Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1939-06-22

also defeated our efforts to make the
repeal of the undistributed profits tax
retroactive to January /, of this year
Other changes in the corporate tax
structure include:
/. The right to increase capital
stock valuation for fiscal years ending
June 80, 1889 and June 80, 1910, sc
as to avoid penalty under the excess
profits tax.
2. Taxation of banks, insurance
companies, etc., at the rates provided
for ordinary corporations.
8. Elimination of the $4,000 limita-
ton on the deduction of capital losses
by corporations.
4. Extension to corporations in un-
sound financial condition of the right
to buy up their outstanding bonds and
notes at less than par without being
subject to tax on the gain thereby
realized.
In addition, there were numerous
other changes of limited application
While Republican members of the
committee favored the removal of tax
deterrents to business, having con-
sistently criticized the repressive tax
policies of the Administration, they
opposed any further extension of the
nuisance taxes and the Scent postage,
which impose a burden of some $780,
OOO,OOO on the people generally. The
basis of their opposition was three
fold, namely, (1) That this is the
fourth time the New Deal has ex-
tended these taxes despite the assur-
ance given to the people that they
would be allowed to expire as orig
inally provided in the law on June
80, 1884; (2) that they are not based
on ability to pay, but fall most heavily
on those with small incomes; and
60 that the New Deal has no right
to continue to pile taxes on the peo-
pie without first reducing eXpendi-
lures.
Abolish the Submarine.
The disaster to the British sub
marine Thetis and the French sub
marine Phenix, following so closely
on the Squalls disaster in the United
States, has brought forth the frequent
expression that this type OF ship
should be abolished.
There is good reason for this be-
lief. The submarine serves no visible
peace-time purpose; and Great Brit
ain and the United States have long
favored its abolition. The American
delegation expressed its readiness to
ioin in such action at the Washington
conference on naval limitation in
1921. This effort was defeated, how
ever, through the infleXible opposi-
ton of the other naval powers.
There is probably no greater chance
of abolishing the submarine today.
Germany, Italy and Japan, not to
mention some smaller nations would
refuse to consider such a step for an
instant.
The nuisance value of the submar-
inc to Italy is important at this time
when she seeks larger privileges in
the Mediterranean. Smaller maritime
nations may also be expected to cling
to this type of ship as an inexpensive
method of providing themselves some
coast defense. Soviet Russia would
refuse to relinquish her emphasis on
the use of the submarine as weapon
of defense in the Far East.
To hope for abolition is therefore a
vain dream, and maritime nations will
be forced to continue the develop
ment of normally useless, neces-
sarily hazardous invention that in
three disasters in less than four weeks
has snuffed nearly 200 lives.
Adjournment Indefinite.
The usual summer heat is on in
Washington and the thermometer reg
listers 24-hour average far up in the
COS. AS result we hear more and
more about adjournment. The gen.
eral feeling is that we will be here
another six weeks, at least.