The Barnwell PeopIc-SentineL BkrnwcIL 8. C- Thursday, April 23, 1936
News Review of Current
Events the World Over
Congressmen Hurrying With Tax and Relief Programs—
*
Black's Committee Wins a Decision—Distracting
Rivalries in European Diplomacy.
By EDWARD W. PfCKA^D
„ f) Western Newspaper Union.
Harry L.
Hopkins
C ONGRESS settled down to earnest
work that would clear the way for
.farly adjournment, the two chief mat
ters under consideration being taxes
and relief. Demo
cratic members of the
house ways and means
committee worked In
executive session to
draw up the new rev-
| enue measure which
m they expect will yield
I;;! about $790,000,000 In
>:■ additional tax** during
|n the next year. The ml-
norlfy members stayed
away, scornfully as
serting their presence
was useless because
the preparation of the measure was
utterly partisan. Representative A.
P. Lamneck of Ohio, Democrat, was
Insistent on his plan to raise $.*>00,(X)0.-
000 by a flat 20 to 22 per cent tax on
corporation Income. To produce $2G3,-
000,000 more and bring his plan nearly
up to the money requirement outlined
by President Roosevelt, Lamneck
would repeal the present exemption
of corporation dividends from the nor
mal Income tax rate. On that, he was
In agreement with the committee pro
gram.
Harry L. Hopkins, head of the WPA,
appeared before a subcommittee of the
house appropriations committee, also
In executive session, to urge compli
ance with President Roosevelt’s re
quest for an additional billion and a
half to finance relief In the 1937 fiscal
year. Various committee members at
once demanded that Mr. Hopkins tell
what had been done with the $4,8(X),-
000,000 granted last year. He was
said to have promised to do his best
to satisfy them, but Chairman J. P.
Buchanan warned the minority mem
bers that "this Is not to be made Into
an Investigation."
P RESIDENT ROOSEVELT, happy
and well tanned, wound up his fish
ing cruise In the Bahamas and re
turned to Washington. He landed at
Fort Lauderdale and boarded his spe
cial train at once, being accompanied
for a time by Governor Sholtz of
Florida and James A. Moffett who may
be appointed assistant secretary of the
navy to succeed the late Henry Roose
velt Governor McNutt of Indiana,
pnsihle keynoter of the Democratic
convention, went up from Miami to
greet the President.
On the way to Washington Mr.
Roosevelt stopped for half a day at
Warm Springs, Ga., to look at his
farm and take a swim in the resort
pool. Passing through part of the
region devastated by the recent torna
does, he received reports from eyewit
nesses along the route.
Senator Black
S ENATOR BLACK’S lobby commit
tee won a considerable victory in
the District of Columbia Supreme court
when Chief Justice Wheat refused to
enjoin the committee
from using the tele
grams from and to Wil
liam R Hearst which
had been sei/.ed. The
Judge held that the
court had no Jurisdic
tloa over the commit
tee, and said he could
not see that the free
dom of the press was
in any way Involved.
Said his honor:
*'I have not been In-
lormed yet of any case In which any
court has assumed to dictate to a com
mittee of the senate what it should do
and what it should not do. and I do
not feel that I have any right to Inau
gurate any such principle as that."
Elisha Hanson, counsel for Mr.
Hearst, announced that he would a|e
l>eal from the decision, anil It was
certain that the case would ultimately
be taken before the United States Su
preme court.
Continuing Its Investigation, the
Black committee heard the testimony
of Fred G. Clark of New York, na
tional commander of the Crusaders.
Mr. Clark denied that the organization
had ever engaged In lobbying, and de
clared that it had assailed the meth
ods of lobbyists in a national radio
broadcast.
Senator Black endeavored to show
that the Crusaders, the American Lib
erty league, the Sentinels of the Re
public, the Southern Committee to Up
hold the Constitution, the American
Taxpayers’ league, the National Econ
omy league, -and similar organizations
opjHtsed to the New Deal were sup-
|K»rted largely by the same small group
of wealthy industrialists. One of his
Investigators put in a list <f contrib
utors to two or more of the groups
named. Mr Clark obtained permission
to Include in the record a list of hun
dreds ot small contributors, who sent
in sums rnng'ng from $1 up in re
sponse ToThe radio program.
M USSOLINI’S African adventure
Bud Hitler's Rhineland doings
and future Intentions, tangled togeth
er, have created a situation that
seemed to Inperil the formal friend
ship between Great Britain ami
Frame. The P.rltish were imdsling that
Italy be curbed, that her uae of poi
son gas In Ethiopia be taken op by
the League of Nations and that peacq
negotiations between Italy and Ethi-
opla be opened quickly to forestall
any attempt' by Premier Mussolini to
sign a settlement which might rlsq
from ruins of Halle Selassie’s Ethi
opian empire. Foreign Secretary Eder
Indicated the British were determined
to make peace progress ‘‘before w«
leave Geneva,” Britain reserving its
decision as to what to do next If this
conciliation effort failed.
The conciliation committee of the
league was making little or no prog
ress, and In Rome Mussolini told his
cabinet that Ethiopia's armies should
and would be “totally annihilated.”
His own forces, meanwhile, were mov
ing rapidly toward Dessye and Addis
Ababa.
France was reverting to her for
mer policy of letting Italy go ahead
with Its African conquest, devoting her
attention mainly to Germany and cen
tral Europe. The British continued to
treat all that In a conciliatory way,
which disgusted the French. Premier
Sarraut handed In his government’s
reply to the Hitler settlement pro
posals, submitting In return Its own
plan. This demanded that Germany
keep “hands off” the rest of Europe
for 25 years, renouncing her apparent
Intentions of action against Austria,
Danzig and Memel, and claims for
colonies. It submitted a French peace
plan based on “collective security”
with regional mutual assistance pacts
hacked by an International army di
rected hy a commission working
through the league.
S ENATOR'NORRIS’ bill creating •
Mississippi Valley authority to ap
ply the TVA experiment to 22 states is
not approved by the National Grange,
which thinks It would be absurd to
bring new land into cultivation by irri
gation while farmers are being paid
for letting their land lie fallow. Fred
H. Brenckman, legislative representa
tive of the Grange, appeared before a
senate agriculture subcommittee and
said the organization also objected to
the proposal to construct huge dams
throughout the Mississippi valley for
the production of hydro-electric pow
er. He favored a scientific program of
soil conservation but insisted upon a-
distinction between conservation and
reclamation. He also advocated a sci
entific flood control program, but dis
tinguished between flood control and
hydro-electric power development.
Like previous witnesses. Including
electrical engineese and Morris L.
Cooke, the New Deal’s rural electrifi
cation administrator, Mr. Brenckman
Informed the committee tlmt flood con
trol can be accomplished only by con
structing little dams Tar up In the
headwaters.
F IVE hundred members of the Work
ers’ Alliance, In convention In
Washington, marched to the White
House to demand continuation of the
Works Progress administration, but
neither President Roosevelt nor any
of his secretaries was there to receive
their petition. The men were orderly
and the police did not molest -them.
WPA Admlnlstratop-Hopkins also was
absent from his office, but his assis
tant, Aubrey Williams, received the
delegation.
David Lasser, national chairman of
the organization, told Williams the
group had been promised food and
shelter during their stay In Washing
ton and transportation to their homes.
Williams said that under a regula
tion promulgated February 2 no fed
eral funds could be donated for con
ventions of the unemployed unless
congress made a specific appropria
tion for that purpose.
D
F EDERAL money totaling $976,000.-
000 will be spent In the next four
years on low-cost rent and slum clear
ance construction projects, provided
t h e administration’s
housing bill, intro
duced by Senator Rob
ert F. Wagner of New
York, Is passed by
congress. Mr. Wagner
hopes It. will be put
through during the
present session.
The measure Is a
com promise of the
many proposals made
by the various relict
and housing agencies
Deal and was drafted
after a series of conferences with
President Roosevelt. It .would cre
ate another bureau, with five direc
tors, Including the secretary of the
Interior in his ex oftlclo capacity, re
ceiving $10,000 salaries.
The authority would he empowered
to make grants not tq exceed 45 per
cent of the total cost and loans for
the remainder to any public bousing
agency for the acquisition of land
and the construction of “low-rent”
housing projects. The loans would
be repayable over a period aot to ex
ceed 00 years, at such rates of Inter
est as the authority decreed.
Sen. Wagner
of the New
UE to the insistence of Senator
Vandenherg for publicity on
large AAA benefit payments. Secre
tary Wallace has begun telling about
them. He made a partial report,
withholding the names of recipients
with three exceptions. This revealed
.that the largest cotton rental benefit
payment, $123,747 for 1934, went to a
Mississippi company headed by Oscar
Johnston, an AAA official. Among the
largest cotton payment recipients In
1933 were the Mississippi state peni
tentiary, which received $43,200 for
controlling production on its cotton
acreage, and $25,500 to the Arkansas
state prison
F LYING -through a fog on Its way
to Pittsburgh, a Transcontinental
and Western Air liner went far out
of Its course, plowed through the for
est seven miles southeast of Union
City, Pa., and smashed Into a granite
wall on Chestnut Ridge. Nine pas
sengers and the two pilots were killed.
The stewardess. Miss Nellie Granger,
managed to drag one man and the
sole woman passenger from the flam
ing wreckage, hound up their wounds,
ran four miles to a farmhouse from
which she telephoned to Pittsburgh
the news of the disaster, and then
returned to the scene to care for the
survivors until a rescue party could
arrive. The pilots were Hying on a
radio beam, and it was believed theit
radio apparatus failed. At this writ
ing there is no other explanation.
S OMETH IN(r new In Spanish history
took place in Madrid. The parlia
ment, by a vote of 238 to 5, ousted
Niceto Alcala Zamora from the office
of president of the republic. This ac
tion, accomplished hy a coalition of
Socialists. Communists. Left Repub
licans and ten minor groups, was taken
on a Socialist motion that the presi
dent had acted illegally in dissolving
the hist parliament before the elections
and that therefore he should he ex
pelled from office. Rack of this mo
tion. however, lay radical sentiment
that Zamora. In using his power ac
cording to personal whim, has ham
pered the progress of the “republican
revolution."
Diego Martinez Barrio, streaker of
parliament, was made temporary pres
ident to serve until elections are held
R USSIA has rejected Chinas pro
test against the soviet-Outer Mon
gollan mutual assistance pact, hut as
serted the treaty does not signify any
territorial claim hy the Soviet union
over China or Outer Mongolia. The
Russians believe that Japan plans to
set up puppet states In North China
and Inner Mongolia and then to seize
Outer^JlIoiiguliH
The Manchukno government gave
out details of a Moody battle between
Mancbukuatis end Outer Mongolians
in which the latter were repulsed, los
ing six bombing planes and some tanks.
R ESOLVING itbelf into a court, the
seinte began the impeachment
trial of Federal Judge Ualsted, L. Rit
ter of Florida—the twelfth such case
in 137 years. It was
believed the trial would
Inst at least one week.
The defendant was
represented by Carl
T. Hoffman of Miami
and Frank R. Walsh
of Washington and
New York. The prose
cution was In charge
o f Representatives
Summers of Texas,
_ Hobbs of Alabama
Judge Ritter nn( ] Perkins of New
Jersey, who presented the charges.
Originally approximately wit
nesses were summoned for the trial,
but 29 were excused because of with
drawal by the prosecution of two
specifications in article seven charg
ing Judge Ritter acted Improperly In
electric ra’e and banking proceedings.
Judge Ritter Is charged In seven
Impeachment articles voted by the
house wltti allowing A. L. Rankin, a
former law partner, exorbitant receiv
ership fees, with “corruptly" receiving
$4.5(IU from Rankin, with violating the
judicial code in practicing law while
on the bench, and with evasion of
taxes on part of his 1929 and 1930 In
comes.
In a 12.000 word reply. Ritter de
nied all of the charges. He asserted
none of thv? actions cited had ’•brought
his court Into scandal and disrepute"
or “destroyed public confidence In the
administration of justice” in that
••ourL
I _______
T ORNADOES tore across Missis
Sippl, Alabamn, Gcorgi.t \rkansas
and Tennessee, leaving «' • and de
struction in their wake H*nut 4«Ni
persons were killed and hundreds ot
others injured, and the property losse>
ran up Into the millions. The little
city of Tupelo. Miss., suffered the
most, with nearly 2tJO on the death
list and more than a hundred homes
smached Into kindling wood.
A few hours later another tornado
struck Gainesville. Ga.. and In three
minutes had nearly ruined the busl
ness section of the town and killed
more than 150 persons. In fires that
followed the storm the bodies of many
victims were burned beyond recogni
tion.
The mining communities rear Co
lumbia. Tenn., to the north and east of
Tui»elo. counted seven dead. Red Bay,
eastward In Alabama, lost five lives
to the merciless wind. Near-by
U.oonevllle, Miss., had four killed and
Batesville. Ark„ suffered one death.
Washington!
Digest jg||.
National Topics Interpreted
By WILLIAM BRUCKART
Wiat SHE TOLD
WORN-OUT HUSBAND
Shecodd bare reproadadtenfor
I N A decision concerning a specific
action of the Securities Exchange
commission the United States Supreme
court ruled against the SEC. and In
Its pronouncement It uttered a alg*
nlficant warning against the'exerclse
of arbitrary power by governmental
agencies. F.s|»ecinll.v censured were the
••fishing excursions." often undertaken
hy commissions aud congressional com-
Rlltb
, A i I ON A1 P't
Washington.—In the last few weeks
In Washington, we have heard little
Ait r tL abont any govern-
All Talk mental affairs ex-
About Taxes taxes. Every
one charged with re
sponsibility for maintenance of govern
ment credit or the maintenance of the
supply of cash to carry on the era of
^pending is talking about taxes. It is
In truth the predominant subject, over
shadowing even the lobby investiga
tion headed by Senator Black, Alabama
Democrat, with that committee’s record
of obtaining private telegrams by sub
terfuge.
It really Is not startling that every
one should be talking about taxes be
cause, however you examine the ques
tion of government at this time, your
analysis must Inevitably lead back to
the question of the source of funds.
And how could it be otherwise? We
have a national debt $5,000,000,000
larger than It has ever been before,
and still going higher; we have seven
or nine or eleven million people unem
ployed—depending on the source of
your Information on this point—and
we are confronted with declarations
from President Roosevelt and his ad
visers that more must be spent. It
seems perfectly obvious;, therefore, that
saner minds should be examining the
whole economic structure of the na
tion to determine from whence the
money Is to come.
Congress Is In the midst of working
out a new tax bill. The house of rep
resentatives, where revenue legislation
must originate, according to the Con
stitution which Is still operative, Is up
to its neck with the tax problem. Il
ls trying to work out a tax bill that
will carry out the White House orders
to take more money from corporations
by levies on surpluses along with some
minor schemes of taxatioh designed to
Increase the total somewhat.
During the time the house ways and
means committee was trying to formu
late a tax program on the basis of the
President’s tax message, there was a
perfect deluge of tax discussion here
abouts. I think It may be said In this
connection, also, that the house ways
and means committee did a rather
ridiculous thing as a preliminary to
presentation of a tax bill to the house.
It actually began hearings on tax leg
islation without a tax bill In legislative
language having been drafted. As far
as I can learn, It was th» first time
that witnesses were called In and
asked to testify as to the efficacy of
proposed tax legislation when there
was actually no language In legislative
form about which those witnesses
could testify, either for or against. All
the committee had before it was a so-
called "committee rep<*t,” a statement
of its views ns *to what ought to be
done and It was almost pitiful to wit
ness Individuals who are expert on
taxation attempting to catch on to
some will-o’-the-wisp and say that it
was sound or unsound. Yet; that was
what Chairman Doughton, Democrat,
North Carolina, and his committee
asked them to do.
Perhaps I ought to explain for the
benefit of those hot acquainted with
tax legislation that there Is nothing
so Important in a tax bill as the
exact language. There are few
places In law where the use of a
particular word or the placing of a
particular comma makes so much dif
ference. In tax law, the dotting of
an i and the croaking of a t are, in
deed, important,
• • •
One benefit has accrued from this
situation, however, and I hope, as I
believe everyone else
desiring good gov
ernment and proper
laws hopes, that It
a tax bill generally
mure acceptable than has been pro
posed thus far. The maelstrom of
discussion that hai4^Arisen from the
house ways and means committee
hearings has made a good many peo
ple “tax conscious." Being “tax con
scious” at this time, a good many
men capable of thinking straight
have begun to offer suggestions.
1 have been receiving some of them
myself and one that has come to me
has impressed me so mucli that I
am going to use the substance of It
In tliis column. It comes to me from
Mr. Harry A. Wheeler, widely known
business executive and banker of
Chicago. Mr. Wheeler has been rec-
ognized for a quarter of a century as
a man who is given to looking rather
far Into the future and for his ability
to analyze problems, circumstances
and conditions on a long-term basis
rather than on urgency of current re
quirements.
“Since the consideration of the cor
porate surplus tax act began," Mr.
Wheeler v rote me, “I have watched
the proceedings closely for some al
ternative proposal that would produce
a substantial tax revenue and yet tend
to strengthen the program of the ad
ministration to assure continuing busi
ness recovery, create definite added
employment in industries still down,
and lower production ^osts and prices
to the ultimate consumer.
"No one denies that Increased fed
eral revenue by taxation Is impera
tive, hut it may be o[>en to argument
*Uetbei- this can best be produced by
I’Mii
Wheelet's
Suggestion
will result In
the direct route of tax levies to cover
full requirement or by beginning with
a plan that will produce a large pro
portion of tfie requirements and per
mit the use of the remainder to ac
complish the results first above stated.
“The proposal is very simple, quite
capable of being written Into legisla
tive provisions; it would carry a clear
guarantee of useful results and reach
the final full requirements of the gov
ernment by progressively increasing
taxable profits.
“I propose that whatever.per cent of
undistributed profits may be deter
mined upon as the tax base, permission
shall be given for a draw-back or re
tention of say 20, 25 or 33Vi per cent
on condition that this amount shall
be used for capital expenditure to Im
prove and cheapen production and
distribution facilities.
“The draw-back may be by repay
ment to the taxpayer upon voucher
evidence that the amount has been
actually expended or by credit upon
the second year’s tax levy.
“Corporations wjll not fall to use
this remainder an4 perhaps even add
to it out of their available corporate
resources.
• • •
“Permanent goods industries will at
once be stimulated by the knowledge
that purchases will
Stimulate be made to an ag-
Industries gregate of the draw
back, and stimula
tion of employment must result in
most needed quarters.
“The universality of this improve
ment in production and distribution
facilties will create the competitive
conditions that will compel savings to
be passed on to consumers, hut if any
corjioration tries to hold the addedL.
profits they will be taxed away In the
following years.
“Living standards may he raised by
making more commodities come within
the range of prices the public will pay.
“Forced distribution In dividends to
escape corporate high brackets will
find a large part being paid to stock
holders taxed in very low brackets and
the result over all is not unlikely to
prove disappointing.
“Increased tax rates on Income or j
earnings leads to the struggle to avoid
payment by every device that can be
developed. It may be that this plan ,
of draw back would distinctly modify !
this tendency." ^
It is the first time that 1 have heard 1
from any source the suggestion that
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CAPUDINE
the tax law should be made an instru- 1
ment to encourage business recovery
and promote employment. All of the |
objections heretofore have been dl- !
reeled at the character of the pro
posal and have not included construc
tive thoughts which could be used as a
new base. Mr. Wheeler’s plan may
not he complete. It may not represent
an answer to the tax needs in their
entirety, but it must he said in its
favor that it suggests an approach to
the necessary answer and embodies
therein a plan of action which will not i
kill the goose .that lays the golden
egg. In other words, it has been
proved too many times to require dis
cussion that higher tax rates reduce
the incentive and the chief opposition
to Hie administration proposal is Just i
that. It takes away the Incentive of
the corporations to*make more money
which would he available for taxation. '
The Wheeler proposal, therefore, of
fers an incentive to corporations to
proceed with plans of expanding their
operation and thereby Increase the
number of workers on their pay rolls.
• • •
I repeat that i do not know whether ;
the Wheeler program Is the complete
answer but tbe fact
Nearing that a man of bis
' LET HIM
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FROM
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your child from Worms or
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Stomach " "You?
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Tax “7™ I MomingSickness
giving consideration to the tax prob
lem on a htng term basis lends cer
tainly to two conclusions. These con
clusions are. first, that the country Is
nearing the limits of what might he
called reasonable taxation and, sec
ond, that a very great majority of our
people believe some consideration
should he given to the need for an end
to government spending.
If taxation has reached the point
where an overexpanded federal gov
ernment requires so much money that
it must take away the backlogs, the
reserves of business, then It is quite
apparent that a shrinkage in this struc
ture called government must begin.
If it does not, one could reasonably say
that government credit is endangered,
or will he if the spending continues
much longer.
We have been using up our resources
actually in billions for the construction
of many different types of things from
whjch no earnings accrue. Then, in
addition, I think no one can deny but
that there lias been wide-spread waste
of these funds. It is a splendid tiling
to' have excellent roads, fine public
buildings, beautiful parks and restored
forests, etc., hut they have to be paid
for out of taxpayers’ money. More-
ever, there is no profit available from
any such investments that can be
taxed. That money Is gonefc dead. It
is fine to have those tilings if we can
afford them, hut beauty of tbe conn
tryslde won't fill empty stomachtv
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