, 1935-05-05
WASHINGTON
BY Ray Tucker

A1N6(8 1L4 d8AANo w. 1aN
for them to conceal their satisfaction
at the conviction of the first OF Huey
Longs heutenants to be tried for
income tax evasion. Betting In New
Orleans was three-to-one for acquit-
tai after Judge Wayne Borah refus-
ed the governments plea that the
jury be locked I'D during the trial.
Seven more Long men" face trial,
including some who were closer 70
the Kingfish than the legislator Just
convicted. The government Is do
ing everything II can 70 insure their
conviction. For fear that New Or
leans heat may weaken the jurieS in
the remaining ISL and induce them
to rush through future deliberations.
the government is spending $4,000
to air-condition the courtroom. The
Jury box will be the most comfortable
place In town this summer.
The next defendant Is Abe Shu-
shan. who was Longs Commissioner
u Docks. In asking postponement
OF trial until June his counsel may
have made q tactical mistake. That
move permits the government to try
its case before a stern Judge TO be
brought In from the Southwest. He
replaces Judge Barah. nephew Of
the Senator - an excellent jurist
hut one inclined to favor defense OBJ
jections.
Results ~ Politics and the law
don't mix. but the governments re-
cital OF allegedly excessive incomes
possessed by Louisiana henchmen
may affect politics. For n thing II
may stir up the people who have
been the mainstay Of the Long ma
chine. The voters may conclude
that some OF their money went into
the wrong pockets.
If the trials still on the calendar
last as long rs the first N did they
will not end until early next year
or Just when Mr.. Long may be trying
to cause trouble for the Democrats
IN their assembling OF delegates.
Even II the defendants should 60
free the courtroom revelations Of
practical politics In Louisiana might
not strengthen the Senator In his
anti-administratlon activities. They
possibly won't commend him to
prospective architects Of a third
party
So that $4,000 investment may Be
one OF the most profitable that the
New Deal has madel
Easing ~ The first clash between
the AAA and professors has ended
in a draw. II occurred In the con-
ference chambers OF Senators and
Representatives assigned to iron out
differences In the Agriculture APP
preparation bill. and 1t revolved
around the processing tex so bitter
y fought by the industry.
At the request Of some textile
manufacturers Senator Byrnes Cd
OF S. G. proposed that professors
have six months IN which TO pay the
tax: they now have only sixty days
except by grant Of the tax collectors
for q stay. Under this plan a man
ufacturer would not pay until he had
sold his goods. whereas nov he pays
within two months or less Of manu-
facture.
The AAA opposed the idea Secre-
tary Wallace's representatives ar
gued that IL would cause complica-
tons, benefit some manufacturers
and harm others. and pointed out
that II might neal a loss Of money
70 the government. II would have
made II difficult to check payments.
They compromised on a period OF
ninety days, with the further pro-
vision that Internal Revenue Collec-
tors may extend the time to $50 days
in unusual cases.
Caution - Treasury officials are
rubbing their palms az the first re-
suits OF the offer 10 exchange five
year ] So treasury notes and long
term 2 T-5 treasury bonds for the
First Liberties called for redemption
ON June Is. 1885. They regarded
The operation as a test Of how veal
thy investors feel toward government
credit these days. Because OF their
tax-exempt features these securities
were rather closely held.
The response was the best the
treasury has met In the first week az
ter any similar offer. Subscriptions
totalling $4,000 900 were divided
between sos. 900. 900 for the notes
and sos 900, 900 for the bonds.
Despite treasury jubilation the
results indicate that investors are
exercising caution and adopting a
let's-look-and-see attitude. The
majority favored the short-term.
lower-paying stuff. indicating that
they want TO be ready to Jump with
the market.
Tuts - Unofficial calculations BY
accountants Of the Federal Power
Commission and iva reveal that
public utility interests cherish more
that the holding company bill
against this administration. Prelim-
mary figuring indicates that Mr..
R~oosevelt's "yardstick" threat has al
ready cut deeply into private opera
tors returns.
It Is estimated that rate reductions
granted or forced since Mr.. Roose-
welt took office total between 500
100000 and S50.O00.000. These cuts
benefited only private consumers.
III reductions affecting industrial and
municipal service we're included the
figure might be doubled. Rate cuts
on the basis Of the Tennessee expert
ment alone r placed at SIC, 0O0. 900.
Nov the power commission Is go
Ing TO add insult to injury. IN June
1t viii ask al public utility corpo-
rations 10 submit actual figures on
rate reductions. The total may
make an impressive picture. politi-
cally as well as economically.
Notes - Passage Of the bonus bill
viii surely bring about additions to
the tax bill that is to emerge at the
tail end Of the session . Labor Is
having hard shedding with the Wag-
ner bill 80 no White House help J..
Railroads expect . fifty-fifty su-