The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1941-03-20
KNUTSON LETTER -
Nearing Passage

Inc LedSe-LenU Dill IS entering
upon its last stages in the Senate
It has been long time since so
many notable and really able
speeches have been made in that
body upon any measure. On Tues
day of last week I was privileged
to hear Senator Shipstead deliver
what many consider to have been
one Of the top notchers. He was
listened to with close attention by
both sides. One remark that SEN
ator Shipstead made attracted
great deal of attention and COM
ment. He said, "In the light of
history, no sane man would aspire
to such power. He would instinc-
lively question his ability to direct
it. Obviously, no insane man should
be given such power by an indif-
ferent or servile legislature, unless
those who make the grant are will
ing to repeat the fightful tragedies
which mark the advance of the
human race from barbarism to CIV
ilization."
Relieve Hardship Under Excess
Profits Tax
Congress last week sped the en-
actment of a bill to relieve some
of the hardships arising out of the
excess profits tax enacted last fall,
and which was made retroactive
to 1910 corporate incomes. The
original act sets up two alternative,
but arbitrary, formulas for deter
mining so-called excess profits"
and it was realized at the time
that relief provisions would have
to be written into the law to pre-
vent the measure from operating
unfairly on small and growing cor
porations, also those experiencing
abnormal conditions. There was
not time to include these relief
provisions in the original law, due
to the pressure for its early enact
ment.
In general, the amendatory bill
provides as follows:
I. All corporations subject to the
tax are to be allowed to carry for
ward into the two succeeding tax
able years the unusued portion Of
their current excess profits credit
(exemption). This provision will
help business having a fuctuating
income from year to year.
2. Corporations whose incomes
were depressed in the base period
1869 by abnormal deductions are
allowed to recompute their income
by disregarding such deductions to
the extent they were abnormal,
which is defined to be anything in
excess Of 125 per cent Of the aver
age for the previous four years.
8. Similar provision is made for
adjusting abnormalities in income
during either the base period or
the current taxable period.
4. Corporations which experience
ed progressive growth during the
base period are given a new alter
native method of computing their
excess profits credit, which will
give them a greater exemption, ap-
proximating the highest income Of
any year in the base period. Other
changes were also made which are
not Of general interest. It is an
ticipated that further notifications
Of the act will have to be made
as additional hardship cases are
brought to the attention Of Con-
gress.
Now that Congress has made
provision for relieving stricken bus
mess 1t may get around to doing
something for the farmer who has
been operating at a loss the past
twenty or more years. There can
be no sound recovery until agri-
culture is placed on a profitable
level.
Dies Committee Expands
st. Paul Is one of the 10 cities
that has been selected for the estab-
lishment of regional offices by the
Dies Committee in its fight against
un-American activities. The Com
mittee was recently given a new
lease on life for one year by the
House, with a $150,000 appropria-
ton for operating expenses.