The Waterbury Democrat., 1939-05-22

The Treasury head, who is rarin' to go for Q new tax bill, favors repeating the remnants of the undistributed profits levy and substituting substantial boost in the flat corporation tax. The President is cool toward this scheme. When Morgenthau went strongly to bat for it, Roosevelt turned on him sharply.
 "T don't see where anything is gained by easing taxes on big business" he said, land shift ing the load onto little business. That doesn't help business and it seems to me dishonest to say it does.'
 Flushing a deep red, Morgen- thau bridled at blunt re- buke. I'm not being dishonest. MT. President" he protested. T don't think you are fair to me to say that. I have gone into this plan very carefully and sim cerely believe it will help bus iness."
 "Of course didn't mean you were dishonest, Henry" R00se- welt said soothingly; "there is no question of your personal in- tegrity. I was discussing the general proposition of shifting taxes from one group to another and labelling that helping bus mess, when it doesn't do any, thing of the kind."
 Morgenthau accepted the ex- planation, but he was still ruffled when he left the White House an hour later. The President had unquestionably wounded him deep- ly. There is no likelihood, how ever, of a serious rift between them. Their friendship goes back long before they came to Wash ington and the incident will soon be forgotten.
 But it is significant for reveal ing the tension that exists behind the scenes over the bitterly fought issue of Administration policy toward business.
 BEAUTIFIED
 A WPA beauty parlor came under scrutiny of the House in- vestigating committee. The com- mittee was told that the State of Ohio purchased lamps, dryers and swivel chairs and installed them in a basement room of the State Hospital for the Insane. Then the WPA was asked to supply un- employed beauticians as operators.
 This was done on the theory that when a mental patient thinks of beautifying herself, san ity begins to return.
 In one corner of the commit tee room, with his head in his hand, sat fat Representative Louis Ludlow of Indiana, one of the homeliest men in the House. After listening to the testimony, Lud- low inquired in a plaintive voice: Gould outside people go in there to be beautified?"
 NAZI SECRETS
 Members of the monopoly com- mittee were not aware of 1t, but the most interested observer at their hearing on patent controls in the metal industry was pr. Hans Thomsen. counselor of the Ger man Embassy.
 with a secretary by his side talk ing notes, the Naz diplomat fol- lowed intently the astounding story of how Germany for a time dominated world production of beryllium, an element vital be- cause of it's lightness in the man. ufacture of airplanes and dirig- ibles.
 Inside reason for Thomsen's concern was the appearance as a witness of Dr. Ferdinand A. kert- ess, agent in the D. s. for Q large German metallurgical concern, who has been charged in com plaints to the State Department with undercover Nazi activity. The committee had been unable to locate Kertess until the Ger man Embassy revealed his where- abouts.
 The story of Germany's con-
 trol of beryIlium was unfoided
 by Andrew J. Gahagan, presi-
 dent of the BeryIiium Products
 Company of America, who reIa-
 ted under questioning how his who knows but they'll shoot her fe the connection?
 Suddenly ore of them looked Q the clock . then they filed ot of the cafe, tired and dusty on