Indianapolis Times, Indianapolis, Marion County, 27 June 1950 — Page 14

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eS WALTER LECKRONE HENRY W.MANZ | 2 Wh _ Editor Business Manager

"PAGE 14 Tuesday, June 21, 1950 re Er. on HR MIR LE RE BH bE fi eds

Telephone RI ley 5551 Give LAght and the People Will Ping Their Oton Way ‘Our Silent Partners am 1 AST ye Congress voted a billion dollars to help rearm JA in Western Europe. That was the initial contribution to the nations which had joined the United States and Canada in the Atlantic Security Pact. : ~~ This year another billion dollars has been recomP faended, and $250 million worth of surplus American : nt is to be made available. “All of this money will be well spent—if it buys, as intended, a reasonably firm defense line somewhere in “Western Europe behind which’ the combined forces of the North Atlantic area can rally in the event of a Russian drive toward the Ruhr, the English channel or the Atlantic : , Comste srtimeen : ; : k & ;

3 Ld 3 ” BUT it won't do .that unless other governments in the Atlantic defense arrangement fulfill their obligations as we do ours. And, unfortunately, assurance that they will is lacking. More than a month after the Atlantic Council's London meeting the foreign ministers who met there with Secretary: : of State Acheson haven't yet seen fit to bring the decisions S35 to the attention of their parliaments and. peoples. % No action has been taken to step up the defense program on the other side of the Atlantic. Nothing has i been done to prepare Western European taxpayers for the burden they are to be asked to assume. 5% Can it be that rearmament is so unpopular that ‘European statesmen are reluctant to take the issue to

their people? ; e » 8 = . 0.8 CL © COMMENT in a well-informed Londofi magazine, “The

he Economist,” implies as much. That publication has warned Tax Bill May Plu Prime Minister Attlee and his defense minister of the pre . ; danger of drifting, as Prime Minister Baldwin did while HINTON, Tune oars iT ie oa Hitler's threat to Europe was rising, into a position “of new tax bill before Congress becomes law. . The House Ways and Means’ Committee, aan . De ot Jor four which wrote he tax bi, swe sofine all the : » hb Pes an leaks, but at least the rep ob is er way. Be The purpose of the Atlantic powers—to prevent war "For example, capital gains claimed by amaby adequate preparedness for defense—cannot succeed, it teur authors and inventors no Janger wit bs continues, if political leaders encourage such “myths and POU te a committee recommenca ~, escapism as prevailed in the '30s.” :

approved. That will mean more money for ‘With preparedness talk confined to this side of the

ay by o_o PRT IR

phi

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cases won't be changed.

Uncle Sam, even though-the tax rates in such

Atlantic, while our European associates keep mum about their defense responsibilities, the United States is being placed in a false position. Color is given to the Russian

The restriction proposed by the committee

would have prevented Gen. Dwight D. Eisenhower from claiming—with some justification-— that his book, capital gain. As it was, Gen, Eisenower made such a claim and legally was permitted to pay

“Crusade in Europe,” was a

REPAIR JOB . . . By James Paniel

education, A tax court recently disagreed with that interpretation. ‘Without waiting for a final court settlement, _the House committee has drawn up some rules to grant tax exemption to a college—or a labor union, charitable organization or trade association—only. on business that is related to its main purposes. ” For instance, if an agricultural college sells dairy products produced by a dairy herd maintained for the instruction of its students, the _profits are tax-free. But if it goes into the com-

mercial dairy business on a large scale the

profits are taxed. : . A fast-growing sideline in the real estate business will be illegal if Congréss follows the House committee's lead. Here's how it works:

. propaganda that we are whipping up a war scare for

a tax of 25 per cent on the book's proceeds instead of a possible 70 per cent. Other amateur authors had taken advantage of that ruling

”

. ” . - ~ » THIS defense program is either a matter of all for “7 one and one for all or it is nothing. The Western European « - . nations need"us as much as we need them, if not more. .' We should insist that they deal as forthrightly with the — common problem as we do. > i © + Abandoning the agreements we have made would wreck whatever chance there is for collective security. : ~ We should put the second year's contribution on the line. But we should do it with the distinct understanding that future American assistance will be available only to those : who are willing to stand up this year and be counted as - equal partners.

Postal Delays

; ] MANY citizens complain that their mail deliveries are deHE layed by Postmaster General Donaldon's reduction of ______ postal service. : Too few are kicking about another postal delay—one that can't even be defended on the ground of economy. For, in fact, it obstructs economy and wastes taxpayers’ money. ~~ More than a year ago President Truman sent Congress a message urging prompt action on the Hoover Commissions’s nine-point program for reorganization of the Post Office department. . Result to date: No action.

’ [A ! ! K CONGRESS has passed none of ther bills to put th : Hoover Commission's program into effect. Mr. Donaldson is in no way to blame for this delay. The Senate Post Office and Civil Service Committee is «greatly to blame. The bills are in its hands; and it is keeping them there. One measure would take appointment of some 20,000 first-class postmasters out of politics and put them under real civil service. Mr. Truman and Mr. Donaldson are strong for that bill. But the Senate Committee voted last March to postpone J action on it indefinitely. > Other measures are designed to give the Post Office Department modern methods and equipment so that its em_ployees ean-do a better job.

but Gen. Eisenhower was the first to be found out.

Gen. Eisenhower was not the only notable

whose recent tax history caused the House committees to take remedial action.

Royall Little, the New England textile mag-

nate, created a sensation in the textile industry by buying up, merging and exploiting old textile miils. Everybody wondered how he was able to do it, until it became known that the secret of Mr. Little's financial wizardry was a tax-avolding device.

Charitable Trusts Legal =

MR. LITTLE discovered that it's ‘legal to

set up a charitable trust which pays out only a

small part of its income for charitable purposes. By concentrating his venture capital in a series

of trusts, Mr. Little created the Textron em-

pire, After some New England Senators denounced him, Mr. Little advised the House committee how to prevent further abuse of the trust exemption. His suggestions have been incorporated into the new bill. Complaints of a more serious abuse of charity have been made against some colleges and universities. For example, New York University's law school acquired a macaroni factory and claimed tax exemption on the macaroni profits on the ground that the money was being devoted to

Memo to Congress:

The federal government owns 848,567 typewriters used by only 235,000 persons. That's 3.6 typeWriters for every employee who uses one. * 4

~A central inventory system on office equipment could eliminate waste in supplies.

SIDE GLANCES

By Galbraith

Three Corner Deals

A REAL estate operator will learn that a business firm wants to lighten its tax load or

obtain cash by becoming a tenant rather than

the owner of its buildings.

; The promoter then locates a tax-exempt organization willing to buy the building if it could find somebody to lend the purchase money. So the promoter finds a bank to lend the taxexempt organization the purchase money. In the final outcome, the business firm gets a high sales price for its buildings, plus a long-term lease. Money paid as rent is deductable from income. The bank will get back its loan. “ : Eventually, the tax-exempt organization will own the buildings-—paid for, indirectly, by

. money which otherwise might have gone to

Uncle Sam as taxes.

The committee's remedy for this is direct. Hereafter a tax-exempt organization may invest its own funds in such real estate transactions. But if it borrows for .such invest ments; the income is taxable. Also, tax exemption is forfeited if the building leases run . for five years or more. During the grain market speculation three years ago, there was a lot of muttering about aliens Wha were making a killing in speculations in the country without paying any taxes. A committee of the 80th Congress investigated and placed the winnings of noncitizens in the many millions of dollars. The House committee also recommended a 30 per cent tax on the speculative profts of aliens. The bill does not attempt to close one Toophole—the exemption of co-operatives from corporation income taxes. But the Youiinisise did recommend tha co-ops withho 10 per cent of their patronage dividends as taxes.

Barbs—

THE more you lean on somebody else the leaner your chances of success.

EVERYBODY loves a touching scene in the home—except the one that leads to a touch.

A CHIMPANZEE has learned to say “papa.” Next thing we know it'll be asking for a buck.

- Nowata Daily Star,

enough to make sure that we ; for which we and our forefathers have fought and suffered. The Communists are seeking to destroy our very life which gives to all Americans the freedoms of speech, press, worship and assembly. : : We must not feel that those who are seeking to destroy our country are entitled to do exactly as they see fit. There is still a moral law which determines what is right and what is wrong. Congress should pass laws which would make

DEMOCRACY PROMOTED

Governors Wash

WASHINGTON, June 27--In the past 12 years, the annual governors’ conference and the permanent organization behind it have risen in stature until they now contribute markedly to the growth of responsible government in America, #5 As was shown in the 42d meeting just concluded at White Sulphur Springs, W. Va. the governors’ conference is no mere social assembly highlighted by a few speeches from top national figures. Around four-fifths of the nation’s gover-

__nors appear each year, They wade eagerly into.

a fat agenda of problems common to most of the states. Carefully conceived solutions are offered and discussed. s

Get on First-Name Basis

: MOST important, the governors meet each — other, get on a first-name basis, talk over their

g Revenue Leak

mutual difficulties informally in hotel lobbies

and dining rooms. Their work is earnest and

largely above politics. - With the fce thus broken, the governors find it easy when they return home to pick up the telephone and call one another to ‘confer on

‘some governmental wrinkle that may develop. This is not to say, of course, that no political

overtones creep into the conferences. Quite the reverse: They have become effective sounding boards for governors eyeing the presidency.

OKLAHOMA JOURNALISM

the reasons for the success of his party in maintaining its record as champion failure at the

polis. .

~~. By Bruce Biossat

Out Problems

Wille politics is natifally incidental to conference purpose, that by-product aspect affords the people some- useful clues when they start measuring candidates. : The largely unsung hero of the conferences is Frank Bane, executive head of the Council of State Governments which sponsors them. He not only manages the meetings; he steers the council's permanent staff in the same sort of liaison work among the states that the gover. _nors achieve in tiieir face-to-face sessions. Every state is aided in drawing on the ex-

perience of every other. Uniformity in divorce,

tax, highway traffic and other laws is sought, ‘and is slowly being achieved. All kinds of advisory reports are prepared. The result is a steadily "rising level of administrative competence in state government.

IF IT BE true that Washington has now taken too much power to itself, at the expense _of state and local units, then this council would seem to provide the best possible focus for forces pulling the other way. Many governors see it as the prime agency through which they can work to keep as much government as possible at the grass roots level. - = : Surely democracy as a theory is promoted when it is made to work well on the local and regional scene, where things happen in fact and not just on paper.

. «+ By Earl Richert 3

Small Town Editors Test Power

OKLAHOMA CITY, June 27—The power of small town newspapers is being given a major test in the hot Democratic Senate primary fight here between veteran Sen. Eimer Thomas and Congressman Mike Monroney. The question: Can the smaii town editors send an alumnus of their own fraternity,

« ex-reporter Monroney, to the U. 8S. Senate by

defeating a long-time Senator when they set out in concerted action to do the job? The primary is July 4. : The. political activity of the small town editors and publishers is the unique feature of an otherwise orthodox campaign of namecalling and five speeches per candidate per day. The pro-Monroney editors are not contenting themselves with merely writing editorials supporting the 48-year-old Oklahoma City Congressman who, in 1945, received the Collier's award as the outstanding Congressman.

Editors Raising Money

THEY are serving as county and district campaign managers. They are -out raising money. They travel with Mr. Monroney from town to town. Dave Johnson, editor of the flies his newspaper's airplane to carry Rep. Monroney on some of his longer hops between towns. The editors, instead of local political leaders, often introduce Mr. Monroney. The Congressman usually starts out his day by having breakfast with a local newspaperman.

What Others Say—

Labor is 99.9 per cent free of any entanglements with Communists or communism.—Sec-. retary of Labor Maurice Tobin.

All this howl about the organizations a fellow belongs to gives me a pain in the neck.— President Truman. : .

It is significant that we are again close to the record job total of the year 1948.—Commerce Secretary Charles. :

It is simply not in the cards for one really to be a person-of integrity unless he has a passion for truth and zeal in its pursuit despite all obstacles.—Federal Judge Harold 8. Medina.

- Our liberty was not obtained cheaply or easily. It can slip away unless it is fought for constantly.—Lt.-Gen. Leslie R. Groves, wartime atom bomb production chief. ;

- his

An official of the Oklahoma Btate Press Association estimated that 98 per cent of the state's newspapers, by count not by circulation,

. are supporting Mr, Monroney—who once was a State House reporter for the now defunct

Oklahoma News. The metropolitan papers in Tulsa and. Oklahoma City are not taking sides in-the primary. : i The newspapers are not the only part, but

they are the backbone, of Rep. Monroney's

efforts to unseat the 73-year-old Thomas, who

has been in the Senate since 1927 and who |

heads the Senate Agriculture Committee,

The rural electrification co-operatives for the most part are vigorously supporting Rep. Monroney because Sen. Thomas is considered a ‘friend of private power interests. Also playing a vital role in the Monroney campaign is a large group of Oklahoma University classmates who are working with almost religious zeal. .

Thomas Has Patronage |

IN SEN. THOMAS' carner is the political machine he has built with federal patronage through the years, most of the labor leaders and many chamber of commerce groups who are for the Senator either for services rendered or promised. Sen. Thomas is expected to get a majority of the state's Negro vote. Reports of political activity in behalf of Sen.. Thomas by the office of the Collector -of Internal Revenue here have been investigated on orders from tle commissioner's office in Washington. Frank W. Lohn, special agent in charge of the intelligence unit of the Kansas City office of the Internal Revenue Bureau, gpent two days here this week investigating the reports. It is not known what he is reporting to Washington, - < Internal Revenue Collector H, C. Jones says he is for Sen. Thomas but that he has not .permitted any activities in his office which would violate the Hatch Act or any other law, “I have ‘both Monroney and Thomas supporters in my office,” he sald. “And I suspectthat those on both sides are doing all they can for their candidates.” Sen. Thomas is basing his bid for re-election on his seniority in the Senate which enables him to get huge federal projects for his state. Rep. Monroney contends that Mr. Thomas has ended his usefulness to Oklahoma because of known speculation in the commodity markets, his alleged babbling of defense secrets and a host of other defects. ,

BEGINNING, NOT END . . . By Parker LaMoore

Beau | " Leeper's W : He rper of xing pro County Ca

Nell K

» - ” » CHAIRMAN JOHNSON of the Citizens Committee for the Hoover report says that enactment of these measures would reduce the postal deficit by .$200 million a year and make drastic service cuts unnecessary. =! But unless the Senate Committee reports out these measures quickly, there will be no chance for Congress-to enact them this year. . Loud public protests against this inexcusable delay could do some good.

- Good Legal Advice

RESIDENT HAROLD J. GALLAGHER of the Ameri-- " can Bar Association urges his fellow lawyers to make legal services available to everyone who heeds them. They should, he says; sponsor, extend and promote the establishment of legal aid societies, thus avoiding. demand for “socialization of the legal profession.” For when “the public requires a service, and private enterprise fails, to provide it, there will be eventual pressure for the govj - ermment to furnfgh it, “i y Socialized law probably is a much more remote danger To than socialized medicine, if only because Congress is so a largely made up of lawyers. But Mr. Gallagher is giving hs his profession good advice. The doctors would have a lot + less to worry about now if they had started earlier, and

Rearming West Germany Gains Support

not like to talk about it.

has not forgotten that. But today Russia is the big, bad wolf. » ” » RUSSIA controls Eastern Germany, and is communizing and 'rearming that sector. There was a demonstration of how far this has progressed in East Berlin May 28. The failure of the German Communists to invade and take over West Berlin, as they had 2threatened to .do; has been hailed as. a victory for the West. But the fact the Reds had the organization to bring some 400,000 youth into Berlin: from all parts of Eastern Germany to stage the mass

sufficiently Impressive to. cause grave concern for the future. a.n = THE youth units were well organized, well disciplined and under firm control, A scattered few deserted to the West, or paid surreptitious visits across the line to see what life was

done more, to promote voluntary health-insurance plans and : is tom like on the other side. But By £ ) : : . 3 ; ; COPR, 1 N " A h . { . of & extend the availability of medical and hospital services “They may be the famous pigeons or oh Mark s, but they don't: — rg Ee ot

look any different to me than the courthouse pigeons at home!’

Zast Berlin this mere handful

= ‘ ; :

demonstration they did was

THE IDEA of rearming Western Germany is gaining support, even though officials in Washington, London and Paris do

When Germany was allowed to rearm after World War. I, the stage was prepared for World War II. France, in particular,

of dissidents had little significance. Observers could not ignore the point that there was nothing in ‘Western Germany to match this Red youth organization. Most of the units were made up of teen-agers, but many of these met military specifications, ‘lacking only uniforms and training.

- ” s BEHIND this front, the Russian organizers, who remained out of the picture, exhibited several thousand of the ‘pew federal police. There

are reported to be between -

50,000 and 100,000 of them in Eastern Germany -- trained, tough, fighting men, probably most of them veterans of the last war. : Some believe that Russia will make a grandstand play one day soon and pull their troops out of Germany and challenge the Western powers to do the same. In the face of the evidence that the Communists are prepared to reunite Germany

through civil war, if necessary,

ths Western authorities ‘would

WR

be expected to ignore such a proposal. But all. Germans want the occupation to end as early as possible. All of them want a united Germany. os . » GIVEN lime, wishful thinking could lead to the conclu-

sion that only the West was .

blocking these German aspirations. Eventually, a continuing Western occupation might become untenable. i. The Western German Gov-

ernment _at ‘Bonn has. asked

the Allies for permission to organize a federal police departs ment 25,000 strong similar to

the Communist organization. A compromise on a smaller figure is likely. That will be the beginning but not the end, it is predicted. A federal police department is nothing less than a thinly

..-disguised army. 8o if East Ger-

many has a force of 50,000 troops to mount a potential invasion, Western Germany would seem to require a force of at least equal strength to

‘discourage or repel such an

attack. That reasoning is building sentiment for armament,

limited re-

ANOTHER factor working in the same direction is the need for manpower to meet

- one of the glaring deficiencies

in the North Atlantic defense program. As this project is shaping up, everything is in prospect except troops, France doesn't want to provide them. The British feel that ground troops are a con{inental problem. Italy is under

. treaty restrictions nt to have .7#n army beyond her own inter-

nal security needs, Belgium, the Netherlands and Luxembourg: couldn't supply more than a few divisions, if inclined to do so. Germany has more men than it knows what to do with. The Frendh Foreign

__ Legion had to close its enlist-

ments to Germans to keep that historic organization from becoming an all-German outfit. = » = FRENCH opposition has blocked proposals to invite Western Germany to join the North Atlantic defense bloc. But that opposition may be softened if France and Western Germany become partnéfs in the coal and steel industries

- under the Schuman plan. In

rny event, pressure to make some effective use of German ranpowe- Is increasirg.

putting fe _ run off a yesterday.

Roger In Ma Buddy F on Billy D; bouts her again In tonight. Tonight's to a finish out of thre An Aus will open ¢ billed for t 60 minute |, Great Jo ] against Zi Eagle.

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