The Ely miner., 1935-07-04

SENATOR wye Jobs.
2. Prevent American patents from
getting into the hands of foreign pow
erS.
8. Limit profits to 5 per cent of the
total cost to the government, in cases
where the government assumes the
risks of the enterprise, or to 10 per
cent where the government does not.
4. Require that shipbuilders' lob
byists" register with the government
and disclose their income and eXpen-
ditures.
The committee finds, in the matter
of cOllusiOn, that there was "tele-
pathy" among shipyard officials so that
in bidding for many contracts each
concern was able to get the contracts
it wanted at profits that ran as high
as SO per cent. 1t says the navy has
been at the mercy of the shipyards in
preparing plans for war vessels and
also in determining what were fair
prices.
"A series of bids are put before the
navy" the report reciteS, "and the
navy has to take the low one and the
taxpayers have to hope and pray that
the low one is somewhere within few
million dollars of being reasonable"
Construction of naval vessels is de-
clared to be more costly in private
yards than IN government yards.
"While the evidence is not all in,"
tn report says, "the indications are
that the private yards cost the gov
ernment from one to two million dol
lars more per cruiser than the navy
yards"
The committee charges big shipbuild-
ers with breaking up the Geneva naval
limitation conference in 1927 and Inn
mediately launching price-increase
campaign that "made profits of 80 and
25.4 and 36.9 per cent on the cruisers"
EVEN Huey Long cheered when Pres
- ident Roosevelt's unexpected mes
sage on redistribution of wealth and
increase of taxation for the rich was
read to congress. The Chief Executive
offered a program that he hopes will
pay part of the vast expenses of the
New Deal and at the same time break
up some huge fortunes and check the
growth of big corporations. He doesn't
expect congress to do the entire job at
this session, and the administration
leaders at once set about stopping the
radicals who wanted immediate enact
ment
The Presidents taxation plan is
frankly aimed against the wealthy,
especially the men with million-dollar
incomes. Of these there were 46 in
1888. In his message he said that ex-
listing tax policies have not prevented
unjust concentration of wealth and
power" and added the warning: $50
cial unrest and a deepening sense of
unfairness are dangers to our national
life which we must minimize by rigor-
Gus methods"
The following legislation he recon-
mended for enactment during the pres
ent session in order to obtain ample
revenue without hampering enterprise
and to distribute tax burdens equi-
tably:
1. High inheritance and gift taxes
on ''all very large amounts received by
any one legatee or beneficiary" Seq
regation of this revenue for reduction
of the national debt.
2. Tax levies to restrict "very great
individual net incomes"
8. Substitution of graduated cor
poration tax ranging from 10A to 16&
per cent for the existing 13A per cent
rate.
For consideration at the next ses-
sion of congress the President pro-
posed:
/. Elimination 'of unnecessary hold
ing companies in all lines of business"
by discriminatory taxation.
2. Discouragement of "unwieldy and
unnecessary corporate surpluses."
3. An amendment of the Constitu-
tion to abolish tax exempt securities
by authorizing the federal government
to tax subsequently issued state and
local obligations and state and local
governments to tax federal securities.
Treasury officials estimated that
about one billion dollars could be ex-
pected ultimately from the tax plan
submitted.