry just angry just terribly terribly terribly terribly ter ter- ter- ter hurt Its It's the injustice of it all that rankles Their story is that ever since the beginning of the century they have provided the capital and initiative for development de of ot Mexico's resources And just as the de development was waste te reaching the stage where they could get some return on their vast investment investment Informed New Yorkers admit that much of ot the plea is true The British did do all the wildcatting for oil in Mexico during the prewar prewar prewar pre pre- war years when Americans were engrossed in the Texas and Oklahoma Oklahoma Oklahoma Ok Ok- lahoma fields About all they got for their money was salt water But in the last decade with the perfection of drilling deep-drilling techniques techniques tech tech- they fared much better If the ledger isn't yet et balanced say these critics the British have at least made substantial progress progress progress ress toward a profit Their Mexican Mexican Mex Mex- ican lean peon labor hasn't hant been ex ex- i Chie Chief ca cause for se-for for the British sobbing sobbing sob sob- bing is that they need Mexican oil oU for their army and navy Oil sources in iii Iran and Iraq could be cut off by trouble in the The only fields they can count on now for petroleum are in Venezuela They have already started to expand their production there Both the state and national re relations re- re lations boards in the New York area have been harassed by spite picketing against one another by rival unions They recognize the injustice of this practice to inno info A 4 cent employers andly and a Wi Wiy ly y that it IS tin hurting thi th thA labor Jabor But they can canto do doto jg I to stop it ft until On one or of ot the unions calls th nl an election v In one such case I iT T called It bor bet board official th J headquarters and skI Aked Ji call caU off oft their sandwich 5 It II was turned down cold cold- P J oJ h i 0 telephoned to the C CIO I te tendered dered some bW highly 0 counsel Why don dont don't tf Ton 1 send some pickets dow doWD 1 and P pl he suggested f to picketers as unfair 4 0 bor 2 5 l Government se before December 1919 41 at prices at-prices prIces whIch more m th j to their yield o t Banks and other lii th holding them 04 40 th l of e exchanging changing s federal i i- for new profit It IJ 0 IIi 14 1938 for T Copyright |