Evening star., 1932-10-14
BAR ASKS CHANGE
IN j. S. TAX POLICY
Adopts Resolution Said to
Favor Sales Plan After
Controversy.

A resolution expressing the view that
Congress should endeavor in future tax
acts ito decrease substantially the de-
pendency for revenues on taxes on net
incomes and to secure larger propor-
ton of the necessary Federal revenues
from forms of taxes less susceptible to
sharp fluctuation as result OF changes
in general business and professional ac-
tivity" was adopted yesterday afternoon
by the American Bar Association.
This resolution, coming from the spe-
cial Federal Taxation Committee, oc-
caSioned controversy. as did numDsr
of others from the Committee on Jurls-
prudence and Law Reform.
G. r Keyes, Minneapolis attorney,
opposed adoption of the tax resolution
as "unwise," terming 1t a political
question" It's only Interpretation. he
said. would be to record the association
as favoring the sales tax. Robert =.
Coulson. New York, chairman OF the
committee, explained that such was not
the intent of the committee. end keyes
mot!rn to send the resolution back to
committee was lest on rising vote.
Tax Feature Opposed.
A resolution favoring repeal Of the
section of the new tax law reducing
the interest allowed on tax refunds
from to 4 per cent was adopted, as
was a recommendation to preserve tnc
principle that earned income shculc
he taxed at a lesser rate than income
derived from the employment OF cap
ital"
Dean Charles E. Clark OF Yale ana
rosenh r O'Connell former Massachu-
setts Representative in Congress, led
onrosition to a recommendation OF the
Committee on Jurisprudence and Law
Reform to reiterate the associations
onposition Ito all legislation radically
limiting the jurisdiction OF Federal
courts. or decreasing the power thereof;
The recommendation was sent back
to the committee. :,
Only after considerable discussion
and by an 81-to-57 vote was recon-
mendation adopted urging cefeat OF d
bill denying removal OF case5 from . S'a;e a.;
to Federal courts on the ground OF dl-
verse citizenship. The ccmm ttee cor
tended this would 60 awav entirely Win
FEDERAL Jurisdiction in controversies De.
tween citizens OF different S ates. II
was exclaimed that the bill had tne
sunport of President Hoover ana Iile
Attorney General.
Suggestion Of Compromise.
Chairman Paul Hcwland OF Cieve-
land. a former Representative, Salo nc
believed the Attorney General, iestIu.
that the Norris bill to destroy o-eise
citizenship might become law. sue
oested this measure as a compromise.
and that II the ATTACK on Federal
courts had not been made" the Dill
never would have been recommended.
The association a'so backed the ccm.
mittee in recommending the defeat 0!
a Senate bill to take away from Feasral
district courts jurisdiction to interfere
by Injunction or otherwise with tns
orders of State administrative boercs
affe citing rates chargeable by puohc
The association authorized the Com
merce Committee to appear before con-
gressional committees IN connection
with snti-tru-t legislation. the COM
mittee's repcrt. containing draft OF
a bill to broaden the powers c1 the
FEDERAL Trade Commission IN antitrust
proceedings, was received. NO actiGG
was taken on the bnl, Whlcn ~oula 10
provide for the advance submission OF
contracts to the commission and the
Attorney General.
The association also adopted memo
rails on the death of Representative
Henry st. George Tucker OF virginia
and Frederick w. Lehman of st. LOUIS.
a former solicitor general OF the united
States, who had served as presidents OF
the association.
Attorney General Heard.
Earlier in the afternoon the asso-.
citation had heard Attorney General
Mitchell advocate legislation to expedite
Justice and reduce administration costs.
He said enactment OF a bill. now
pending in Congress, to empower the
Supreme Court to make rules OF pro-
cedure in criminal cases after verdicts
of guilty have been given, promises
sweeping reforms in the interests OF
speeding the final disposition OF GRIM
inal cases"
Mitchell presented figures TO show
Federal criminal cases were on the in
crease and said prosecuting attorneys
DELAYED action when persons found
guilty in the lower courts were out on
bail pending appeal. The courts. he
said, had been "too free in granting in
dulgences and recognizing stipulations
involving delays"
The Attorney General paid warm
tribute to the support he has received
in Office from President Hoover:
"If could be granted one good wish
for all Of my successors" Mitchell said,
"it would be that each OF them, in the
struggle for the removal OF political
considerations in the administration OF
Justice and for the impartial application
of the law to all persons, would have
that unwavering support which Presi-
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