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Show LEHI FREE PRESS, LEHI. UTAH STRIKES DONT BOTHER JHE SOUTH SEEN and HEAR around (he Not As Much As the North and East, at Any Carter Field FAMOUS Republicans in the Washington. house and senate are receiving an astonishing number of letters from lifelong G. O. P. voters insisting that practical expediency dictates the breaking up of the Republican party as a national institution. The writers almost without excep-tio-n take the ground that the important thing, both from their ownselfish interests which they generally construe as the good of the country and the carrying out of the old Republican economic ideals, Us not only to prevent the of Franklin D. Roosevelt in 1940 but to prevent the election of any one chosen by Roosevelt who will carry on the New Deal policies. The only thing that holds the Democratic party together at the moment, many of these writers insist. Is the presence on the field of battle jof their enemy, the Republican party. Some of them make the point that the old truism that there are more Republicans in the United States than Democrats that this Is a Republican country is no longer accurate. A new generation has come of voting age, which has no Iparty ties rooted in the old tradition, they insist, and apparently a very large majority of the younger ifolks have very definitely affiliated 'with the Democratic party. Even the often made statement iby Republican Chairman John D. M. Hamilton about the tremendous 'number of Republicans who voted iln the last election, nearly seven teen million, is the bunk, many of these writers go out of their way to assert. They point to the fact that a tremendous number of these "Republican" votes were actually cast by Democrats who have no love whatever for the Republican Iparty, its traditions or leaders. They instance Alfred E. Smith, John W. Davis, Bainbridge Colby, former Senator James A. Reed of Missouri, and though he never made a public statement that he was going to vote for Alfred M. Landon, many writers also mention Newton D. Baker. Would Scrap G. O. P. There is no way of telling how many Democrats, unhappy about the New Deal tendencies of their party, voted for Landon. But every one of the folks writing in recently and asking that the Republican par- ty be Bcrapped in order to open a clear road for an effective conserv ative opposition to the New Deal seems to think a great many. Yet the opposition to being classed as a Republican, or to giv jing aid and comfort to a revival of the G. O. P., the writers point out, deterred literally millions of Dem ocrats from jumping party lines. Many of the letters mention such n Democratic leaders as Senators Carter Glass and Harry F, 'Byrd of Virginia, Millard E. Tydtags of Maryland, Josiah W. Bailey of North Carolina, and Walter F, George of Georgia as among the Democrats who supported Roose velt, some tepidly and some strong ly, merely because he was the Dem ocratic nominee, running against a Republican. Without the national Republican party opposition to hold it together, jinany of these letter writers be lieve, the Democratic party would almost immediately split into two parties, giving the country the conservative and progressive division on economic lines to which it is , entitled, and getting rid of bygone 'I issues, labels and prejudices which should no longer be permitted to be cloud our presidential campaigns. well-know- 'Holding Corporations Not many votes are involved, so there is no telling what congress will do about it, but there are a great many individuals on, Capitol Hill who think the personal holding corporation, in many instances, is perfectly moral and justified. The best demonstration is one that did not happen. But let us take the case of the author of "Gone With the Wind.'That book came out just over a year ago. It is generally estimated to have earned one million dollars for Margaret Mitchell. All of that million was earned in two calendar years, most of it in the first. And the government will take approximately half of that! Now no one would object to the government taking fifty per cent of an income of half a million dollars a year if the income came every year if it was interest on invested capital or earnings from a going concern. But here is a case where an author, certainly from a comparative standpoint, eked out an existence during the ten or fifteen years in which this major opus was under construction. Furthermore, while this statement may be confounded later, most authors think it is extremely unlikely that the writer of "Gone With the Wind" will produce another highly profitable work. As a matter of fact, there is no indication to date that she will at- tempt it. Now to apply the corporation idea. If Margaret Mitchell had incorporat- ed, the government would have taken fifteen per cent of that one mil tvVTTtTTMTYITTTTrfTTTTTTT Loopholes for Statesmen. XTEW YORK. Statesmen fre. A quently may be found on this or that side of the loophole hi June, 1933, Guy T. Helvering," no unrolling the government's rostet of alleged was the sub. ject of a bitter senatorial debate. Certain senators fought his confir, mat ion as commissioner of internal revenue. They charged that, as an inroTr. tax lawyer, he had procured a reduction in the tax bill of the Slmj Jim Oil & Gas company from The point here is that there are a great many people who have brief periods of very high earning power, sometimes coming toward the end of a lifetime, and sometimes very early. It is just possible, for ex ample, that Shirley Temple will never earn a dollar after she is ten years old. Or nine for that matter. Often a comedian or more serious actor will struggle in comparative poverty for twenty years, as did the late Frank Bacon, and then have a wonderful three or four years. Sometimes it is only one year. There are other forms of occu- pation where the same thing works out, with plenty of ups and downs, mostly downs. But the only way to prevent the government taking half or more of the profits in good years. although not helping out in bad years, is to incorporate. To hear the testimony of the gov ernment experts before the house committee, and to read the newspaper articles about their testimony, the casual reader might assume that the person thus incorporating in that actuallyi dodged . all Ttaxes .t i' j; s iuok. uit airecion. j.ei particular what the government actually does to corporations! In the first place, it takes fifteen per cent of all net earnings. That is a fair sized tax in itself, more than one dollar out of eight. In the second place, the corporation pays two additional taxes to the federal government, on its capital stock and on excess profits. In the third place, when the corporation pays out dividends, they become the income of the person receiving them, and are subject to all income taxes, even including the normal tax, from which previous to the last March returns they were exempt. May Be Long Session Only a surprise move by President Roosevelt, which may come but is not expected, can prevent the present session of congress running into October. Actually congress can adjourn within two weeks of any Tuesday on which the President lets the leaders know that he is willing for certain legislation to go over until next session. This legislation includes of course the Supreme court enlargement measure. The legislation which would have to be put over until next session also includes much of the government reorganization proposal made by the President. Mr. Roosevelt can get part of this without any delay whatever, notably the half dozen additional secretaries he wants. But certain phases of it would be fought to the death by senators and representatives, some of whom are in entire sympathy with the President on most of his proposals. But if Mr. Roosevelt should take the advice given him by Vice President John N. Garner before that astute gentleman left for Texas, it would amaze every one how quickly congress could clean up its odds and ends, clear its calendars of everything to which there is no real opposition, and scatter. It has been apparent to every one with the slightest interest in looking beneath the surface that congress has been stalling for months. Time Not Wasted But meanwhile the time is not being entirely wasted. There are reactions from the constituents of the congressmen. They gradually find out enough about home sentiment to determine whether they dare support or oppose certain measures. They can appraise the value of trades they contemplate making. This year, however, this watchful waiting process has come pretty near to breaking all records, largely because of the two major pieces of legislation. One of them, the Supreme court proposal, is a major issue. The other, government reorganization, involves personal politics. And while they have hung back on this, with the senate adjourning for British and meeting only a few hours sometimes minutes when it does actunlly convene, the labor issue has become more important than anything actually on the agenda. In holding congress in session to break the filibuster that is certain if the President pushes his.Supreme court plan, Mr. Roosevelt is acting against the advice of most of his friends nnd party colleagues. WNU Svrvlc. tax-dodge- I w- - u x ' it n -; 1 211,000 to $451,000. Howe"er, he was confirmed, and, discharging his o!!i. cial duties, puts the finger on the n. Fortunately fur the South, which in the last 13 months has pressed a determined campaign to attract new manufacturing plants, its comparatively quiet labor conditions have stood out in serene contrast to the hectic scenes which have filled the northern stage. Department of Labor reports show that the number of workers involved in strikes steadily increased in both the North and South during the last six months of 1936, the latest period for which official records are available. But the totals are heavily against the North, which suffered 894 strikes, involving 372,495 work- -' ers, as compared with 105 strikes, involving 29,134 workers in Dixie. The North had its greatest number of strikes in August and September, with 187 in each month, but 163 strikes in October involved the most workers 95,172. The South had 24 strikes in August, keeping from employment, but 11,596 were kept out by 16 strikes in October. South Is During the period 40 to 60 per cent of all new strikes occurred in four states New York, Pennsylvania, Ohio and California with Illinois and Michigan accounting for a sizeable portion of the remainder. During the same six months only two important strikes took place in the South one in the Chevrolet and Fisher bodies plants at Atlanta, and one in the plant of the Celanese Corporation of America at Cumberland, Md. Both were settled amicably. Scarcity of strikes of either or "walkout" variety in the South is easily explained. The South is relatively With industry less concentrated than in eastern or middle western regions, rS is less susceptible to strike epidemics. Some industrialists deem it probable that public opinion will have " outlawed the before the South can be effectivzly unionized; if should appear, state j recreaContented workers, these! They are enjoying themselves in a tion hall built by a large papfr manufacturer with plants in several southern cities. more difficult tc carry out and might end in a workers' revolt. Southern states are now making it easier than ever before for industries to migrate to points within their borders. The first year of Dixie's industrial promotion drive 1936 brought $322,000,000 in new plants and equipment, the greatest development in history. Leading the pack were paper companies with investments totaling $6C,000,000 in new plants; petro- heavv industrial taxes, had prevent ed much industrial growth in the last decade. But when the new governor, Richard W. Leche, was elected he outlined a plan to revive the ' white-haire- d ' ' one-ye- ' ar 1 Non-Unio- su-- six-mon- j "wealthy evaders" for the congres-sioninvestigation committee. Trof. Roswell Foster Magill, author of the report, wrote books giving pointers on legal loopholes, before he went to Washington. No moral turpitude has uccu luaigcu. mi jusi means iim Dizzy Dean may be pitching for Washington next year instead of St, Louis. Commissioner Helvering is a shrewd, portly, ruddy, Kansas politician who wears good clothes, carries a shiny malacca cane, smokes good cigars, knows his way around and says little. He was in congress from 1913 to 1919, a tax income lawyer thereafter, according to the somewhat heated and vehement charges of Senators Hastings, Couzens and others. He has been a close friend ol Postmaster General Farley for many years and it was understood that he was the President's per-- I sonal choice for the internal reve nue post. He has been active in Kansas pol-itics for many years, a former i perintendent of public construction under Governor Woodring, and cam-- ! paign manager and chairman of the Democratic state committee. He was born in Felicity, Ohio, in 1878. His family removed to Kansas when he was eight years old. He studied law at the University of Michigan, and was county attorney of Marshall county, Kan., before he went to congress. He is one of the hardest men in Washington to see and correspondents have mainly le it go at that. state industrially. The plan, which was adopted, repealed the objectionable license tax on manufacturing establishments; effected a more equitable tax on oil refining; encouraged establishment of a livestock industry by removing the tax on cattle, sheep and hogs; leum refining, with $50,000,000 in created a board of commerce and new distributing plants and pipe- industry to court industry; appropriated $100,000 for promotion, and lines, and iron and steel manufacturers with a $53,000,000 expansion proposed a constitutional amendthe governor permisprogram. During the first quar- menttogiving tax exemptions for ten grant ter of 1937 the pace was main- sion and additions to to new plants years in industrial tained, with $02,964,000 existing plants. and engineering construction conEffects were not long in coming tracts awarded. notice. Building permits soared; Prominent among the reasons for to so did department store sales, eleccivthis sudden metamorphosis of a manufacilization that seemed destined to re- tric power consumption, office receipts, post sales, turing main permanently agricultural, has wholesale grocery sales and other c been the extension of indices. Problems of state finance power to the most remote regions, and problems kept Govresulting in an abundance of cheap ernorlegislative from Leche starting his inenergy in places which had been dustrial the full gusto with program to it of coal without lack owing he would have liked, but his own for generating or lack of distribupersonal efforts brought into the JAMES ROWLAND AN c lines tion from 15 new industries ranging in state GELL, retiring president ol plants. In addition, the South pro- value from $100,000 to $3,000,000, vided a ready market, lower conYale, is an aggressive which seems not such a struction and maintenance costs, employing 3,000 in their construcand plentiful raw materials. Of it, tion and giving permanent employ- bad idea, considering the plight 0! Arthur D. Little, the noted indus- ment to nearly 8,000. extremists, right and left. He will receive a salary of S13.000 a year trial engineer, said, "Nowhere is Mississippi Follows Lead. there likely to be a greater extenFlorida is wooing industry with a as educational counsellor of the Nsion of industrial activity." tax exemption law and is granting ational Broadcasting company. and local govern-rientL. R. Lohr, president of the NBC, should profit Now the South has "gone out after municipalities permission to erect buildings for manufacturers. Cities says it will be full time work, addare vying with each other to attract ing that "broadcasting has a mannew factories, although insisting date to operate in the public in that they must be engaged in light terest, convenience and necessity. Dr. manufacturing, such as garments, All this will presumably be in small housewares, etc. no plant Angell s department It wnuld he difficult to think of Dr. which emits objectionable fumes need apply. 'Angell as a mere emeritus. He t said he was retiring at to Agricultural Mississippi, eager offensive and of obvious replace the lumber mills that have "because demon-- ; left "ghost towns" along the railsenility," at the same time some lusty the has by a to "balcontrary roads, strating adopted plan Deal. He will New ance the at with M swings agriculture industry," "pXN which was sponsored by Gov. Hugh need no time out for road work I White. In addition to tax exemption fore taking on the radio engage-- ! ment. When he retired as dean of for five years, it offers free factories and free factory sites which, if iho TTnivArcitv nf f!hira!!0 in 1921, the manufacturer maintains a speci the Carnegie foundation snapped fied payroll for a stated period of him "P a a fat salary, but, before was years, become his property in most he got his chair warm, "ialein oe- cases. Ihe factories are built by after him. He is always the municipalities in which they are mand. situated, the cities issuing bonds to Baccalaureate orators used to see cover the cost. "the orb of Rome sinking in a sea Other states are proceeding along of blood" and warn us that we were the same lines. Alabama offers ten getting that way, too. Now we are years of freedom from taxes. heading "down the same abyss countries may grant perma- which has engulfed Europe," wlucn nent tax exemption on manufactur- - was Dr. Angell's phrase in his fare-- : uning machinery. Arkansas, with a well address at Yale. That is, tne check to 70 per cent rural, has less we do something Louisiana is ottering manufacturers a new field of indusiry with re-- : population thrown cent chemical discoveries of the possibilities of converting sugar cane dustrial its working cap in the in- slide. ring with a large fund to He has struck out vigorously . Lecns conivya uiiw muuMi iui a.ciiuui. nisei; iov. lucnara advertise signing the state's renatural against the Supreme court reorgantract to give a container manufacturer ten years tax exemption on ad- sources and strikes and insidmanufacturing advan- - ization, dition to plant, to cost $400,000. tages. North Carolina has just ap- ious collectivism as he sees it exby the experience of their eastern the business." States have conduct- propriated $250,000 to herald its at- emplified, in the present adminiand middle western neighbors in ed active publicity and "selling" traction as a field for industrial ex- stration. He is a conservative, a is an a pi handling them. campaigns, making generous offers. pansion. Texas is now considering an adherence of his in and the These included exemption from taxappropriation $1,000,000 a year term only in denoting Wages employment South have increased more rapidly ation for new industries and outright for the next five years to advertise to traditional cultural and goverthan in other sections, while hours subsidies in the form of free factory the state's resources. nmental patterns. He was a profeshave not increased as much, and sites, free buildings and d sor of psychology for 2G years BSouthern Markets Grow. n this undoubtedly has some bearing To date efforts have been concenlabor. efore becoming president of Yale, ot w; on the absence of strikes. The wage trated upon attracting industries father having been president Leche Revives Louisiana. differential between the South and which could process the raw mate- University of Michigan for .33 years Louisiana was one of those which rials of the various other sections was approximately until 1909. regions. Louisitook the lead, capitalizing on under33.5 per cent in 1933; by December, ana, with its thousands of acres of nis notable achievements at Taj5 1936, it had narrowed down to 21.9 developed natural resources and on rolling pine land, now leads been administrative, ''e an have the ones. It stressed South in the per cent. Since the southern work- new, of fected securing paper and sweeping reorganizations er, according to economists, can the fact that "nowhere in the world pulp factories largely a new his incumbency endowment southduring is there a greater opportunity for ern maintain the same standard of livThe textile industry rose from $30,000,000 to $100,000,000. activity. ing as his northern counterpart at the development of a chemical in- nua uiuvL-- aimosi en masse to the me vaiue ui mint-"-.:..,c;(r properties .1.. dustry than Louisiana, where salt, P:irntinne20 per cent less cost, the South may . ftp W3S C,.U itl now n a uuuiu m. paraiiei produces '"coring was now claim virtual parity as far as sulphur and gas occur in close prox52 per cent of the nation's tnvfiw first nresident of Yale who imity." It advertised and "sold" wane iew real wages are concerned. inland, for more than a Yale graduate. its 4,700 miles of inland waterways, a he century the seat of this industry ivDixie Woos Industry. t t.e "Tn ioininc is its ' highway system, its now produces only 33 en. ot per cent. is only changing his base It is not hard to see why industry 10 trunk-linrailroads, its large perAs industrial i New t IJ payrolls provide a is attracted by the opportunity the centage of native American white j constant of stream a wealth for south- to New York, from unlvTr?:''t a South affords for decentralization. population. It aggressively promotworkers, the markets below the the air." Erasmus npn For instance, Detroit nnd Akron ed its mineral and timber wealths ern Mason and Dixon line are constantcould be paralyzed in their producbreak like that. Nor even and its great basic crops of rice, ly gaining in importance. tion of automobiles and rubber if a cotton and sugar, supplemented Murray Butler. It will ,,c.uws . ,'ke by Advised single plant gets into difficulties sweet potatoes, strawberries, soy- trialists andopinion of many indus- ing to sec how the radio economists is that the to the new curriculum. with a vertical union; it would then beans and truck vegetables. Its port be within the power of union leadConsolidated New Features. of New Orleans was touted as the North and East, as well as the WNU Service. ers to call out workers in all plants second largest in the United States, South, will benefit from the greater prosperity of Dixie, with each secin a "sympathy" strike. Sympathy with unrivaled facilities. Sweet Potatoes in China strikes, while still possible under dePolitical interference with indus- tion of the country supplying the it can products best Sweet potatoes were centralized industry, would be much try in the recent past, coupled with produce. Western Newspaper Union." in ancient China. 4,-5- 1 week-end- 4 out to avoid the difficulties rooted in How It Works - 11 the North and East, with their accompanying have largely obpublicity, scured from the public consciousness the industrial awakening that is taking place in the South. Yet southern industrial leaders feel that labor troubles outside Dixie will soon be re fleeted in increased southern migrations as industry spreads the normal levy on cor poration earnings. The rest could have remained in the surplus, save what part she drew out for spending. On that part drawn out in dividends she would have to pay income taxes, of course, but she would escape the enormous surtaxes that an income of half a million dollars rates. She could distribute the taxes over the rest of her natural life, and the govern ment would be lucky to get $200,000 instead of the $500,000 it gets with Margaret Mitchell unincorporated. Sjrudlcut. By Lemuel F. Parton SPECTACULAR lion dollars O Call THIS WEEK... i By WILLIAM C. UTLEY strikes of CORRESPONDENT WASHINGTON WHO'S NEWS Attract Industries. Enjoy Results of Campaign to NATIONAL CAPITAL .w Begins to Rate-D- ixie 1 hydro-electri- "sit-dow- Middle-of-the-Koade- r. hydro-electri- non-unio- n. middle-oi-the-roade- r, "sit-down- "sit-down- s" s sixty-eigh- - be-- w fev. ' Mary-land- 's j sit-do- "middle-of-the-roade- r" state-traine- man-mad- e - t. 4 T- 14,C00-mil- e e i u- - -;- l-a |