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Show "oiial Topics Interpreted by William Bruckart JpsSitf National Pre. Building Washington. P. C. mUL Washington. The true purpose of the Investigation by the senate munitions comniit-Light comniit-Light on tee a p p e a r s to Nye Inquiry aTe come to light It Is seeking the honor of drafting legislation which will give It a historical standing stand-ing as the group of men who first moved to remove the incentive of profit as provocative of war. In presenting its proposal to this end, however, the committee Is regarded as having "started something" which it Is unlikely can be finished by the group of individual senators making up that committee. When the Investigating resolution resolu-tion was adopted by the senate, Its sponsors made much fuss about conditions con-ditions In the munitions Industry. There were many speeches made by Senator Nye (Rep., N. D.) concerning concern-ing the wickedness of munitions manufacturers, and in the course of those speeches, which were made in a score of different communities, Senator Nye announced conclusions which apparently have not been supported by evidence adduced by the committee Investigators. Further, Fur-ther, the senator announced plans to disclose alleged corruption among the munitions manufacturers and stated definitely that the purpose of the inquiry was to provide the basis for laws which would control them. Now, after seven months, we look back on the committee's record and find that It has played a game of hop-skip-and-jump from one subject to another and, I believe, the consensus con-sensus Is that little of real value either to the senate or as public information in-formation has been developed. Since there was the minimum of publicity resulting from the Inquiry into munitions plants, shipbuilding yards and the aircraft industry, the committee has taken another tack. Seizing upon President Roosevelt's phrase that profits must be taken out of war, Senator Nye and his colleagues turned their so-called "experts" loose on the track of those Illusive profits. The result Is a piece of proposed legislation that goes beyond anything ever offered before in the way of tax legislation. Of course, it Is entirely likely that nothing at all will come of the Nye bill insofar as improvement of our taxation methods is concerned. But its radical and altogether unworkable unwork-able character is looked upon as necessitating a frank examination of its provisions. Because the committee started out to Investigate the munitions industry in-dustry and notwithstanding the fact that since it has wandered all over the surface of the earth with Its Inquiry there is a widespread belief be-lief that Its tax bill will apply only to the munitions industry during war time. Such is not the case. It goes far beyond the munitions Industry In-dustry and, indeed, it affects every corporation and every individual with an income of $1,000 or more. Probably the Flynn-Nye tax proposal pro-posal won't get anywhere at all. Certainly It will Flynn-Nye not be enacted In Tax Bill this session of congress. Nevertheless, Never-theless, when a senate committee seriously Introduces a bill that would limit income of a corporation to 3 per cent of its peace-time capitalization capi-talization the government would take the rest by taxation It Is regarded re-garded by many as time to call a halt It ought to be added here that obviously the country Is faced with the highest taxes it bas ever known in consequence of the tremendous tre-mendous spending that has been going on during the last two years and which is to be continued. These taxes are due to come along within another year or two. I referred above to the 3 per cent limit on Incomes of corporations. This is brought about through a tax of 50 per cent on the first 6 per cent of earnings of every corporation. corpora-tion. Above the 6 per cent earnings earn-ings It is proposed in the Flynn-Nye bill to take 100 per cent of the total. Tucked away in one section of the bill Is language that Is ordinarily ordina-rily referred to as a "joker." It represents rep-resents the first attempt by congress, con-gress, rather by the sponsors of this legislation, to circumvent exemption exemp-tion of government securities from taxation. The federal, state, municipal, munic-ipal, county and other governmental Jurisdictions have the power to Issue Is-sue bonds nnd other securities free from taxation. This makes such securities se-curities attractive. For quite a while there has been agitation to do away with this tax exemption privilege. Nobody has found a way, however, to get legislative bodies to enact the necessary provisions Into law. So, we have something like fifty billions of dollars In securities f this type outstanding. If this Income were taxable, of course. It would represent a considerable Increase In-crease In revenups to the federal government through Income levies Thus it Is stated the Flynn-Nye proposal pro-posal Is attempting to reach that Income without actually violating the contract which the issuing gov- ernment made with the buyers of those securities. The effort to tax income from these securities has been worked out in a fashion How It that Is better 11-ur 11-ur j Work lustrated than de-Would de-Would Work fined Agsume that a corporation had Invested a large portion of its splusor re-serves re-serves In tax-exempt bonds The bill proposes first to limit the amount of income which that corporation cor-poration may receive and to tax half of the remainder. The result is that Income from tax-exempt securities se-curities would be mingled with otner otn-er forms of Income and the government govern-ment would dip Its hand into the total and take whatever amount the law prescribed. Another provision of the bill would result In government confiscation confis-cation In wartime of every dollar of Income that any official of any corporation, cor-poration, company or partnership received in excess of $10,000 per year. It is to be remembered here that the above-mentioned $10,000 would not be tax-exempt. Those drawing such salaries still would have to pay the government $2,800 in taxes on the $10,000 income. In other words, since nearly every one receiving salaries of this size serves in an official capacity with some commercial unit the tax provision actually reaches nearly all of the Individual income tax payers. Certainly, the drastic rates affect all persons receiving any income of consequence because there Is a sharp reduction in the persona exemption ex-emption prescribed and the tax rates themselves are boosted higher than a kite. For Instance, a married man with an income of $3,000 a year would have to pay a minimum of $300 to the government immediately immedi-ately war was declared. The lethargy that continues among national Republican leaders Is beginning be-ginning to grow Criticize Irksome upon ml-Leaders ml-Leaders nor wheelhorses and Individual Republicans Re-publicans of lesser consequence In national affairs. Word is coming through to Washington from various vari-ous sections of the country Indicating Indicat-ing considerable dissatisfaction with the management of Republican party affairs by the present regime, headed by Henry P. Fletcher, national na-tional chairman. There is likewise a growing volume of criticism of the work of Senator Hastings of Delaware, and Representative Bolton Bol-ton of Ohio, Joint chairmen of the Republican - senatorial-congressional committee. I don't believe anybody can forecast fore-cast at this time what the result is going to be. It should be said In favor of Mr. Fletcher and Co-Chair-men Hastings and Bolton that they are in a tough spot. They are criticized criti-cized if they do and criticized if they don't Yet the fact remains and I think It Is recognized everywhere that none of these three has taken a positive position nor has he Initiated Ini-tiated any constructive effort In behalf be-half of his party's political future. From among Republicans who yet remain In congress, I have picked up much private discussion indicating indicat-ing fear on their part that the Republican Re-publican party management is faced with an upheaval equivalent to the Roosevelt New Deal among the Democrats unless the party leaders awaken from their unperturbed sleep. The point made most frequently fre-quently is that President Roosevelt actually has inaugurated his campaign cam-paign for re-election, and the Republicans Repub-licans are doing absolutely nothing about It. It is well to recall that Postmaster General Farley is planning plan-ning to retire Inst n.v, i..j knows to devote his attention to his other Job which Is chairman of the Democratic National committee This Information can be construed In only one way now that Mr Fletcher Flet-cher Is getting ready to take his seat again at the helm of the campaign cam-paign machine. Some of the smarter Republicans insist that this should be notice to the guiding ligt3 of heir own party to begin construction construc-tion of political trenches. Something may come of the Republican Re-publican sectional meetings now being be-ing Planned. It Is just possible that out of these group discussions may be evolved some national program or he makings of a national policy! It Is likewise possible that from these group discussions some IndT vldual may arise who would be a worthwhile leader for the pnrtv aga.nst Mr. Roosevelt next year To date, according to all of the infor niatlon I can obtain, that lead r not In sight. Senator Arthur Van-denberg Van-denberg of Michigan, who was re elected to the senate last year In" not cause one to forgo V ' 1 ' "a '"Mure made by tho e n ! at present. So fr , " M record shows th," h?,ve Z P"""C nlv.u.tBe whmsoove ?. ,no . wMlorn Now,pai)or Unlo- i |