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Show SN SIZN SIZNtrio $ SNHE5 trio trioy trioD trioa HE5 RD RDa y D a > 6und nd the theN theN2TIONAJI N N2TIONAJI ( TION L LCAPITAL NATIONAL.CAPITAL NATIONALCAPITAL CAPITAL , . J . r6J- r6J r6JIT.L - IT.L ITL . AL ALfr ; fr frCarter Carter Field Fields FieldsWashington . ' WashmgtonW"1ter WashmgtonWater Washington Washmgton -W"1ter W"1ter W1ter -Water Water - Witer " power devel devel- development development development - - opment by the government and the theblessmgs theblessings theblessings blessmgs blessings of cheap electric elcctrlc currentwere current currentwere currentwere were the theme song of PresidentRoose\ PresidentRoose PresidentRooseeit President PresidentRoose PresidentRooset Roose\ Roose Rooset Rooseelt \ eit elt eft s speeches on his westerntrip western westerntrIp westerntrip trIp , and by a curious cunous coincidence itis It ItIS itis IS questions affecting aITectmg federal powers powersin 111 in tins tillS this direction which are more im- im important important im important - - portant , from the White House Housestandpomt Housestandpoint Housestandpoint standpomt standpoint , in m the term of the Su- Su Supi Supi Su-pieme Su pieme - pi eme erne court ) just ust opened , than ever ev- ev ever ev everything - er erything , } thmg thing else put together As a amatter amatter amatter matter of fact fact , , the high cou court court t has hasruled hasruled hasruled ruled on most of the questions quesuons af- af affeetmg affecting af affecting - - fecting feetmg NeDeal New Ne\\ Ne Nett \ \ Deal legislation . So that perhaps Mr . Roosevelt Rooseveltwas RooseveltV.Q.S RooseveltVQ.S RooseveltVQS was ' " . as . not ignoring ignorrng the high court en enlargement en- en enlargement enlargement - largement issue as much as somecommentators some somecommentators somecommentators commentators seemed to suspect onthat on onthat onthat that western \ \ estern trip He made a flankattack flank flankattack flankattack attack , and it is generally conced conced- conceded conceded conceded - - ed by Washington Washmgton lawyers that he heImproved heimproved heimproved Improved lus Ius his position positlon considerably . He has now put the court in a aposItIon aposition aposition posItIon something somethmg like hke this either eitherthe eitherthe eitherthe the court must go all the way ill m illapprovmg mapproving mapproving approvmg approving federal fcderal power pol1cles policies policiesor , or it will strengthen the President's Presidents President'scontention President'scontention President'scontention Presidentscontention ' contention that the court needs re- re reJuvenatIon rejuvenation re rejuvenation - - juvenation juvenationEvery Every correspondent writing wrItmg fromthe from fromthe fromthe the President's Presidents ' tram stressed theapparent t the theapparent e eapparent apparent fact that the folks out Westdidn't Westdidnt West Westdidn't Westdidn't didn't didnt ' give a whoop about the Su Supreme Su- Su Supreme Supreme - - preme court issue , but that theywere they theywere theywere were mighty mlght strong for federal federalspendmg federalspendmg federalspending spendmg in m their own necks of thev thewoods the theoods woods v . oods And they agreed verj very ver , } , gen gen- generally gen- gen generally generally - - erally also that more water resource resourcedevelopments resourcedevelopments resourcedevelopments developments ware wantedThe wanted wantedThe The President did not mention the thecourt thecourt thecourt court fight , , nor the senators who whobeat " , whobeat ho hobeat beat him on it , but it just so hap hap- happens happens happens - pens that many of the water re- re resource resource re resource - - source developments arc are in m thestates the thestates thestates states of senators who fought himon him himon himon on the court issue . , Montana , Ore Ore- Oregon Oregon Oregon - gon , Wyoming Wyommg and Idaho particularly particularlyExpect partlcu particu partlcularIy particularly larIy larly larlyExpect Expect Court BackingPutting Backing BackingPutting Putting Puttmg all the pieces together , ex experts experts experts perts here are predicting that the thehIgh thehigh thehigh hIgh court will sustain sustam the govern government government governmcnt ment in m every phase of its elec diet diettric electrlc electrie trlc tric power program For mstance instance instanceon , on the right of the federal govern government government government ment to subsidize local governments governmentswhich governmentswhich governmentswhich which desire to go into mto competitionwith competition competitionWIth competitionwith WIth , or supersede , private privately pnvatel ! } ownedelectric o\\ned o ned owned onedelectnc ownedelectric \ \ electnc electric systems , either by outrightgrants outnght outright outnghtgrants outrightgrants grants of money or by loaning loanmg themoney the themoney themoney money at very low rates of inteiest.For inteiestFor mtelest inteiest . . For instance mstance , on the right of the government gov gov- government government - ernment to engage In the electrIc electrIcbusmess electricbusiness electricbusiness busmess business In the famous TV TVA A case casethe casethe casethe the language used by the court held heldthat heldthat heldthat that it was all right for the govern government government government ment to sell seII power . ' mCldentaIIy incidentally mCldentaIIyproduced incidentallyproduced incidentallyproduced produced " That IS is/of is of , / of course , pow power power power er produced by a project the mam main mamreason mainreason mainreason reason for which \ was ttas \ as not the pro productlon production production ductlon duction of current , but for some someclearly someclearly someclearly clearly constitutional icason leason ieason , suchas such suchas suchas as navigation navigationIt It is true that in m all the TVAdams TV TVA TVAdamsthere A Adamsthere dams-there dams there - there is another TVA TV A casecoming case casecommg casecoming commg coming up before the high court be before before before fore long-there long there long - there is the possible con contentIon contention contention tentIon that electric power POer PO\\ PO \ \ er \ was \ as not notthe notthe notthe the only reason tor for construction construcbon But Butsometimes Butsometimes Butsometimes sometimes this is a hairline halrhne de deCIS decision decision CIS cision Ion , and the government has been beenuneasy beenuneasy beenuneasy uneasy about the attitude the court courtmlgh courtmight courtmight mlgh might t takeThis take tale takeThis , This suspicion among experts expertshere expertshere expertshere here that the court may ma ) take an expedient expedient ex expedlent pedlent pedient course is based veiy velY very large large- largely largely largely - ly on the general acceptance of thebelief the thebelle thebelief belle belief ! that at least two of the Supreme Su Supreme Supreme preme court jusuces Justices ) usuces ' switched ' inthe m in mthe inthe the Wagner labor act decision The Thevery Thevery Thevery very generally generall held view in m Wash Washmgton Washington Washmgton mgton ington is that at least two Justlces- Justlces justices- justices Justlcesenough justicesenough justices-enough justices enough - enough had they stood by theIr theIrorlgmal theiroriginal theiroriginal orlgmal original position poslhon to have overturned overturnedthe overturnedthe overturnedthe the act-changed act changed act - changed The alleged rea rea- reason reason reason - son for the supposed change is 15 that thatthe thatthe thatthe the justices feared that if 1f they dId dIdnot didnot didnot not they would contribute contnbute Impor tantly importantly to ' President Roosevelt's Roosevelts case caseagamst caseagainst caseagainst agamst against the court then pending pendmg inthe m in mthe inthe the senate senateHigh senateHigh High Hopes HopesAlways HopesAlways Always optimistic , the chaps whohave "ho ho tiho "hohave tihohave " have been predicting predlctmg erroneously erroneouslyever ever since 1933 1033 that President PresidentRoosevelt PresidentRoosevelt PresidentRoosevelt Roosevelt \ would \ ould "turn turn " to the right rightm rightin rightin m in the near future " are at it agam again This againThis agamThis time they base their hopes on onhIS onhis onhis hIS promises in m \ western \ estern speeches speechesthat speechesthat speechesthat that he would balance the budget m in in1939 1939 1039 , and would do it by cheekmg checking cheekmgspendmg checkingspending checkingspending spendmg spending The Impl1ca implication t10n of course courseis IS that tax raises would not be neecssary neecssaryThe nec necessary necessary essary essaryThe The process of reasoning reasonmg whicharrives which whicharrIves whicharrives arrIves at the result that the Presi Presi- President President President - - dent will wllI turn to the right is a alittle little intricate mtrlcate , , but rather mterest interest ing interesting mteresting First , the optimistic optlmishc conservatwes conserva conserva- conservatIVes conservatives - tives twes point pomt out that the PresIdent PresIdentcannot Presidentcannot Presidentcannot cannot reduce spending spendmg appreci apprecl- apprecl appreci- appreclably appreciably appreciably - ably . They Thc ) point pomt out that in lD those thosevery thosevery thosevery very speeches m which "hlch hlch tihich " he promIsed promisedto to balance the budget he made lavISh lavIShpromIses lavishpromises lavishpromises promIses about bigger and grander granderproJects"more granderprojects"more granderprojects proJects-"more proJects "more more - "more more " dams on the Co Columbla Columbia Columbia lumbla lumbia river . , ' " " ' etc Whereas his histalk histalk histalk talk of economy was in m most general gen general general eral terms termsFurther termsFurther termsFurther Further , they point pomt out that thereis there IS all sorts of pressure for increasedspending increasedspendingOn increased increasedspending increasedspending spending spendingOn On top of this they tht.y thty . point pomt to the thewell thewell thewell well known position position of Secretary of ofthe ofthe ofthe the Treasury Henry Henr ) Morgenthau MorgcnthauJr , Jr , and his aides They are frank frank1y frankly frankly 1y ly worried about the tax situation For instance , . they are nre sure that the theincome theincome theincome income tax returns to be made on onMarch onMarch onMarch March 15 next will fall far short of ofthose ofthose ofthose those made last March There arc are arcsevcral areseveral arcseveral sevcral several explanations explanauons One Is thatthe that thatthe thatthe the calendar year of 1936 , for whichlast which whichlast whichlast last March returns were made madeVas , wasone \Vas Vas was Vasone wasone \ one of rapidly advancing advancmg securityprices security securityprices securityprices prices Hence every one who soldnearly sold , , nearly , . had a profit . . . The Treasur Treasury Treasurydoes Treasuredocs ) does not give out figures showing showingthe showingthe showingthe the amount of income taxes result result- resultmg resulting resulting - ing mg from security profits , but the theTreasury theTreasury theTreasury Treasury officials know them , and andthey andthey andthey they are perturbed at the prospect prospectof of the decline dechne in revenue unless unlessthere unlessthere unlessthere there is a totally unexpected uI1c"Cpected uI1cCpected " boom boomm boomin boomin m in the market between now and December De December DeccmberNeed cember cemberNeed Need Higher Taxes TaxesHence TaxesHence Hence the Treasury is figuring onthe on onthe onthe the necessity necess1ty for much higher taxesto taxes taxesto taxesto to keep it from going further mto into mtored intored intored red ink Also it knows knO\\S knO S \ \ that the real realrevenue realrevenue realrevenue revenue producers are few Sales Salestaxes Salestaxes Salestaxes taxes and 10\\ 10 lowered 10cred \ \ cred income exemp exempt10ns exemptions excmptions t10ns tions are politically pohtIcaIIy vcrboten verboten , leav leav- leavmg leav- leav leaving leaving - - ing mg only boosts in m the higher brack brack- brackets brackets brackets - - ets and In levies on corporations as asI1kely aslikely aslikely I1kely likely . Business Busmess knows this too tooand , and that is a contributing conlrlbutmg reason , in m the opinion opmlon of the Treasury experts expertsfor , for the present timidity of in investors m- m in- in mvestors investors - vestors vestorsSo So , the optimists figure , the President PreSI PreSIdent President dent cannot stop spending spendmg , and hecannot he hecannot hecannot cannot head off higher taxationwhich ta\.atIon ta.atIon ta .atIon atIon taxation ' \ . , , whIch \ would ttould \ ould seem to leave them ht- ht lit- lit httie little lit little - tle tie to be encouraged aboutExceptthat aboutExceptthat about aboutExcept Except-that Except that Except - that they then proceed to tolook tolook tolook look mto rnto the reason that Ulat made the thePresident thePresident thePresident President promise to do somethmg something somethmgthey somethingthey somethingthey they do not think he can do Thisreason This Thisreason Thisreason reason , they figure , is concern about aboutthe aboutthe aboutthe the business busmess situation , concern concernabout concernabout concernabout about this same timidity of inves mves- mves inves- mvestors investors investors - tors ; the unwillingness unwillmgness of presentbusiness present presentbusmess presentbusiness busmess business to expand , and new busi busI- business busIness busi- busi business - - ness to stait staitConceding sta1 staitConceding t tConcedmg Conceding Concedmg that the President doeswant does doeswant doeswant want to reassure business busmess , and thatbe that thathe thathe he will find it impossible to carry carryout carryout carryout out the reassuring reassurmg promise , the al- al alternahve alternative al alternative - - ternative ternahve , they deduce111 deduce , will \\111 111 trill \ \ be besome besome besome some assurance of another breath breath- breathmg breathing breathing - ing mg spell-a spell a spell - a period during durmg which no nofurther nofurther nofurther further gO\ gO government gOomment \ omment regulation of ofbusmess ofbusiness ofbusiness busmess business will be imposed ThIS Thissome , some think thmk , would "ould ould nould " be just as satis satis- satisfactory satis- satis satisfactory satisfactory - - factory to business busmess as a tax reduc reduc- reduchon reduction reduction - - tionBut honBut tion hon But it takes a mighty optimisticmind optimistic optimisticmmd optimisticmmd mmd to go all the way through onthis on onthIs onthis thIs solution and Ilnd get that answer * ' Anti-Trust Anti Trust - Suit SuitThe SuitThe The biggest anti anb trust suit in 10 his- his history history his history - tory , im in involving olvmg corporationslhose corporations \lhose lhose those thosecapital lhosecapital \ whosecapital capital runs to more than six bll- bll bil- bil bll110n billion bil billion - - lion 110n dollars , and threatening threatenmg With WithJail withjail withjail Jail sentences 58 53 key officials , most mostof mostof mostof of whom are millionaires , with a asprmklmg asprinkling asprmklmg sprmklmg sprinkling of multlmllhonalres multimillionaires multimillionairesmakes , makes Madison . , Wis , the oil cap cap1tal capital capital 1tal ital of the country . Apparently not notone -one one --one - - of the 58 officials of ofticials officials ticials ficials is trusting trustmg his own companylawyers company companylawyers companylawyers lawyers to get him out Thatthreatened That Thatthreatened Thatthreatened threatened jail sentence is 1S too menacing men menacmg menacing acmg acing |