The Waterbury Democrat., 1940-10-04

construction Finance Corp
 But what has never leaked out is that at one time the CurtisS company baked at the taxes it would have to pay and threatened not to build the planes. The incident illustrates the difficulty the Defense Commission and the, Treasury have had in pushing ahead the airplane building pro gram.
 ' The Curtiss company, after re- ceiving assurances of its $49,000,- 900 loan from the REC, came to the Treasury and wanted to know what its taxes would be. The Treasury has a system of giving companies 8 closing agreement" in other words an exact estimate of what their taxes will be in ad- vance, if a set of advance facts are supplied. If these facts are not changed, then the Treasury is ab- solutely bound to stand by this tax estimate. Furthermore, subsequent commissioners of internal revenue, whether Republican or Democra- tic, also are bound.
 In this case the Curtiss-Wright company asked for an immediate closing agreement" on its taxes, and the Treasury, by working al- most day and night, finally sup piled it. The tax, using the set of facts supplied to the Treas ury, was to be based upon g. year leasehold which Curtiss was to exercise over the new airplane factories.
 However, after the estimate completed, the REC changed the set-up to five years, which threw the tax into the category of an outright capital gains tax, and considerably boosted the amount which the aviation company would have to pay the Treasury.
 It was at this point that the company's officials baked. They protested vigorously at the high CT tax rate to be applied to them. In fact, they told the Treasury that it was not Curtiss-W Wright which wanted the planes, but the government which wanted them. and strongly intimated that if a more favorable tax was not worked out they would not feel obliged to accept the contract.
 However, the Treasury stood pat, and the Curtiss people fin- ally came around. They are going ahead with the program. POKER STAKES
 There's never a dull moment when Jesse Jones, secretary of Commerce and Federal Loan Ad- ministrator, plays cards with his good friend Defense Commission CT William Knudsen. The two men carry on a running fire of ribbing.
 Jones was quick to seize such a chance during a stud poker game the other night. Finding that he had aces back to back. Knudsen bet a dollar. With only a deuce in the hole, Jesse shook his head sadly. ''Bill," he said, you shouldn't have done that"
 ''Why not?"
 "Yon know as well as do that you can't afford to bet that much"
 ''What do you mean, I can't afford to bet that much? You don't know what I've got"
 'T wasn't thinking about your cards" replied Jesse with dead- pan seriousness. 'sI was think ing of your salary. You're bet- ting 6 whole years pay on one card. That's downright reck- less"
 NOTE = Knudsen resigned . ss00.eoo Job to come to Washing ton. now gets sl c year. He in- sisted all night that he was "just learning the game" but wound up winner of s0O.
 FDR'g FARM ADVICE
 The President got some smart advice on winning the farm vote from Ed o'Neal. bFainy head Of tho American Farm Bureau Fed- eration. O'Neal told him: "Dilek to your national defense policies"
 oNoal called on Roosevelt after an extensive tour Of farm states end the President was eager so get his views. Almost the first allosflon popped at the farm chief Waai aEzow Aees C Iooh, kdf De yen lhlnk the farmers WiIl snps pert the lleket3"
 Farm Bureau membership ls split widely between DeuoaraiB and Nonnh'leaflf, s0 o'1Ioei |a tnk- 'lIe no 1|and I'd tho oanfAIan.