The Western news. [volume] (Libby, Mont.) 1933-current, 1935-07-04
SEEN and HEARD
around the..-....
National Capital
BY CARTER FIELD.

washington. - Whether President
hoosevelts new tax program for big
inheritance leyies Is put through at
lhis session, or goes over until next
year, there is little doubt of Its event
uai enactment.
Inc answer to that Is simple. 1t Is
just that there are. and probably would
De ID almost any upset which might
occur, enough votes In both houses of
congress to Impose high taxes On big
fortunes.
Ihis fact is realized now pretty well
oy holders OF these same big fortunes.
so the most important thing at the
moment Is what they will do to cir
cumvent the effects, or soften the
DioWs, 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
| ldea is the same In every case where
big business Is owned almost ex-
clusively by one small family.
NO one 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,
for example, In both estate and In
herltance taxes, say SO 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 ter
rifle problem put up to Edsel, some
day, for immediate decision-perhaps
at a most inonportune 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 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
rlfice OF values. The public would
know that these stocks and bonds must
be sold In 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
prlses. In fair sized cities. say OF
around half million people, 1t often
develops that everybody lin the know"
realizes 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 adj |
vsed 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.
cnrities 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 MS bad as many of the small
er communities are now for small en-
terprises.
Wall Street Knew
President Rooseyelt's recommenda. 4
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
lust might he message to congress
turing the day, though he declined to
say what 1t would be about, Senator
Pat Harrison, chairman OF the senate
finance committee, and Chairman
ooughton OF the house ways and
means committee, denied To reporters
my knowledge of move by the White
House to obtain higher income taxes
md Inheritance taxes.
Which would seem to prove that the
Wo chairmen mentioned, heads re-
pecfirely Of the committees In house
Ind senate which would handle the
eglslatlon desired by the President,
It'll hoped until the message actually
rrived that they had dssuadel the
PRESIDENT
But. what Is really Of great interest ,
9 newspaper men In particular and
he public In general, the tip on which
hese two chairmen were questioned /.
anne drpctfv frnrn Wall Gtrant