The journal. (Caldwell, Ohio) 1934-1961, 1951-01-11
| 4 This Week
~ in
4I9! I!E4S Washington

~ooiaAoiI-uoildI OeIenSe ap-
preparation, debate over the cost
of living, the indictment of an
other Republican congressman
for payroll kickbacks, contention
over the COP custer resolutions
aimed at Secretary of State
Dean Acheson, all highlighted
the last week of the lame duck
congress as the capitol prepared
to take over the new 82th con-
gress.
In the meantime the economic
stabilization agency has set up
. set of fair standards for Ameri-
can business and industry as a
stop gap for mandatory wage
and price controls until the con-
troll agencies are set with per-
sonnel to administer mandatory
controls. The fair standards
action is a 1851 version of the
old NRA fair standards which
were in effect prior to the last
war. The effect is to put a limit
on profits as was predicted in
this column, since the rule is
that manufacturers or industrial
producers may not incerase their
prices where net dollar profits
before taxes are equal to or in
excess of its average net dollar
profits before taxes in the per-
iod ls46-l949. Exceptions are
made where actual cost of pro-
duction and wages would force
selling of a commodity at a loss.
In the meantime, the ESA is
engaged in seeking to work out
an equitable arrangement over
wages with the union leaders,
a sort of chicken-and-the
dilemma.
The house passed the 3-billion
dollar civil defense measure by
vote of PAT to l, the lone dis
senter being Rep. Clare Hoffman
of Michigan who said he was
willing to provide protection for
only steel mill blast furnaces and
that was all. The measure will
provide for a national air raid
warning communication net,
will train thousands of volun-
teer workers, plus some paid
workers, will stockpile medical
and disaster relief equipment
and will built bomb shelters for
at least part of the nations
urban folks. Local units of gov
ernment are expected to pay
about half the costs.
Of interest to farmer cooper
atives throughout the country is
a ruling of the tax court of the
United States that contributions
to the National Tax Equality as
are not deductible for
income tax purposes. The suit
brought by the Roberts Dairy
company of Omaha sought re-
lief for tax purposes for a dona-
ton of $3.50 to NTEA which was
denied. The court held that
NTEA was not an educational
and scientific organization as |
claimed by NTEA officials, but
in fact was for the purpose of !
carrying on propaganda, or
otherwise attempting to influ-
ence legislation" One of the
was the testimony of !
Vernon Scott of Chicago, vice
president of the NTEA, who said
that since its inception NTEA
"did not, to his knowledge ever
urge anybody to write their con-
gresham about anything"
The government in its brief
said Despite the denials of the
petitioners" vice-president and
NTEA's chief administrative Of
ficer, it appears abvious that the |
activities of NTEA are designed
to promote or influence legislat-
ion. Without doubt NTEA
exists for the purpose of bring
ing about the removal of the tax
exemptions in favor of the
cooperative associations which
compete with petitioner and
other contributing members"
SEN. Arthur Vandenberg, the
stauneh leader of the bipartisan
foreign policy in the senate, may
resign when the new congress
due to his health con-
iition. The senator had said he
would be ready to take his
seat on January 3. Since the
election of a Democratic gov
arnor in Michigan however,
here is some doubt cast over
his story of resignation. Had a
Republican been elected govern
,r, the plan was for the new
governor to name Senate Wand
enberg's son as his successor.
However, now if he resigns, a
Democrat would succeed him,
the senate division sol
0emocratics and As Republicans
instead of 49 and AZ.
There is little question but
hat the new congress will make
'oreign policy, both in the Far
Cast and in Europe one of the