The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1939-06-01

#, D. Botz, e. Sieben, L. Huhne.
contain at least 10 per cent alcohol
manufactured from agricultural
products. Big oil companies have
been short-sighted enough to OPP
pose this legislation entirely over
looking the fact that it would re-
store the balance in agriculture
caused by the introduction of the
automobile and truck. which 1t is
estimated has destroyed the mar
ket for about 30 million acres CT
grain and hay. In other words, the
blend of gasoline with alcohol
would make unnecessary all crop
control and government subsidies.
Best Of all, 1t would restore the
farmers buying power, and that
would solve the unemployment
problem. AS a matter Of fact, we
cannot fully estimate the benefits
that would accrue from it. Some
day public opinion is going to
force action.
New Tax Bill
At a White House conference
last Wednesday President Roose-
welt assured the conferees hat
he would no longer stand in the
way of limited tax revision. In
making public the results Of the
conference Senator Harris o n,
Chairman of the Senate Finance
Committee, announced that the
new tax bill. carrying the Presi-
dents sanction, would embody at
least the following:
1. Repeal CT the undistributed
profits tax.
2. Adoption of an 10 per cent
corporation tax.
8. Three years carry over for
operating losses.
The House Ways and Means
Committee will Immediately begin
hearings on the new tax measure
which will probably last several
weeks.
Already there is a more optimis-
tic feeling because of the POSSIBLE
ity of tax reduction. Since the con-
ference the markets registered in,-
pressive gains and manufacturers
announce a pickup in orders.
The present tax structure weighs
heavily on all, and businessmen as
well as economists say that it is
holding back recovery. The late
Herman Oliphant, college profess
sor from Chicago, who became As
sistant Secretary of the Treasury,
sold the President on the idea that
an undistributed profits tax would
stimulate recovery. The operation
Of the tax has had the very oppo-
site effect. but the President has
stubbornly insisted on its retention.
He has finally seen the light.
Cannot Declare War
The other day received let
ter from a friend in st. Cloud
which read as follows:
There are persistent rumors
that the President has the author
ity to declare war without present
ing the matter to Congress. Last
night a radio broadcast stated
plainly that this was a fact, and
quoted some officer Of the United
States Army. We would appreciate
it If you would give us the facts
in the cas.."
The Constitution of the United
States vests in Congress the power
ito leclare war. grant letters OF
marque and reprisal, and make
rules concerning captures on land
and water" Notwithstanding this
explicit provision Of the Constitu-
ton the President may bring about
a situation that is tantamount tc
a state Of war in that he could
apply sanctions in time of hostili-
ties between foreign countries, and
in other ways act so as to bring
on hostilities. That is the reason
that have for years advocated the
passage Of a neutrality law that
would prohibit all exports, Of what
ever nature, during time Of war
abroad. Had such a law been in
effect between September, 1914
dlu April, 4o4tb IL WOuAu udVC saw
ed us from being drawn into the
World war. Many advocate the
cash and carry" plan. That Is not
neutrality because it favors the
nations that have control Of the
seas.
It Is significant that all war talk
has stopped since the President
succeeded in putting through Con
gress his ambitious and stupendous
armament program. At no time
have I believed there would be war
unless it were brought on for the
purpose Of covering up the failure
Of the Administration to bring
back prosperity.
Visit Home Delayed
It had been my plan to leave fol
Minnesota last Friday afternoon
but certain changes In the legisla,
tive program made it necessary
for me to remain in Washington. II
the state Of the House program il
such that I can get away, 1t is my
plan to leave tomorrow (Friday.)
It viii have to be q short trip or
account of the tax bill hearings.
It surely made me happy to read