The Hardin tribune-herald. [volume] (Hardin, Mont.) 1925-1973, 1935-07-12
and HEARD
around the
National Capital
BY CARTER FIELD

washington. - Whether President
hooseVelt's new tax program for big
inheritance levtes is put through at
thls session, or goes over until next
year, there is little doubt of its event
ual enactment.
Inc answer to that is simple. 1t Is
just that there are, and probably would
De IN almost any upset which might
occur enough votes in both houses Of
congress to impose high taxes on big
fortunes.
Ihls fact Is realized now pretty we'll
oy holders Of these same big fortunes,
80 the most important thing at the
moment Is what they will do to cir
cumvent the effects, or soften the
blows, that are certain to come.
One Of the most serious aspects af-
fects such institutions as the Ford Mo-
tor company. There are many others,
though all of them are smaller, but the
ioea Is the same in every case where
a big business is owned almost *
cluslvely by one small family.
No n is authorized to say, of
course, what Henry Ford will do, as
he sees this thing coming. But the
opinion of shrewd business men as to
what he will be forced to do is inter-
esting.
The problem would be what Edsel
Ford could do If his father died sud-
denly and the government demanded,
Tor example. in both estate and in
herltance taxes, say 80 per cent.
How could the cash be provided with
which to pay this tax? Obviously by
doing what Henry Ford has fought
against all his life, and fought against
successfully, by refusing to have Sc
curities of his company sold through
Wall Street.
II. for instance, in view of the GER
tainty of heavy Inheritance taxes, Ford
should decide not to have such a ter
rifle problem put up to Edsel, some
day, for immediate decision-perhaps
at a most inopportune time-the thing
to do would be to sell to the public
shares Of his stock, or bonds in his
company.
Simple Solution
If the stock and bonds were on the
market, had a recognized value, and
were being constantly traded in, the
problem would be comparatively sim
pie. Enough securities could be sold
to pay the, taxes. This would not en-
tirely eliminate the possibility that
there would have to be a great sac
rifce Of values. The public would
know that these stocks and bonds must
be sold in a very short time, and
the probability is that the price would
decline to far below normal. 1t would
be strictly a buyers market.
This sort Of thing has been illustrat-
ed time and again in smaller enter
prises. In fair sized cities, say of
around half a million people, it often
develops that everybody "in the know
realizes a large block of some local
stock must be sold. Always the price
declines in advance, and the person
who must do. the selling for one rea-
son or another nets far less than the
actual value of his securities.
In fact, one Of the reasons many
investment bankers have always ad-
vised clients to deal only in securities
listed on the New York Stock exchange
has been that-merely because of its
bigness-there was less of that sort
of thing possible than in the case of Sc
curities in smaller enterprises. where
the interest in buying was confined to
a small territory.
But In the real big cases, such as
Ford would be-, New York would be-
come Just as bad as many of the small
er communities are now for small en-.
terprises.
Wall Street Knew
President Roosevelt's recommends.
ton Of high inheritance taxes was
made directly against the advice of
nearly all his congressional advisers.
Within two hours after he had told
newspaper correspondents that there
Just might be a message to congress
during the day. though he declined to
say what it would be about, Senator
Pat Harrison. chairman of the senate
finance committee, and Chairman
Doughton of the house ways and
means committee. denied to reporters
any knowledge of a move by the White
House to obtain higher income taxes
and Inheritance taxes.
Which would seem to prove hat the
two chairmen mentioned, heads re.
sp~ectively of the committees in house
and senate which would handle the
legislation desired by the President,
still hoped until the message actually
arrived that they had dissuaded the