Indianapolis Times, Indianapolis, Marion County, 25 March 1950 — Page 10

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What Small Business Needs - CONGRESSIONAL subcommittee has been studying what the government might do to help small business enterprises get loans and risk capital. Its" thrée Democratic me -Séns. O'Mahoney of Wyoming and Douglas of Illinois and Rep. Patman of Texas—have now issued a report. They urge that Congress revise the federal tax system -and gear it to “increased production.” And they suggest prompt consideration of these ideas: Special “capital banks” in the Federal Reserve System. Government insurance of loans by commercial banks. Encouragement of more business lending by insurance companies. . Government-supervised tending and investing cooperatives.

: THOSE five ideas should be considered. But thorough, sensible revision of the tax system would help more than .any or all of them to solve the subcommittee’s problem. It now operates to discourage investment of private capital in such business enterprises, small and large, as this country needs to create new wealth in the form of goods and services and to provide jobs for its growing population. : Sen. O'Mahoney and his associates say, correctly, that full: employment and foaintenance of “free, ‘competitive, independent business” both depend on that kind of investment. They advocate lower tax rates on “very small” and “intermediate-size” corporations; more latitude in tax deductions for depreciation of business and industrial equipment; more liberal provisions for carrying forward net losses, and other steps which would have the effect . of encouraging people with savings to risk them productive enterprises. Sh THE stibeomitt of Ohio and Rep. Herter of Massachusetts—express “full agreement” with much of the report. But they contend that it ovér-emphasizes some factors—for instance, the role of the life insurance companies in providing risk capital. And they say it ignores others—for instance, the effects of big government spending and consequent heavy taxation, and of “double taxation” of corporate incomes, which they believe should be modified. All in all, the subcommittee has done a fine job. But its results are likely to prove disappointing unless Congress ‘promptly tackles the tough but tremendously important task of revising the tax system.

Let's Abolish Tips :

(GROWTH of the tipping evil in this country never has been more sharply spotlighted than it was in the testimony of a waitress before a Senate committee this week. Mrs. Imogene B. Wright, author of a waitress’ guide to bigger tips, said people in her line of work pick up about $8,250,000 a day left on tables. . Using figures which she said come from the National Restaurant Association and a hotel employees’ union, she estimated that three million people in her line of work average $2.75 a day each—$2 billion a year. Add all the other tipped groups, and it’s probably a fair guess that another $2 billion goes into outstretched palms. As Mrs. Wright said, the art of working for tips can't be considered a minor Preisusion in the United States.

SHE WAS testifying on a Hictoeil to include waiters and waitresses under Social Security, which would require ..them to report tips as earnings. That wouldn't work, she said. Three million people couldn't be made to tell the truth—especially when they suspect it's a scheme to let the income-tax collector learn how much they get.. But, she ddded, she favors Social Security for her fellow workers. And she suggested abolishing tips entirely, adding "9 or 10 per cent to diners’ checks, and giving waiters and waitresses an adequate wage. Good idea. Tt “might prove difficult” “to-apply to some . groups of tippees. But where it could be. applied it would be a blessing. Tipping started as a casual bonus “to insure prompt service.” It has become a major American racket. We’ d like to see it abolished, with co-operation from:employers, from those who tip and from those who get tipped.

Traffic Jam

“anyone who may think the big cities are permanently solving their traffic problems by construction of multilaned expressways, a few statistics from officials in the New York area will serve as a corrective. - Authorities announced that traffic on parkways in Westchester County on the city’s northern border jncreased 15 per cent last year. They added that it can be expected to rise 10 per cent a year for the next five years at least. By 1955, they predicted, these routes will be virtually impassable on peak traffic days. Some of them are that way for short periods with the present volume. In solving the traffic problem in such large centers as. New York, we are plainly back to scratch. The average ° . motorist can't be blamed if he clamors impatiently to hear what the engineer's next dream is to be.

Science > Marches On ; THE “Pont Co. announces a chemical treatment which, it says, puts “overcoats” on lawn grass seeds, | protects ge them from the ravages of cold, damp and blight, and enables them to grow 46%% per cent more healthy grass. Danger that this scientific achievement will result in over-production of grass probably-is not great. But if that ; shoul be fis effect If Wik be Rice to have wn orp sar {Shien ShAt Gin be attacked with lawn mowers iustead of

Saturday, Mar, xi 1050

's Renioionn embere—SemT “Taft

WASHINGTON, Mar. 25—Italy’s series of rehearsal

bloody political strikes are a dress for later “civil war” which the Reds openly threaten, Communist success in

dictatorship to cope with Red rebellion. Communist leaders think that, in turn pave the way for a Red regime. a Li I is the first major test since the Communist defeat in the general elections two years

and for street fighting. Their preparations for violence have been - well-known to the gov ernment. :

There are. elements of both. strength. “weakness in the situation for the government. Most Reds Cleaned Out

PREMIER DE GASPERI heads a moderate coalition cabinet, which knows the menace of Communist subversion from long experience, Mirtister of Interior Scelba and Minister of War Pacardi have long since cleaned out most of the Reds who honeycombed the police and army. Some of the Reds’ secret arms have been discovered and seized. Though Communists control the General Confederation of Labor, anti-Red unions are ‘fairly strong and growing. The rank and file of labor distrusts political strikes, and hates Moscow interference. This is even more true of the general public.

But economic and social conditions in Italy

are still very bad, despite temporary. improvement under Marshall Plan subsidies. This creates chronic unrest which the Reds are quick to take advantage of.

Peasant Uprisings THE situation is most serious among the landless . peasants, especially in the backward South. For months there have been sporadic local peasant uprisings and land seizures. Though these peasants are not Reds, the Moscow agents have tried—with some success-—to capitalize on this movement of desperation, Unfortunately, Premier De Gasperi has been prevented by conservatives within his own Catholic Party from carrying out the land reforms he pledged in the election campaign two years ago. Recent peasant violence has forced limited emergency land distribution measures by the government, but the larger reform bill still languishes in parliament.

Evade Taxes

SIMILARLY, the promised tax reform is

long overdue. The poor carry the burden of heavy indirect taxation, while the middle and

“upper: ‘classes gefieraily evade income taxes. “As “&% result the government is dependent on tempos

rary American relief, which is not large enough to offset social inequities and. governmental inefficiencies. The best hope in the otherwise gloomy picture is the average Itallan’s capacity for hard work and his desire for personal freedom. Communism is alien to him. And he has had his fill of dictators. But he is restless and

« wants better democratic government. _

HOPE

The clouds loom darkly in the sky And quite obscure the sun. The wind blows omniously, it seems But—a brighter day will come And so a mortal-—dreams.

I built a castle in the air It went towering to the sky. Altho it hurts, I must confess Not one red cent have I And yet, I dare to—dream.

What is this thing that man contains That lets us scheme and plan Without a cent within our jeans Or a thing at our command? Yet something lets us—dream.

There wouldn't be a thing there is —--No-country,-homes; orlando Had not our God our needs forseen And then installed in every man Plain HOPE, which causes us to dream.

—Thelma Sellman, R. R. 8, Martinsville, Ind.

‘TIS SAID

You should handle sharp instruments and fire with caution. Add slick pavements in the winter and crowded highways in the summer

to that warning. -B. C., Indianapolis,

PRICE SUPPORTS . . . By Earl Richert Losses in Disguise

WASHINGTON, Mar. 25—Although billions are involved in : holding up farm prices, the government's price-supporting agency . regularly shows comparatively low figures on losses. ~ This agency, the Commodity Credit Corp. (CCC), had nearly $4 billion invested at the end of January to hold up farm prices. It said its loss for the s seven i TORthA of the fiscal year to then was

1 % : : : but] bron

y . doinat agree will w word ak OEY, bd oR ed he duh yu 1 tg 0 aE _ ‘One World Governmient’ wi By Rex D. Lawless, Shelbyville, Ind.

" The causes of wer ean be Zound in a few

selfish, greedy groups that want everything for themselves, and it's always the little people that take the rap. They always pay both in dollars

POLITICS IN CONGRESS

GOP Issue Seen

WASHINGTON, Mar, 25-— Sen. McCarthy began by charging in his first political speech that there were 207 card-carrying members of the Communist Party in the State Department. When he used this same speech a little later in

: Nevada, the Sgure 207 hag bean Crossed out ung

57 written in. Up to now it has not been established on the basis of Sen. McCarthy’ s presentation that there 18° or ever -was “& Comr # ~the department. ° This fact becomes doubly Snportant in view of the speech of Republican Chairman Guy George Gabrielson at Lincoln, Neb. That speech lends considerable official party backing to the McCarthy line. It refutes those who have been saying that he is acting on his own. Mr, Gabrielson says, “We have too long tol-

erated communism . . within our gavernment.”

He says, “We must drive them out!” quite a way toward making it official.

Test of GOP Issue

This goes

NOW this may be good politics. Mr. Gabriel

son directs the same kind of attack against Americans for Democratic Action, which has been a highly effective spark plug of the Democratic Party. The elections this fall will be in some measure a test of the anti-Communist, anti-Socialist line of the GOP.

But there are other considerations ghat over-

“shadow the outcome of the next election or even

government. be ..opened to Senate inspection. Even thouglr presumably this would be done in

the election after that and after that, The future form of this government is conceivably at stake—concepts and traditions going back to the founding of our system. Republican Senators are demanding that confidential files of the executive brafich of the

executive session, the material in these files would certainly ‘be “leaked.” A concept preserved since the time of George Washington

mould have been destroyed and a dangerous

precedent established. On the immediate and practical side, the efficient functionings of the Federal Bureau of Investigation would be impaired. Even though he is reluctant, and properly so, to give the public testimony on matters of public policy, the Senate committee is right in calling on FBI

SIDE GLANCES

ey Tiember tn =

By Marquis Childs

in Red Probe

Director. J, Edgar Hoover for his opinion on opening the files. There can be little doubt what that opinion would be. The issue arose in the first trial of

Judith Coplon. Miss Coplon’s attorneys persuaded the judge that the FBI files should be

opened.

Serious Injustice

AFTER the first three or four files were spread on the record, Mr. Hoover, ‘made A stren-

was being done to individuals by putting under public gaze hearsay and rumor—the raw material of the FBI files—intended only for confidential use. He also pointed out with great emphasis that if this practice were to be followed in other cases, the usefulness of the FBI would rapidly diminish. a ® At the first Coplon trial, it will be recalled, the Department of Justice went so far as to suggest that if it came down to making the files public in relation to vital evidence in the case, the evidence might be withheld. That is a measure of how seriously the FBI took this

". action.

It may be, of course, that the Republicans do not really want the confidential files opened. They may want to have their request refused so they can say that the refusal cloaks the guilt of individuals who have not been successfully tagged as “pro-Communists” by random accusations, But if the request is granted, those whe have

forced the decision should at least have a clear

understanding of its immediate and practical consequences, The man who can make that unmistakeably clear is FBI Director Hoover,

Opposed to New Powers

HIS opposition to the Smith amendment attached to the national science foundation bill was-stated in a letter sent to Congress by the attorney general. That amendment would make the FBI detective, policeman, judge and jury, Mr. Hoover gave it as his opinion that the FBI does not want powers which would create a “state. police organization.” The raw: material of the FBI files may be compared to a newspaper reporter's notes. ~ Material that cannot be verified or that is plainly libelous is not included in a news story. Gov-

ernment must be permitted the same responsi- -

BY § of privacy for the raw material of confintial government investigations.

uous protest. to the then attorney general, Tom —Clark, —He--pointed out that serious.

through peace treaties, brought about by the useless ‘bloodshed of the common people. The only logical solution for a lasting guare antee of world peace and security for everyone is to form a one world goveramen; under world citizenship which is free from ruption both politically and economically. . A world government will come about only

{ through the progressive co-operation and ine

tegrity of the people the world over. _— way is now being paved. Not from Wash« ington, D. C., not from Moscow, not from the United Nations, but by a young man who has a lot of courage, good commen sense, and is trye ing to rebuild what he helped to destroy as an American bomber pilot in the last open conflict, That young man is Garry Davis, the first person to renounce his national sovereignty for world citizenship.

‘Man Owns Nothing’ By Melvin E. Mahyrin, Indianapolis.

Having heard many complaints by people in all walks of life concerning our day and age, I feel that it is my privilege to express the answer

to a problem—namely, what is wrong with the

world and everyone in it. First of all I'd like to ask a question. What man would try to push a wheelbarrow that didn’t have a wheel, drive a car without a motor in it, or plant a field without procuring seed? Yet millions of men live day after day without a thought of God. Instead of seeking divine guidance they run to a neighbor or friend seeking advice. “They condemn any religion that is not their

son” aga father, “lovers “of ‘themselves’ ‘more

none.

We Americans brag constantly about our great land, but we forget that God and religion

were why the pilgrims came here. Whenever a man realizes that he owns nothe ing, not even himself, and fulfills the law of love and the Commandments, then shall all the trouble of the world today be immaterial,

Views on the News By DAN KIDNEY

REP. ROY 0. WOODRUFF (R. Mich.) listed all the presidential trappings and put a price

tag on them: He probably thinks they would be ;

okay on an ‘elephant.

ALTHOUGH he claims to be a movie fan, Sen. Edwin C. Johnson (D. Colo.) doesn't seem to have caught on that good boys can be bad actors and vice versa.

SEN. JOSEPH R. McCARTHY (R. Wis.) doesn’t need a pumpkin to dig up subversive data. He just uses his head.

GEN. GEORGE C. MARSHALL probably will g0 down in history as the World War II leader who’ didn't write a book.

“IT'S GETTING 80 if you break out with a - |

Red rash you don’t know whether to. call the doctor or the FBI.

BURIAL robes of Roman emperors 2000 years ago were made of asbestos. Who said they didn’t believe in Hell?

JUSTICE WILLIAM O. DOUGLAS has been out lion hunting again. He should stop reading those Teddy Roosevelt success stories and get

COMMUNISTS in Poland are pressing for cofectivisation: “They want to farm the farmers,

By 6 Galbraith NATIONAL DEFENSE + «+ By Jim G. Lucas ~

Navy May Junk Ships

WASHINGTON, Mar. 25—The Navy may junk at least "three of its old battleships and a number of small Kaiser-class. carriers—all now in mothballs—to make room in the fleet for more modern vessels. Adm. Forrest P. Sherman, chief of Naval vbteations suspects that many. of the 2167 World War II: -ships- now in mothbatle:~

graft and core.

~—only-$96 milion:

In the previous fiscal year, CCC said, total losses from farm price-support operations were only. $254 million. This comparatively smiall loss oc--curred during 12 months when CCC stocks of farm goods on hand or under loan rose more than 660 per cent, from $289 million to $2.3 billion. " ». » . THIS results. from a system - of bookkeeping hocus-pocus. Not counted as losses are expenditures made from cus: toms receipts, 30 per cent of which are set aside for support of perishable commodities. That is running about §125 million this year. Also not counted as a loss

is the expenditure of about $17% million of school lunch program money :fer surplus

* - products.

And, all- 4mportant to the CCC's profit and loss statement are the dollars received from

«said.

occupied areas and European countries used Marshall Plan funds to buy another $91 mil-

that their’ bookkeeping system and receipt of - funds from

other government ‘agencies for °

products acquired under the price-support program is in keeping with the intent of Congress. -

MAKE no effort fo losses,” an official “Congress sets us up as a separate organization and it's true that the money we get from other government agencies comes out of the taxpayers — pockets, If Congress wants to lump us all together, that's up to Congress.”

“WE conceal

~mitlion-worth of corn for the — 7§

RP ston wv us vOvet we 1. van 8 Pu. oo

"Alice, except for the thirty minutes | spent fixing that flat, this has been the most wonderful evening of my life!”

* to Great Britain.

“Thus, the CCC books will

show a price-support loss of

only $35 million on the eggs. But the total loss to the U. 8.

cost too much to keep. He feels

the mere fact the Navy owns that many ships—some fast becoming obsolete — handicaps

““the Navy when Congress is

asked for more. He also feels

. that money spent maintaining

‘them might be used to build

new vessels. = - ”

. NOTHING has been done

yet, but it’s in the cards. If Adm. Sherman reduces the mothball fleet, he will have the support of Defense Sécretary Louis Johnson.

cessor, Adm. “wouldn't turn loose a single ship.” 5

by purchases by the Army and wagons iy for the school lunch program: oars study Wis Gu being of - SEN. WILLIAMS sald that tions to scrap a number of during the past 18 months the ser-c] , « government had disposed of too small for the new planes. $3% billion ‘worth of surplus In addition, a number of small, farm products in the aid and thin-skinned patrol craft will ‘relief programs abroad and ; be eliminated. However, this yet has a $4 billion surplus on source said there were no plans . hand, To remedy this situa- for a wholesale reduction of tion, he says Congress should the reserve fleet. ‘put into a sliding scale - LE 5h of - price | s which would THE United States came out lower flooks. of World War. JT with, stig

"valued at $28 billion, Its 2167

reserve ships ‘are valued at $10.4 billion. ‘Their armament is valued at an additional $1. 4

~-bitHon;

The - Navy originally asked for $14 million to maintain the

reserve fleet. The Budget Bue read cut that to $5.7 million,

The cost of maintaining the re.

serve fleet has been reduced n

recent years.

Costs have been cut by ree ducing the number of caretake ers and by putting the ships in drydock every five, instead of every two years. Approxie mately 400 ships will be over hauled next year at a cost of $2.2 million. This means it will take longer to get them ready for an emergency. " . ss MANY Navy men are cone cerned over our failure to build

Hew ships. No money was

‘for another $188 million

asked for this year or next for ship* construction. about 70 are being built or converted under previous authorizations. The Navy is asking

carry on that work. Chairman Carl Vinson (D, Ga.) of the House Armed Services Committee, has introduced

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