The Waterbury Democrat., 1936-03-09

lIlLO use OllllOIlS Ol QOlldLb !, porations.
 The germ of this underlying So- clal motive was enunciated by Roosevelt in his surprise tax mes- sage last May, when his target was large inhcritances.
 Since then he has done consld- erable reading on the subject of taxation, particularly four slender volyumes: 'BraSs Tacks" by Dav- i'd Cushman Coyle; "IncOme and Economic Progress" "America's Capacity to Produce" and "Amer- ica's Capacity to Consume" the last three published by Brookings Institution.
 The central theme of these studies is that the accumulation of idle surplus reserves is clogging economic recovery.
 It ls at this blockade that the president Is batterIng with his tax program. He believes that if the piled up hoard of undivided corporation profits (estimated by treasury experts at S4,6OO, GOO, ,0O0) can be forced into movement, the result will he Q tremendous infusion of purchasing power, with cOnSc- quent benefits to business and employment.
 The New Deal policies of dollar devalution, government spending and loan guaranteeing were all aimed toward this end. The tax plan is the latest, and in some respects the most revolutionary, of tho presidents experiments in this basic economic problem. Advocates
 Three of the younger inner cir- cle advisers had much to do with crystalizing the presidents views on the tax program.
 They were Mariner s. Eccles, chairman of the board of gover- nors of the federal reserve Bys- tenn; Herman Oliphant, general counsel of the treasury; and Rob- ert Jackson, counsel. of the inter- nal revenue bureau, recently pro- noted by the president to be assistant attorney general.
 Az carly a8 the fall of 1884 Jackson urged on the president drive against corporation surplus- cs. Eccles, n banker and indus trialist, also had long favored such 6 program. Oliphant added his voice when the Supreme Court made q new tax measure ncces- sary, by unbalancing the budget with It's order roturnings the $500, 100000 impoundcd processing taxes.
 Surprise
 The nature of the presidents tax program was q carefully guarded secret. IL was q complete surprise to democratic congress Sional leaders.
 There was . good reason for thls wariness. All of the Old-line leaders were opposed t0 any kind of new tax measure. They favored only a re-cnact ctmcnt of the processing taxes in new guise. Their big argument was that political strategy and ex- pcdlency barred tax legislation in election years.
 Applied to q bill that digs down into the pocket of the man in the street, their theory is sound. But the presidents program doesn't do that.
 Az one veteran senator cx- pressed 1t, "Thc scheme is the answer to Q politicians prayer. It not only does not affect tho aver age person but has the added nt- traction of seeking corporations. That's always popular. Further, the great mass of stockholders will be for 1t because 1t means more dividends"
 Outcome
 These bluntly described con- alterations greatly enhance the chances of the presidents recom- mcndations being adopted.
 There will be strenuous resist ancc, particularly fin the Senate, where oil the democratic leaders are secretly against the new plan. Also. they are certain to be mod flied to some extent.
 EessA Ahn S1.Hd. mea Aa.nl a,a AI.A end the president will get most of what he K after. Too many of the boys gre in no position this election year Co appOse the president On program taxing corporations. Such a stand is had political medicine.
 Dan Roper
 Under-covcr sniping at Bccre- tary of Commerce Roper from within the administration has be- come more intense and not too carefully concealed.
 It increases in proportion to the internal dissension which churns the commerce department.
 No other cabinet member has achieved Ropcr's record for firing or losing outstanding executives. They quit because they can not stomach the intrigue of his de- partment.
 Here is the record:
 John Dickinson, the first as- sistant secretary of commerce,