The Waterbury Democrat., 1934-02-07


 washington, Feb. :7-Revisicn of corporation income taxes is causing a bitter tbehind- the scenes clash between powerful congressional elements. and the. treasury department.
 The former demand drastic slashing of the numerous dedtic- tions for depreciation, and derfe- ton now allowed to corporate interests. They contend that with the government still further gre- duclng the deductions on small individual incomes, 1t cannot avoid doing the same for big business. .. G&e
 Taking this view of the situa. tion, a subcommittee of the house ways and means committee reco- commended material reductions of the depreciation and depletion allowances for a period of three years. TREASURY INTERVIEWS
 But here the treasury stepped in. It opposed vigorously; ar. gued that business was too shaky to be burdened with new taxes. Finally the subcommittee with drew, it's recommendations.
 But this did, not end the mat. ter. PrOgressives of both parties are determined to take. the issue onto the floor of the house and senate, force record votes on the question. The treasury Argument, they assert, does not hold water, Np1A nfYnv A1nn R<HrRNnv,a~.- Ro-<- among q large mass they have prepared, to prove 1t:
 In 1890, corporations reporting no net income, nevertheless ac- tually paid out in cash dividends $1,361, ,191,210, and stock divi- dends of $163,581,074.
 In 1881, corporations which re- ported no net incomes, showed gross incomes of $55, 5,46O,000, 900, and paid out cash dividends of $2,270,000,000, and stock .divi- dends of $S5, ,640,00O.
 FIRST LESSON T
 Arizona's courtly Senator Hem ry Ashurst was sauntering out of the senate the other day, when accosted by a Journalist who voiced the traditional news paper inquiry:
 What do you known"
 "Nothing. At least that .is my answer when I am asked that question:" Ashurst replied. T learned that lesson many years ago.
 "I had just been admitted to the bar, and I was feeling pretty cOcky, I can tell. As I was leav- ing the court house l ran into an Irishman knew, who after greeting me, asked, What do you know?'
 "'I know lot,'" shot back. "'But I charge for what know"
 "'All right he answered. here is a nickel. Now you tell |. me everything you know, and then give me three cents change.' @ BAD SLIP ,.t
 For years the senate naval affairs committee has been lifes greatest joys to the admirals. Not merely were the members for big navy, but in the hands of the admirals they were putty.
 Look over the list, of members and 1t is easy to. see why. On it are: "Puddler Jim" Davis; Park Trammell, who sleeps in his own office; Freddy "Rowboat" Hale, of Maine; and David I. Walsh, the believing Bostonian.
 To this list was added last year the incOnspicuOus name of Sen. atOr Homer T. Bone of Seattle. Nobody said much about Bone. Nobody saw much of him. Then suddenly as the big navy con. structiOn bill was under consid. eration, Bone stepped forward with an amendment requiring the big shipbuildihg companies to open their books to the navy department and the senate in or. der to show their profits.
 'I am for a big navy" said Bone. but I don't propose that in getting one we line the pock- cts of the munitions makers"
 But =. but .; senator you can't do that" expostu. lated Freddy Hale, looking as if the last breath had been knock ed out of him. %
 Nevertheless, that is my pro- posal,' remarked Bone.
 Obviously. the naval boys who comb the records of prospective