The Western news. [volume] (Libby, Mont.) 1933-current, 1935-07-11
Take the Automobile


But they insist that for the most
part these instances are the eNeep-
tons, and not the rule. \ favorite-
Illustration of the reverse is the auto
mobile Anyone who knows anything
about manufacturing admits that II
the automobiles of this country were
produced by say 2Oo manufacturers
of fairly even Size. the cost per auto
mobile to the purchaser would be more
than double.
The hest Illustration of this Is the
Ford car now manufactured by fair
~ good sized plant In Strassburg,
France. That car costs the purchaser
In Paris about 81 TOO This Is not due
to the protective tariff, for the car Is
made In France. Actually Of course
II the cars were made In the big Ford
plant at Dearborn. they could pay
100 per cent tariff and still save the
purchasers good deal Of money. II
is the French quota system on I'M
ports which forces their manufacture
on Il small scale at Strassburg.
Manufacturers contend that If Ford
cars were produced by separate plants
of small size In this country, each
owned by different owner and oper-
ated independently-in short If the
policy desired by the administration In
this use of the taxing power against
bigness were forced into effect-the
cars would cost purchasers In this
country more than the S1,1o0 charged
In France. For 1t so happened that
wages In the Strasshurg plant are
lower than In the Dearborn plant.
All of which helps to explain what
some critics of the plan mean when
they Insist it Is y distribution of pov
erty' not a distribution of wealth"
One Real Danger
Only one phase Of the huge share
| the wea.th'--leyel Off the big for
tunes" and pass prosperity around
| taxation program Of President Roose-
welt seems In any real danger. This
| Is the sliding scale tax aimed at big
| corporations. There seems no doubt
| whatever that the big levies on inner
/ itances, and the boosts In the upper
| income tax brackets. will be approved
| by congress substantially as desired
by the President
| Already trickle Of protests has
begun arriving from holders of COM
mon stocks In the big corporations. A
few of them have already realized
that heavier taxes on the companies
| In which their savings are Invested
hits them, and them alone. For the
bondholders and the preferred stock
holders, will continue to get their In
terest and dividends, II they are
earned. Additional taxes will hit the
i equities, not the debts, Of these cor
/ poratlons. Except Of course such as
i are not earning enough to pay dlyl-
dends at present, and have no prospect
Of paying any In the near future.
II the biz companies should do any
thing like as thorough job In rous-
Ing their stockholders as the utilities
did. there Is little doubt that this phase
Of the program would be in serious
danger For there Is nothing like the
spontaneous appeal to this levy that
there is tg1he proposal 70 tax big for
tunes( borp VI hen in estates and in in
Some Iawyers are contendng, how
ever. that the )big Inheritance taxes
are unconstitutional. They content
that the object Of the tax IS not Il
raise money for the needs Of the gov
eminent. but Is purely social in char
acter, with the object Of leveling Of
fortunes. This, they contend, run:
counter to the Constitution.
Not much attention, is apt to be paif
to this by the senators and representa-
tives. soak the rich" has Away
been popular slogan, politically. am
the theory that 1t Is good politics I
vote for such legislation is strongl.
| held.