The Western news. [volume] (Libby, Mont.) 1933-current, 1936-04-02

to deduct from corporation taxes. The
treasury loses about $60,000,0O0 right
there
Big Loss to Treasury
The next group numbers 2,191 ,3O2
persons, who would draw $310,OO0,OOO
more In dividends. These have In
comes from $1,000 to 5000, thus get
Ing the lowest income tax rate. SO
that on these dividends the treasury
would get per cent-maximum-in-
stead Of the 10 per cent they would
pay as corporation income taxes, plus
the capital stock tar and the excess
profits tax.
Also, the earnings thus forced out In
dividends would distribute about $780,
100000 a year to institutional investors
who would be exempt under any plan
that has 4 Chinaman's chance OF going
through. Another loss Of $6O,OOO,OOO
from the present system.
All OF which, Al the ways and means
committee members know perfectly
well, Is without making any allowance
Whatsoever for increased spending BY
corporations, which would seek to
build up surplus In another form than
dollars or additional plant. For ex-
ample, by advertising
Some Of the biggest surplus accu-
mulators among corporations are those
which manufacture and sell to the
public articles whose continued sale Is
dependent upon advertising. There
would be strong temptation to such
corporation, accustomed, say, to spend
Ing a million dollars 4 year on adver-
Using. and to putting two million dol
lars year into surplus after payment
OF dividends, to boost that advertising
appropriation by one million and dis
tribute the other million in dividends.
SO there should really be little sur
prise II the Roosevelt plan winds up
as mere addition to present corpora
tion taxes, or at least the retention
OF some measure OF the corporation
income tax, II for no other reason than
to impose some tax on foreign holders
OF American securities.
No "Must" List
President Roosevelt has practically
no must list OF legislation for con-
gress. II one excerpts the tar bill. True,
| he ID back of the Norris bill. which
! would lend $5OOOO,0O0 a year for two
years. and then s40,OO0,OO0 a year for
| eight more, for the development OF
rural electric projects. But this has
already passed the senate, and 1t Ia the
senate where the time element Is Inn
portant. The house could arrange to
adjourn week from any Tuesday and
not even have to hurry its normal
speed
But there are pending a great many
measures which are OF enormous I'M
portance. especially to business men,
manufacturers, shippers, and tar pro-
ducers generally. Interest In them for,
the last ten days has been almost en-
tlrely submerged by the greater I'M
portance OF the tax bin, the one must"
measure But there they are, and
some OF them will probably pass.
For Instance, there Is the Patman-
Robinson bin. 1t aims at preventing
manufacturers from giving big Gus
| toners wnat the Federal Trade COM
mission regards as an unfairly large
discount The two shining targets, OF
course. are the chain stores and the
mall order houses.
Maybe this measure will be so emas-
culated that 1t won't mean anything
Maybe In final form 1t will be 80 dras-
tic that 1t will really do what Its
hackers hope for. Consider the posi-
bIllties Of the later. One Is that the
big chains and mail order houses would
! just go In for manufacturing In a big
way. probably buying out the present
independent manufacturers who are
selling to them more cheaply than they
sell to the little fellows" who are the
| competitors OF the chains and mall
| order houses. Either that or the man
ufactnrer whose chief business comes
through orders from the chains or
mail order houses simply decides to
| throw In his lot with the big ones alto
| gether. The law can prevent dIscrim-
| nations, but 1t cannot force a manu-
facturer to sell when he doesn't want
| to do so.
Walsh-Healey Bill
Consider the Walsh-Healey bill
| They are really two bills. But they
| aim at forcing contractors getting gov
eminent money to comply with the old
| MIRA codes.
| In view OF the fact that the govern
ment Is spending such prodlgIous
amount these days-ln fact very sIz-
able percentage Of all the money
spent. especially in the heavy Indus
| tries-here Is a law~othat Ia of vital
Interest, to put II mildly To n lot of
business men. The odds against It's