Evening star., 1934-02-25
BY OWEN L. SCOTT.


a new course in taxing incomes, or
adopts a new attitude toward public
utilities, or turns to a change in
methods of railroad financing, or un-
dertakes a broad program of national
planning. more than likely some per-
sonal incident in the life Of President
Roosevelt can be held responsible.
1t is evident that the President is
drawing deeply on his own personal
experiences and observations, and on
the personal experiences Of his asso-
ciates, when determining his attitude
toward the multitude of reforms that
are constantly being proposed in
Washington. Not only that. but much
more than most Presidents, Mr..
Roosevelt has attuned his ear to the
reactions of the farmers and the
workers and the other groups of the
population.
Several incidents recently have
thrown light on the way the Presi-
dents mind works when dealing with
these problems of reform.
Take the case of depreciation allow
ances in the income tax law. That
sounds like a dry subject, but Just a
little tightening up, such as that pro-
posed in the income tax bill passed
Wednesday by the House Of Repre-
sentatives, means about s85, 900, 900 to
Uncle Sans treasury.
During study of this subject. when
CongreSsmen were undecided what to
do, newspaper man asked the Presi-
dent his attitude. There followed the
story Of a barn on the Roosevelt
estate at Hyde Park. This barn had
come with some property added to the
farm 1t was about 100 years old
when acquired. Insurance of $4,000
was taken against this piece of prop
erty. and when the President made
out his income tax he took advantage
of the normal depreciation allow
ance" that all income tax payers are
supposed to take.
Later the barn burned down and
the $4,000 insurance was collected.
To Mr.. Roosevelt it seemed wrong
that he should have been able to pay
smaller income tax because under
the law he was supposed to deduct
for wear and tear on a 100-year-old
building that he had been able to
realize his full investment upon when
1t was destroyed. So that barn on
the Hyde Park estate played its part
in adding a prospective s85, ,000, 900
to the taxes Of people claiming de-
ductions for depreciation on property.
Then there was the case of the
railroad that runs near the Roose-
welt estate in New York. This rail-
road, and its financing, played big
part in deciding the attitude of the
Interstate Commerce Commission
toward all railroad finances.
The President recalled that this
road first had foated bonds to pay for
its construction back in 1843 When
ever these bonds matured they were
extended for another period Of years,
until now they are not to be due until
1943. Thus 100 years after 1t was
built the railroads still will owe the
money that was borrowed to pay for
its construction. That did not seem
right to Mr.. Roosevelt.
oO liC dllllOulCCu llLo NlSOlOuo sup
port of plan to set up reserves out
Of which railroads and other utilities
should gradually pay of their bonded
Indebtedness. To establish these re-
serves, consideration could be given
by the Interstate Commerce Commis-
sion and the utility commissions TO
rates charged for service. This OBJ
- i
and utility bonds.
There was also the comment made
last Wednesday on another question
affecting public utilities, and growing
from the Presidents experience. He
had observed a case in New York
State where a utility, ordered by a
State court to adjust its rates, took
the matter to Federal court and
kept it there for seven years while
the public continued to pay the old
rates.
This struck Mr.. Roosevelt as an i'm
possible situation. So he expressed
favor for the bill of Senator Hiram
Johnson, already passed by the Sen
ate, that would prohibit utilities from
taking into Federal courts matters
that belonged in the State courts.
One more indication of the way the
President applies local experiences to
the national situation came with his
comment made some time ago on en-
ployment. Mr.. Roosevelt had given
it as his opinion that about 1000, 900
persons had found work in the months
since the low point of the depression.
He was asked how he arrived at that
figure. The President revealed that
the Department of Labor statistics
had given part of the information
and that he also had depended upon
personal observations in Duchess
County, N. Y. Some of the carpenters