Indianapolis Times, Indianapolis, Marion County, 25 August 1942 — Page 10

‘Pay-as- You-Go' Author Has Stimulating’ Mind; Plan}

May Bring Most Important Reform. in

History of Income Levy. By PETER KIHSS

w

Times Special Writer’

NEW YORK, Aug. 25.—Orie of Manhattan's major de-

i

partment stores was looking around for a new treasurer

eight years ago, Tt wanted an-outsider, a man who, as one|.

executive put it, “would bring us a stimulating mind.

“The rest of us were steeped in tradition,” the official

recalled today. “We. wanted some one frésh—some one who would challenge some. of. our ideas.” We got. what we asked

for.”

Currently, Beatlilly: Ruml, tressirer of R. H. Macy & Co., has challenged the authors of the. new income tax bill.

And an idea of Mr. Ruml’s— the almost. ‘unbelievably sim- . ple “pay-as-you-go tax plan,” taking every income tax payer out of his usual year’s debt to

the federal government—may now becomie ‘the first revolutionary change in: income taxes since the

constitutional . amendment was|

adopted. batk in 1913. “Last fall,”. grinned Mr. Ruml, “I thought the chances were 1000 to'1

against it. When I testified before

the senate. finance committee, I thought they were 10 to 1. Now even the treasury’is proposing modi- : fications—and the chances are about even.” * Mr. Ruml went to ‘Washington on his own. He pointed out that most Americans, whatever their error in doing so, figure on paying their 1942 taxes out of 1943 income. But many of them just won't have that kind of dough—and anything" left to eat with. . Offsets Even Up

So, Mr. Ruml, proposed that the income tax be redefined. The tax paid in 1943 would be called a tax on 1943 income. The 1942 tax would

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be forgotten, The treasury would collect substantially the . same amount of money. Eventually it would lose. -a year's taxes out of everyone's life, when existing taxpayers retired or died. But the nation would be paying while it had the money-—-and everybody's mind would be easier. “Of course, we don't. gel somethfhg. for nothing,” Mr. Ruml commented. : “Over the life of this generation, the government would by arithmetic lose out on one year’s] tax. But- there would be so many offsets that that doesn’t give me much pause. “One fellow told me: ‘This. is crazy about the government losing one year. 1f your plan goes through, I'll live two years longer—and pay an extra year's tax.’” A Native of Iowa Mr. Rum! is no wizened reader in a library. He is a large man, and - jolly;—He gets: a kick out of life. In his office ‘he has a caricature of himself in: oversize shorts, allegedly size 49; with a jingle about how hard it is to equip him. His father was a Czech, his mother a New Englander.” His ‘own roots were in Cedar Rapids, Ia., 47 years ago. He went to Dartmouth and the University ‘of ‘Chicago (a Ph.. D.). His interest then was in psychology and philosophy.: He'got out in time to enter the war department in 1917—on the committee on classifications of personifel. - ‘Here ‘and in France ‘and England he worked out trade tests in that war." (His son, ny the way, is a soldier now.)

Formed Personnel Firm

Then, with five buddies from the war ‘department, - he started the Scott Co. to advise industrial firms in personnel’ problems. Aftérward he worked with the Carnegie Corp. and the Laura Spelman Rockefeller memorial, figuring out how to spend $80,000,000. He was dean of social sciences af the University of Chicago when Macy's got him. : For' the last” 10 years Mr. Rumi has been in and out of Washington. - He doesn’t pay thuch attention to politics: "“I register Republican, and vote Democrat to even things up,” he chuckled. ' He has voted for President ‘Roosevelt three times.

He Started Thinking.

It was last fall that-his tax pian smote him. “I" was just thinking about what happens when people want to retire from business or when an accident comes along,” he said. “I'd known of one or two instances where the income tax debt was really crippling. Those days, it was much lower. And I thought, ‘What's going to happen now,’ ” Well, first, Mr. Ruml recalled, the idea “just fascinated me.” He took it .to.the Federal Reserve lunches— “I wanted to see if anybody could find anything wrong with it.” He asked Owen D. Young, Marriner Eccles, Allan Sproul. They couldn’t. So, now :it’s in:-the ‘laps of the senators... : -

Capt, Harold C. Train, formeriy commander of the Battleship Arizona prior to the sinking of the ship at Pearl Harbor,” has assumed the duties of director of naval intelligence. He: relieves Rear Admiral 'T. S.: Wilkinson, who is currently on sea duty. Capt. Train’s nomination for promotion to rear admiral has been ‘sent to the senate.

STRUCK AT JAPS

Aleutian Fishermen Drove Out Nipponese When U.S. Wouldn't Act.

WASHINGTON, Aug. 25 (U. PJ). —Mayor John W. Fletcher of Unalaska, in the Aleutians, said today

that American fishermen struck the first blow agdinst Japan when they

waged a guerrilla warfare against Japanese “fishermen” four years ago and drove them from Unalaska waters. Fletcher, who with his wife, Grace, who operated a little movie theater there, went through the initial bombing of Unalaska and the adjacent ‘Dutch Harbor naval]. station on June 3, was interviewed here as he began a tour of the country to sell war bonds. Fletcher said that American fishermen in Alaska became suspicious of Japanese “fishermen” when they caught them taking soundings while ostensibly handling fishing lines and nets. -

The Japs Sailed Away

The Alaskan fishermen reported their findings to American authorities. When they. could see no action being taken, they banded in their own boats, armed with guns, knives and axes, and cut every Japanese fishing net they could find. : After several forays the Japanese sailed out of Unalaska' waters. Fletcher told a story of a Japanese cook who had worked in a fishing and lumber camp at Squaw Harbor, Alaska, for “many years.” A Japanese fisheries bureau patrol boat, which visited Alaska every. summer, made its last appearance {ere four years ago.

Assails Complacency Shortly before its visit, the cook

{resigned his job and when the fish-

eries boat put in on its last trip the former cook stepped ashore

mand the vessel,” Fletcher related. Fletcher said in his opinion Jap occupation of Kiska, Attu and Agatu in the Aleutians constituted a real menace.

there's a war on and he said he was disgusted at the complacent attitude of most people in the United States.

URUGUAY HAS CELEBRATION MONTEVIDEO, Aug. 25 (U. P.).. —Uruguay observed the 117th anniversary of the Florida declaration— her proclamation of independence— today with one of the greatest pa-

FOUR YEARS AGO

“wearing enough gold braid to com-|

Fletcher said Alaskans know|.

.|rades in the nation’s history.

‘CAMELS ARE

- THEY HAVE THE

IN THE AIR FORCE sy *00D0” for the new flying recruit *KITE for airplane Ei : MITTHE SILK” for taking to pasuchine YCAMEL' for their favorite cigarette

9 via men in the Army, Navy, Marines, and Coast Guard, the favorite cigarette is Camel. (Based on actual sales records § from Post Exchanges and Cantesns.)

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DEFEND AUSSIES

jams Face Enemies That{p

Are Little Bigger Than Pinhead.

By GEORGE WELLER

Co, t, 1942, The Indianapolis Times Pas he Ghickgo Daily News, Ine. '

SOMEWHERE IN AUSTRALIA, Aug. 25.—Billions of defense work-

|ers, nameless and unknown, are la-

boring day and night to make Australia’s northeastern coast secure; - Their assembly line is 1200 miles ong. Japan's attack did net catch em unprepared for they began the construction of ane of the world’s most impregnable defense lines long before the first hairy Ainu hacked open his’ brother's skull, : Their Maginot line ‘went “into buildings millions of years ago and, although it is still unfinished, its blockhouses are still a riddle to seaborne aggressors. The world’s most enduring: combined defense line and war production manufactory is Australia’s great barrier reef. Its numberless, unflagging workmen are coral

caps of the tropic seas. - A Sign of Hope

. How often, to some mechanic la- | boring to keep alive his popping motor with Jap navy zeros’ bullets or shells in its vitals, this long line of half-submerged bright coral has been the sign of hope that shore is

‘near and that, if the motor can be

kept alive'a little longer,” ately will be reached,

To an airman, unless he waidies with an eye alert for beauty, the barrier reef ‘is, however, little more than a landmark. Its surface is almost always covered with breakers. Only a few cays or sandy islands have -enough beach for possible. emergency landings, which’ is all the pildats are watching for. Otherwise, from above the’ long chain of reefs looks rather like a line of towels draped untidily along the blue sea floor and their meaning as a combined defense line and factory escapes the aviator,

Japs Map Area

But both American and Australian seamen know full well what it means in repelling the Japs. For years Japanese pearl divers and fishermen have frequented this coast, like the shores of western Australia where their sponge divers and whalers are familiar with: the entire 3000-mile length. Undoubtedly they possess charts which are for detail probably the equal, if not the superior, of the best existing elsewhere, :

But maneuvering small luggers and sponge oyster boats and bringing in a full invasion fleet are different matters. Whether, in the Jap total plan of world conquest, Australia is a job intended for this generation or the next, somehow the Japs must find ingress through the twisted channels of the reef which they kmow as well or better than Australian mariners. And they must somehow get and maintain their invasion. fleet inside the “grand canal” which runs from some 200 miles north of Brisbane to Cairns. ‘

Maintenance Problem

Once such a fleet is inside it must be maintained there against land-based bombers upon flelds which the Americans and Australians have jointly laid out. Beneath this surface—literally beneath it—the patient little coral polyp goes on doing his 24-hour, all-out job of barrier building. The barrier reef is double, just as though the first polyps knew what Australia’s need some day would be. Of courses, there are openings in the reef, channels through which the Japs might penetrate. But the channel defenses already are an old naval problem and there-are simple methods that make dangerous such bravado. Tricky currents dominate these waters. = Fragments’ of wreckage, including parts of the aircraft carrier Lexington, sunk in the Coral sea battle near Misima island in

- The whole barrier iki. area covers 80,000 square miles of ceaseless ebb and suck. - Like the Dutch East Indies’ barrier islands and the holes cf Sunda straits, Bali straits, Lombok strait and others, the currents are apt to take a low-powered submarine and hang it upon a reef like a coat upon a wallhook.

in Tokyo, the Japanese admirals take counsel as to how they can,

|in conquering Australia’s southern

cities as a step to conquering the

-| world, bypass an enemy whose soft

body is little bigger than a pinhead, but who never relents in his work building Australia’s walls of crusted coral. | etl.

polyps laboring under ranked wits

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