Worcester Democrat and the ledger-enterprise., 1938-04-22
PATMAN BILL
POINTED TOWARD
new TAXATION

(The following afLlcle Is puDllSneu
simply for what it is worth. The
comments are not the Democrats"
This paper is using it for it's news
value only.-Editor.)
Wright Patman, representative
from Texas, introduced in Congress a
bill to levy a new tax on chain stores.
Mr.. Patman said that more than sew
enty five congressman have asked that
their names be included as co-authors
of the proposed. Evidently they think
there are votes in that bill.
It is interesting to note the provis-
ions of a measure so intrinsically pop
ular. Mr.. Patman says its purpose is
"to regulate selfishness and to pre-
vent greed" It's goal is certainly
not to raise revenue, which used to
be considered the object of taxation.
The actual object is to destroy the
large chain-store organizations by the
imposition of confiscating tax. Mr..
Patman predicted that the chains
would be broken up within two years
after enactment of his bill.
He proposed co exempt small chains
from this tax Beyond nine the rates
ing only nine stores would be free
from this tar. Beyond nine the rates
would be piled up. A company would
nav 5000 store for all stores in ex-
cess of 500 The tax would be increas-
ed if stores are operated in more than
one state. The graduated taxes would
be multiplied by the number Of states
in which a corporation maintained
stores.
Mr.. Patman's bill is another political
effort to destroy national markets and
to make business local rather than
national The effect of such efforts
upon our standard of living is one of
the vital coniderations that politicians
prefer to ignore. Consumers seem to
be politically negligible.
Our high standard of living is made
possible by big business. Consider
the radio, for example. Broadcasting
is only about eighteen years old.
When Warren G.. Harding lived in the
White House, the radio fan was in
clined to build his own receiver. The
business was small enough. When re-
ceiving sets were offered to the pub
lie, the price was about 5000. Last
wear the average price of new set
was $3.50.
Big business gave us the radio be-
yond all question just as large-scale
production made possible our use OF
the motor car. No other industry has
ever done more to increase values and
to lower prices.
Ten years ago a car buyer paid two
dollars for as much horsepower as he
now gets for one dollar. Comfort,
safety, utility and beauty have been
enormously enhanced by large cor
porations. Large-scale enterprise
did it.
The oil industry is the classic exhib-
ition of big business. Antitrust laws
and famous court decisions have been
hung upon the oil industry. The
plain fact is that oil prices to con-
sumers have moved downward and oil
quality has improved because of large
business. In 1921 gasoline cost 31.4
cents gallon. This year the compar-
able price, without tax, is 14.3 cents.
Big business did that too.
The electric industry has made
great advances, which have been re-
Elected in lower costs to the consum-
ing public. Generally speaking, cleo
trio rates have been cut in half dur
ing the last twenty-five years. Per-
haps they should have been cut lower
still However. the gains actually
made are the results of large business
enterprise.
The approach of Congress to pro-
posals such as the Patman chain-store
bill is purely political. Nobody in
Congress pays any attention to any
other consideration. Whether consum-
ers get better service or worse service,
whether prices are higher or lower un-
der one system, or the other, is dis
tinctly outside the range of political
interest.
Sometime somebody will have to do
some clear thinking and plain talk
ing if our high American standard of
living is to be preserved, restored or
raised. Governments can destroy
what we already possess but up to now
no Government has raised any peoples
standard of living.