The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1938-04-25
COURTS READ
IMMUNITY into
Law HE HOLDS
Monopolies Message, Also
Due This Week, Last Of
The Session
MINORITY CHARGES
WASTE FROM RELIEF

WASHINGTON, April Is. (UP)
President Roosevelt today told
congress that under a fair court
Interpretation, the 18th amend
ment to the constitution appeared
to authorize taxation of income
from federal bonds and income Of
state and federal employees.
The president sent to congress
today his views of the reciprocal
taxation of governmental bonds
and employees salaries in the first
of two messages he is expected to
transmit this week.
The other message, on monop-
oily problems, is expected to round
out the major congressional rec
concentrations of the year.
President Roosevelt noted that
the language of the sixteenth or
income tax amendment to the
constitution authorized congress
specifically to clay and collect
taxes on incomes from whatever
sources derived"
"This is plain language, he
said. Fairly construed, this lam
guage would seem to authorize
taxation of income from state and
municipal as we'll as federal bonds
and also the income derived from
state and municipal as well as
federal offices"
He noted that courts had not
agreed with his Interpretation,
saying that "instead, a policy Of
reciprocal tax immunity has been
read into the sixteenth amend
ment, exempting income from
federal bonds from state taxa
ton"
;. Probably on Friday the presi-
dent will make his recommends
tions to congress for frmer
government regulation of monop-
olistic practices and price fixing.
These messages constitute an
other phase of his recovery pro-
gram.
Legislators returned to the cap
ital after q three-day recess to
begin a drive toward adjournment
set tentatively by leaders in both
houses for May Is. They will re-
new their work on legislation to
effect the New Deals recovery
program in the face of vigorous
condemnation of administration
business and relief policies by Re-
publican members of the senate's
unemployment and relief COM
mittee which was set forth in
minority report.
Senators Henry Cabot Lodge,
Jr., of Massachusetts,, and James
]. Davis of Pennsylvania, said
there had been waste in the ad-
ministration of relief and charged
that the New Deal was unwilling
to meet realistically the problem
of caring for the needy.
"After nine years the haunting
spectre of joblessness is still with
us-to greater degree than
ever" the minority report said.
"Let us act, quickly, decisively,
resourcefully, constructively. Dare
we delay longer?"
It recommended that congress
SHOULD stop wasting its time
over such schemes as the supreme
court and reorganization bills, and
devote itself to unemployment
and relief-problems which will
always be with u.s."
Eight other recommendations
were:
1. Repeal of the undistributed
profits tax and modification Of
the capital gains tax as proposed
in the senate tax bill; general tax
wherever possible.
2. Encouragement of that which
is good in business.
8. Stop "extravagant utteranc-
es, in which whole classes of peo-
pie are insulted owe rthe radio in
stead of being prosecuted in the
courts"
4. Elimination of tax exempt Sc
curities and reduction of burden
Continued on page four)