The Waterbury Democrat., 1937-12-09

thau why his revenue estiI of line with actual receipts
 cone reason" replied Morgen- thau, ''ls the wlndfall tax. Wal lace said we would get Sl00,OOO,- 900 from this source, but 30 far we have got only Q drlbble."
 What Morgenthau referred to was the unjust enrichment" or ''wlndfalP tax passed by Congress in June, 1886, to recover the pro- cessing taxes turned over to man. ufacturers by the lower courts when the Supreme Court threw out the AAA.
 These returned taxes totalled $200,000,000, and so far the Treas ury has collected only Q driblet of $7,500,000 from the "wlndfalp tax.
 Shortly after this conversation, Secretary Wallace heard about 1t and immediately wrote to his friend Morgenthau. The letter began Dear Henry. But the remainder was far from cordial. In effect, Henry Wallace told Henry Morgenthau: "The money ls there, all you have to do is go after 1t. Why not get busy" Some Job!
 The job of collecting this tax belongs to Morgenthaus Internal Revenue Bureau, and part of the blame for Its failure rests at the door of Morrison Shafroth, wealthy Denver socialite, who quit as the Bureaus Chief Coun- sel last summer when he objected to the senate tax-dodging inves- tigation.
 Internal Revenue officials say that Shafroth, contrary to court decrees, ruled that manufactur. CTS could pay wholesalers Q por- ton of the recovered processing taxes. This order, they assert, vastly complicated an already super-complex collection job.
 They also admit very frankly that the Bureau lacks competent personnel to deal with the prob- lem.
 Internal Revenue experts know all about income, cor- poratlOn, estate and excise taxes, but arc totally unfamiliar with mysteries of the wlndfau tax. Illustrative of braln- wracklng complexities in these taxes is the case of bakers who pay different rates on flour used for plain doughnuts, jelly doughnuts, French, doughnuts and cinnamon d0ughnuts.
 If and when Morgenthau gets around to manning the Bureau with experts able to unraVel such inaEes, the remainder of $l00,- 100000 may begin to flow into the governments coffers.
 Garner on Warpath
 Business clamor for immediate revision of the capital gains and undistributed profits taxes Is mak- ing 0 red-hot New Dealer of Vice President Garner.
 Not that he Is Q Loft Winger; far from 1t. But neither Is he on Old.duarder. The bushy- browed Texan views big business with Q deeply ingrained hostility and when 1t gets belligerent he goes on the warpath. The list 0 'peace concessions" proposed by Wendell L. Willlsie, head of the Commonwealth and Southern Cor- poration, to induce utilities to spend, particularly outraged oar- fier.
 To Senate cronies he growled like Q grissly:
 "Those fellows have got an- other think coming" he rumbled. "The country Is still being run from Washington and not Wall Street. If they don't know lt, they'll damn soon find out.
 "The people won't stand for any Wall Street mOnkey.shlnes. And they won't stand for any surrender to big business and tricky dealing on the taxes. Of course, some changes have got to be made, but they aren't go. ing to be made in . hurry and there isn't going to be any funny business either"
 Dixie Senator
 Dixie Bibb Graves is taking her senatorial duties 50 seriously that no ono would suspect that in January she will go back to Montgomery, Alabama, to keep house for her husband, the Oov- ernQr, who appointed her to the Senate. sho will have served less than six weeks of active session, and drawn pay of approximately $500.
 Dixie spends more time on the Senate floor than any other member except the two floor lead- s-uHaa.----.s.-.-.ss-u----- s-s---~---~--