Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-11-14

not waiting to reach Washington, has
telegraphed Secretary of the Treasury
Morgenthau that he believes some
thing should be done without delay
to revise the undistributed profits tax.
He added that he intended to take
the matter up as soon as he reaches
Washington.
Tax legislation, under the ConStitu-
ton, must originate in the House. For
10 days subcommittee of the House
Ways and Means Committee has been
at work on the matter of tax revision,
with daily reports placed before it
by the Treasury officials. Representa-
tive TreadWay Of Massachusetts,, rank
ing Republican member of the COM
mittee, said last night:
THE two principal subjects dis
cussed SO far have been changes in
the undistributed profits tax and the
capital gains tax. Undoubtedly the
subcommittee, in its final recommen-
dations, will make material changes
in these levies."
Penalty Not a Tax"
Speaking of the undistributed tax,
Mr.. Treadway said that it is really a
penalty and not tax, working the
greatest hardship on those least able
to pay. 1t has discouraged business
expansion and unemployment. and
undermined the stability of the whole
business structure. Unquestionably it
has been a large factor in the pres
ent Roosevelt slump"
Mr.. Treadway said it was noticeable
That the man who had represented the
administration at the time of the
enactment of the undistributed profits
tax, Herman Oliphant. has been con-
Splcuous by his absence" and, he
added, this is good omen.'
The Massachusetts member de-
clared himself heartily in favor of the
recommendations of Secretary Nor
genthau, made last Wednesday, that
the budget be balanced and govern
mental expenditures be cut. Morpen-
thau, he said, had announced a pro-
gram of interesting private enter.
prise in business expansion. Unless
confidence can be restored by change
OF attitude on the part of the admin
lstration, it will be difficult to put
this idea into effect, Treadway in
sisted.
Senator Chavez, Democrat. of New
Mexico on the eve of the special
session issued a statement in which
he, too, demanded that something oe
done by the administration to modify
the excess profits tax" He said:
There appears to be a general un-
certainty today concerning the exact
position of business. In my opinion.
the American people are demanding
Congress to make a fortnight ex-
preston of its attitude toward busl-
ness. l, for one, feel that business
should be given a chance and that
Congress give this opportunity by an
immediate modification of the excess
profits tax
Further along these lines I con-
cur whole heartedly with Senator Har-
rlson's position on Secretary Morgen-
thau's views with respect to the neces.
sity for economy in Government. I'm
necessary agencies should be abolished.
reorganization is badly needed. Du-
plcatlon In functions of Government
are numerous and should be done
away with. However, all necessary
funds required to care for the needy
OF the country will have to be ex-
pended. This does not mean that
needless experimentation has to con-
tinue"
Other Statement.
In a statement issued last night
Diller, Republican, of PENNSYLVANIA.
said:
Congress assemblies in a period of
economic heSitancy. The first obiec-
tive Of all parties should be to check
the business recession now in flow.