The Waterbury Democrat., 1934-03-01

eric M. Sackett. Jr., Hoover's ambassador to Germany, and Walter D. Edge, Hoover's am- bassador to France. They had shipped back from Europe supply of w!n"a and liquors on which they Wanted to pay no duty on the ground of diplomatic immunity. Failing to convince the customs officials, they ap- pealed to Morgenthau.
 T don't know much about diplomatic inlIhunity,' said Young Henry. ''and I don't want to be unfair to you. You say these are remnants of yOur household stock at the embassy Just how many bottles do you have?"
 Ambassador Edge had 900 bot. ties, Ambassador Sackett 400. "I'm afraid I can't do any, thing for yOu." said Young Hem ".
 The two ex-ambassadors, both ex-senators, both millionaires, then appealed to an old col- league of theirs in the senate q democrat. He approached Mor- genthau with the pleas that cer- tain customs regulations effective right after repeal be postponed thirty days in order to accommo- date his two friends.
 I'll be damned if I will" said Young Henry. And that ended that.
 BUILDINGS AND TAXES
 Young Henry next turned his guns on public buildings, one of the real danger spots of the New Deal. Although Secretary Ickes' public works administration al- lots sthe money for new post offices, customs houses and other federal buildings, the treasury has charge of their construction. And while Roosevelt and Ickes were clamoring to get the .PWA money spent, "Chip2 Robert, in charge of the treasury's new buildings, seemed more interested in social duties than letting con- tracts.
 So Robert was switched to public health and the mint.
 But -Morgenthau's biggest fight and he is in the thick of it now --is over income taxes. He found his department organized so that it seemed to function chiefly for the benefit of the rich. Elmer Trey. chief investigator of the internal revenue bureau, had in- struction to investigate no tax returns without the express O. K. of Andy Mellon and Ogden Mills. He did little Investigating. CULTIVATING EXAMINERS
 Furthermore Norge mt h a u found that every wealthy mans tax return was filed with the same examiner every year, so that it was relatively easy for the horde of Washington's income tax lawyers to cultivate that ex- aminer.
 That horde of lawyers is now giving MOrgcnthau the hardest fight he has had. There are sev- eral thousand of them, all sup- posed to be registered and inyes- tigated, but no check has been made on them since 1921. At times their influence in the internal revenue bureau has been unbclievagly potent.
 As the spearhead in this drive. Morgenthau removed B. Barrett Prettyman, general counsel of the bureau. A howl of protest from Washington lawyers was the answer. A senate move to block confirmation of his suc- cessor followed. The fight is still on.
 ERRORS AND HITS
 Young Henry has not been without mistakes. His appoint ment of Earl Bailie, formerly of J. & w. Seligman, was one. His censorship of the press when he was first appointed was another. In both of these his intentions were good, his execution bungl-. ing. He has been inclined to- ward modification of the pro- posed securities act and has leaned toward part of the mone- tary program Wall street wants, chiefly because his first concern was floating government bonds.
 Henry has been an excellent organizer. He insists on having men around him he can trust, and without exception they swear by him. He is kindly, unselfish. ill-at-ease, slow, sometimes in- ept-but he can be depended upon to follow bis chief in the White House through thick and thin. Under him, people can look for an efficient, straightforward treasury department.
 Copyright, 1884, by United
 Eanfure Syndicate. lnC.l