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Show SEEN SEENand tEN and HARground HEAR HAR HEARaround [ around ground t/fe t fe the ther tfeNATIONAL / NATIONAL CAPITALBy CAPITAL ; r By By Carter FieldFAMOUS Field FieldFAMOUS FAMOUS WASHINGTON CORRESPONDENT WUbhlngton-Capltol WUbhlngton Capltol 1Vashington-Capitol 1Vashington Capitol Washington . , . - Capitol Hill Hl11 Is slm sim slmply simply simply ply amazed anm7ed nma7ed nt at the falling faJUng off ocr In InnU11J inmall limall nU11J mall from constituents lately . Many Manyoffices Man ) ; offices of senators nnd and representn represents representnth representsthe rcpresentafives th the e . , ' are nre rl right ht noreceiving now no\\ no \ receiving le.s les less le.sthan lessthan le . > ! ! than 10 per cent of their normnl normal normnlm'lll normalm'il1 normanull normanullIn m'lll mlll m'il1 mil1 ' ' m'lllIn m'il1In In the ! ' fice 'lce lce flee of ot the fact fnct that isweeping a aweepIng asweeping weepIng sweeping $ netax new ne\\ ne \ tas tax bill blU Is being wrIt wrItten written written ten , , to be Imposed on the country countrythis , this situation Is 1s absolutely uniqueThe uniqueThe unique uniqueThe The answer , according to some someold someold som somold < old timers , Is that the thc people b'lcl blcl back backhome bidhome ' . home do not understand understmd : what whnt is go goIng going goIng Ing on [ ' For 'or or one thing , most people peoplewho peoplewho peopitwho who have bave been reading the ne\\spa ne spa nessspa nespapers nessspapers nevvspapers \ pers about the tbe new tax bill bl11 as assume assome assume sume some that the whole wholc thing is aImed aImedat aimedat aimedat at the big rich corporations , , par par- parUculary particularly particularly - - ticularly Uculary ] the ones with big sur surpluses surpluses surpluses pluses One senator told the " writer writertl1'lt writertint writertint tl1'lt tl1lt tint ' he had Inquired In his own ownhome ownhome ownhome home town-he town he town - he hippens h'lppens hlppens happens ' to come comefrom comefrom comefrom from a very smill sm1ll small city- city clty- clty cityand cltyand - and had haddIscovered haddiscovered haddiscovered dIscovered that not a single busl bust buslne.s bustness buslne ne-.s ne.s ne .s s ness - . nnn m'ln mln man ' In town thought the new newrox newtax newtax rox tax bill blU would hit hIm himl himl"The 1 ! 1"The " "The The " only people who are Inter Inter- Interested Interested Interested - ested , " he continued contlnued , "ire ire "are are " 1re stock stock- stockholders stockholders stockholders - holders in some corpontions corpor1hons corporations , and andmore andmore more of them are pleased tllan than tllanalarmed thanalarmed thanalarmed alarmed They think thlnh the new ne\v ne v \ law lawWI lawwill lawwill WI will ) force their corporations to topay topay topay pay bigger dividends , , and they are areall areall areall all for that " But the reilly re'l11y rel11y really ' amazing fict 'lct lct fact ' ap appears appears appears pears to be that owners of little littlecorporatIQns littlecorporations littlecorporations -wIth wIth " - ' "with with "without corporatIQns corporations are convincedwIth convinced , with- with without - . out knowing hnowing an anything ans thing about nbout It it Itthat , , , that they will wl1l be exempt-that exempt that exempt - that only onlythe onlythe onlythe the big fellows feows ) " will "Ill Ill bear the new newburden newburden newburden burden And this does not m'lhe mlhe make m'lhethem makethem mikethem ' them . very .ery ery angry . . Whereas , , senitors sen'ltors senltors senators ' point out , , the thecommittee thecommittee thecommittee committee program In 1n the house housepro"ldes houseprovides houseprovides pro\"ldes pro "ldes ldes provides \ " a whole schedule of ne\\ ne ness neta nesstares newtaxes \ ta tares es for corporations " with "Itb Itb Incomes Incomesranging incomesranging Incomesranging ranging from $10000 10000 $ a n year down downward downward downward ward as well as from $10,000 10000 $ , a ye'lr yelr year ye'lrupward yearupward yeirupward yeirupwardHave ' upwardHave upward Have Wrong ViewMost View ViewMost Most of th these e owners m\'ners m 'ners ners \ ' of small smallcorporations smallcorporations smallcorporations corporations re-id re id re'HI reHI reid - ' the original piess piessstories pi ess essstories essstories stories about the new tax tae ta plan- plan planthat planthat plan planthat - - that President Roose\ Roose Roosevelt Rooseelt \ elt " wanted "anted anted to toeUmJn1te toeliminate toellmimte eUmJn1te eliminate the present corporation corporationIncome corporationincome corporationIncome Income tax . , tlie tlle the present precent : ; corporation corporationcapital corporationcapital corporationcapital capital stock tax , , and the present presentexcess presentexcess presentexcess excess profits tn tax , , and substitute substitutethis substitutethis substitutethis this sliding slldlng : ; scile cc'lle cclle ' t'l tl tit tic ' on undls undis undlstrlbuted undistributed undistributed trlbuted tributed earnings earmngs tor for all al1 of themThe themThey them themThe They The } still sun hold that view , despite despitethe despitethe despitethe the ob\ ob obvious oblous obslous \ lous fact fnct that con congress ress has hasno hasno hasno no intention wh1te\ wh1te wintever wh1teer whiteser \ er of repenHng repealing repenHngthe repealingthe repealingthe the corporation income tand t 1 ix , and may mayeven mayeven mayeven even retain in " whole "hole hole or In part , , the thec'1pltal thecapital thecipltal c'1pltal c1pltal capital ' stock and excess profits profitstaxes profitstaxes profitstaxes profitstaxesIn taxes taxesIn In short , the effect of the new newbtu newbill newbill btu bill , when completed , will wl11 be to toadd toadd toadd add the new ti\es ti es tncs tires \ to the old , not notto notto notto to substitute suustltute the new for the old oldas oldas oldaa as the President lecommended recommended recommendedNor lecommendedNor iccommendodNor Nor Is there anv any doubt thit th1t that the thePresident thePresident thePresident President will witI accept the ch'1nges ch1nges chinges ch'1ngesNothing chingesNothing chingcsNothing ' Nothing else will w111 provide the rev revenue revenue revenue enue the government must h'lve hlve hive hiveespecially ' , especla11y especially as ns congress Is determmed determined determinedto determmedto to go as lightly Ughtly as possible on ex es exelse esrise exelse else rise ta\es ta es ta.es taes taxes ta.esWith taxesWith taesWith \ ) . With respect to little tittle corpontions corpor'lt1ons corporlt1ons corporations corpor'lt1onsth05e corporationsthose corpontionsthose ' -th05e th05e -those those - those with * ' adjusted net Incomes Incomesof * ' of $10000 10000 $ or less-there less there less - there Is a slid slidIng sliding slidIng Ing scale tax In the house houce hou"e houe : " commit committee commit.tee committee . , tee plan " which "blch blch goes up to 297 per percent percent percent cent on all undistributed e'lrnlngs elrnlngs earnings e'lrnlngsQuite earningsQuite eirnlngsQuite ' Quite a sizable slice stice out of C'lrn Clrn eirn C'lrnIngs eirnlogs eirnIngs ' Ings logs which a struggling struggllngo little cor corpor'ltlon corporitlon corpontlon por'ltlon porltlon poritlon ' might be anxious to use useIn usein useIn In building bundlng itself up ' So the little llttle corporation Is far farfrom farfrom farfrom from exempt ' ' Sliding SlldlDg scale taves ta\cs ta cs tares " ' \ In the com corn commlttee cornmittee cornmittee mlttee mittee plan for corporations "lth lth with "lthincomes withincomes " withIncomes incomes from $10000 10000 $ a veir year e'lr elr ' up- up upand upand up upand - and this Includes a very great greatmany greatmany greatmany many corporations corporatlon < ; In small sma11 towns townswhich townswhich townswhich which are not regarded , even at athome athome athome home , . as anything but little fel fello"srlse fellowsrise fellows lo"s-rlse lo"s los rlse lows-rise lows rise sharplyThese " - rise much more sharply These slide up to 421ti 42 % per cent centon centon centon on all undistributed earnings In - e"t et e"tcess etcess e-scess e scess " cess of 57 fi7 571/ 571 571per % / , per cent of the net In Income income Income come . It Is true that there are several severalclassifications severalclassifications severalclassifications classifications on which the burden burdenIs burdenIs Is ea ed-ratIroads ed ratIroads eased-railroads eased railroads eased < ; - railroads , , banks , , corpora tIons corporatlons corporatIons with debt obligations obl1gnUons requlr requir Ing requiring requlrIng the discharge dischar6e of a certain part partof partof partof of the tbe debt every year , etc But Buttbe Butthe Butthe tbe the owners of the little Uttle corpora tlons tions corporatlons corporations who think thlnl that their sma11 small sma11ness smallness smallness ness Is goln going to prove an um urn umbrelta urnbrella urnbrella brelta brella are due for a very rude rudeawahenlng rudeawakening rudeawakening rudeawakeningTariff awakeningTariff awahenlng awakening Tariffon Tariff on Textiles Bearing In mind the tbe Important Importantpart importantpart Importantpart part that tbat the closing ofso of so many New manyNew England textile te\tIlo te tIlo tectito ' \ : mills due dueallegedly dueallegedly dueallegedly allegedly at leist lC'l'5t lCl5t ' ' to a flood of 1m im 1mports imports lmports ports playedin of Japanese textiles te\tl1es te tl1es tectiles ' \ : played In the Rhode Island congressionalelection congressional congressionalelection congressionalelection election last year (1 1 ( i i sweeping Re RepUbllcnn Republican Republican pUbllcnn publican vlctor victory victors ) , , Republlein Republlc'1n Republlc1n Republicin ' mem mern members mernbers members bers of the house honse ways and means meanscommittee meanscommittee meanscommittee committee will wnt write a very po pa poUtically polltlcal1y paIitlcally lltlcal1y Iitlcally minded minority report reportngnlnst reportagainst reportagainst ngnlnst against the new ta tax ) . biltOne billOne bill bilt billOne One of Its features111 features \ " will \\111 111 be the thesU6estion thesu thesu sU6estion su , , ; cstion estinn of new excise e.clse eclse ) . tanff tariff tanfftaxes tarifftaxes tarifftaxes I taxes , particularly on textiles textilesThe textilesThese textilesTliebe The These e \ would \ ould follow fol1ow the pattern of ofthe ofthe ofthe the so called caned excise , , but re111y really re111ytm reallytatlff reillytariff tm tatlff Iff , , tixes t1.es t1es tuxes } . Imposed se\ se several seeral \ eral ye'lr yelr years yearsago yclrhago ' ago on oil oB , copper , coil cO'll cOll coal ' anil anll and lumberThe lumberThe lumber lumberThe The minority report \ will s \ 111 Ill stress stressof stressof stressof of couise comse course , the thought that ne\\ ne ness net'l nesstiaessouldnot newti\es newti es \ \ t'l tl tiaessouldnot ' .es es \ > . \ would \ oulr1 not be necess necessary < lry If tllt the thegovernment tlltgovernment thegovernment government governmentould \ " would \\ould ould could only cuib cmb curb its I spending , , and devote deote denote de\ de \ ote its attentioni attentionto attention to rinding finding ways to sive swe save money In- In Instead instead In Instead - stead of searching for new meth metb- metb meth- metbods methods methods - - ods of extracting e\.tractlng e.tractlng e .tractlng tractlng \ . money from taxpayers taxpayers tax- tax taxpayers - payers It will wIII lay greit gre'lt grelt greet ' stress stresson stresson stresson on the Idea that e\ e every eery \ ery dollar sQ sQtahen sqtaken sotaken tahen taken from a n ta taxpayer tacpayer payer Is a dol1ar dollar dollarwlilch dollarwhich wlilch \ " hlch otherwise otherIse other\\ other \ \ Ise would be spent by bytbe bythe bythe tbe the ta taxpayer tacpayer payer In some way or other otherand , , and hence \ would \ oulll play Its part In Inproviding inproviding Inproviding providing employmentThe employmentThe employment employmentThe The Idci hlc1 Idei of an Import excise e\clse e clse eccise " \ : tax taxon taxon taxon on textiles te\tlIes te tlIes tectiles ' \ : , . Instead of a tax on cor cor- corporatIons corporations corporations - porations ' undistributed undlstrlbutcd earnings carnlng , Is Ise"t"pected isecpected Isexpected e"t"pected etpected ecpected " to make a n big hit In New NewDngland NewEngland NewEngland Dngland England , New York and New Jer Jer- Jerse Jersey Jersey - se sey , , and111 and \ ' will \\111 111 be calculated to cause causea a little Ilttle discontent with the Demo DemocratIc Democratic Democratic cratIc prognm program pro r1m In the Southern tex tex- texWe tex- tex textile textile - - tile We section , , pirticularii p'utlcularl putlcularl particularly ' In the Caro Carollnns Carollnas CaroUnas CaroUnasIncidentally llnns llnas llnnsIncldental1v llnasIncidentally Incidentally Incldental1v , It if anv any strengPl strength strengPlshould strengthshould strengthshould should develop for It 1t , , the proposal proposalJU proposalwill proposalwill \\JU JU will \ " be most embunssing emb'llr'lsslng embllrlsslng embiirissing ' ' to Secre Secretary Secretary Secretary tary of State Cordell Hullwlio Hull Hul1 , , who ho is stl1 still stl1enthusiastic stillenthusiastic stillenthusiastic ! enthusiastic about his reciprocal reciprocaltrade reciprocaltrade reciprocaltrade trade agreements , , and is gradua11y gradually gradua11yhammetlng graduallyhammering graduallyhammering hammetlng hammering do\\ do down don \ " n the protective protecth protectis e a tar tar- tarIff tar1ff tariff - iff 1ff wall wal1 by this s system stem Miny M1ny Many C'lS ClS cis C'lSunl cisual cisual ' unl ual readeis readel readers s oveilook ovcllook overlook the point that thatevery thatevery thatevery every time hme Hull Bull agrees to a reduc reductIon reductlon reductlon tIon tlon In a duty on a given product productIn In a treatyvlth treaty \ with \vlth vlth one country , thatreduction tIl'lt tIllt that tIl'ltreduction tintreduction ' reduction promptly applies applJes also In Infavor infavor Infavor favor of every e\ery e ery eery \ other country with with"hlch withwhich withwhich "hlch hlch which " the United States has a a"most a"most a"most amost "most most " favored laored la\ la fasorednition \ ored nition n'IUon nIUon ' clause " tre'lty trelty treaty tre'ltyAnd treatyAnd trcityAnd ' And that means most of themAppeal them themAppeal Appeal to Farmersror Farmers FarmersFor For ror example , when In the re recent recent recent cent treaty " with "lth lth Canida Can'lda Canlda Canada ' the duty dutyon dutyon dutyon on Imported liquor llquor was reduced reducedtrom reducedfrom reducedfrom trom from $5 5 $ to $2:30 230 $2 2 $ 30 50 : a gallon , , the same samereduction samereduction samereduction reduction promptly applied to toScotch toScotch toScotch Scotch and Irish whiskies whlsl.fes whlslfes whlsl.fesWith whiskiesWith whiskiesWith , . With a view to appealing appeatlng to the thefarm thefarm thefarm farm belt bett , the Republlein Republlc'ln Republlcln Republicin ' ways waysand waysand waysand and means committee menibeis membelS members w11l will w11lrecommend willrecommend willrecommend recommend heavy excise tmff t'1uff t1uff ttuff ' du- du duties duties du duties - - ties on agricultural products of ofal1 ofall ofall al1 all sorts This Is aimed at offset offsettlng offsettang offsetting tlng tang the appeal of the New Deal'c Dealc Deal's Deals Deal'sAAA Deal'sAAA DealsAAA ' ' ' ; AAA farm benefits , now changed to tosolI tosoil tosoil solI soil erosion pa pay payments paymentsThis ments mentsThis mentsThis This phase of the report- report reporthl1e report-while report while reportwhileno report - " whileno hl1e hl1eno no attention |