The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1924-06-17
PRESIDENT IS
SWAMP ED WITH
PRAISE LETTERS
r.x Bill Widely APP
nroved; Oil Scandal
ColIapses when Form
al Report is Filed

,,ending him for signing the tax
In Most writers express the utmost
~ s.a,e, that partisanship and dema-
-, IN congress prevented the pas
s,ss Of a really good bill, incorporat-
no the Mellon plan; but all declare
heir gratitude over the rs per cent
..duc,;on in their income tax and evi-
a.,,lv feel that Mr.. Coolige would
have been unwisc to veto this bill
.reu though it was far from true
,,v reform. The greatest dissatis-
action comes from the failures oi
congress TO reduce the surtaxes below
A ner cent Why they should have
beep reduced at all. unless they were
oo;rg to be so far reduced as to
bring capital, now tied up in tax
exempt bonds, into the industries none
ran explain New light has just been
thrown on the extent to which the
very rich are now escaping these taxes
by the report OF federal trade COM
mission. made pursuant to resolu-
lion OF Senator Norris. The commits
SION finds that SlO0.0O0,0O0 was lost
in taxes last year because the high
surtaxes had resulted in S32, ,000,-
900 being invested in tax exempt Sc
curities; that oi this amount four
and one-half billions was owned by
the very rich who, under the Mellon
plan, would have paid 25 per cent
surtax. and that twelve billions was
owned by corporations.
Oil Scandal Collapses
Senator Walsh has made the ma
jori,y report OF the oil investigation.
The report is far less sensational than
the reports fed o I to the daily press
indicated. No one is charged by the
rcpor, with ac' al crime and Mr..
Walsh makes e, lent his realization
that ;rr yc-v l~s ses he has been de-
nouncing are legal by asking con-
gress to amend the existing law to
provide Cd that hereafter leases of
naval oil lands may be made only
on competitive basis (2) that the
authority to exchange oil be limited
to an exchange for some type of oil
not for tanks-(3) that all leases
be approved by the comptroller gen.
era, and (4) that leases shall be
made only where there is danger Of
drainage into private wells. Demon
strating the danger OF such drainage,
Mr.. Walsh says Secretary Daniels re-
fused almost ito the point OF
obduracy' to lease navy lands to
prevent such drainage and that it is
estimated by the bureau of mines
that before Daniels did consent to
lease navy oil lands there was a loss
by drainage to private parties of g.
oVo,OU barrels OF oil. In a word,
the leases made by the Harding ad-
ministra;ion, like those made by the
Wilson administration, were perfect
y legal, although Senator Walsh
questions the advisablity Of the latter
The decision of a United States
district court that the Wheeler inves-
usation of former Attorney General
Daugherty was illegal, while no sur
prise TO those who have studied the
constitution. seemed greatly to sur
PRISE MIR. Wheeler and his colleagues
Following that decision, Mr..
Daugherty advised the Wheeler com
ai'''e that he would not appear be-
'oFe u a. he could sec no occasion
o' coming before a maniiestly TN
ius' committee whose operations had
oeen declared illegal by the court. The
you're pointed out that inasmurh as
1"uer the constitution. the senate must
s'' as Judge is oabinc, office is tried
'Or impeachment. neither the senate
NOT any OF It's committees can dis
qualiiq itself for acting as Judge by
"'S' acting as investigator and pros
e'u,or' The senate has voted to APP
~" court and the case doubtless will
0' carried to the supreme court.
May Go To Senate
Inc most careful estimates of the
pOnue,ans disclose that running in
s'P'naeni as he is determined to do.
sn''or la Toilette cannot hope to
-. sn'y over six states. viz. Wisconsin
-''nnesio'a. the two Dako.as. Montana
~, Az Nebraska These states have ~
!. 's'o'a' votes but Montana, with 4.
normally Democratic. so tha, the
~ s'ssuii Of La Follene's candidacy