| Show economic Econom tc I 1 highlights that it atan t th in itan arr P rail 11 dividend ch cecle k ad ta tax dill of crr Natt aruil and intern tina problem 1 from well welfare it Is an unfortunate thing that president roosevelt Roosevel ts budget message to the congress will like all such document receive only the most cursory reading few budget messages have been as unusual or as ag important few ew have through statistics MO 0 well illustrated an tens atins alma and purposes ahu lio budget situation has three dhondt als phases first thu gov eminent Is to borrow barrow between now and the elidor the fiscal fejar a rate exceeding monthly borrowings made when we were in the thick of the war second at tho the end ot of the fiscal year we will have the largest peacetime deficit in our history third beginning with the next fiscal year in july the financial policy wilt will be entirely reversed nl special expenditures of any moment and treasury receipts above those actually needed for routine operation of the govern men tand treasury receipts above those actually needed for routine operations of the government will be used to reduce the dell deficit bit mr air roosevelt thus believes bellen res that by the middle ot of this year extraordinary measures will no longer be required to speed recovery feo overy ile he Is as awake as anyone to their terrific cost and he has hag implicit faith that time will prove them to be worth a great deal more than tile the people have had to pay for them part of their cost has been alleviated by his insistence on oil drastic economy so far as ordinary federal expenditures are concerned the president has advised members of the house where all appropriations must be inaugurated that further expenditures wo would 1 uld be ba extremely undesirable tiie the treasury is looking forward to 1934 35 with hopes tor for increased tro revenues venues estimates fore forecast casen 0 rise in income tax returns which will bring thorn then L to as compared with this year tho processing tax on farm products product Is expected to jump 30 per cent customs receipts 17 per cent internal revenue taxes because ot of liquidator should swell substantially the president has hair isaid that he contemplates no now new taxes and that some ot of t the 1 lesa ess import important ant ones may be reduced or eliminated two of our most important industries dus tries have more than a usual interest in the current congress the industries are the railroads and the public utilities 1 the tha utilities are in the most difficult position they face increasing government through federally subsidized tax free plants more municipal plants stricter regulation demands for lower rates in spite of of government policies that have forced substantial rises in operating costs and efforts to change their financial setup set up not so long ago the tha total of public utility bonds in default reached the highest figure in history some of the companies represented went broke because of poor management as in the case of any other business the majority were crippled by I 1 inelastic ne lastic regulation and legis lation and regular and special taxation the fact that bomb some outstanding electric systems have been successful in weathering the business depression answer the question as to what Is going to happen to a privately financed heavily taxed plant when federal state and municipal gov I 1 ern ments go into business next door with tax freo free plants whose deficits it if any are paid for by the public treasury leading utility executives advocating resistance to what they con aider unfair demands and legislation are finding allies in other fields notably life insurance which w Is a heavy utility investor no other industry Is asked to lower tile the cost ot of its product to the consumer at a time when all government effort Is being diveta to raising prices and wages the railroads are likewise striving for a fair deal tor for themselves and in tills this they seem to have the support aport of both the president and able able hard bitten federal co ordin ator of transportation maatman Ea atman heart and soul ot of the railroad request la Is equality ot of federal regulation with motor and water carriers they say this Is not possible unless oil all carriers are regulated in the same way by the same agency preferably the C 0 an important phase of this will be an effort to have section 6 ot of the interstate commerce Commer cb act which requires 30 days notice ot of a railroads intention to change a rate modified buses and trucks and water lines are free to change gatela at will without notification also it will be asked thattie that the commissions authority to yr prescribe minimum rail rates be abrogated |
