Evening star., 1934-12-06

Most of these fellows don't file
any tax returns"
1t would be worth while to see
Treasury Secretary Morgenthau ex-
plode when he hears about the textile
tax evasion. The mere mention Of
the phrase tax evasion" sends him
into spasms. Before he gets through
he will probably have inspectors out
ringing door bells and searching
houses to see if the taxpayers are
holding out anything.
The tax lawyers here are up in
arms about many Of his recent rul-
ings, especially as regards estates tax
collections. Several decisions are be-
ing appealed.
Some of Mr.. Morgenthdu's SuSpi-
cions appear to be justified. The
little fertile operators haze not
been detected before because they
could n1ope from place to place,
State to State, before the tar COL
lectors could catch up Dith them.
But the cost to the Government OF
collecting the tar probably uiu be
greater than the amount OF the tar.
Also the temptation for Internal
Revenue Bureau workers is great.
1t may come out soon that q clever
scheme was worked by one bureau sub
official He looked over assessments
When he came to particularly juicy
one he filed 1t temporarily on the top
shelf Then he scribbeled a note to a
close friend who is tax attorney of a
sort in New York. The lawyer friend
called on the taxpayer and suggested
a contingent fee arrangement to get
the assessment lowered.
It was good business while it lasted
G. o. P. Row Promoted.
The Borah- Fletcher row about who
is going to run the Republican party
was largely encouraged by news men
to keep things interesting during the
dull holiday season
There is a sound basis for it all right,
but, as every insider knows, the ques-
ton is now purely academic. This may
be the time to talk about reorganizing,
but it is not the time to do the reor-
ganizing.
Senator Borahs game is to stir
up the animals and bring long-rdnge
pressure on Chairman Fletcher in
preparation for the ultimate reor-
gdnizdtion. To certain eItent,
Mr. Fletcher is Mr.. Hilles. and Mr..
HilleS is the conservative element
OF the party. They pill hdUe to
make concessions to Bordh in
uhateuer degree he is successful in
stirring up the party, but they do
not intend to dbdicate.
Mr.. Boarh is still just Mr. Borah.
His crowd in the Senate has gone
Democratic, but his wisdom will appeal
to party followers who want a change.
Utilities Under Fire.
The New Dealers are getting after
the public utilities quietly as well as
in speeches.
The P. w. A. legal division sent
around the country some time ago
two model laws, urging the State Leg
islatures to pass them. The first was
a State revenue bond act authorizing
municipalities to issue bonds for sale
to the P w. A. to obtain Government
funds with which to construct city
power plants. A unique provision
provided for repayment from the pro-
ceeds of the plants. Thus the bonds
would not be a further burden on
local taxpayers.
The second model law leSsened the
time limit for advertising new bond
issues to 10 days. This was counted
on to speed construction Of local power
units.
The two models were sent to 80
State Legislatures, which will act on
them this Winter, and from the DEM
ocratic complexion of the Legislatures
you can guess how they will generally
act.