The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-23
Lawyers to Profit
From Tax Bill
BY RAYMOND CLAPPER

XXTASHINGTON, April 23-Those likely to profit
w most from the new Administration tax legisla-
ton are the tax lawyers. 1t would sweep aside
corporation income tax precedens built up through
nearly quarter of century of litigation.
Hundreds of new questions will arise. Formulae
for calculating taxes undisributed profits so
complicated that tax experts inserted in the bill
logarithmic tables which carry percentages to the
eighth decimal.
Next to the lawyers arrangements of big corpora
tons probably will be happiest the bill
If any one can be said to be happy over a tax
bill. At any rate it will relieve them of good deal
of trouble. They escape the corporation income
tax by passing their profits on to the stockholders
who then can worry about paying the taxes
Smaller businessmen, who want to hold profits and
pillow them back into the business for expansion are
the who will be squeezed.
ORGANIZED labor apparently is about to make
~ general demand for higher wages. The
American Federation of Labor, in its monthly sur
vey of business, says significantly 1--WE have reached
the moment when industrial income has recovered
enough TO make possible substantial wage increases
IN large number of industries"
The A. F. of L. quotes approvngly President
RooseveltS Baltimore emphasis the need of in
creased purchasing power and shorter hours without
reductions in weekly pay It becomes slightly beliig
erent:
1.-The present is no time for temporizing Either
we make the transition from government support
to private employment by increasing wages short
enlIlg hours ana putting the unemployed to work
in industry, or we keep standing voorhees, army
Seething with discomfort because of the Injustice
done them in denying jobs at decent pay Already
the unemployed are organizing and recent demon
STATIONS show that American workmen will not sub
init forever to forced idleness and public support
The Federation lists the industries which, be-
cause of increased income or good prospects are in
more favorable position to grant wage increases
as follows: Agricultural implements, amusements
automobiles, alto narts tires, building materials
chemicals, clothing containers dairy products drugs
and medicines electrical equipment fertilizers foods
confectionery, soft drinks, hardware and tools,
household products insurance companies, in
vestment trusts, liquor, machinery, metals, Office
equipment, paint, paper and printing, petroleum
restaurant chains chain stores, department stores
nail order houses, sugar producing tobacco and
among the utilities, natural gas electricity and tee
phones and telegraph.
TT is little difficult forprganized labor to recon-
Il Gle this pressure for higher wages with the de-
sire TO bring about Unemployment Relief rolls last
year, PRESIDENT Green tells Senate committee in
supporting the Wagner housing bill exceeded the
pay rolls of five of the largest industries-textes
and cloth railroads. building, machinery iron
and steel their products At first glance it
would seem that general boost in the wage scale
OF those now employed would increase the resistance
OF employers to hire more workers. The A. F. of L.
argues that increased wages would create additional
purchasing power and increased production which
would compe. industry to recruit more employees
From the employers point of view the fallacy in
TINS argument is that such wage increases would
TEND TO force up prices thereby restricting rather
tnan stimulating general consuming power
THE not very beautiful political friendship be-
tween former Senator James A. Reed of Mis-
souri, and Democratic State Boss Pendergast appears
broken beyond repair. Pendergast out to deliver
missouri for Roosevelt Reed is out making speeches
for the American Liberty League
4 oackwash OF this split has touched the intense
ngnt over the l5-year prize job OF Controller General
McCar which VIII be ripe July l. One of Reeds
former secretaries has been lining I'm snnort for
certain candidate. This week Pendercast came
through with telegram to Postmaster General Far
icy strongly ENDORSING rival candidate.