Evening star., 1938-04-30
Text Of President Rooseve|ts Message to Cor
o1 important industries with whole.
some results "N1e

OF important industries with whole
some results.
Tax Corrections Asked.
'6) Tax correctives. Tax policies
should be devised to give Affirmative
encouragement to competitive enter,
prise.
Attention might be directed to in.
creaslng the intercorporate dividend
Cax 10 discourage holding companies
ana 10 further graduating the cor.
Poratlon income tax according to size
Inc graduated tax need not be so
nlgh as to make bigness impracticable
out might be high enough to mako
oigness demonstrate its alleged su-
perior efficiency
we nave heard much about the In
distributed profits tax When it was
enacted two years ago, its objective
was known to be closely related to the
problem OF concentrated economic
power and free capital market
iS purpose was not only to prevent
individuals whose incomes were tax.
aoie IN the higher surtax brackets
from escaping personal income taxes
oy letting their profits be accumulated
as corporate surplus. Its purpose was
also TO encourage the distribution ~
corporate profits so that the individual
recipients could freely determine
"here they would reinvest in a free
capital market
II Sttrue that the form of the 1895
TAX worked hardship ON many of
tne smaller corporations. Many months
ago l recommended that these in
equities be removed.
Research Body Asked.
But IN the process of the removal of
Hequltles. We must not lose sight or
original obJectives. Obviously the Ma
tlon must have some deterrent against
special privileges enjoyed by an ex-
ceeolngly small group of individuals
,aon uliuef the form of the laws prior to
1886 whether such deterrent take the
form OF an undistributed profits tax or
some other equally or more efficient
method. And obviously an undistrib.
oteu proItS tax has real value in
WORKING against further concentra.
tlon OF economic power and in favor
OF freer capital market.
Cd Bureau of Industrial Economics
Creation OF bureau of industrial eco-
nomlcs which should be endowed with
adequate powers to supplement and
supervise the collection of industrial
statistics by trade associations such
bureau should perform for busjnasc
men functions similar to those per.
formed for the farmers by the Bu-
reau OF Agricultural Economics.
IL should disseminate current statis-
Iical and other information REGARDING
market conditions and be in a nosition
10 warn against the dangers of tenno-
.aiy oVerproduction and excessive in
Ventorles as well as against the dangers
VI shortages and bottleneck conditions
anu 10 encourage the maintenance Of
oroerly markets. It Should study trade
fluctuations, credit facilities and otbe-
conditions which affect the veIfore -.
the average business man. It should
oe aoie to help small business men tn
Keep themselves as well informed ahont
Ciaoe conditions as their big CONNECT
tors. .oiApell-
10 Make 1t Work Better.
mo man OF good faith will misin-
terpret these proposals. They DO
rive from the oldest American fro.
o!tlons Concentration of economic
power IN the few and the resulting,
unemployment of labor and canitsf
are lnescapable problems for a mod
ern private enterprise" democrac,.
l co not believe that We are so lacEs
ing IN stability that we will lose saitJ,
IN our own way of living lust becausA
we seek 10 mo out how to make thai
way OF living work more effectively.
Inns program should appeal to thu
hcneSt common sense of every in.
dependent business man interestef
primarily in running his own business
at profit rather than in controlling
the business of other men.
1t is not intended as the beginning
OF any ill-considered trust busting"
activity which lacks proper consider
alton for economic results.
1t is program to preserve private
enterprise for profit by keeping it
free enough to be able to utilize all
our resources of capital and labor at
a profit.
1t is a program whose basic pur-
pose is to stop the progress of COL
lectivism in business and turn busi.
ness back to the democratic competi-
tive order.
1t is program whose basic thesis is
not that the system of free private
enterprise for profit has failed in this
generation, but that it has not vet
been tried.
Once it is realized that business
monopoly in America paralyzes the
system of free enterprise on which it
is grated, and is as fatal to those who
manipulate it as to the people who
suffer beneath its impositions, action
by the Government to eliminate these
artificial restraints will be welcomed
by industry throughout the Nation
For idle factories and idle workers
profit no man.