The Western news. [volume] (Libby, Mont.) 1933-current, 1937-12-02

as to equaliZe the conpetilioh DC
tween them and the big ones. Thus,
he says, a long step could be made
in the direction of preventing the
growth of monopolies.
Actually his own Treasury depart
ment has proved to its own satisfac-
ton from its own figures that the
undistributed earnings tax did not
bear so heavily on small corpora
tons as on large ones. Actually
most of the suggestions as to why
the business recession had come
was ained at big business concerns
rather than small ones.
Not This Session
This administration eagerness to
confine modification of the undistrib-
uted earnings tax is excellently IL
Illustrated also in the statement
made by Sen. Alben w. Barkley,
Democratic leader, after talk with
the President. Barley said:
I'm my judgment, we cannot act
this session (meaning the short ses-
sion) on proposals for amendment
of the undistributed profits tax to
relieve new and debt-burdened cor
porations.
Contrast this with Senator George.
who says.
"There can be no business re-
covery unless those who employ la
Dor can retain some of their earn
ings to pay debts and to expand
operations. ! am confident the con-
gress will modify the provision inn
posing the surtax on undistributed
earnings, and allow those earnings
to be used by business in the inter-
est of the workers"
Some very shrewd observers do
not believe the President will insist
on the text of his first message.
They think it was almost purposely
put in general terms. Certainly It
left plenty of loopholes. Even his
fiat declaration against speculative
profits-an old dogma of the New
Deal doctrine--Was not specific.
On this point congress is deter
mined to permit the spreading OF
losses over at least two if not three
years, in clear opposition to the
New Deal theory that saving for d
rainy day merely makes it rain
harder, and sooner.
Again Soft Coal
Like the poor, the soft-coal in
dustry is always with u.s. high
administration official lamented al
a little gathering Of the best govern
mental minds.
At present two agencies of the
government, the Interstate Com
merce commission and the bitumi
nous coal commission, are not JUS
seeing eye to eye on this terrifcally
important problem, intensified a
the moment by the fact that the
administration is straining every
nerve to get business out of its
/ doldrums.
The National Coal association il
indignant, both at the boost in rail
road freight rates on coal already
granted by the |. C. c., and at tht
present demand for a further in
crease of about Is per cent.
The present increase, the associa
tons officials claim, is to take eff
feet despite the evidence that higl
rail rates are diverting coal in large
tonnage to truck transportation a.
well as accelerating consumer us,
Of substitute fuels which move BY
pipeline. To add another Is pc
cent increase to rail freight rate.
on coal, as now asked for by thu
railroads, viii be suicidal"
The bituminous coal commission
which earlier maintained that thu
increased cost of coal would b,
borne mainly by the railroads ant
utilities, and not by householders
is now perturbed. 1t is opposing
vigorously the increase now on tn
table before the l. c. c.
But the Railroads
But on the olleT mana, what is I
be done for the railroads? Weak
ness in their stocks is regarded b,
the administration experts as on
of the big factors in the recent stocl
market slides, and in the genera
recession of business. Administra
ton agents have been delving ca
gerly into the possibility that bus
ness could be revived by railroa
buying. First there was the idea Q
lending them more money-pour
ing it out. But they learned tina