Show rir3 News Review of Current Events ’ON THE LINE!’ DEMANDS CIO Steel a National National Prwa And So There's Refuses to Sign Contracts Look to U S for Strike Settlement Deadlock Topics Interpreted by William Bmckart Bulldln Washington — As it becomes more painfully apparent that there is no basis upon which oeeA New to expect present returns of federal Tax Sources taxation to produce sufficient funds to maintain the administration’s rate of spending President and the Treasury are the peeping into every comer for new sources of money They have already recommended to congress that the present nuisance taxes be to bring in some five hundred million a year and they are casting their eyes elsewhere for other tax receipts In addition and as a part of the eneral pinch that the Treasury now eels Mr Roosevelt has asked congress to revise certain provisions of income tax law to close up loopholes and prevent escape from taxation The President’s message to congress on this point was quite bitter and many observers thought rather unfair but nevertheless he told congress that it was up to the legislative branch to see that there was no tax avoidance The President’s message dealt with an alleged moral phase of tax avoidance and that part of his message has provoked much criticism pf the Chief Executive’s attitude lie sought in his statement to the congress to make it appear that gnany wealthy persons had avoided (axes and that by so doing they had sinned Now the President’s view is entitled to consideration and his charge that there is tax avoidance Is correct Indeed I believe no one can successfully dispute the charge that there is tax avoidance of a wholesale character in the United But when the matter is States of a moral laced in the E isue it must category be examined in a different light The President did sot talk about tax evasion in his message he talked about tax avoidTax evasion is illegal and ance Tax avoidance is purely Immoral and simply the arrangement by an Individual so that he pays the lowhe can and still complies est tax with the law I am inclined to side with those In congress who have criticized the President on the attitude he asAs long as congress tells sumed an individual through the language of a law that he must pay so much tax and prescribes the conditions if that individual complies with that direction of congress he does not commit a crime when he pays only that much tax I am constrained to support my view in this instance with the language of the late Mr Justice Oliver Wendell Holmes who as a member ef the Supreme court of the United States gained probably as much respect as any man who ever sat on the highest bench Mr Justice Holmes said in a decision of the court 21 years ago and now strangely apropos the following words: “We do not speak of evasion beline cause when the law draws case is on one side of it or on the other and if on the safe side it is none the worse legally that a person has availed himself to the full When an of what the law permits set is condemned as an evasion what is meant is that it is on the wrong side of the line indicated by the policy if not by the mere letter of the law” Again and again courts have held that a citizen may employ “any legal means’’ available to him to diminish the tax which he must pay It would seem then that Mr Roosevelt’s message used rather ill chosen and ill advised language when In dealing with questions of tax avoidance he sought to make it appear that it was wrong for a citizen to try to save his own money WaMilngton o Capital on the Move Spanish loyalist government terrific bombing another the city by Insurgent airplanes the German Junkers and Heinkel types decided to move the capitalto but from Bilbao to Santander defend Bilbao to the death The Basque battalions reorganized for a last ditch stand to protect the broken “iron ring” of the city’s defenses from the forces of General Francisco Franco The latter it was Summer Influenza admitted already had penetrated monica calif-the first line of fortifications near land we are now Fica and Larrabezua five miles to the east Several persons were killed starting to celebrate the custom and many houses destroyed by the seasonal rite of having ouri rebel bombs and machine guns ary influenza Meanwhile the loyalists were claim- summer Summer influenza is distinguished' ing important advances along the from winter influenza by the fact! Cordoba front that the former does not set in until SepReds Rub Out 8 thereby tember Soviet Russian generals EIGHT providing intervals including Marshal Michail for spring and fall former vice commissar to slip in between of defense learned the wrath of the The symptoms refor treason Condemned Kremlin main practically the they were led before a firing squad same The eyes waand killed by order of the military copiously but tribunal of the Soviet supreme ter nose runs secthe court The court only the day be- ond The head stops fore had declared them guilty of thoroughly thus conspiring with the military intelli- up of proof service of an “unfriendly" providing of gence the old the fallacy foreign power Although the “unfail in dry weather sinus all adage— named never friendly” power was The patient barks like a trained' by officials correspondents in Moshere Is that cow declared indications were un- seal but the difference if you toss barking mistakable that Red leaders believe the seal stops him a hunk of raw fish the power was Nazi Germany One could go on at length but Most of the Russian capital was It’s difficult to continue a writing virtually certain that the eight who had been denied appeal had been job when you’re using a nasal to punctuate with and hava put to death for an ambitious plot a taste in your mouth like moth to rob the Soviet of its western provdressinces and turn them over to Ger- balls smothered in creosote ing many The Soviet purge was followed by of The Art Cussing the suicide of Alexander G OLD chum Burgess Johnson president an editor but now a colof the White Russian Soviet Repuba credulous tells lic westernmost of the Soviet lege professor Union’s republics? While it was said bunch of advertising men that Mark e that he had killed himself “for fam- Twain was the champion cusser— could cuss five ily reasons” his death came almost without repeating himsolid minutes denunciation after his immediately in a meeting as a plotter against self Pardon me Burgess but Mark the Communist party Hundreds of thousands of suspects were reported Twain never did any such thing removed from the Communist party Once I heard him at his best— denouncing a publisher rolls by the government He swore who had offended him for five minutes all right but over Fiscal Dictator for France and over again he used the same few familiar oaths which the WHILE athecongressional race always have United States prepared to begin an investigation of used He didn’t introduce a new or alleged tax dodgers among the an original one I studied the art of cussing both wealthy Vincent French finance by note and by ear under such giftminister gave broad ed masters of profanity hints to French mil- steamboat mates New York newslionaires that they paper men London cab drivers too had better get western mule whackers and north themselves square woods timber choppers with the tax collechand on my heart I With tor He revealed that solemnlymy affirm that not one of these the tax rate will be experts ever employed any alleged raised on the higher save the dependable bracket incomesand standbys to wit seven adjectives on products which two strong nouns one ultrastrong are Premier Blum noun and one compound phrase — th® government such as commonest of all monopolies tobacco matched and alcohol Measures will be taken in France’s finanRomance for King Zog cial crisis to prevent frightened about the fifth time comes a capitalists from exporting funds PPOR plaintive plea from Albania on® abroad of remote little border countries those All this because the Communist of eastern Europe where every now party reversing its long stand at the last minute agreed to accept and then peace threatens to break Premier’s Blum’s proposal that he out They have a king over there At least they had a king at the time be made financial dictator of the nation for six weeks In that time he of going to press with this dispatch His name is King Zog This is neithhopes to raise the 30 billion francs needed to finance the government er a typographical error nor a vaudeville gag The name positively throughout the year Most authoriand radio comedians may ties believe that six weeks will not is Zog suffice that he will be forced to ask make the most of it For many months he has been for an extension of his “full The Blum hopes that paging the world for a wife the long awaited business revival qualifications call for the lady to His majesty would will actually set in during that pe- have $5000000 riod solving the whole financial also like for her to turn Mohammedan but the main requirement problem automatically is that $5000000 bank roll — We’re in the Moneyl California’s Coastline T F YOU don’t think things are TI7 HILE it’s quite a roomy coast- 1 picking up maybe the United line California has at present States Department of Commerce only one coastline This is a source can convince you It has just re- of mortification to patriotic native ported the national income for 1936 sons Florida having two such one reached a total of $62056000000 on either side besides a dampish' and officials predicted that the fig- area in the middle known as the ure for 1937 would reach $70000000-00- 0 Everglades The high was Still in a way California’s in the dizzy boom year of strand continues to excel silvery Within 1929 and the low easy speeding distance we have at in 1933 least one beach resort where when The department’s report said that Palm folds up on account Springs since 1933 the national income has of the heat many of our artistic risen more swiftly than prices and colony go to relax So wholeheartthat the real purchasing power of do some go in for this that oftedly individuals was much larger In- en you may stand off a quarter of a come it said increased 38 cent mile and hear them relaxing per from 1933 to 1936 while the cost of reOccasionally a relaxationist living advanced 8 per cent The per laxes so that it takes capita income of employees last weeks for completely him to get over it His listed at $1244 which was friends leave him at the seaside only year was $58 more than in the preceding year to gather at the bedside and 884 per cent of the figure for 1929 The Changing World JT WAS Susan B Anthony who CIO Starts at Bottom dedicated her life to the cause of tor her sex But it emancipation JOHN L LEWIS aimed another was her grandniece who lately atblow at steel through the United Mine Workers of which he is pres- tained the headlines by suggesting ident Workers in the captive mines that with the addition of a buckle (mines operated by an individual here and a ribbon there a nightie steel concern which is the sole user would make a suitable evening for almost any occasion of the coal brought to the surface) gown Thus do we see how from one genin Pennsylvania walked out of the shafts and joined the steel picket eration on to another is hahded down the flame of lines The purpose was to genius and service to womankind further the steel plants nowcripple shut But although the inspired suggesdown or operating under difficulties while picketed the immediate ob- tion is already weeks old there still jective was the closing of the Cam- are no signs that it is finding adbria plant of Bethlehem Steel The vocates among the queen bees of effectiveness of the walkout was a the cultural hive Maybe the reamatter for dispute plant officials son is that a belle of the Hollywood claimed all departments were In artistic group would feel so ostenIn some plants the mintatiously overdressed if she wore operation ers outnumbered striking steel work- a nightie to a social ' function ers as steel pickets IRVm S COBB THE of of jCjol about D C to regulations of the bureau of internal revenue which prescribed that a person must count as income anything taken in payment of services whether that thing be money or some other thing or value It cited the fact that the President occupies the White House without payment of rent and that he has available a large staff of servants who man that institution that he is proVi£ i vided with automobiles and yachts and various other services and circumstances without cost Editorially the newspaper then goes on: “Has the President of the United States unwittingly failed to include A in his income tax the value to him of the residence provided by the gov' ernment which pays him his salys ary? Under these regulations it would appear that even the automobiles and the yachts provided by Monroe (Mich) Women Defended Their Husbands’ Right to Strike the government should be considered in making out an income tax return There is no publication of income taxes and therefore the public is not informed as to whether the V M SUMMARIZES THE WORLD’S WEEK high officials of the government who e Western Newspaper Union are provided with residences as some are or with automobiles as 'T'HERE is no issue of wages ter General Farley to deliver parcel many of them are take these things dehours or material other post packages to steel plants in Ohio into consideration in reporting their mands in the strife between the which local postmasters have reincome taxes It would scarcely be independent steel corporations and fused to deliver an argument to say that residence John L Lewis’ Committee for InThe petition charged that the local provided for a public official is not dustrial Organization The corporatpostmaster at Niles Ohio was repart of his pay Cabinet officers ions have agreed to all of the fusing to deliver packages contain for example are not provided with demands of the unions — verbally ing food and clothing and addressed residences by the government They “Verbally” — that is the word which to the loyal workers who were bemust provide residences them- has for weeks thousands of ing housed inside the Republic plant selves at considerable cost It Is workers in eight kept or ten states from It charged that this refusal was obvious therefore that a residence made after the postmaster had returning to their jobs givena government official is part The C I O demands that the reached an “understanding” with of his" pay’’ their agreement in two members of the union corporations put the form of a written contract The a waited a for week “Having When the President proposed the to our letter to Mr Farley refuse And the unions tax investigation he said that he be- - corporations have refused to call off the strikes and having received none we have lieved there were until no recourse but to such legal action on the the they signatures get Pick on a g00(j many g line as is available to us under the cirOnes lions of dollars cumstances involved” said John S Union officials have taken the pocould be sition that if the company officials Brooks Jr counsel for the corporaforced into the federal treasury as are willing to agree orally to union tion He said separate suits will be a result of such inquiry His ac- demands they ought to be willing to instituted in Ohio against the local tion followed sweeping orders issued confirm the agreement in writing postmasters involved — — to internal revenue agents and auLewis has demanded that President ditors to review every income tax Roosevelt intervene to force the Court Plan Walloped return with the utmost care The companies to sign At a press conagents and auditors of course will ference the President refused to 'T'HE senate judiciary committee made short work of President go over the returns filed by the ensay officially what was his reaction tire list of income tax payers little to the demand He did say — and Roosevelt’s Supreme court packing report in summary: as well as big but the congressional emphasized that he was not speaki- plan Its “We recommend the rejection of investigation will be devoted only to ng "officially”— that he could not some of the men called by Mr see why the companies would not this bill as a needless futile and utRoosevelt “economic royalists’ It make writtefl agreements if they terly dangerous abandonment of is obvious that congress cannot go would make the same ones verbal- - constitutional principle “It was presented to the congress into all returns so congress will pick ly on the big ones because those men Tom Girdler chairman of the in a most intricate form and for reasons that obscured iW real purwill have names out of which good board of the Republic Steel corporatheadlines in newspapers can be ion explained the companies’ pose “It would not banish age from stand: written The Treasury had a different idea “The reason the C I O wants the bench nor abolish divided dea signed contract is because such cisions about the investigation which con“It would not affect the power of a contract would be the first step gress undertook at the President’s toward the closed shop and the any court to hold laws unconstiturequest The Treasury’s plan contional nor withdraw from any judge of hearia number secret templated “Under ngs star chamber sessions and 1 the closed shop every the authority to issue injunctions believe everyone knows what can worker has to belong to a union of “It would not reduce the expense litigation nor speed decision whether he wants to or not The be had In a star chamber session “It is a proposal without precewith bureaucrats operating with all closed shop is actually a ’deal’ beof the powers they possess in our tween the employer and the union dent and without justification “It would subjugate the courts to whereby the employer helps to force government the will of congress and the PresiWord of the Treasury’s ideas did every employee into the union destroy the indenot please congressional leaders Under the checkoff the company dent and thereby of the judiciary the only and they very quickly put their foot takes unions dues out of the pay pendence certain shield of individual rights Of course down on the scheme envelopes of all its employees and “It is a measure which should be members of the house and senate hands them over to the union so emphatically that its rejected “Does the C I 0 contract prefigured they would not share in the will never again be prepolitical benefits unless they did the serve industrial peace? It does not parallel sented to the free representatives of I hear much comThey have broken numerous coninvestigating the free people of America” ment to the effect however that tracts" Informed Washington correspondan investigation in the manner conents were of the belief that the bill gress had decided to make it is Federal Intervention Asked a chance of being passed hasn’t much preferable to the star chamIT WAS virtually certain that there even with amendments It seemed ber proceedings which the Treasury would be some federal action in not unlikely that due to the confuproposed the steel strikes with Gov Martin sion and conflict over White House I mentioned that the congressionL Davey of Ohio and Mayor Daniel proposals and statutes would there al committee is dealing only with J Shields of Johnstown be an adjournment of this session of Pa ap“big names” The reason for this is pealing desperately to the President congress shortly perhaps to reconplain It would do no good at all for aid Governor Davey in a long vene in special session beginning in a publicity way for the congresdetailing the arguments on November 1’ The breathing spell sional groups to call in some small telegram both sides declared that the situatwould giye the administration an taxpayer who by availing himself ion had to gone far beyond the powers opportunity align its majority of the privileges of the law had of one state to control When a more solidly behind the President’s been able to reduce hi total tax to worker in the Johnstown steel mills desired legislation to improve the a comparatively few dollars On the was abducted by six strikers and lot of the underprivileged It has been rather interesting to hand if a big business man of his clothing in their autonote the type of outbursts editorial other an claims all of stripped mobile (he was later released) foland verbal that the economic royalist and deductions exemptions that Harry Loses 1st Round Message ha3 come as a lowing weeks of rioting and bloodlaw the and cuts specifies thereby shed the mayor decided that kidsuit of Mr RooseStir JESPITE the pleas of Harry down his tax he becomes the subL Hopkins works progress adwas straw the last velt’s tax mesnaping and apject or the target for much bally- pealed to Mr Roosevelt the full senate approministrator sage These outbursts have continhoo about tax avoidance I do not committee approved the priation because the of Labor President ued partly Frances E Secretary difference the see Perkins named a mediation board Byrnes amendment asked congress to make an investito the relief bill 13 of three to meet in Cleveland and gation of tax avoidance where some Since the President finds himself to 10 The amendvery large taxpayers are involved in a deadlock with congress on his hear the cases of the union and ment to the the companies On the board were Of course congress is going to do to add proposal bill requires that because it will give congress Work sjx justices of his Charles P Taft son of the former Piles local governments President and chief justice a Reor at least certain individual memto on Congress own choosing to pay at least 40 publican and lawyer from Cincinbers an opportunity for publicity the Supreme court nati per cent of the cost And they do not overlook opportuLloyd K Garrison who served of the United States he has turned of all WPA projects as the first president of the National nities for publicity to a new approach in dealing with or else sign a kind Labor Relations board in 1934 and Since the discussion of tax questhe situation He legislative of has civic “pauper’s Edward F McGrady first assisttions has continued on the basis of suddenly loaded congress down with ant oath” The South secretary of labor and a known the projected investigation it has work This is to be distinguished Carolina senator’s unions of enemy company sysspy given plenty of writers an opportufrom the he has followed in tems and the tear gas method of amendment was their opinion in de- his earlier course of his nity to express tenure when years seen as further eviquelling strike riots tail Many of these critics have be- he submitted one legislative only of dence the break between the adIn Mich Monroe where the C I come quite personal in their assault at a time ' and suggestion ministration the conservative 0 union threatened to import thouupon Mr Roosevelt and their biting Now In addition to the court resands of pickets from Detroit a Democrats observations are doing him no good In the senate debate on the bill organization proposal there is be- band of several hundred deputized politically at all In fact I have fore congress the became apparent that it govarmed beneath some the the vigilantes rumblings heard kept peace Sen quickly ernmental reorganization plan the aided Byrnes’ “40 per cent amendby the police force of twenty surface to the effect that his tax billion dollar slum clearance ment” would not carry Sen Joseph and In Youngstown Ohio Johnstown and message has hurt him as much po- house building farm bill Robinson offered a compromise tenancy other cities vigilante groups were T litically as his proposal to add six and a highly controversial which w’ould require states to pay piece of also being formed new Justices of his own choosing 25 per cent of the cost of work proposing to establish to the Supreme court of the United legislation minimum wages and maximum relief President Roosevelt projects States hours for labor These are in addit- Steel Wants Its Mail had repeatedly made it known that Probably the worst of these critiion of course to the tax revision 'T'HE Republic Steel corporation he wanted no such rider on his cisms appeared in the Washington A I discussed filed have in the federal district court relief bill and it was Sen Robinabove proposition Evening Star a newspaper that sel- and the annual appropriation bills in Washington a petition for a writ son’s first break with the White dom takes a bitter stand on any with the billion and a half relief of mandamus compelling Postmas House on an important issue question fund measure The Evening Star called attention Wtatara Nrwapasot Union 'l US that '! 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