Show WEEKLY NEWS ANALYSIS BY JOSEPH TV labine little taxpayer not relieved by current revision program higher levies seen next year EDIT EDITORS OR S NOTE when opinions are arc expressed in these columns they are those of the news analyst and not necessarily of this news newspaper paper released nc ne leased by western newspaper union TAXATION relief in retrenching 1939 many states have cut their budgets and many a congressman has preached economy but john public has yet to see his taxes cut indeed the mill run U S investor holding tax exempt securities will be lucky if such exemptions are not outlawed next year reasons for neglecting john public are 1 his taxes cannot be cut without adding to big business burden 2 big business far from accepting such a burden has good reason to protest its present tax status the only apparent solution federal economy will go by the boards this year as U S expenditures for 1939 40 top the budget by approximately four probable points of the current sessions tax revision program are 1 reenactment enactment re of 1 nuisance levies expiring june 30 0 2 repeal of the undistributed profits tax and substitution of a flat 18 per cent levy on corporations with incomes above a year 3 deduction of net business losses from SENATOR CLARK CIA was lying flying too high profits of three future years instead of one year as at present and 4 revaluation of capital stock every year instead of every three years probable net result mere alere fling of big business burden and maintenance of present federal expenditures tures a situation which today brings complaints like the following anent taxes to the american america n petroleum institute standard oil of indiana reported it employed people in 1938 1933 meanwhile paying in taxes this was enough to pay U S employees a salary of 2000 each standard oils complaint A business operated by workers is called upon to support even more persons performing functions of government anent expenditures democratic hopeful bennett champ dark clark mid dle grounder claims the one year old civil aeronautics authority already has a payroll exceeding the 52 year old interstate commerce commission which regulates the nations entire railroad system furthermore ther more to drive home his plea for retrenchment senator dark clark found CAA has more employees drawing federal pay than are employed by all the U S commercial airlines which it regulates RELIEF recommendation fl L at indianapolis a mr stinger his wife and nine children live in three rooms of an old butcher shop so rat infested he and a two year old baby have been b bitten itt en although ill mr stinger mus must it st stay ay awake nights to shoo off the rats L in texas counties relievers relie fers get no aid other than federal surplus commodities and in one state food grants are one fifth the minimum m u in standard food budget prescribed by the U S department of agriculture C logios LO hios experimenting badly pestered legislature has passed 82 relief bills since january 1931 yet still has trouble ILL monthly food grants for relief vary greatly with the states afulu ency including atlanta ga per month new york mississippi sis sippi california arkansas this startling picture of U S relief conditions was offered the h house ouse appropriations subcommittee committee sub as it began considering a budgetary request for 1939 40 the report came from the american association of relief workers which rev reviewed dewed conditions in 35 states and two territories hawaii and puerto rico principal recommendation was that federal grants in aid to states be continued as the only means of achieving a uniform and adequate system in a nation where relievers relie fers would otherwise prosper or starve depending on their states wealth agriculture cotton conference forgotten fact by most critics of th the e new deals agriculture program is is that international wheat and cotton production has raised tremendously the past 15 years closing the door against export of surpluses without expensive government subsidies though regulated production produces a vicious artificial circle which upsets all natural commodity price levels the blunt facts ire are that even with restricted planting in the U S 1938 world wheat production set a new record of approximately bushels while U S cotton exports are currently at their lowest level in 60 years one possible solution is a worldwide operative cooperative co scheme already underway are negotiations for a formal wheat conference at london to draft an international agreement authorizing export quotas and eliminating price cutting tactics facilitated by government subsidies with 14 bales of old american cotton on hand when the current harvest starts and with the price to growers at cents a bale baie compared with the agriculture departments part ments fair price estimate of cents a worldwide world wide cotton agreement is also in the offing next september 5 representatives of 10 cotton producing nations will meet in washington for an ex exploratory conference which may pave the way for export quotas operating cooperating co nations argentina brazil egypt india mexico peru sudan soviet russia france and great britain the latter two for their cotton exporting colonies significantly absent from the list is japan whose new cotton plantations in china are wiping out another big U S export market ASIA mongol Bliff buffers ers puppet buffer states are handy weapons for nations which want to fight without going to war other nations use them for shock purposes to bear the brunt of an attack which might otherwise hit close to home for 15 years both japan and russia have used the once glorious mongols of genghis kahn IBE W pta MANCHU CH KOb PUBLIC W SS lake LAK BOR OR f 1 I CEN CENTER E OP OF J TR TROUBLE LE INNER INNE innerst 4 1 S j i 1 JAP i I 1 na china H INA RUSSIAN J JAP CLASH risk other peoples borders as buffers against the jap ru russ ss war which has actually been waging in asia for the past seven years under soviet tutorship has grown the outer mongolian republic under japan a puppet ruler leads inner mongolia A sample of how such buffer nations can work was reported recently cenal y from tokyo in the lake bor region south of Man chuli japanese troops reported 1000 soviet trained outer mongolian soldiers charged jap a positions eions while russian fighting planes soared overhead always victori OUs by her own reports hofts japan claimed 42 of the soviet planes were do downed d laa still unnoticed as it has been been since si 1932 the russian T japanese war has probably reached an even more sek yufeng rious af pf 8 stage st hill incident than last years reason 3 chang acs ti vity c enters con on the mongolian an fron tiers 1 ers both japs Ps and russians dislike t to 0 risk direct border incidents of their own but will be less squeamish mongolia about locking lockin fi horns in ARMY recruits R ecru its not since the world war has uncle sam gone out of his way to solicit new blood for the army regional recruiting officers took what came their way yet had no trouble maintaining a small peacetime force now underway is a high pressure campaign to recruit or re enlist men during the next 12 months necessitated by replacement and expansion needs of the a air ir corps and other branches of the service weapons include 18 recruiting stations on wheels slogans posters motion pictures and the radio biggest problem to reach boys in the country as well as in cities since better as well as more men are the prime objective largest single expansion is a prospective increase of men in the air corps of whom the army hopes will have a high school education to qualify for aviation mechanic posts BUSINESS middleman favorite butt of pro chain store and pro co operative movements has been the wholesaler who in popular notion is excess baggage in the U S distribution system if the middleman could be eliminated many believe a bar of soap or pound of coffee would cost john public substantially less to test this theory new yorks twentieth century fund broke down the which U S consumers paid in distribution costs for their merchandise during the peak year of 1929 individual figures and percentages of the distribution cost wholesalers 1870 18 retailers 33 manufacturers 24 transportation 23 miscellaneous 2 basic conclusions were that wholesalers did not earn excessive profits in 1929 groceries 13 per cent con 22 per cent d dry ry goods good s 27 per cent and that they remain an essential link in the distribution machine NAVY statistics significant and fearsome is a U S peacetime naval construction program bigger than any in history with a building appropriation pria tion on its hands with 74 vessels already underway and with 23 new contracts about to be let the fleets current status is something like this type of 0 in corn com under con Ap vessel mission tt ruction abed tor for battleships 15 6 62 2 heavy cruisers 17 I 1 10 0 light cruisers 17 6 62 2 aircraft carriers 5 2 0 destroyers 35 s submarines 87 12 22 8 auxiliary 12 3 primary emphasis in the new program will be on capital ships 15 such battlewagons battle wagons already being in service on the way are two more the ton north carolina and washington about to be started are the south dakota indiana massachusetts chu and alabama two more tonne bonners irs and larger than anything thin 9 afloat will be started under current appropriations none of the eight battleships will be ready before 1945 or 1946 |