Indianapolis Times, Indianapolis, Marion County, 10 March 1951 — Page 10

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Rat A Re 5 2 Indianapolis Tim A SORIPPS-HOWARD NEWSPAPER : <> ROY W. FOwaRD “WALTER t LECKRONE

“ HENRY W. MANZ Business Manager PAGE 10 Saturday, Mar. 10, 1951

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Telephone RI ley 5851 Give LAght and the People Will Find Ther Own Way

And Don’t Waste It HE SENATE has passed, 78 to 5, a broad draft act combined with universal training which stands to give the administration—and the military—just about everything they requested. fl The House Armed Services Committee has completed ~— hearings and expects to report out a similar bill on Monday. Early passage is likely. As approved by the Senate, the measure permits drafting men at 18, but only after local boards have called up all available men from 19 to 26. (The House bill would lower the induction age to 1815). bo Now at the half-way mark, the legislation includes the * long-desired universal training program for a steady flow of manpower into the Armed Services for training. After training, men would go into organized reserves to be called. in ‘any emergency. We have long supported universal train- “* ing as essential to a sound preparedness program and as a permanent policy for the future, even if actual military needs decline. Its chances of House approval are considered

good.

» » ~ ONLY major ‘Setback to the Defense Department's fondest hopes on the draft bill is the Senate's limitation of the Armed Forces to four million. The House committee is expected to fall in line on this number—over the strong objections of the Pentagon Which wanted no ceiling whatever

in numbers. This limitation written into the bill within the past

few days, is a timely warning which should not go unheeded by the Defense Department. As reflected by Congress’ action, the American public is gravely. disturbed by well borne-out charges and complaints that the military is as i careless and wasteful with manpower as any other agency of the government. . _ . a : Too many able-botfef“ met th uitorth huve ‘been seen or heard of ifi paper-pushing and door-keeping jobs around the Pentagon and other Armed Service headquarters. Too many able-bodied seamen have been writing home about mowing admirals’ lawns or running office-boy errands. Many non-combat jobs could be turned over to civilians, or to WACS and WAVES. * « : Congress is properly saying to the military. We're giving you up to four million men—more, if necessary, later— bat be sure you cut out the waste.

Peron’s Risk ARGENTINE strong man Peron takes the view that it's _*™ nobody’s business but his own if he throttles his country’s leading newspaper, La Prensa. Pod . "He may be in for somé unpleasant surprises on that score: Quite a few sister republics of the Americas, including the United States, are getting their backs up over his disregard. of the ordinary liberties and decencies accorded to a free people. : Freedom of the press is a measure not only of a people's freedom but of the good faith of a government in their name. By silencing this great independent newspaper, Peron ‘shows how far he can be trusted to assume a fair and honorable share in the councils of free nations.

» » * » ” LA PRENSA'S suspension already has been called informally to the attention of the United Nations by a Latin-American representative. It may be brought up, at least for floor discussion, at the meeting of the American Foreign Ministers in Washington later this month. Meanwhile, U. S.-Argentine relations have hit a four-year iow as the result of public indignation in this country. After flirting with the Axis Powers during the war, Argentina restored herself to the good graces of the American community only by promising to adhere to the Chapultepec agreement. That pact contains a freedom-of-the-press declaration. By abrogating it or ignoring it, Peron once more could find himself ostracized by democratic nations.

‘Now, as Never Before’ LMOST two years have gone since the Hoover Commission completed its monumental study of the federal government. Only about half of its recommendations for making the government more efficient and more economical have been adopted. Three Senators—McClellan of Arkansas, Aiken of Vermont and O'Conor of Maryland—now announce that they will introduce 18 bills covering the other half of the recommendations. : Two of the Senators are Democrats, ore is a Republican. They made it plain that none of them gives his unqualified personal support to any of the bills; that each reserves the right to amend or even oppose some of these measures. :

vy ~ ” ~ » x BUT, THEY point out, the Hoover Commission was created by unanimous action of both parties in Congress and did its work on a bipartisan basis. So the three Senators feel, rightly, that bipartisan action to put the remaining reorganization plans before Congress for consideration is a public duty. The bills they will introduce include some of the Hoover Commission's most important recommendations, notably: Reorganization of the Veterans Administration for better service to veterans at less cost to them and to the taxpayers; overhauling of Post Office and Agriculture Department operations; revision of confused and complex federal personnel policies; unification of federal hospital and medical facilities to insure best use of scarce medical personnel.

Ld THERE WILL be determined opposition to some of these bills. But all of them deserve prompt and full consideration, For, as the three Senators say: “Great public benefit has resulted from the recommendations which hive Been accepted. There is promise of further benefit in the remaining portions of the Hoover Commission's report. Now, as never before, the need is for - better management, strengthened organization and sconomical operation of the government's executive branch.”

” 1

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ol WHA

es YOUTH AND WAR . . . By

WIESBADEN, Mar. 10—Everybody says the future of Germany depends on the youth, but not many are trying to lead the new generation toward democracy. ia There are plenty of youth organizations, of sorts. But most of them aim to manufacture loyal Catholics or Protestants, or Communists, Socialists or trade unionists, or Neo-Nazis or Nationalists. Few are interested in training free citizens. ” American authorities tried to challenge the old authoritarian patterns by supporting nonpartisan youth organization and favoring school reforms.

Hitler's Methods AFTER the Berlin demonstration of half a million Red youth from the Soviet zone last year, the West German federal and state governments became somewhat less indifferent, They saw Stalin duplicating Hitler's method. But they are content that the Red group in the Western zones have less than an ‘estimated ‘1 per cent of the 1.5 million youth in organizations. They don't try to unify the nonCommunigt partisan groups here, or to provide the wider opportunities for community partici pation and employment which the gen-

—eration needs. The $1 million recently allo- =~

cated by the Bonn government from Marshall counterpart funds to aid several hundred selfhelp projects, homes and workshops was late and inadequate, The 248 recreatiopal and cultural centers (GYA) sponsored by the U. 8. Armed Forces are more popular with the half million young-

CONGRESS . . . By Marshall McNeil Treasury Wants To Explain Job

WASHINGTON, Mar. 10—The Treasury Department wants to tell Congress—in secret— the full story of how tt is investigating the income tax returns of gangsters and racketeers, Acting Secretary E. H. Foley has told Rep. Albert Gore (D. Tenn.). it is doing an “impressive” job. Rep. Gore, aroused by charges from the Kefauver. crime committee that criminals are “get« ting away with murder” with their income taxes, demanded of Treasury Secretary John Snyder the truth of the situation. The committee, headed by Rep. Gore's colleague, Sen. Estes Kefauver (D. Tenn.) had said criminals are submitting income tax returns which the bureau “would not accept from ordinary citizens.” “Is that true, Mr, Secretary?” Rep. Gore asked. “If so, why?’ = ~~ Acting Secretary Foley has now replied that the commissioner of internal revenue, George J.

Schoeneman, has already asked the chairmen’

of the House and Senate tax-writing committees for an opportunity to appear and tell the story of what ft has done, and is doing, about

collecting income taxes from criminals. He said -

the session would have to be executive—secret, that is—because of the federal law prohibiting release of any information about any income

+ tax return. . =

‘No Particular Income’

“THERE is such a law, of course,” Rep. Gore sald. “But I was not asking about the details of any particular income tax. return of any particular gangster or rficketeer. 1 was asking—and I am still asking—about the policy of the Bureau of Internal Revenue. I do not think that a full answer to the question of what is the Bureau's policy needs to be given in secret.” » Mr. Foley's letter said: “The Treasury Department is most eager to lay before the members of Congress the full story concerning its efforts with respect to the investigation of income tax returns of gamblers, Taskeisers and other elements of the criminal Ass. . : ck “However, the ‘passages from the interim report (of the Kefauver Crime which you quoted in your letter implied only very generally that enforcement is in some way deficient.” Mr. Gore conceded that the report did not name a particular criminal and charge that he avoided so many dollars in taxes. . “What the report did say,” Rep. Gore continued, “is that the federal government ‘is being defrauded of many millions of dollars, perhaps running into hundreds of millions, of tax revenues by the mobsters engaged in organized criminal activities” And it said ‘there is doubt as to whether the Bureau of Internal Revenue has been making a real effort to check on the income tax returns of knowp gamblers and racketeers’.”

‘Vague Broadside’

ACTING Secretary Foley's letter continued: “I am sure that you will recognize that such a vague proadside does not give the department an adequate basis on which to attempt a specific reply. Moreover, much of the information which would be essential to the full story cannot, under . . . the Internal! Revenue Code, be disclosed except in executive session of the commitfee on ways and means, the committee on finance, or a specially authorized select committee,” Mr. Foley enclosed a copy of the letter Mr.

' Schoeneman had written to the two congres-

sional committees. This said, in part: “Assuming a continual interest on your part, 1 would appreciate the opportunity, in company with other officials of the service who have responsibilities in connection with our tax fraud investigative work, to appear personally . . . to tell you precisely what the bureau has done, and 1s doing, to investigate the income tax returns’ of gamblers, racketeers and other members of the criminal class.”

SIDE GLANCES

Germany Is A

-sters they serve. German groups - Ing control of their superior in

or iy with competent and sincere personnel.”

The Treasury thinks

Committee) *

‘nounced it will boost

By Galbraith

Poor Plz

are domana. equipment. This is the American aim. But,

the U. 8. official in : al 8 ave som citizens ready to run those

Aside from creedal and partisan divisions, the , outstanding characteristic of German youth organizations is that the members want

Bet It's the Same Old Buzz

ard

— ALAURI weet

SQUEEZE PLAY re: By Fred Perkins

Protests Government Raising Rents While Freezing Wages

@® WASHINGTON, Mar. 10—" The government is about to raise rents of houses occupied by some of its workers and at the same time is freezing their wages.” This apparent conflict of policies is being

protested to officials and to Cengresmen by James A. Brownlow, 3

president . of the AFL's metal trades department.

The Atomic Energy Commission has an-

rents Aug. 1 on government-o wned houses at Oak Ridge, Tenn., and Hanford, Wash., sites of atomic energy installations . being operated by the General Electric and CarbonCarbide companies. “These rent. increases range from 28 to 40 per cent,” Mr. Brownlow said. “They are causing unrest among the workers, who are faced with an incongruous situatiorl It is that of having the government freeze their wages while the same government, as their landlord, increases their rents, contrary to its declarations that rents in general should be held down.”

Original Rents Low

MR. BROWNLOW, whose organizhtion includes employees at both Oak Ridge and Hanford, has protested to Gordon Dean, chairman of the Atomic Energy Commission, the Congresgional. Committee on Atomic Energy, and to individual Congressmen. | : Oscar S. Smith, the AEC's deputy director of organization and personnel, has stated in a

letter to Mr. Brownlow that the original rents were established at a low level to help attract workers in the early stages of these developments, when rigid security regulations. and unsatisfactory conditions; prevailed. Now, he said, the government housing has been raised

-»

COPE 1969 BY WEA SERVIOL. WNC. 7. M. REO. U. 8. PAY. OFF,

More than $8 billion are already involved in some 2500 applications for accelerated amortization. More applications are bound to be received as the defense program grows. This indicates what kind of money is at stake. Only 300 of these applications have so far been approved, for a total of $2 billion. So there is still time to save other taxpayers considerable sums of money, if administration of the tax amortization program can be tightened up. Interior Secretary Oscar Chapman has been taking the lead in that this be done before it's too ldte. Final responsibility . for administering the program rests with the Defense Production Administration, under William H. Harrison. Originally it was under Stuart ‘Symington, in National Security Resources Board. y

” ” ~ 4 CURRENTLY, regulations governing tax amortization

"Say, Dad, what's all this about fallows your lost generation?"

wu,

age being the

are being reviewed to see If too generous allowances may not have been made. Nothing

to approach conditions in surrounding communities, removing the reason for “abnormally low rents.” Mr. Smith said also that the low rents “actually constitute an indirect and unjustified subsidy at the expense of the general publie, and an unwarranted special privilege to those workers who live oh the site as compared to

those who do not (whether by preference or

necessity) and thereby pay prevailing costs.” About 18 per cent of the Hanford workers and 40 per cent of those at Oak ‘Ridge live off the project sites. “Elimination of federally subsidized rents.” Mr: Smiith said, “is not considered by the AEC to contravene any federal policy of price control, ‘and will encourage private development of off-project housing.”

‘Views on News

‘By DAN KIDNEY KEY WEST is one place President Truman gets along swimmingly. > o> @ SENATOR FULBRIGHT wants an investigation of administration morals. Sounds like made-work for mink hunters. ob ABOUT the best way to beat the HCL (high cost of living) is to stay for free at an RFC hotel. @ B.A IT WOULD be nice if honest government came back in style this spring. ® © 2

UTOPIA —A place where a politician is proud of it. > & % MAYBE UMT would get more support from the educators if the Army put in basketball and bribery. > & PRICE Stabilizer DiSalle will need about a bale of that price-fixed cotton to drown out the rebel yells from Capitol Hill,

AMORTIZATION . . . By Peter Edson Here's a Beautiful, New Tax Loophole

WASHINGTON, Mar. 10—A very timely second look’ is being taken at what's known as “accelerated tax amortization” allowances. Intended originally to encourage the expansion of

investment.

"a higher education, he will find it hard to

not secure a fair return on its

To provide an incentive for

sian drill-sergean is spoken to. He learns by rote. to be a dutiful member of i he was born, to believe the Germanic myths, t bow to authority, and to accept the supremacy of the state. Eighty-five per cent stop school after an elementary education of eight years. Another 10 per cent schools. ‘And about 5 per sities. In the American attendance has’ tripled over pre-war. When the German youth comes out of school —at whatever age—the chances are against his getting a job. More than half a million youth are unemployed now, and another quarter million will leave school at Easter. "If he is lucky enough to get a job his prive {lege consists in slaving under a system with wholesale discriminations against - youth in working conditions, pay and opportunity. ‘He can expect little consideration from the older craftsmen, the foreman or the employer, If the boy is one of the 10 per cent with &-

middle school education and wants to get inte

a small business, or to be a technician for some. ation, he will face dimtar dareiers. Buel ness is dominated by trade agresments and

Thwarted Youth

OR IF he is one of the 5 per cent elite with

into any profession and even more difficult get ahead. Nobody wants a young lawyer who lacks pull and cannot command respect of the elders who dominate the courts and rum the country. Older physicians have the state insurance licenses and resent upstart competition. In the civil service advancement comes only through senority, sycophancy and conformity. Hitler created the Nazi movement out of thwarted youth and a frustrated middle class, The sanie potential is building up now for some future “leader” with new words set to the old tune. :

% j not agree with a word that you say, but I will defend to the death your right to say it."

‘Don’t Blame the Trucks’

MR. EDITOR: After reading the letter printed in your Hoosier Forum on “Stop the Trucks” (Times, Mar. 5) I have become not a disgusted taxpayer, but a disgusted reader. I don’t suppose you'll print this as I have never read an article in the Hoosier Forum standing up for the trucks. In the first place where does most of the money come from that builds these roads. Why it comes right from truck owners. From the millions of dollars they pay on gasoline tax and license fees. Put the trucks off the roads and you will see no more super-highways. As far as driving ability and safety is concerned, the trucker has a whale of a lot better record than the pleasure driver. If you ask me it’s the tourist that had better build his own roads. +.

HALF the time when he is driving he is gaping around the countryside, laughing, telling jokes and even drinking. A trucker tends to his own business—driving. You can’t blame the trucks for tearing up the roads. Take a look at some of the streets in Indianapolis — streets that a trick is not allowed to use. You practically need a safety belt to drive on them. On second thought maybe it would be a good idea for the truckers to build their own roads. They could for the same amount of cash they are putting into public roads and there would be nothing but cautious drivers tending to their own business. Let the tourist struggle along and try to build super-highways on the skimpy taxes he

pays.

nny

—Disgusted Reader, Plainfield,

MR. EDITOR: I was very relaxed until reading a very stupid letter in your paper. Whoever the person is he was too cheap to sign his name but signed it Disgusted Taxpayer. . . . Listen Mr. Big Shot Taxpayer, maybe you don’t care about the trucking industry, but thousands of others that make a living at it do. You speak of paying taxes—wéell, friend, yon pay your share just like I do. You probably have one car and buy about 10 gallons of gas a week and buy one set of license plates a year, : * % 4 IT'S no fault of the trucking industry that this and all other states put in cheaply constructed highways. The company I work for bought about 500 sets of plates all the way from $35 to $200 each and buy more gas for one truck in two weeks than you will for your car in a year. ,,, Let's keep the record straight, Pal.

~—Paul A. Coulter, Otty.

plants that had later civilian uses. Applications for amortization

defense production facilities by private capital, this provision of the Internal Revenue Act of 1950 has now taken on the appearance of a beautiful new tax loophole.

can be done to recapture on renegotiate allowances already made. But if a check can be made in some future applications, it will be that mue¢h of a help, - Of the allowances made thus far, $1.5 billion have been for iron and steel plant expansion. The average amorti-

* zation allowance has been 75

per cent. This i= a typical example of how thé system works: Suppose the government wants a new steel plant built, to cost $100 million. If thé life of this plant would normally be 20 years, the governmend would allow a depreciation deduction yor income tax purposes of 5 per cent, or $5 million a year for 20 years. - - » THE STEEL company might argue, however, that building this additional plant involved an extra risk. There might not

be a demand for its production.

after the def se effort was over. Also, since construction costs are now abnormally high,

the company might say it could .

the steel company to build this plant, the tax laws now say that part of this cost may be amortized over a five-year period. If the allowance is 75 per cent, it would mean that 75 per cent of the cost of the mill, or $75 million, could be written off in this period. This would be at the rate of $15 million a year, or three times the normal depreciation allowance. What this amounts to is, in effect, a subsidy from the federal treasury. Also, it means that while taxes ‘are reduced for any company having a dépreciation allowance, the treasury has to collect from other taxpayers the taxes it isn’t getting from these privileged companies. ‘ 8 » - DURING World War II, there were similar depreciation allowance provisions in the tax legislation. Amortization allowances were at first handled by Army and Navy direct. They began by granting 100 per cent

depreciation allowances. While

this may have been justified for something like a shell loading plant that had no possible peace-time civilian uses, it was hardly justifiable for steel, aluminum or other

roy

allowances in the .present defense production emergency period are already far in excess of World War II's total of 44,000 allowances totaling $6 billion, . Defense Production Administration has farmed out responsibility for recommendation on how these cases should be handled to various agencies.

me stand the test . . . and so I do not measure him , . . In dollars or in cents .. . for what he does and what he'says . . . there is no recompense , . , for he’s the one that will not run i «+ he'll stick until the end ++. and so itis I value him .,, a true and real dear friend.

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