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Show SEEN SEENand and HEAR HEARaround HEARaround , . . . around tAe the y ' ) , NATIONAL CAPITAL CAPITALBy ! t- t : - tBy By By Carter F FieldFAMOUS Field Feld eld eldFAMOUS g gFAMOUS FAMOUS WASHINGTON CORRESPONDENT WashingtonTreasury Washington-Treasury Washington Treasury Washington -Treasury Treasury - Treasury officials officialsare officialsare officialsare are working workmg day and nieht night , vIrtually virtuallyto , to dissuade congress from domg domgsomething domgsomething someUlmg something that a good many con- con conservative con conservative - . servative servatne leaders leadcrs m both houses housesseem housesseem housesseem modifying sharp sharp- sharply sharply sharply - seem set on domg-mod1fymg domg mod1fymg doing-modifying doing modifying doing - ly the undistributed earnmgs earmngs earnings and andthe andthe andthe the capitil capihl capital gains gams taxesIncIdentally taxesIncidentally taxes taxesIncidentally Incidentally the administrationhas admlmstratIonbas admlmstratIon administration bas has changed its tune entirely on the theundlstrlbuted theundistributed theundistributed undlstrlbuted undistributed profits tax . . . One v.ould vould would v.ouldthmk wouldthink . wouldthink thmk think , to hear them talk now , thatwhen that thatwhen thatwhen when the administration admmlstratlon forced thIS thIStax thistax thistax there therehad therehad therehad tax on an unwilling unwllhng congress had been no ballyhoo m behalf of ofthe ofthe ofthe the little hUle stockholder . , looted by aconsCIenceless aconscienceless a | conscienceless management of his I I corporation corporationPresident President Roosevelt himself , at atthe atthe atthe the time , pointed pomted out that the small smallstockholder smallstockholder smallstockholder stockholder had some rights fIghts in the thematter thematter thematter matter , that he be should have bave a voice voicel1l voicein voicein l1l in whether the earnings earnmgs on bls his blsmvestment hisinvestment hisinvestment mvestment investment . v.ere vere were . plowed plo\\ed plo ed \ \ back into intothe intothe intothe the company orhether or \ whether \\hether hether he should shouldrecen shouldrecen shouldreceive recen e a his share of o1 themThis themTIllS them themThis This TIllS would be forced , the Presi PresI- PresIdent President President - - dent then pointed pomted out , by the un- un undIstrIbuted undistributed un undistributed - distributed profits tax . . . If this tax taxwere taxwere taxwere were made high enough , ob10usly obviously obviouslycorporations ob\ ob obviouslycorporations \ 10usly 10uslycorporatIons corporatIons would not pay It it , , but butwould butwould butwould would distribute their thelf earmngs earnings earmngsamong earningsamong earningsamong among the stockholders The good goodfeature goodfeature goodfeature feature about this from the govern govern- government government government - ment standpoint standpomt v . would ould be . , he point pomt- pomt pomted pointed - . ed out . , that the government would wouldget wouldget wouldget get much larger individual illdlVldual Income Incometaxcs incometaxes incometaxes taxcs taxes from the stockholders Butthe But Butthe Butthe the good feature from the stand stand- standpomt standpoint standpoint - point pomt of the stockholder would be bethat bethat bethat that be he would get his lus earned divi dIVI- dIVIdends divi- divi dividends dividends - - dends . , and could then decide , ac- ac accordmg according ac according - - cording cordmg to his own cIrcumstances circumstancesaccording , accordmg according to his own judgment of ofthe ofthe ofthe the management of the corporations corporationsetc , etc , whether he \ would \ ould put his hisown hisown hisown own money back into mto the company . If managements earned euned eared : a reputa reputa- reputatIon reputation reputation - - tion for business busmess ability abIl1ty and sa- sa sagacIty sagacity sa sagacity - - gacity , the President pointed pomted out outstockholders , stockholders would be eager to re- re remvest reinvest re reinvest - invest mvest their the1r earnings earnmgs m in the com com- compames companies companies - panies pames which wruch paid them dl\ dl dividendsWander dividends dl1dends dividendsWander \ 1dends Wander AwayHow Away AwayHow How far the administration admmlstrahon has haswandered haswandered haswandered wandered from this line Ime hne of argu argu- argument argument argument - ment is best illustrated by the fact factthat factthat factthat that the brain bram trusters are nowtalking now nowtalkmg nowtalking talkmg talking stock dividends dl\ldends dl ldends dnidends \ , provldmg providing provldmgthe providingthe providingthe the Supreme court will reverse Its ItsdecIsIOn itsdecision itsdecision decIsIOn of some years back and andhold andhold andhold hold that they are taxable ta"table tatable " as indi mdl- mdl indi- individual mdlvldual individual - vidual vldual income income'1 income1 mcomer income'1This ' " ' This of course \ would ould serve the thegovernment's thegovernment's thegovernment's thegovernments government's governments ' point pomt by forcing forcmg the thecorporatIon thecorporation thecorporation corporatIon earnings earnmgs into mto mdIvldual individual mdIvldualillcomes individualincomes individualincomes illcomes incomes from.hlCh from which \.hlCh .hlCh \ . it would derIve derIveta derivetakes deriveta\es deriveta es ta takes .es es \ > . , but would remove from the thestockholder thestockholder thestockholder stockholder the much talked about aboutadvantage aboutadvantage aboutadvantage advantage that he could elect wheth wheth- whether whether - - er he would reinvest remvest his blS earnmgs earnings earningsin earnmgs1D earningsm 1D m the same corporation corporationIn In conversations conversahons with congress congress- congressmen congressmen - . men , Treasury officials are usmg using an anillustratIon anillustration anillustration anillustration"Suppose illustratIon illustratIon"Suppose "Suppose Suppose " , " they say , "you you " ( con con- congTess con- con congress congress - - , gress gTess ) should repeal both the undis undIs- undIstrIbuted undistributed undistributed - tributed earnings earnmgs tax and the cap cap- capltal capital capital - ital ltal gams gains tax Then suppose a r1ch rich r1chman richman richman man should put $10,000,000 10000000 $ , , , m ill in a cor cor- corporatIon cor- cor corporation corporation - - poration That corporation mIght mIghthave mighthave mighthave have vast earnings earnmgs , and yet , , tor for tax taxpurposes taxpurposes taxpurposes purposes , not disburse d1sburse them Ten Tenyears Tenyears Tenyears years later ldter , , the company havmg having havmgmeantime havingmeantime havingmeantime meantime added twenty million of ofearnIngs ofearnings ofearnings earnIngs to this thlS original orlgmal Investment investmentof of ten , the rich man could sell hIs hIsstock hisstock hisstock stock for $30,000,000He $ $30,000,000 30000000 $30,000,000"He $ , , "He He " He would have paid no Income Incometax incometax incometax tax on these earnings earnmgs during the theten theten theten ten years , and , if there were no nocapItal nocapital nocapital capItal gains gams tax , he would pay no notax notax notax tax on the profit when he sold the thestock thestock thestock stock Thus he would have obtamed obtained obtained$20 obtained20 $20 20 $ 000,000 000000 , of profit without paymg paying paymgany payingany payingany any tax on it " One congressman said that would wouldbe wouldbe wouldbe be all right with w1th him , , for the gov- gov government government gov government - - ernment would be getting gettmg 15 per percent percent percent cent of every eery e\ e \ ery dollar doUar earned by thecorporation the thecorporation thecorporation corporation every year under pres pres- present present present - - ent tax laws la\ls la ls lats \ , He added , , however however.that howeverthat . , that the 15 pecent per pe- pe : - cent might be jached jacked jachedup jackedup jackedup up a little , if 1f the other ta taxes .es es > . were wererepealed wererepealed wererepealed repealed thoughtthe , insisting illsIstmg that he thought thoughtthe the corporations might mlght pay more In Intaxes intaxes intaxes taxes providing provldmg such taxes as inter mter- mter mterfere interfere - . ferel1th fere \ v/ith v ith \l1th l1th frith / management problems problemsv v ere repealedMeaning repealed repealedMeaning Meaning LostOne Lost LostOne One of the reasons why Franklin FranklinD D Roosevelt . was .as as pleased with the theelectIon theelection theelection electIon of Fiorello H LaGuardia LaGuardla as asmayor asmayor asmayor mayor of New York stands out a asore asore asore sore thumb every time a group of ofRepubl1cans ofRepublicans ofRepublicans Republ1cans Republicans get together The'Llttle The TheLittle 'Llttle Llttle ' Little Flower " has used the Re Republican Republican Republican publican label many times to hlS his hlSon hisown hisown o\\n o n own \ advantage advantlge : , but he has never neverbeen neverbeen neverbeen been bythe regarded as a Republican Repubhean by the wheel horses of the party partythroughout throughout the country One Republican senator , discuss discussmg discussing discussing mg ing this angle of the situation short short- shortly shortly shortly - ly after the New York city electIOn electionsaid , said "If If "Li Li " I 1 want a New Dealer , why whynot whynot whynot not take Roosevelt himself9 hImself himseiP ? " Underlying Underlymg this is the fact that that"RepublIcan that"Republican that"Republican thatRepublican "RepublIcan RepublIcan " " and ' ' Democrat Democrat"have Democrathave " have lost their thelf meaning meamng , as far tar as asthe asthe asthe the v/ords v ords words / meant anything anythmg to voters votersof votersof votersof of just a few years back Old tIme tImeDemocrats timeDemocrats timeDemocrats Democrats would now be regard regarded regarded regarded ed as Tones Tories just the same as old old- old oldfdshlOned old-fashioned old fashioned - . fdshlOned fashioned RepubllcansComplleatmg RepublicansComplicating Republicans Republlcans RepublicansComplicating Complicating Complleatmg this situation is the theSouth theSouth theSouth South SouthIth , \ with \\Ith Ith its fiery devotion to the theDemocral1e theDemocratic theDemocratic Democral1e Democratic label label , , which yet re remams remains remains mams mains the most conservative conservatlve sectIon sectIonof sectionof sectionof of the country countryIt It is pointed out by many Re . I publican leaders leader ; that District At- At Attorneyelect Attorneyelect At Attorneyelect - torney-elect torney elect - Thomas E . Dewey of ofNew ofNew ofNew , New York county seems toha.e tohae to have . % cap cap- captured captured captured - tured the Imagination ImagmatIon of the coun coun- country coun- coun country country - - try . For one reason and another anotherDe anotherDewey anotherDewey Deey Dewey De\\ De \ \ ey has had the most marvel- marvel marvelous marvelous marvel-ous marvel ous - - ous publicity any recent arrival on onthe onthe onthe the political polJtIcal stage has bas been able ableto ableto ableto to obtain obtam Actually obtainActually obtamActually nothing has developed to todIsclose todisclose todisclose dIsclose whether Dewey is a con con- conservatIve conservative conservative - servative or a radlcal-to radlcal to radical-to radical radical - to show to towl towhich towhich wl which ch of the two really reaIly importantgroups important importantgroups importantgroups groups of political pohbcal thinkers thmkers in m thIS thIScountry thiscountry thiscountry country today he belongs There IS IStalk istalk istalk talk , however , of his running runnmg for forI forgovernor forgovernor forgovernor governor of New York . . . Question Arises This Trus may be history repeating It- It Itself itself it itself - self , but the question arises ar1ses , wluch which wluchchapter whichchapter whichchapter7 whichchapter7Old chapter ? Old timers thuik thmk think of Grover Cleve Cleve- Cleveland Cleveland Cleveland - - land , the fearless learless sheriff sherJiI of Buffalo Buffalowho Buffalowho Buffalowho who became governor , and Inter later laterwas laterwas was \ as twice tW1ce President Others thmk think thmkof thinkof thinkof of Theodore Roosevelt , who used usedthe usedthe usedthe the executive mansion at Al- Al Albany Albany Al Albany - bany as a way station to the Wlute White WluteHouse WhiteHouse WhiteHouse House And of Franklin D Roose Roose- Roosevelt Roosevelt Roosevelt - - velt , who became the logical nomi nom1- nom1 nomi- nom1nee nominee nominee - - nee for President Pres1dent the day he was waselected waselected waselected elected governor m in 1928 , when Al AlSmIth AlSmith AlSmith SmIth was losing losmg his own state m in mhIs inhis mhis hIs presidential pres1dentIal raceBut raceBut race raceBut But there are other chapters chaptersCharles chaptersCharles chaptersCharles Charles S Whitman WIutman made his bIS repu repu- repu13 repu- repu reputation reputation - - tation 13 11on , as has Dewey , as prosecut prosecut- prosecuting prosecutmg prosecutmg - ing mg attorney m in New York . He , too toocaptured , captured the popular imagmation imagination imagmationwhen imaginationwhen imaginationwhen when he broke up the rackets of ofthnt ofthat ofthat thnt that da day } ' , when he sent Police Pollce Lieu LIeu- LIeutenant Lieutenant Lieutenant - tenant Charles Becker and four fourgamblers fourgamblers fourgamblers gamblers ' gunmen to the electrIc electrIcchaIr electricchair electricchair chaIr And Whitman dreamed of ofthe ofthe ofthe the White House Houset ' Let no one be bem1staken bemistaken bemistaken m1staken mistaken about that . . But for one onereason onereason onereason reason and ano another er he be just did nol not nol'fit notfit notfit 'fit fit ' fit into mto the picture plcture plctureCharles pictureCharles pictureCharles Charles E Hughes made a reputa- reputa reputatIon reputation reputa.tion reputation - - . tIon as an attorney m in the life insur msur- msur insur- msurance insurance insurance - - ance investigation mvestIgatIon He became a agreat agreat agreat great governor of New York . , but he hev hewas hewas was v . as sidetracked sidetrackedSo So it . would v.ould vould seem the tradition tradltIon IS ISbetter isbetter isbetter better for Democrats than for Re Republ1cans Repubhcans Republicans publ1cans pubhcans e\cept e cept e\.cept e.cept .cept except \ ' . thls-there thls there this-there this this - there is sim sIm- sImply sim- sim simply simply - - ply no one else on the public publ1c hOrIzon horizonso so tar far as the Republican party is concerned con concerned concerned cerned That's Thats ' why you are gomg going gomgto goingto goingto to hear a lot about Mr Dewey from fromnow fromnow fromnow now onNew on onNew New Dealers PleasedConsiderable Pleased PleasedConsiderable Considerable satisfaction , but very veryhttle verylittle verylittle httle little guIdanceas guidance , \ was \\as as given to Presi Presl- Presl Presi- Presldent President President - - dent Roosevelt and New Dealers Dealersgenerally Dealersgenerally Dealersgenerally generally by the elections elect.Jons electJons electrons . There Therev.as Therewas Therewas v.as vas was . scarcely a result which did dld not notgIVe notgive notgive gIVe the President a certain certam per per- personal personal personal - sonal pleasureEven pleasure pleasureEven , Even the silk sllk stocking stockmg Seventeenth SeventeenthCongresslOnal SeventeenthCongressional SeventeenthCongressional CongresslOnal Congressional district dlstr1ct of New York Yorkgomg Yorkgoing Yorkgoing gomg going Republican , curiously curlOusly enough enoughhad , , had |