OCR Text |
Show SE SEEN N Nand SEENHEIRD and andHEARD HEARD HEARDllr HEIRD HEIRDar6ind'tli llr ar6ind'tli ar6indtli ar6ind'tliNATI anund $ nd 'the the 'theN ' ' the theNATIONALCAPITAL N NATI NATIONALCAPITAL TION ONAL ONALCAPI L LCAPITAL CAPITAL CAPI ( TALL TALLCarter Carter FieldWashington Field * . V VI I WashingtonThere Washington -There There - There Is no dls clis dlscountmg cliscounting discounting countmg counting the Jub ] ub latlon latIon in m New Deal Dealcircles Dealcircles Dealcircles circles over the present status of ofthe ofthe ofthe the TVA invest mvest gation gallon by a special specialcongressional specialcongressional I congressIOnal committee It is true truethat truethat : that a very loyal supporter of Pres President President President ident Roosevelt Sen George L Ber Berry Berry Berry ry of Tennessee has been more or orless orless orless less thrown UlTown to the wolves That IS ISregarded isregarded isregarded regarded as too bad of course for foras toras foras as is evident In several other Southern Southera South Jern ern era stales states notably Georgia South SouthCarolma SouthCarolina SouthCarolina Carolma Carolina and Texas Teas Tecas ' ! : it Is not as sim simpIe simpie simpie pIe as picking plckmg dais es to replace replacestubborn replacestubborn replacestubborn stubborn independent Southern sen senators senators senators ators with men who see eye to ee eeWIth eewith eyewith ; } WIth the J'reslden Jreslden President ' on econolnJe economic conomic ISsues issues is sues But so far tha that t is the only loss the theNew theNew theNew New Deal has sustained sustamed sustamcd whereas whereasthe whereasthe whereasthe the effect of o the first few days of the themvestigat theinvestigat themvestigat mvestigat investigat on has been to offset to toat toat toat at least a small degree the unfa unfavorable unfavorable unfavorable vorable public reaction which wluch came camev.ben cameben cameTihen v.ben vben . ben the President Pre&ldent Preldent & fired Dr Ar Arthur Arthur Arthur thur E Morgan chairman of the theTVA theTVA theTVA theTVANo TVA TVANo No one familiar with the TVA TVAsItuatIOn TVAsituation TVAsituation sItuatIOn has actually changed Ius his Iusvfews hisviews hisvfews vfews views as a result of anything anythmg so far fardIsclosed tardisclosed fardisclosed dIsclosed or likely lIhely to be brought out outprIOr outprior outprior prIOr to exhaustive inquiry The Thepeople Thepeople Thepeople people who thought Arthur Morgan Morganright Morganright Morganright right st 11 th nk he was right The Thepeople Thepeople Thepeople people who disapproved of David E ELIl1enth ELillenthil ELilienthni LIl1enth Lillenthil 1 s 5 proceedings procecdmgs still shll d sap sapprove sapprove sapprove prove of themBut themBut them themBut But the important lIDportant thing thmg that has hashappened hashappened hashappened happened is hat the first salvos of ofthe ofthe ofthe the two sides have hae ha\ ha ha \ e been fired and andfrom andfrom andfrom from a publicity standpomt standpoint the Lil Lii Lillenthal Liiientbal Lillenthal lenthal ientbal side came out w th less dam damage damage damage age General feeling in m Wash ng ngton ngton ngton ton is that the public and the news newspaper newspaper newspaper paper editors \ were iere ere d sappomted sappornted sappointed at atthe atthe atthe the lack of fire in m Arthur Morgan s sattack sattack sattack attack at his unwillingness unw1l1rngness to call callnames callnames callnames names and use epithets which would wouldmake wouldmake wouldmake make good headi headl head ! nesMorgan nesMorgan nes nesMorgan Morgan s carefully prepared case casethe casethe casethe the general ; impression mpreSSion here is is not notcalculated notcalculated notcalculated calculated to fire the man in m the thestreet thestreet thestreet street with a desire to take a club clubto clubto clubto to Lihenthal Lilienthal Ltlienthal It is not even calcu calculated calculated calculated lated to make the m milkman kman m in mOmaha inOmaha inOmaha Omaha read through it Quite Qwte the thecontrary thecontrary thecontrary contrary It If any candidate for the thePresidency thePresidency thePresidency Presidency could be assured of the thevotes thevotes thevotes votes of every man and woman who whodId whodid whodid dId not wade through Dr Morgan s sattack sattack sattack attack he would not even lose loseMame loseMaine loseMaine Mame Maine and VermontMorgan Vermont VermontMorgan Morgan Is MildThis Mild MildThis This m in ght be true in any event eventno eventno eventno no matterhat matter \ what \\hat hat ihat \ Dr Morgan had hadsaId hadsaid hadsaid saId in his first appearance before before'the beforethe beforethe the committee But far more 1m im 1mportant important important 'the the ' portant was that he did not use any anylanguage anylanguage anylanguage language languageh \ v\h v h \\h \ chould ch \ would \\ould ould make a real realfigl realfigi realfigl figl figi t ng headline \ which hlch the man m in mthe inthe inthe the street would read There is a ageneral ageneral ageneral general feeling feelmg even among Dr DrMorgan DrMorgan DrMorgan Morgan s warmest supporters in incongress incongress incongress congress that he has fired most of ofhIs ofhis ofhis hIs ammun lion hon tion thathat that \ what \\hat hat shat \ is to tocome tocome tocome come is detail and that the ne vs vspapers vspapers vspapers papers would not have pr nted as asmuch asmuch asmuch much of his first statement statemeit as they theyd theyd d d had it not been for the marvel marvelous marvelous marvelous ous advance not ces notably in m the thesensatIOnal thesensational thesensational sensatIOnal ref retisal Isal of Arthur Mor Morgan Morgan Morgan gan to present his full case to the thePresident thePresident thePresident thePresidentThe President PresidentThe The general impression also IS ISthat isthat isthat that Lihenthal Lilienthal Ltherithaj is so much cleverer cleverec clevererthan cleverecthan clevererthan than Morgan at this business busmess of ofpresentmg ol olpresenting otpresenting presentmg presenting his case ether e ther to an In InvestIgat investigat investigat vestIgat pub1 pubI ng comm ttee or to the pub 1 I c that there is II little ttle expectancy expectancl expectancythat expectanclthat expectancythat that in the general fighting fightmg to come comeArthur com comArthur comeArthur Arthur Morgan will have much muchchance muchchance muchchance chance The one ep sode that was expect expected expected expected ed to inflame infiame the public was the at attempt attempt attempt tempt of Senator Berry to collect a afew afew aew few ew millions from the governmelt governmeie governmeiein governmenton governmelton ! on in his Ius marble claims clalIDS This is now bogged dogged nowbogged nowdogged down to a contest as towhether towhether to | whether Arthur Morgan or LIen LIenthaI L 1 en | thai enthai shoved shov ed better judgment in his hisplans hisplans hisplans governmentLll governmentLii plans to protect the government | Lil Lll Lii enthal enthal , , it is thought deliberate ly deliberately abandoned any thought of pro tectmg Lecti.ng Lecting protcctmg protectmg proLecti.ng . Berry BerlJ Berq ' s reputat on dcsp te tethe tethe tethe the tact fact that the Tennessee senatbr senator senatoris senatbrIs Is fightBest now engaged engagcd in a primary fight Best op nion ruon on that is that the thePresident President agreed with L benthal l1enthal isenthal the thesacr thesacr thesacr sacr fice flee was necessaryStiffer necessary necessaryStiffer Stiffer Taxes Coming Commg ComingMuch ComingMuch Much st at ffer Erer ifer taxes next year are area area area a certainty certamty This is true despite despitesome despitesome despitesome some very misleading mlsleadmg inferences inferencesmade Inferencesmade inferencesmade made recently because budget pre dictIons prodictions predictIons were sho sho\ sho shon \ n to be not very verytar veryfar ' ' far wrong What 'What was omltt omitted omittcd .d d < . and andwhat andwhat what made these stories mislead ng ngwas ngI I was that the budget forecasts were wereI I that werethat Theyhappened the deficit would be large They happened to be nghtBut rightBut right nght rightBut But not even the most enthusiast c New eNew cNew Dealer denies that taxes must be mustbe increased by congress in m the thenext thenext thenext next sess on The New Dealers Dcalers wiIl will wiIlgive willgive willgive give varying varymg explanat ons most 1m tin 1mportant tinportant important portant of wh ch is an attackon attack on oncongress oncongress oncongress congress tor for too drast catty cally caily modify ing modifying the tax und unit on str buted corpo corporatIon corporation corporation ratIon earn ngs and the cap tal talgams talgains talgains gams gains tax . . . Actually ActuallJ Actualj ! two factors are both far farmore farmore farmore more important than th s a one One Oneis is Ia Oneis OneIa that the corporation and personal personalIncome income tax returns to be made next March nextMarch will be tremendously short shortof shortof shortof of lastMarch those which yhich v . luch were made last lastMarch lastMarch March The Treasury is fullyaware fully aware awareof awareof awareof of this situation . . . . Nothing Nothmg that could couldcQllcelvably couldcoaceivably couldconceivably cQllcelvably coaceivably happen between npw now _ and the end of the present calendar calendaryear calendaryear calendaryear year could change this resultThe resultThe result resultThe The point is that 1937 earnmgs earnings earningsof earnmgsof of corporations and 1937 private lD in lDcomes incomes incomes comes were excellent e'cceilent ecceilent ' tor for the first firstnine firstnine firstnine nine months of the year that is ex ox excellent oxcellent excellent cellent compared with anythmg anything anythmgsince anythingsince anythingsince since 1929 But in m the last three threemonths threemonths threemonths months of 1937 the falling faIling oft ot ! be became became became came sharply manifest Despite DespitethiS Despitethis Despitethis thiS obvious fact there is a certain certainmomentum certainmomentum certainmomentum momentum attached to any such suchmovement suchmovement suchmovement movement which delays its full cf ef cffect effeet elfeet fect feet tor for a time hme As tor for instance the thefact thefact thetact fact that many corporations corporahons badly badlyhIt badlyhit badlyhit hIt in the 1929 situation Sltuahon continued continuedto to pay d vidends vldends viderids through 1930and 1930 and andsome andsome andsome some ol of them into 1931 though even eventually eventually eventually tually they were forced to d ci scon scontmue scontinue scontmue scontmueIncomes tmue tinue tinueIncomes Incomes ReducedReduction Reduced ReducedReduction Reduction of ot dividend and bond bondcoupon bondcoupon bondcoupon coupon payments at the present presentbme presenttime presenttime bme time hits luts the income tax returns to tofoJIow tofollow tofollow foJIow follow much harder than was the thecase thecase thecase case m III in 1829 1929 and through to 1933 1933At 1933At 1933At At that time the Treasury did not nottax nottax nottax tax normal Individual income rates rateson rateson rateson on dividends It \ was vas as assumed up upuntIl upuntil upuntil untIl a later tax bill that the Bnt Brit British British Ish system holding holdmg that the corpo corporation corporation ration income mcome ta tat tax ' ! : had covered thenormal the thenormal thenormal normal individual income mcome tax ondividends ondividends on _ dividends was fair . - There is another important point pointto pointto pointto to be remembered in estimating eshmatmg ta tatreceipts tax taxreceipts ' ! : receipts If a rich man roan s stock falls fails fallsto tailsto failsto to pay $100 100 ? $ 100 000 of e expected eipected pected dlVI dcvi dlVIdends dcvidends dmdends dends because the corporation m in mquestIon inquestion inquestion questIon did not earn the money moneythen moneythen moneythen then the Treasury lose losei loses more than thanthree thanthree thanthree three quarters of the money The Thegovernment Thegovernment Thegovernment government fails falls to collect the cor corporatIon corporation corporation poratIon income mcome tax which was 15 15per 15per ISper per cent and is now under the thenew thenew thenew new bill 18 per centBut centBut cent centBut But then thehole the whole \\hole hole \ hole amount is sub subject subject subject ject to the top bracket of that rich richman richman richman man s income So when a corpora corporatIon corporation corporalion tIon s 5 income declines declmes as far as the theTreasury theTreasury theTreasury Treasury is 55 concerned the depres depresSlon depression depression Slon sion skims off the cream lcavmg leaving lcavmgonly leavingonly leavingonly only skimmed mIlkThe milkThe milk milkThe The other factor m in the certamty certainty certamtythat certaintythat certaintythat that taxes must bs be increased mcreased is that thatvirtually thatvirtually thatvirtually virtually everything everytlung that is waiting waitingfor waitingfor waitingtor for action by the federal govern government governmont government ment mont contemplates greater spend spendmg spending spending mg ing not smaller Th s a is true of ofthe ofthe ofthe the navy of the army of the mer merchant merchant merchant chant marie marl , ie e of trust busting bustmg plans plansI plansand plansand plansand I and of social s securityEven security securityEven cunty i Even the attempt at ear mark ng ngthe ngthe ngthe the relief appropriation appropnation was not an aneconomy aneconomy I economy move but merely one to topreent topresent topresent pre\ent pre ent present \ the administration admmlstratIon from fromi fromwIthholding fromwithholding fromwithholding i wIthholding pork from individuals mdivlduals in inthe Inthe inthe the house and senate that it wIshed wIshedto wishedto wishedto to punishF punish punishF F D R Still Stili StrongPlanned Strong StrongPlanned Planned economy of busIness busInessWIth businesswith businesswith WIth close government superVISion supervisionof of production and competition on onmuch oninuch onmuch much inuch the same pattern as Secre Secretary Secretary Scoretary tary Henry A Wallace is now regu regulatmg regulatmg regulatmg latmg agriculture will w1l1 be pressed pressedstrongly pressedstrongly pressedstrongly strongly by leftl.ingers left wingers \l.ingers l.ingers stingers \ . as the next nextstep nextstep nextstep step toward recovery President PresidentRoosevelt PresidentRoosevelt PresidentRoosevelt Roosevelt is disposed to go along alongwith alongwith alongwith with them though questioning questIonmg the thepol thep01 thepol pol p01 tical expediency of such a move moveon moveon moveon on the eve of the congressional elec electIons dec dections declions declionsRight tIons tIonsRIght RIghtmg Right \ wing \\mg mg advisers hope that VIC vie VICtory vietory vietory tory for the wage hour bill b1l1 may dis dissuade dissuade dissuade suade him lum but more econom c a plan plannmg planning planrung nmg rung is the prospect at the tag end endof endof endof of a session sesslolj ifi ill Ii which uhich \ hlch the PresIdent Presidentwas Presidentwas ' was turned down on government re reorgamzatlon reorganization reorganization orgamzatlon organization and his favorite tax taxtheones taxtheories taxtheories theones theories \ , th an indicat indlcat on of more moremdependence moremdependence moreindependence mdependence in m congress and more moreturn moreturn moreturn turn ng to the right nght b bi ) the govern government government governmoot ment moot m in Si sp ) te of Roosevelts Roosevelt s person personal personal personal al vie vs It is the prospect be because because because cause of utter failure of pump priming , nm rim nmmg riming mg ing and arid cred t |