Evening Star Newspaper, June 20, 1935, Page 4

TAXPLAN REGALLS VIEWS OF ECELE Program Apparently Fits Philosophy of Wealth Redistribution. By the Associated Press. The tax program suggested by Presi- dent Roosevelt apparently fits into an economic philosophy calling for re- distribution of income and greater emphasis on mass purchasing power as expounded recently in & high New Deal quarter. The testimony of Marriner S. Ec- cles, liberal-minded governor of the Federal Reserve Board, on the ad- ministration bank bill betore a House committee some weeks ago, appeared today to have struck a prophetic note. He set forth in elaborate detail the view that the depression was caused in large measure by maldistribution of income in the 1920s, and that the remedy lay in raising mass purchasing power. Urges Compensating Agent. He pictured the Federal Government playing the role of a compensating agent—spending in bad times and taxing heavily in prosperous years to level out the peaks and valleys in business. As Eccles explained it, excessive piling up of income by a relatively few persons who could consume only & minute fraction of it resulted in too large a flow of money into pro- duction facilities. While this contributed to a tempo- rary boom in industries supplying capital goods for production, the re- sult was a lack of balance between consumption and production, he con- tended. He insisted a long-time recovery program should embrace three phases —monetary action, © Government spending and taxation. Some students raise questions as to how big fortunes would be leveled and income redistributed through heavy inheritance taxes. Some Wealth Not Liquid. Wealth largely consists of factories, railroads, power plants, etc, rather than liquid capital. Supporters of the taxing method of “sharing wealth” say, however, that ownership in most big corporations is divided into many shares, and that their securities are listed on the Stock Exchange, providing means of turning them into cash for payment of taxes. Nevertheless, some contend that problems might rise under unfavorable market conditions and in the in- stances of corporations whose securi- ties are closely held. “How,” they ask, “would the Gov- ernment collect a heavy inheritance tax on the Ford Motor Co, virtually a one-man business with no eyen market for its securities?” WOMAN DESIGNATED HOPKINS’ ASSISTANT Mrs. Ellen S. Woodward of Jack- son, Miss., to Be in Charge of Feminine Work. Mrs. Ellen S. Woodward of Jackson, Miss., has been ‘appointed by Harry L. Hopkins as assistant works prog- ress administrator and assistant Fed- eral emergency relief administrator. In making this announcement Hop- kins explained that Mrs. Woodward will be in charge of women's work under the two programs. Hitherto she has been director of women’s work in the works division of the Federal Emergency Relief Administration, where she concentrated on relief problems of needy women and pro- vided suitable projects for them.’ She has been in Washington since Sep- tember, 1933, A member of the Mississippl Leg- islature from 1926 to 1928, Mrs. ‘Woodward served as a member of the Executive Committee of the Missis- sippl State Board of Public Welfare from its creation in 1932 until she came here. She was executive sec- retary of the Mississippi State Board of Development from 1927 until she came here and also held the post of executive secretary of the Research Commission of Mississippl. Mrs. Woodward has been prominently identified with numerous civic and professional groups. MODEL PLANE CONTEST ENTRY TIME EXTENDED Time for acceptance of entries in the 1935 model aircraft contest and exhibit of the District Model Aircraft League has been extended until 4:30 pm. next Wednesday, it was an- nounced today by Paul E. Garber, curator of aeronautics, Smithsonian Institution. Models may be entered by any boy or girl and should be turned over to Garber at the New National Museum, where they will be exhibited in the basement foyer. All entrants under 16 years on June 1 will be classed as Juniors, those over that age as seniors. The models will be judged before the end of next week and will be kept on display until the end of the month, Garber said. 1933 Files Show Only 46 Reporting $1,000,000 Income President Fails to State W hether He W ants Tax on Lesser Earnings. By the Associated Press. The Capital speculated today on whether President Roosevelt wants higher income taxes levied on those making less than $1,000,000 a year. In his message to Congress yester- day hg gave no figure, using $1,000,- 000 as an illustration, Only 46 returns of more than $1,- 000,000 were made in 1933, the latest year for which the ‘Treasury has completed its statistics. This repre- sented only .002 per eqi of the total returns filed for that year. 5 by classes follow: $1,000,000-81,500,000, 29, President’s Tax Message Congress Is Asked to Adjust System So as to Impose : Greater Share of Burden Upon Large Fortunes. The text of President Roosevelt’s tax message follows: To the Congress of the United States: As the fiscal year draws to its close, it becomes our duty to con- sider the broad question of tax methods and policies. I wish to acknowledge the timely efforts of the Congress to lay the basis through its committees for admin- istrative improvements, by careful study of the revenue systems of our own and of other countries. These studies have made it very clear that we need to simplify and clarify our revenue laws. ‘The Joint Legislative Committee, established by the revenue act of 1926, has been particularly helpful to the Treasury Department, The members of that committee have generously consulted with adminis- trative officials, not only on broad questions of policy, but on impor- tant and difficult tax cases. On the basis of these studies and of other studles conducted by officials of the Treasury, I am able to make a number of suggestions of important changes in our policy of taxation. These are based on the broad principle that if a government is to be prudent its taxes must produce ample revenues without discouraging enterprise; and if it is to be just it must dis- tribute the burden of taxes equi- tably. I do not believe that our present system of taxation com- pletely meets this test. Our reve- nue laws have operated in many ways to the unfair advantage of the few, and they have done little to prevent an unjust concentra- tion of wealth and economic power. With the enactment of the in- come tax law of 1913 the Federal Government began to apply effec tively the widely accepted principle that taxes should be levied in pro- portion to ability to pay and in proportion to the benefits received. Income was wisely chosen as the measure of benefits and of ability to pay. This was and still is a ‘wholesome guide for national policy. It should be retained as the gov- erning principle of Federal taxa- tion. The use of other forms of taxes is often justifiable, particu- larly for temporary periods; but taxation according to income is the most effective instrument yet de- vised to obtain just contribution from those best able to bear it and to avold placing onerous burdens upon the mass of our people. Production and Markets. ‘The movement toward progres- sive taxation of wealth and of in- come has accompanied the growing diversification and interrelation of effort which marks our industrial society. Wealth in the modern world does not come merely from individual effort; it results from a combination of individual effort and of the manifold uses to which the community puts that effort. The individual does not create the product of his industry with his own hands; he utilizes the many processes and forces of mass pro- duction to meet the demands of & national and international market. Therefore, in spite of the great importance in our national life of the efforts and ingenuity of un- usual individuals, the people in the mass have inevitably helped to make large fortunes possible. Without mass co-operation great accumu- lations of wealth would be impos- sible save by unhealthy tion. As Andrew Carnegie put it, “Where wealth accrues honorably, the peo- ple are always silent partners.” Whether it be wealth achieved through the co-operation of the entire community or riches gained by speculation—in either case the ownership of such wealth or riches represents a great public interest and a great ability to pay. I My first proposal, in line with this broad policy, has to do with inheritances and gifts. The trans- mission from generation to genera- tion of vast- fortunes by will, inheritance, or gift is not consistent with the ideals and sentiments of the American people. The desire to provide security for one’s self and one’s family is natural and wholesome, but it is adequately served by a reasonable inheritance. - Great accumulations of wealth cannot be justified on the basis of personal and family security. In the last analysis such accumulations amount to the perpetuation of great and unde- sirable concentration of control in a relatively few individuals over the employment and welfare of many, many others. Such inherited economic power is as inconsistent with the ideals of this generation as inherited po- litical power was inconsistent with the ideals of the generation which established our Government. Creative enterprise is not stimu- lated by vast inheritances. They bless neither those who bequeath nor those who receive. As long ago as 1907, in a message to Congress, President Theodore Roosevelt urged this wise social policy: “A heavy progressive tax upon a very large fortune is in no way such a tax upon thrift or industry as a like tax would be on a small fortune. No advantage comes either to the country as a whole or to the - Faxdst * accrue, in respect to all very large amounis recelved by any one legatee or beneficiary; and to prevent, so far possible, evasions of this tax, commend further the imposition gift taxes suited to this end. Because of the basis on which this proposed tax is to be levied and also because of the very sound public policy of encouraging wider distribution of wealth, I strongly urge that the proceeds of this tax should be specifically segregated and applied, as they to the reduction of the national debt. By so doing, we shall progressively lighten the tax burden of the average taxpayer, and, incidentally, assist in our approach to a balanced budget. 1L The disturbing effects upon our national life that come from great inheritances of wealth and power can in the future be reduced, not only through the method I have Jjust described, but through a definite increase in the taxes now levied upon very great individual net incomes. To illustrate: The application of the principle of a graduated tax now stops at $1,000,000 of annual income. In other words, while the rate for a man with a $6,000 income is double the rate for one with & $4,000 income, a man having & $5,000,000 annuai income pays the same rate as one whose income is $1,000,000. Danger to National Life. Social unrest and a deepening sense of unfairness are dangers to our national life which we must minimize by rigorous methods. People know that vast personal in- comes come not only through the effort or ability or luck of those who receive them, but also because of the opportunities for advantage which Government itself contrib- utes. Therefore, the duty rests upon the Government to restrict such incomes by very high taxes. L In fhe modern world scientific invention and mass production have brought many things within the reach of the average man which in an earlier age were avail- able to few. With large scale en- terprise has come the great cor- poration drawing its resources from widely diversified activities and from a numerous group of investors. ‘The community has profited in those cases in which large scale production has resulted in sub- stantial economies and lower prices. The advantages and the protec- tion conferred upon corporations by the Government increase in value as the size of the corporation increases. Some of these advan- tages are granted by the State which conferred a charter upon the corporation, others are granted by other States which, as a matter of grace, allow the corporation to do local business within their bor- ders. But perhaps the most im- portant advantages, such as the carrying on of business between two or more States, are derived through the Federal Government— great corporations are protected in a considerable measure from the taxing power and the regula- tory power of the States by virtue of the interstate character of their businesses. As the profit to such a corporation increases, so the value of its advantages and pro- tections increases. Small Enterprise Hit. Furthermore, the drain of @ de- pression upon the reserves of busi- ness puts a disproportionate strain upon the modestly capitalized small enterprise. Without such small en- terprises our competitive economic society would cease. Size begets monopoly. Moreover, in the aggre- gate these little businesses furnish the indispensable local basis for those Nation-wide markets which alone can insure the success of our mass production industries. Today our smaller corporations are fight- ing not only for their own local well-being but for that fairly dis- tributed national prosperity which ::kbea large-scale enterprise pos- It seems only equitable, there- fore, to adjust our tax system in accordance with economic capacity, advantage and fact. The smaller corporations should not carry bur- dens beyond their powers; the vast concentrations of capital should be ready to carry burdens com- mensurate with their powers and their advantages. We have established the prin- ciple of graduated taxation in re- spect to personal incomes, gifts and estates. We should apply the same principle to corporations. Today the smallest corporation pays the same rate on its net profits as the corporation which is & thousand times its size. I, therefore, recommend the substitution of a corporation in- come tax graduated according to . the size of corporation income in place of the present uniform cor- poration income tax of 13% per cent. The rate for smaller cor- porations might well be reduced to , 10% per cent, and the rates gradu- ated upward to a rate of 16% per ROOSEVELT HOLDS PLANOF TAX DEAR Associates at Capitol Say He Will Press It in ’36 d Campaign. By the Associated Press. Associates of President Roosevelt at the Capitol said today the principle of his vast tax plan meant most to him of all the New Deal program, and that he would press it through the 1936 campaign. These authoritative sources, who asked that their names not be used, said he had talked with confidants about it off and on for some time. They themselves were taken aback by the suddenness of the actual message. Political repercussions, emphasizing the possibility of pronounced party splits, were expected. Depending on how broadly Mr. Roosevelt pursues his point, an issue rivaling constitu- tional questions raised by the Supreme Court N. R. A. decision might con- ceivably result. Appeals to Left. On the one hand, his suggestions for combatting “unjust concentration of wealth” appeals especially to the “left” camps in both parties. On the other, the recommendations that the proposed inheritance tax receipts be used to help balance the budget express an objective in lino with conservative views—though the methods of seeking the goal are ex- pected to arouse hot debate. Representative Snell of New York, the .Republican leader, summed up sentiments of more than one legisla- tor with: “It looks like the President is trying to get the jump on Huey Long and the share-the-wealth people.” Senator La Follette called the mes- sage “splendid” and most Democrats who would comment immediately had good words to say. In some anti-administration quar- ters, it was contended “reform” was decidedly being put ahead of “re- covery.” country, and so for the major parties, will be watched. New Deal Leaders Startled. Some New Deal leaders showed they were startled, if not mystified, by the tax move at just this time. They had felt satisfactory speed was being made on the “must” program and looked forward to adjournment. Now they felt not only that legis- lative bearings had to be taken again, but also political bearings. Some knew Mr. Roosevelt had been inclined on previous occasions to take the tax step. Each time, advisers counseled against it. “Wait until next session at least,” was the tenor of some advice, as re- counted today by men in a position to know. The die, as they saw it, is now cast. Much more than the three definite proposals is involved. The President did not specifically ask, but apparently contemplated, con- sideration of those proposals this ses- sion. SHIP LINES FIGHT PETTENGILL BILL Head of Steamship Association Declares It Would Bring Chaos Upon Industry. By the Associated Press. Opposition to the Pettengill long- and-short-haul bill was voiced before a House Interstate Commerce Sub- committee yesterday by representa- tives of steamship interests. The measure is described by its author, Representaiive Pettengill, Democrat, of Indiana, as designed to permit che railroads tc meet compe- tition by charging less for a long haul than for a shorter hau! to interme- ciate points over the same route. R. J. Baker, president of the American Steamship Owners’ Asso- ciation, declared repeal of the fourth section of the interstate commerce act “would bring chaos upon the shipping industry.” George E Talmage, jr., freight traf- fic manager of the Panama Pacific Line, charged the rails “seek to be relieved from having to maintain rea- sonably compensatory rates for the longer competitive hauls than for the shorter.” SERVICE MEDALS STOLEN Lieut. Comdr. B. W. Cloud Re- ports Theft From Apartment. Two service medals, a Victory medal and gold chain were stolen yesterday by burglars who ransacked the apart- ment of Lieut. Comdr. Benjamin W. Cloud, U. S. N, at 2032 Belmont road. The burglars gained entrance by breaking a lock. Sneak thieves yesterday took an automatic pistol and 50 rounds of ammunition from an automobile left parked near Eleventh and E streets by Peter V. Grynkswiez of Baltimore and Charles L. Adams of Cape May, N. J. The thieves also stole wearing apparel from the automobile. TUGWELL IS COLONEL Displays New Mexico . Commis- sion to Marvin McIntyre, Rexford G. Tugwell, Undersecre- tary of Agriculture, is a full-fledged colonel on the staff of Gov. Kingley of New Mexico and he proved it yes- terday at the White House by show- ing his certificate. Tugwell displayed the certificate proudly to Marvin McIntyre, & secre- tary of President Roosevelt, who is a Kentucky colonel. Some debate en- sued, but no results were announced. Implications of this for the | g ity ‘The first automobile to be towed away by police under the impounding regulation is shown as it was hauled from its place in a no-parking ares yesterday. Joseph F. Santon, 1740 K street (inset), the owner, had left the car on Sixth street between Indiana avenue and D street, & zone restricted to parking between the rush hours of 4 and 6 pm. Santon reclaimed his machine at headquarters after posting collateral. ’ One other machine, the owner of which is still being sought, was towed away on the first day of the drive against illegal parkers, Taxes (Continued From Pirct Page.) say directly he would take the ques- tion to the President, but asserted to newspaper men: “If the President has anything to say to us on the subject, I assume he will call us down there.” At the same time, Doughton was asked about the remark of another congressional leader, who said pri- vately that the share-the-wealth taxes had not “a chance in hell for passage this session.” “That's a separate jurisdiction,” Doughton added. “Maybe they do have a chance cn earth. “My impression of the President’s message is that he laid the matter before Congress to be dealt with as early as it can be, consistent with other things. “I don't know definitely whether the President wants the taxes this session or not. I he does.” In a general indorsement of the President’s suggestions, Doughton added: “I subscribe neither to the idea ‘soak the rich’ nor ‘crush the poor.’ The President’s plan wouldn’t do that. “I have no sympathy with those who advocate extreme tax plans. The way to stop those is not to go to the other extreme. “Old Solomon—who was a pretty wise guy—summed it up when he said: ‘Give me neither poverty nor riches; poverty lest I be poor and steal, riches lest I say “Lord, who art thou”.'” Second Message Expected. The revived N. R. A. which the President is said to be considering was pictured by some of his advisers as an effort to increase mass purchasing power. Thus, they said, it would be akin to the tax plan. They foresaw the possibility that another “surprise” message on the subject might be forth- coming. There is one major “if” on N. R. A,, it was said. The plan may be recom- mended if the administration can find a definition of interstate commerce it considers satisfactory and able tostand the test of constitutionality. Author- itative sources said the President had remarked .that he was inclined to believe Congress could constitutionally define interstate commerce so the Federal Government could supervise some things over which the Suprems Court held the old N. R. A. had no power. The quest, it was said, is for words to define what the Constitution means when it says Congress can regulate commerce “among the several States.” The tax message, it became clear today, was written and sent to Con- gress against the advice of nearly all the high Democratic advisers on Capi- tol Hill. After counseling against such an idea some time ago, some zg.uum had been predicting recently t no new taxes would be recom- mended. But the President, it was sald authoritatively, wrote the mes- sage without their knowledge and sent it to the Capitol in a hurry so pres- sure would not be brought on him to withhold it. Numerous Changes Urged. The message suggested: 1. Inheritance, succession and legacy taxes in addition to those now levied on estates, and suitably higher gift taxes to prevent avoidance of the other levies. 2. A “definite increase” in present taxes on “very great” individual in- comes. 3. Graduated corporation income taxes ranging from 10% to 16% per cent instead of the present flat 13% per cent. 4, “Flimination” of “unnecessary holding companies in all lines of busi- ness” through taxation. 5. Submission and ratification of a constitutional amendment permitting the Federal Government to tax future issues of State and iocal securities and allowing State and local governments to tax future Federal securities. The President pictured the fourth point as something to be done “ulti- mately,” not at this session of Con- . There was some doubt in the minds of many congressional leaders as to how pressing the fifth point was considered. Most agreed, however, proposals as “must,” asserting they would delay adjournment of Congress “until Thanksgiving.” Appraisals Are Varied. Generally, the tax plan drew praise from those Democrats who commented and from some Republican liberals, with other legislators contending it would retard recovery. For instance, Senator Neely, Demo- crat, of West Virginia, called the message a “life-saver for democracy” and Senator La Follette said it was “a splendid m .” Representa- tive Snell of New York, the House Republican leader, termed the mes- sage a “stump speech,” said the Presi- dent was “trying to get the jump on Huey Long” and predicted the plan would “retard the improvement hoped for this Summer.” Senator Norris, Republican, of Ne- braska, said the program “suits me 100 per cent both on the inheritance tax and the corporation tax.” Repre- sentative Martin, Repubdlican, of Massachusetts, described it as “not the kind that will be helpful to re- covery at this time.” ‘There was no immediate comment on the President’s contention that wealth “does not come merely from individual effort,” but “from a combi-~ nation of individual effort and of the manifold uses to which the com- munity puts that effort.” The subject of budget-balancing was touched on in one part of the message. It said money raised by the new inheritance taxes should be applied “to the reduction of the na- tional debt.” Specific Rates Omitted. Specific tax rates, except for cor- poration incomes, were omitted from the President’s suggestions. There- fore, the general conclusion was that he was willing for Congress to work out the schedules itself. But talk was revived“‘dbout s plan submitted to the Senate Finance ttee by Secretary Morgenthau. Suggesting that $300,000,000 to $600,000,000 could be raised annually, Morgenthau proposed that the present income tax rates be applied to inher- itances and gifts to pay the soldiers’ bonus—in case Congress passed the bonus. Present income rates range from 4 per cent to nearly 63 per cent. The President proposed oothing more definite on individual income taxes than increases for high- er brackets. He said a man with a $6,000 income pays twice as much as the man with $4,000, while the man with $5,000,000 pays at Lie same rate as the one with only $1,000,000. ‘That {llustration, however, was not interpreted as meaning tne President had closed the door to xcreases in rates on lower brackets. At any rate, tax experis generally agreed that imposing high inheri- tances on top of the existing estate taxes certainly would break up huge fortunes. They calculated that under the Morgenthau schedules, if a for- tune of $15,000,000 was left to une person it would shrink to than less $3,000,000 by the time all taxes were paid. —— RETAIL CREDIT GROUP DISCUSSES LEGISLATION Giles C. Driver of Cleveland Chosen President—C. M. Keefer of Capital Named a Director. By the Associated Press. ROCHESTER, N. Y., June 20.— Dis- cussion of a legislative program and election of officers featured the busi- ness session today as delegates to the twenty-second convention of the Na- tional Retail Credit Association looked forward to their annual banquet to- night and an address by Dr. John Dickinson, Assistant Secretary of Com- merce. . Giles C. Driver of Cleveland was elected president to succeed Charles M. Reed of Denver. Other officers elected were: First vice president, E. K. Barnes, Spokane, Wash.; second vice presi- dent, A. J. Kramer, New York City; four directors at large, C. M. Keefer, ‘Washington, D. C.; W. E. Baad, New York City; Frank Batty, San Fran- cisco, and J. G. HcBflde.. ‘Wichita, Kans. by Dean g owa, Ty g Customers.” Tax Plan Another Way to Meet $26,000,000 Daily U. S. Outlay By the Associated Press. program that calls for expenditure of an aver- age of $26,721,733 every day from now June 30, 1936. ? Mr. Rooseveli’s budgetary views, &s expressed in messages Yo Congress, called for spending $8,581,069,026 dur- and & cumulative deficit of $13,387,~ expenditures have been $14,105,717,725, receipts, $6,745,323 342, and the cumulative deficit, $7,360,- The gross public debt has risen $6,133,355,905—from $22,538,672,560 on June 30, 1933, to $28,672,028465 on June 17, 1935. The present level is $7,737,209,256 higher than at tho ‘be- ginning of the -administration. It is officially estimated that next will bring the total BAYBRIDGE ‘00T 45 0. §. PROIET Hasn’t a Chance for Federal Funds. By the Associated Press. John N. Mackall, works progress administrator for Maryland, asserted far as the work relief program is con- cerned.” “It hasn't got a chance,” he said. Mackall’s statement followed the visit of Gov. Nice to Washington yes- terday in behalf of the bridge project. Nice contended that the project, when labor and materials were considered, would provide enough jobs for the regulations. “As a general proposition,” Mackall said, “60per cent of the total amount has got to be spent on work relief project is to come within the regu- lations. “In the bay bridge project, not more than 5 per cent would be spent in work relief labor at the site. That bridge comes to being eligible. “Unless the rules are greatly modi- fled—and I don't think they will be— the bridge will not be built.” Mackall said he would call on the State and its political subdivisions shortly to submit projects for the work relief program. WRIGHT TO HANDLE TAX FIGHT OF WELFARE UNIT Employed as Counsel to Resist District’s Efforts to Collect From Association, Daniel Thew Wright, former justice of tne District Supreme Court, has been retained by the Welfare and Recreational Association of Public Buildings and Grounds, Inc., to rep- Tesent it in its legal contest with the | District government, which is at- tempting to assess taxes against it. The association contends it is not subject to taxation as a benevolent corporation, organized under the laws jof the District, because there are no stockholders and the profits are not distributed to private individuals. A rule to show cause why the asso- ciation should not pay taxes to the municipality is returnable in District Supreme Court next Tuesday. The District government has brought a mandamus proceeding against the as- sociation in gn attempt to levy per- sonal property taxes. The Board of Trustees of the or- ganization—chief clerks of the various Federal Government departments and other high-ranking Federal officials— authorized F. W. Hoover, the associa- tion's general manager, to employ counsel, 40 APPLY FOR PLACES IN NEW BOYS’ CLUB BAND Metropolitan Police Group Organ- izing Young Musicians Under Direction of C. J. Brown. ‘The Boys’ Club of the Metropolitan Police, under direction of its board of governors, plans to organize a band, and 40~ applications for membership already have been received, it was stated today. Clinton J. Brown will be director, and headquarters will be at 472 I street southwest. Instruments are being furnished to those who cannet-afford them by Club Director John P. Meshkoff under a plan of operation and support on the same principles as the club is run. There will be no fees for joining the band. The club members will be guests next Thursday of the Arlington Bot- tiing Co. and the Sterling Laundry on & trip down the Potomac on the Wilson Line steamer City of Wash- ington. There will be entertainment and refreshments. JUNIOR BAR PLANNED New Section of Association Will Unite Younger Members. At a meeting of the District Bar Association last night at the May- flower Hotel a motion by R. Aubrey Bogley creating a junior bar section t bar was adopted. This Hotel next Wednesday at 8 o’clock. ‘Woman to Explore Jungles. Mackall Declares Proposal| today the proposed $10,000,000 Ches-. apeake Bay bridge “is definitely out as | ‘money spent to fall within Federal | labor at the site of construction if a | provides an idea of how near the| LONG SKEPTICAL OF TAX MESSAGE Thinks It May Be Red Her- - ring, but Promises Help at Any Rate. By the Associated Press. ‘With considerable skepticism, Sena- tor Long, Democrat, of Louisiana to- - day welcomed President Roosevelt “back to the fold” of his “share-the- wealth” movement. Acclaiming the Executive’s tax mes- sage, Long told reporters, “If he'll come along and actually bust up every big fortune in America we'd be out of the depression in 24 hours.” “But bear in mind,” Long said, shaking an admonishing finger, “the burnt child dreads the fire. “I'm afraid this message today came 80 as to turn the public’s mind from the horrible exposures made by Mitch- ell, his former Assistant Secretary of Commerce, on the gifts and bounties ordered by Mr. Roosevelt for the As- tors and their associates. Fears Move Will Die. “I fear that when the boom over these exposures subsides it will be the end of Mr. Roosevelt’s talk about de- centralizing wealth, That's been our experience with him in the past.” Dancing around his office in glee at what he declared was the discom- fiture of certain Democratic leaders over the message, Long dictated a statement promising his assistance in getting the tax measures through Con- gress, He turned serious when saying: “Forty-eight hours ago they defeat- ed my amendments to the social se- curity bill, which would have accom- plished the purpose he talks about to- day. What has converted him? “I'm afraid, in view of the fact that he has confessed to such conversions s0 many times—but I pray the God above me that this man will go straight this time, regardless of what has caused him to do so. To Back Him to Limit. “T will back him with every might and main in this purpose. It can all be accomplished within 72 hours. I have already presented the plans to Congress. If he wants others to do the same thing, we can get them up in 24 hours.” Long asserted that he would not j call the White House to offer con- gratulations, because “10 times before I have thanked him for this kind of a gesture, This time I'll have to see results.” But then he declared: “If Mr. Roosevelt keeps his word this time, he will turn his disastrous and destructive administration, the worst this Nation ever had, into one-of benefit.” Radio Strike Delays Liner. NEW YORK, June 20 (#).—The Europe-bound crack United States liner Manhattan was delayed five and a half hours in sailing yesterday until a short-lived, but effective, strike of radio operators resulted in a tempo- rary agreement by line officials for shortened hours and increased pay. Due to depart at noon, the Manhat- tan did not leave until 5:30 p.m. with 1,089 impatient passengers and 7,900 sacks of mail. A Radiant Business LM o THE milk business turns night to good account. To its credit, it keeps nothing in the dark. Producer and consumer have their say about it, and the public interest is protected with regulatory safeguards. Where the dairyman’s stake is represented by farmers’ co- operatives, as in this terri- tory, no corporate milkman could bilk the dairyman of his due—and no milkman worthy of his vitamins would ‘want to. All parties know what’s what and why—or can readily find out. The record of local sales is open to the producer—he knows at all times how much milk is being sold in bottles, how much over and above the bottle demand must be made into by-products to move the total supply off the farms. He knows—or can find out—at any time the shifts in con- sumer demand which are af- fecting his income through the price differential be- tween milk for the bottle trade and the excess which must be worked into butter, cheese, ice cream and the e. The fluctuations of these two classifications determine the amount of his cash income from the distributor. The producer knows how much he has supplied. The health department, knows in what forms the city is tak- ing his milk—so much as fluid, the remainder in by- products. The milkman pays accord- ingly. There is no hocus pocus about the figures, PRESIDENT CHESTNUT FARMS- CHEVY CHASE DAIRY A A TR i e T A