The Western news. [volume] (Libby, Mont.) 1933-current, 1935-05-30
"May" and "Shall"


"May" and "Shall"
In the under-cover negotiations
which led to this compromise some OF
the gentlemen interested In saving as
many utility holding companies as pos
sihle nearly lost their battle after they
thought they had 1t won. The first
draft of text that emerged stated these
exemptions in language which used the
word may" That Is, 1t gave the Sc
curitIes commission the right to ex-
empt these companies IL In Its discre-
tlon 1t saw lit to do so. One of those
most concerned hit the ceiling when
he read that may He got very busy
indeed, and the draft now reads
shall" Meaning that such companies
shall" be exempted instead OF may
be exempted.
Still another modification does leave
discretion with the securities commits
sion. This Is to extend from five years
to seven years the length OF time In
which companies still retained under
the death sentence may be allowed In
which to wind up their affairs and
liqnidate.
Which In way Is the most interest
Ing of all the changes. For the argu-
ment used to give this additional dis
erection would not be appreciated at the
White House at all. 1t was that
enough leeway should be provided In
| the holding company act to permit a
reversal of policy by the administration
following the Roosevelt second term +
| lust In the event that things did not
/ work out as expected.
And the fact that the argument got
somewhere-that 1t has been accepted
by some very important senators and
| members OF the house--would seem to
Indicate that some perfectly good DEM
ocrats are no longer taking all the pro-
posed brain trust legislation as hav-
Ing been dIvnely inspired.
More Taxes Certain
More taxes are certain, despite all
the propaganda by the administration
/ one way. and by the bonus advocates
the other. The taxes would be needed
even II there were no bonus legislation
at all. But there Is going to be bonus
legislation. Arguments by bonus lob
| bylsts that to override the veto means
the soldiers will get nothing are just
so much drivei. Ii the bonus veto Is
4 sustained In the senate, as Is now gen.
i orally expected. some bonus measure.
will be passed later. which Presidents
Roosevelt can and will sign.
i This will probably be something not
| very far from the Harrison compro-
mise, though the President has always
hoped that the eventual cost to the
treasury could be held to S1.an0.000.-
900 which the Harrison plan exceeds
by at least s10OW0,OO0.
Every one agrees that the present
so-caIled nuisance taxes. which expire
In June, must be continued. The only
one allowed to drop WAS that OF 2
cents on each check. WHICH expired last
January
Probability Is that the most certain
OF all proposed new taxes to be adopt
ed before adjournment Of the present
session OF congress Is an Increase In
the inheritance taxes.
These fit In with the New Deal phil
losonhy. 1t must be remembered that
the Roosevelt Ideal contemplntes ma
ton OF little fellows-no outstanding
giants. Every man with enough to buy
an automobile. But none with enough
to buy yacht--unless It's a sailboat.
This Is revealed In the Intense desire
to hold down profts-to hold down big
ness-to protect the little fellow
against the big. Which Is true despite
the frequent allegation that NRA was
IN the interest OF the big fellows, and
against the little man.
Fly in Ointment
Another phase OF New Deal policy
right down this same alley was the Sc
curltIes act--and the stock exchange
regulation bill. The Idea was not only
to hold profits on ordinary business
down to low percentage, but to pre-
vent speculative profits Of any kind.
Analysed critically. 1t Is easy to SET
that this would tend to prevent any
one not now rich from becoming so
hut there was one fly In the ointment
Strict supervision Of new security Is
sues and curtallment Of speculation
all tended In the direction OF preserv
ing existing fortunes.
They could snipe at them with heavy
taxation. particularly on incomes, ant
on the corporation from which the In
come was derived. But a fortune In
vested In government bonds, for ex
ample, would be mnersious to both.
Hence the popularity with New Deal
ers OF Inheritance taxes. Cynics com
mpnt that most Of the New Dealers arr
young, and not worried about dealt
J duties Bnt the undeniable fact Is tina
the New Dealers do want to do some
. thing about some Of the very large for
! tunes now In existence. They regart
Y them as menace--a constant threa
q -. .s,sl,. -. thn cnrppca IF tha Nau