The Western news. [volume] (Libby, Mont.) 1933-current, 1934-03-08
Prettyman Is Out

Prettyman Is Out
Up to q few weeks ago the chief
counsel of the bureau was K. Barrett
Prettyman, son of the former chaplain
of the United States senate. He was
raised In nearby Maryland and, while
not one of the great outstanding law
yers Of the country, he had performed
the duties OF this Job In manner very
satisfactory to the courts and lawyers
who practiced before 1t. Every one
who knew Prettyman would have bet
his last nickel on his absolute incor-
ruptibility.
with Prettyman on the Job, the
commissioner of internal revenue can
sleep nights" judge recently re-
marked to group OF friends at dinner.
Prettyman began to get orders from
the Treasury department, shortly after
Mr.. Morganthaus accession to author
ity, to bring certain cases pending for
adjudication of income taxes over to
the secretary's office. Nothing was
said as to why they were wanted. No
indication was given that the Secre-
tary would wish to direct how they
should be handled, or hint that abate-
ments should be given In some cases
and not In others.
Just what happened between Nor
ganthau and Prettyman has not been
disclosed, but suddenly Washington
woke up to the fact that Prettyman
was out, and that new man, whom
no one here had ever heard OF, was on
the Job. The new man was Robert
Jackson OF jamestown, N. T.. no CON
nection with the former secretary OF
the Democratic national committee.
1t now develops that, while fight
against Jackson's confirmation began
to develop In the senate, his appoint
ment Is Only temporary. Morganthau
has a new scheme for handling all the
legal affairs of the Treasury depart
ment. There would be, under his plan
and providing OF course 1t 10 APP
proved-a general counsel for the
| Treasury department, with ten assist
ants, who could be assigned hither and
yon at the secretary's desire, and
| would not be subject to confirmation
| by the senate, but would be appointed
| exclusively by the secretary
Presidents Aim
| President Roosevelt's recent action
In personally taking charge OF negotia-
/ tions between the railroad companies
/ and the manufacturers OF steel rails,
with view to getting very low price
for the railroads, was generally con-
strued at the time as just an effort by
the President to aid employment.
Actually 1t was far more Significant
| than that, and Is a clear indication OF
| the Presidents attitude toward every
| manufacturer or producer who sells
materials or supplies to any public
| utility.
| 1t Is the Presidents intention that
the federal government shall 60 into
the cost figures OF every article pur-
chased By any utility regulated by the
federal government. And while for
| the time being 1t Is outside his juris-
| diction, 1t Ia his thought that 1t Is the
| duty OF the states to do the same thing
with respect to producers who sell to
/ public utilities regulated by the states
The point In the case Of steel rails
/ was that the cost of rails LIS naturally
very important item In the cost OF
/ railroadlng. Therefore that cost Ii
part OF the picture which the Inter
state Commerce commission must ap
praise In fixing rates for freight ant
passenger service. The next step Ii
| that 1t Is the duty OF the government
to see to 1t that the price the rail
roads pay for rails is not too high.
There Is nothing very revolutionary
about this general statement, but the
thoughts OF the President on this sub
ject will seem very revolutionary to Z
great many lines OF business wher
they are clarified and understood.
or course In the recent rail- purchase
1t was Just case Of bargaining, witt
the power OF the government behint
the purchaser and with the dire nees
Of the steel companies for orders work
ing on the same side.
Dig Into Costs
| But In the future the Presiden
would like the /. G. G., or some othe
governmental agency to 90 into thu
books and costs OF the steel companies
and determine whether the profit 0
the companies would be too large q
the price to be paid BY the publ
| utfIttfnat