The Western news. [volume] (Libby, Mont.) 1933-current, 1936-09-17
SEEN
HEARD x!
around the
NATIONAL,
CAPITAL
By Carter Field y
By Carter Field !

Roosevelt to study CO. operatives
will make.
Some OF the brain trusters are
reported to have cooled off con-
siderably since the dispatch OF the
commission. At first blush, after
Secretary OF Agriculture Henry A.
Wallace's book Whose Consti-
tuition" came out, it struck them as
a splendid idea. In fact that was
why the President sent the commits
sion to Europe to determine first
hand what had happened to the ex-
periments along that line over
there.
It seems safe prediction for the
moment that no report calculated
to alarm the merchandising bust
ness OF this country will be allowed
to come out before election. II some
Of the remarks being made about
the whole idea in inside admins
tration circles are indicative Of the
general official attitude, tradesmen
need not worry at all.
But there is no way OF telling.
Wallace does not change his mind
very rapidly. as quite few Brain
Trustars and others have dis
covered. He is still Secretary OF
Agriculture, having survived bat
ties with George N. Peek, contact
with ReMord G. Tugwen, and
sharpshooting from many others.
And obviously Wallace had given
considerable thought to the subject
before insisting on its necessity SO
positively in his book.
His idea is very simple. Long a
strong advocate of farmer coop
eratives, many Of which have been
very successful, Wallace is pursuing
the same objective in promoting
consumer co-operatives.
It's the age old target the
spread between what the farmer
gets and what the consumer pays.
Both Helpless
In the WPA produced play,
Triple A PloWed Under" being
put on in a number Of theaters by
WPA casts throughout the country,
there is one scene bearing on this.
The farmer comes up to greedy
looking individual seated at table
with q quart bottle of milk.
How much do get? he asks
Three cents says the middle
man.
Commenting that it cost him
more than that to produce, the
farmer says:
''I'll take it"
A second later a poor looking
woman comes up with a bottle.
How much is a quhIt of milk?'
she asks.
Fifteen cents says the middle
man.
THAT is all have, but I'll take
it," she says sorroWfully.
The point of the act being tina
both producer and consumer are
helpless, having no alternative.
Part of the trouble, Mr.. Wallace
believes, is solved by farmer co
operatives. But though these have
been successful, the fact remain:
that there is still a wide spread
remaining between what the farmel
gets-even through a cooperative
and what the consumer pays.
So Mr.. Wallace wants to reduc.
this spread by having the con
sumers organize too.
So the much berated milk trus
may find itself with few IVA typ,
of yardsticks applied to its profits
to determine whether its profits ar,
not much too large.
Income Tax
Treasury Department expert
have about reached the conclusion
that they would like to have tn
so-called capital gains and losse
section of the income tax repealed
Great Britain has never had sucl
a provision, and, our Treasury eX
perts think has not suffered for it
lack.
1t will be recalled that the Who'll
country was shocked, few year
ago, when it discovered that
Pierpont Morgan had not paid an
American income tax for severa
years in the early part of the de
preston, though he had paid take
in Great Britain for the same years
Simply stated the point is this
If an American bought residenc
for $4,000 in 1927, and sold tina
property in 1929 for $4,000, his ir
come tax return made on March Il
1890, must show a profit of $4,000
which would be taxable as incom
for that year.
Or if the buyer of that house sol
it in 1882 for $4,000, he could deduc
his loss, $4,000, from his 1882 ir
come as reported in March, 1913;
Precisely the same is true {
profits or losses on stocks, bonds Q
any other property.
Whereas in Great Britain the
sort of thing is regarded as capita
mot income and neither profit
are charged as income for any pal
ticular year, nor losses allowed a
deductions from income for tn
year in which the deal was cor
cluded.
Economis SITS generally hav
agreed that the British system
more equitable. does not subiet