EDITOR'S NOTE-—~When opinions are
expressed in these columns, they are those
of the news analyst, and not necessarily
of the newspaper.
Taxation
Recent federal taxation policies
have been based on the theory that
business should bear the brunt. For
this or some other reason, business
has operated at a loss, laid off work-
ers and precipitated economic de-
pression. This year, as the U. S.
treasury charts its course for the
1939-40 fiscal year, there are signs
that business will breathe easier,
EDSEL FORD
He offered an incentive.
that government will look instead to
the small wage earner for its new
monetary requirements.
Even as Auto Manufacturer Edsel
Ford was telling a senate sub-com-
mittee that a general tax reduction
would be ‘‘as good a business in-
centive as any,” three outstanding
forecasts could be sifted from the
financial gymnastics of budget-mak-
ing treasury experts:
Economy. Although Federal Re-
serve Chairman Marriner S. Eccles
has plumped publicly against pre-
mature reduction in federal expendi-
tures, Treasury Secretary Henry
Morgenthau is essentially economy-
minded. In this policy he has the
support of his new tax adviser, Un-
dersecretary John W. Hanes, a re-
cent recruit from Wall street who
believes budget balancing would
stimulate the confidence of business.
tween income and outgo next year
because of the proposed national de-
fense program, Mr. Morgenthau can
take heart from President Roose-
velt's latest pronouncement:
Pay-As-You-Go. The billion-dollar
rearmament plan, which is due for
strenuous congressional opposition,
will not be allowed to increase the
federal deficit. Though the Presi-
dent has not indicated what new
taxation method he will
admission that a 10 per cent tax will
be placed on present income taxes.
(If you now pay $25 a year, you'd
pay $2.50 extra). But this special
revenue measure would only pay for
armaments, and would not elimi
nate increased deficits caused by
relief expenses. To fill this need,
many congressmen favor:
Lower Bracket Income Taxes.
Married men are now allowed $2,500
exemption, which might be de-
creased to $2,000 or even $1,800. Ex-
emptions for single persons, now
$1,000, would be dropped to $800 or
$750. While this would boost reve-
nue by only $60,400,000, it would
place bigger wage earners in higher
pect justified opposition. Outside of
relief costs, the biggest need for
new tax money will be to finance
the proposed federal-state health
program for insurance, hospitaliza-
tion, clinics and expansion of the
U. S. health service.
Europe
“Europe is drifting into war, a war
which no nation wants but against
which every nation is preparing. Unless
there is a complete change in the outlook
within the next month or two, interna
tional tension will reach the breaking
point next spring.”
This summation is the detached
viewpoint of Oswald Pirow, defense
minister of the Union of South Af.
rica, after a two-month European
tour in which he sought means of
appeasing Adolf Hitler's colonial ap-
petite. It came the same day Ger-
man Foreign Minister Joachim von
Ribbentrop visited Paris to sign a
pathetically insincere pact with
France; as Reichsfuehrer Hitler
consequently prepared to delete
French attacks from the next edi-
tion of “Mein Kampf'’'; as Italy,
Cermany’'s closest ally, continued
clamoring for the French territories
of Tunisia, Corsica and Nice.
With Great Britain shoved tempo-
rarily into the European back-
ground, France finds herself holding
a gilded bombshell in the German
treaty. Her government is now
forced to accept Fascist activity on
two European fronts or risk com-
plete overthrow:
Germany, France must give Hit
ler a free hand in eastern Europe,
refusing to intervene even if Ger-
many threatens France's ally, Rus-
sia. Within 48 hours after the Fran-
co-German pact was signed, Berlin
opened a noisy propaganda cam-
paign against Rumania's King Carol,
who has been actively purging Nazi
partisans from his government. At
the same time, in Memel (under
Lithuanian sovereignty), German
residents began an autonomy cam-
paign that undoubtedly had inspira-
tion in Berlin. Satisfied so long as
Hitler keeps himself busy in eastern
Europe, France will not protest
these activities,
Italy. France must permit ful-
fillment of Italy's ‘‘vital aspirations’’
in the Mediterranean or incur the
wrath of Adolf Hitler, Italy's friend.
Though Foreign Minister von Rib-
ranean crisis provoked by Italian
needs clarification. The
German pact specifically reserves
‘“‘particular relations with third pow- |
ers’ for both signatories. Most ob- |
servers expect French capitulation |
to Italian demands next month when
British Prime Minister Neville
Chamberlain makes his well-adver-
tised ‘‘appeasement’’ visit to Rome. |
Labor |
Both the American Federation of
Labor and the Congress of Indus-
trial Organizations insist the nation-
al labor relations act must not be
changed, but A. F. of L. hurls con-
stant criticism at the board Presi-
dent Roosevelt has appointed to in-
terpret that act. One bit of criticism
centered around the labor board's
order to New York's Consolidated
Edison company, forcing abrogation
of a bargaining contract with A. F.
of L.. The board's reasoning: that
the contract resulted from unfair la-
bor practices and was intended to
discourage membership a rival
C. 1. O. organization,
When A. F. of L. President Wil-
liam Green heard the U. S. Supreme
court had voided this NLRB order,
his joy was unbounded: ‘‘This
knocks the props out from under
the board's arbitrary,
and grossly unfair position.”
keen observers who read
into the court's decision found cause
for speculation about something
more important.
Although Consolidated Edison op-
erates chiefly in New York, the
court ruled its labor relations were
still subject to NLRB
i
in
But
lation under the interstate com-
merce clause given broad extension,
paving the way for legislation which
could make the potent Wagner act
seem mere child's play.
Predicted as a subject for con-
gressional debate is extension of the
highly satisfactory railway labor act
to include all industry. If such leg-
A. F, OF L.’S WILLIAM GREEN
His victory brought a prediction.
railway act, neither labor nor capi-
plaint.
railroad strike.
ances to the national mediation
board, and if this group fails to
may take place until 30 days after
this group reports.
That some such regulation will
eventually guide all capital-labor
relations is quite likely.
congress, 1939 will positively bring
Wagner act amendments in the gen-
eral direction.
Miscellany
Motorists bound for Pasadena’s
Rose Bowl footbail game next month
will be guided by aerial traffic po-
licemen whose broadcasts can be
picked up by any car radio.
@® Three acres added to Bedloe's
island, home of the Statue of Lib-
erty, have created a problem for
congress. Under a treaty in 1834,
the island was given to New York,
but all land around it went to New
Jersey. The extra three acres ap-
parently belong to New Jersey.
Pan-America
Before they left to attend the
eighth Pan-American conference at
Lima, U., S. delegates spoke opti-
mistically of efforts to unite the
Western hemisphere into a solid
bloc opposing European aggressors.
But the picture looked vastly dif-
ferent from below the equator. At
Lima they found representatives of
20 other American nations who ex-
hibited justified coolness toward the
‘‘colossus of the north’ whose Presi-
dent has taken the lead in what
might be another attempt at ‘“Yan-
kee imperialism.” They discovered
that South American nations have
their cultural centers in Rome, Par-
is and Madrid; that despite any
U. S. ambitions to the contrary, Pan
America will insist on maintaining
its trade relations with Europe.
With the conference still expected
to run several weeks, it becomes
clear that what support Secretary of
State Cordell Hull gains for Presi-
dent Roosevelt's hemispheric de-
fense plan will be in principle only,
merely a resolution of endorsement,
Counting noses, Mr. Hull found his
strongest friend in Brazil. His most
powerful enemy was Argentina, dis-
gruntled over U. S. attempts to in-
vade her export wheat market. Not
{ invited, but nevertheless present,
were envoys from Nazi Germany
who sought to smash Mr. Hull's
hopes for concrete measures against
political and cultural invasion from
Europe.
Jobs Wanted
MAYOR-—Secretary of the In-
terior Harold L. Ickes, may
tire from office to run for Demo-
cratic nomination Chicago's
mayor.
PRESIDENT — John
Garner, vice president of the U
S., is being boomed for the presi-
dency by his boyhood friends :
Detroit, Texas. One
fame: the mud-chinked lo
where Garner was born.
SECRETARY —Anthony
who retired as British
secretary in opposition to
Minister Neville Chamberlain,
may return to the cabinet
nonth as dominions secretary.
LEADER-—Massachusetts’ Rep
Joseph Martin will be
house Republican leader the
first ballot next month, since 109
of the 169 G. O. P. parti
assured him their support.
re-
as
Nance
»
3
elected
on
ans have
| Business
| ly effects every citizen in the U. S.
| Reducing from 6 to 5 per cent the
interest which life insurance
panies may charge on policy loans,
the Piper-O'Brien bill has necessi-
tated nation-wide revision of inter-
est rates because insuranc
panies cannot charge dif
in different states.
Upshot is that most companies
are boosting their premium charges
from 10 to 20 per cent on p
written after January 1, alth
many firms made the
cember 1. Policies
fore the readjustment will not be af-
fected, but in addition to in-
terest rate and higher premiums,
the following additional revisions
will be made on most new policies:
| (1) reduction of guaranteed interest
| rates to beneficiaries; (2) lower in-
| terest rates on dividends left with
| companies; (3) increased pre-
| miums on endowment annuity poli-
| cies; (4) withdrawal or substantial
change in certain types of con-
tracts.
By reducing policy loan interest
charges from 6 to 5 per cent, in-
| surance firms will lose annual rev-
| enue totaling $50,000,000. Other fac-
| tors necessitating higher premiums
| include the difficulty of finding sat-
isfactory capital markets, and the
| small amount of new financing now
| being done.
| Politics
It is plausible that November elec-
| tion gains by the liberalized Re-
| publican party should give strength
| to. old-line Republicans who have
| taken a back seat in party affairs
| since the disastrous defeat of 1936.
This very thing happened at the re-
cent national committee conference
in Washington, where confident lib-
erals found themselves confronted
with an unexpectedly strong faction
of Hoover, duPont and Liberty
league Republicans. A still more im-
portant shift is that liberal G. O. P.
strength, which originated in the
| rural areas, has moved to metro-
politan cities and has been supplant-
ed in the small towns by a stronger
conservative element. Having ap-
pointed a conservative (ex-Sen. Dan-
iel O. Hastings of Delaware) and a
| liberal (Harvey Jewett of South Da-
kota) to fill two executive commit-
tee vacancies, the party now finds
| itself deadlocked on a future course.
Though much talk is heard of po-
tential 1940 candidates, it is believed
the party must first decide which
way its course shall be set—to
liberalism as evidenced since 1936,
or to conservatism.
People
The name of Masaryk, famous in
Czechoslovakian history since Thom.
as G. Masaryk founded the nation
20 years ago, will leave that nation's
officialdom forever on January 1.
Jan Masaryk, son of the Czech ‘‘fa-
ther’ and minister to Great Britain
for 14 years, has announced his re-
tirement in protest over his coun-
try's capitulation to Germany. After
visiting the U. S., he will live in
England.
cCOom-
fer
cies
ough
De-
be-
wf
1
ower
WASHINGTON.—It is a strange
thing what an official title will cause
many men and women to do. It is
equally strange what many of them
will attempt to do under the guise of
the official sanction which they
usurp at every opportunity. I do
not intend to include all public offi-
cials but I dare say that everyone
who reads these lines can look about
him and discover in his midst or
recall others who, as soon as they
began wearing a title, developed a
“big head,” got “puffed up’ and
otherwise assumed a high-and-
mighty attitude. The characteris-
tics may show in a thousand-and-
one different ways, and we all are
more or less familiar with them.
Few persons probably would need
to be concerned if the circumstance
involved only this outward appear-
ance. I am sure I wouldn't care
whether some official believed him-
self to be a son of the sun-god and,
therefore, counted
But when the mental attitude
that official begins manifesting it-
self as it so often does by usurpa-
tion of improper and illegal power;
it seems to me that a halt ought to
be called.
All of the above observati
made just as a prelude «
of a recent action by the department
of justice. More accurately, it
should be said action was by
Professor Arnold who
) Gif
the
trust buster.
let it be known—with due modesty,
of course—that he possesses knowl-
edge in many fields. His career as
a university professor obviously fit-
problems and practices of business
men. Mr. Arnold has not yet under-
question of time.
indictment Used as Club
Over Auto Corporations
But, again, I am not so much con-
cerned with Mr. Arnold's own esti
mate of Mr.
results flowing from that official's
acts.
The act that brings on this dis-
cussion was involved in
known as a consent decree
department of justice
grand jury indictment
the larger automobile
Ing corporations
under anti-trus
charges involved the use,
companies, of what were described
as monopolistic practices in the
financing of new cars sold to in-
stallment buyers. Each of the larg-
er companies, as I understand
what
what
of some
car wants to pay for the vehicle over
a period of a year or longer.
I do not know the intricate na-
ture of the scheme, and there may
have been many grounds fer the in-
dictment. Indeed, I think a grand
| jury would not have returned an in-
dictment unless its members saw
something that was not proper. But
when the department of justice had
the indictment, it used it as a club.
Its officials, under Mr. Arnold's
guidance, are reported to have said
to the motor magnates, in effect:
now, if you admit certain of these
charges and agree to stop the prac-
tices, and if you will agree to com-
ply with certain other conditions
which we lay down, we will not
prosecute, criminally. So, the mo-
tor companies apparently elected to
agree and avoid further prosecution.
Thus, there came about a decree by
the consent of the accused.
In the first place, I can not be-
lieve there is any legal right in our
laws for the consent decree. It has
been used a long time, but it seems
to me that it contains very danger-
ous elements. It ought to be stopped
and there ought be no indictments
brought unless there is an inten-
tion to carry the battle clear
through. There ought to be either
a conviction or an acquittal.
| Arnold Assumes Dictation
| Over Auto Advertising
In the case of the motor manufac-
turers, however, Mr. Arnold's deter-
mination to make things over has
come to the surface to an even
greater extent than heretofore, even
with Mr. Arnold. For Mr. Arnold
has decided that the motor compa-
nies have been spending too much
money for advertising their prod-
ucts. In spending so much money
for advertising, Mr. Arnold opines
that they are thereby creating a
monopoly. In other words, as a
trust buster, Mr. Arnold figures that
he can become boss of the normal
practice of business advertising. It
can be construed no other way.
I have looked into the question
from a number of angles and have
consulted with numerous individuals
who know their law better than I
any power vested in the department
of justice for control of advertising.
1 should regret it very much if
congress ever had passed a law giv-
ing authority for any agency of gov-
ernment to do more than prosecute
advertisers who use dishonest state-
ments. That is to say, if the ad-
vertising statements are crooked,
punishment ought to follow. If the
advertising is honest, what business
has government horning into it?
The reason I feel so keenly about
this sort of thing is that it is a
trend in government, from the na-
tional government on down the line,
to do things indirectly—to do many
things without genuine authority of
law. We as a nation always have
supported the theory of rule by the
majority. We have legislative bod-
ies—the congress, the state assem-
blies, the city councils and so on—
to enact the will of the majority
into law. But in the motor case and
in dozens of others which could be
mentioned, the public official with
the “boss’’ complex takes things
into his own hands and usually gets
ngress, itself
es for putting
hands of bureaucrats.
is to blame many
undue power into
There is
seldom any law passed by congress
wt include a provision
rizes an executive agen-
administering the statute,
omulgate regulations for carrying
the law's intent. Those regula-
tions, needless to say, have the force
and effect of law, and thus con-
gress has delegated power about
to
114
oul
and senators know nothing.
On the other hand, except for the
trait that I have been discussing—
one so boldly evident in Mr. Arnold
—those regulations could be drawn
in nearly every instance to give
individuals all of the freedom need-
ed to transact business, instead of
I doubt very much that any one per-
in the whole United States
knows all of the restrictions—the
and the don’'ts—that comprise
the law of the nation today. No one
because it would re-
quire an entire lifetime of an indi-
vidual to obtain them and read
} And before he had read very
many, there would be a new crop;
read, and there would be new
$ Tat
We have heard much in late years
about government by men rather
Well, we
in this country in a big way.
as bad, of course, as in the
case of Hitler or Mussolini or Stalin.
When those brothers want to change
a law, they change it by decree.
They may go through the formality
of a “ratification” by a set of
stooges some time, but the stooges
were selected as yes-men long in
advance.
Everyone has read of the Jewish
atrocities in Germany, but the mon-
strosity, itself, overshadowed the
fact that during all of the purge,
there was one decree-law after an-
other being issued from Hitler's
headquarters. Each time somebody
found a loophole or the officials dis-
covered a previous decree did not
accomplish all that was desired, out
would pop a new decree.
Congress Might Well Take
Notice of These Conditions
Having seen what can happen
when men, instead of laws, consti-
tute the authority for government,
it seems to me that congress might
well take notice. It has given birth
to children in the form of countless
regulations that are running around
the land like so many thousand-
legged monsters. Why, 1 wonder,
does not congress take a look at
what has sprung from its own fam-
ily of laws. To grow facetious for a
moment: congress probably would
find trouble with its own “in-laws,”
as well as private persons whose
mothers-in-law have been charac-
terized in story.
I have wondered many times
whether more than a very small
number of farmers ever understood
the AAA contracts, and the regula-
tions to which those contracts re-
ferred. Examination of the terms
gave me little inkling of how thor-
oughly the signers were bound, al-
though, as AAA officials often ex-
plained, the provisions were plainly
printed. That fact, however, never
has altered a really bad situation.
None of us can be expert in all
things. We, therefore, are more or
less at the mercy of the individuals
who are clothed with the power of
office and who relegate to them.
selves additional power because
they know those against whom it is
used frequently have no understand
ing of the whole situation. Thus, I
reiterate, it appears to be time for
CLASSIFIED
DEPARTMENT
CHICKS
| ROCKS, REDS & BR, CROSSES hatched
from selecled Blood Tested Breeders,
MILFORD HATCHERY
| Milford Road nr. Liberty Rd., Pikesville,
| FP. 0. ROCKDALE, MD. Pikesville 841-5,
JEWELRY
Watches, Wrist Watches,
ery. iy price, Write what you want
| 855, 1K £2 14K $160
| nation, 1234 KB. St
Diamonds, Jew-
3 “BK
Will send exami.
Bernard, Phils., Pa,
PECANS
Pecans-—Large Papershell Direct
Grower 5 Ibs, $1.25, 10 Ibs
$4.75, Truleock Pecan Co.,
AGENTS
from
ibs,
Ga.
oe,
25
$2.25
Whigham,
MEN or WOMEN Lo sell our popu iar priosd
May - Way Shoes for Men, Women and
Children, Shoes bave all-leather uppers
innersoles, counters and balf-ineh damp
proof Crepes robber soles attached by
patented process. Hach sale pays sgent
8 good profit. Write for delal ls
BROCKTON MAIL ORDER SMOE HOUSE
Brockton (Mentelieo) Mass.
! : nts in coins
tern The Sewing Circ
dlecraft Dept., 82 Eighth Ave
York,
Please write your
dress and pattern numbe
nr . »
New iN. 1.
Palace Depression
The Palace Depression in
Vineland, N. J. It was built by
George Daynor wh arriving in
5, settled in
automobile With-
con-
ard-
L biles,
rocks, logs and clay. He cleared
the swampy, quito-infested
land and beautified i 1 plant-
ings of flowers and shrubbery.
After three ' work the
house was opened to the public
on December 25, 1832. Thousands
of visitors come to the place,
which is a
genuity of
see
WRITE TODAY FOR MY MONEY-MAK.
ING PLAN to seil introduce our
UALITY Baby Chicks, Ducklings and
urkey-Poults in your community
5. BR. SCHLEY . Pikesville, M4.
BILIOUS?
and
Here Io
Conditions Due to Siuggish owels
1f you think all lnzatives
act alike, Just try this
all otable laxative,
Bo pat re
fovigorsting. Dependable
oo Bich
sanoristed 00 on. 8
Without Risk 57.2 25° brr.of NR from your
ruggist. Make the test — then
if not Oelighted, return the Dox %o us. We will
refund the purchase
Baa Son raieer oty. @ RARAM aM
DMOBROW BIRICwT
Everywhere and Nowhere
He has no home whose home is
everywhere. —Martial.
SALVE. NOSE DROPS
et ———s
C oLD Ss
Headaches
and Fever
due to Colds
WNU-—4
Sentinels
of Health
Don’t Neglect Them!
oT aa mr a
blood stream free of an excess
The act of living-dife
it