The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1925-03-26
WASHINGTON LETTER
Especial to Sank Cenrre Herald)

Washington, March 25-Calm, but
not peace, prevails in Washington.
1t is fortunate that 1925 is an "off
year" when no important elections
are held. The major political par
ties would find themselves up against
a shortage of campaign issues. With
the adjournment of the short session
of the new Senate, legislators return
ing home are bordering over the
problem. The home folks will want
to know about affairs in the Capital
and it will be mighty difficult fol-
the congressman to provide interest
ing talks on non-controvedrsial sub
jects.
The close of legislative activities
here leaves only few subjects open
for nationwide discussion. The ag-
ricultural problem has lost some OF
its Importance due to the favorable
action of economic rather than DO
litical forces. There are some whose
livelihood depends upon making the
farmer the center of political con-
troversy and these men will keep the
question of agricultural depression,
ETC., to the fore.
Evidence is plentiful to show that
the Administration has undertaken a
drive to bring about tax revision in
the next Congress. It is quite sig
nlhcant to note that the Secretary of
the Treasury has departed from his
usual practice of writing instead of
delivering his speeches in person.
The opinion is growing that in tax
ing the stump Mr.. Mellon has a well
defined purpose in mind. He enjoys
the confidence of the public and his
personal appeals on behalf of a tax
program will leave it's mark on the
country. The Secretary of the Treas
ury has sounded the keynote of the
Administrations plan by pointing out
the necessity of establishing eco
nomlcally sound rates of tax. He be-
heves that "tax reform is now an is
sue which holds the public interest
and demands an early and honest at
tempt at settlement.
This campaign on behalf of the
administration, brings to life two
programs of tax reduction which must
inevitably meet for adjustment in
Congress. The Administration pro-
poses reduction of the surtaxes to
ABOUT 70 per cent and the elimina-
ton of inheritance taxes, which
yields about $1,00O,OOO,OOO. In adj
dltlon they propose scattered relief
from special excise taxes and to elm
mate tax exempt securities. It is
said that roughly the program con-
templates cut of $500, 100000 in
taxes. The program of the minority
or opposition in Congress contem-
plates further decreases in the norm
al taxes which the Treasury opposes.
This group would also keep the sur
taxes at a compromise rate between
gu and 70 per cent. 1t will be re-
called that many features of the mi
norlty's program were adopted by the
last Congress through coalition with
Republicans opposed to Administers
ton methods of taxation.
Observers say that coalition of this
kind will not prevail in the next Con-
gress because of the increased num-
erlcal strength of the majority. The
last election, it is claimed, had a sal
utary effect upon Chairman Green.
lloWa), of the House Committee on
Ways and Means, who favored coali-
tlon tax plans. He has now pro-
tessed his conversion and is now
recognized as a regular" Republi-
can. Green is abroad studying for
elgn tax systems on behalf of the
Government.
The White House has been giving
considerable attention to the matter
OF railroad consultations. This sub
Ject Will be thrashed out during the
summer and fall months in order that
a definite legislative program may be
presented to Congress. The public
never realizes the Importance of rail-
roads, it is said, until rates are raised
or tracks are abandoned. It is claim
ed that the troubles of the railroad
revolve around the war financing ar
rangements by which they were
forced to pay six per cent for gov
eminent loans, then fully protected
by collateral. A bill proposing to
reduce the rate to AZ per cent, the
same which prevails on other govern
ment loans, failed at the last Con-
gress.
1t is proposed to allow voluntary
consolidation within a period of five
years. If these so-called sweak"
roads do not work out their own sal
walton within that time they will be
forced to tie up with more powerful
rail systems in order to provide an
adequate system of transportation
and make it a paying proposition.
The reform of the Federal Trade
Commission has made considerable
The policies and proceed |
ures of this federal agency, which
has been severely criticized for a
of years, have been COM
pletely changed. Perhaps the most |
significant move has been the deci- |
sion of the Commission to undertake
10 investigation directed by Congress
where the subject matter is now leg
lily within the jurisdiction of Com