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The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, February 16, 1950, Image 6

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PAGE SIX
i-
9
0
Ten Oil Men Escape Taxes
On $50,000,000 Profits
By DONALD W(X)DS
Washington (LPA)—A list of 10
unnamed individuals who escaped
paying taxes on almost $50,000,
000 of income during a recent five
year perio because of the gaping
tax loopholes provided for oil and
gas operators has been submitted
.to Congress by the Treasury Dep’t.
During these same yeaia the gov
ernment imposed income taxes on
workers making as little as $15 a
i. w
The depaitment also has submit
ted a list of 20 unidentified corp
orations which used the same loop
holes in 1947 to escape taxes on al
most half a billion dollars of pro
fits. Every y. ar these corporations
•—most of them big oil, gas, and
sulphur companies—use the same
loopholes for similar privileges.
z These were only two of many ex
hibits submitted to the House Ways
and Mean.' committee by Thomas
Lynch, general counsel of the Trea
i* sury, in an effort to get Congress
to at least partially plug the de
pletion and other loopholes in the
taxes on gas, oil and sulphur com
panies.
But there is considerable doubt
^whether Congress will do anything
about it. Congressmen from the oil
and gas stales, backed by powerful
Ihmbies and helped by such Repub
licans-as Mason (R, III.) are fight
ing any reform. Unless public opin
ion is aroused, there is little chance
of Congress plugging the loopholes.
Mason has been making big talk
about plugging loopholes—chiefly
about loopholes he contends exist
lex the benefit of labor unions and
cooperatives—but he showed little
sympathy, with Treasury plans for
.plugging the oil depletion loophole,
adni ttedly the biggest single joker
in th. tax laws.
The newspapers by and large
ignored the sensational figures
submitted by the Treasury. The
Associated Press, for instance, put
the lead of its story on a Treasury
demand for taxes on businesses
run by labor unions. There was no
(evidence that this is a big loop
Ihole most union constitutions pro
hit engaging in business. But to
the AP, apparently, this was a big
ger story than figures demonstrat
ing that the oil, gas and sulphur
companies are escaping more than
$400,000,000 in taxes every year
through the oil'depletion and other
loopholes, or that 10 men had es
caped taxes on nearly $40,000,000.
There was no hint of the iden
tity of the 10 taxpayers. The Trea
sury got the figures from their in
come tax returns, and under the
Jaw could not disclose their names.
But its figures showed that these
10 men from 1943 to 1947 had
comes of about $62,000,000, of
which $52,600,000 came from
and gas operations.
Of this $62,000,000 they were
able to escape taxes on about $47,
000,000 during the five-year period,
or an average of $4,700,000 each.
Altogether they paid taxes of less
than $14,000,000, or about 22 per
cent on their incomes at a time
when wartime tax rates on million
dollar incomes ran as .high as 80
per cent.
YOU CAN SEE THE CREAM
Always Use
CREAM TOP
Milk Bottles
THEY ARE SANITARY
Used Exclusively By
Golden Star
Dairy
Phone 3200
-uiieral.
i
■..M
i
Dawson
"SO MUCH
215 West Fifth Street
One of these men made $10,500,
000 from oil and gas operations,
plus nearly $4,000,000 from other
enterprises. His special privileges
under the oil and gas loopholes
permitted him to exclude virtually
all of this income from taxes, so
that during the five-year period he
pain total income taxes of only
$80,000, or about what other busi
nessmen making $150,000 would
have paid..
Two other men nfade about $6
million each during the five-year
period and paid only $500,000 each
in taxes. A fourth made $4,400,000
and paid only $150,OCO.
The 20 selected corporations, all
mineral corporations, made net
profits in 1947 of $926,000,000—or
almost a billion dollars. Special
loopholes permitted them to duck
taxes on about $441,000,000 of
these profits on which most corp
orations would have had to pay the
regular rate of 38 per cent. As a
result these corporations had ‘to
pay only on $485,000,000 and their
total taxes were only |9 per cent
of their net income.
The Treasury also submitted fig
ures showing most of the benefits
from these oil, gas and sulphur
loopholes go to the big companies,
not the little wildcatters, in whose
name the benefits have been pro
vided. In 1947 a total of 352 corp
orations got exemptions of $838,
760,COO, of which 90 per cent were
in excess of those allowed corpora
tions in other fields. Moro than a
half-billion dollars worth of these
special privileges were enjoyed by
the big integrated corporations
such as Standard Oil, and cnly
$110,000,060 went to the companies
engaged only in mining oil. (The
“depletion allowance” was written
into the law in 1926, and is a spec
ial tax deduction of 27’/a per cent.)
in-
President Truman has called
these loopholes the most indefen
sible in the tax laws. But because
of the strength of the oil lobby he
has not even attempted to plug
them. Instead, he is merely asking
Congress to tighten them up to
catch about half of the taxes that
have been getting away from
Treasury. Even this modest
quest faces serious opposition.
oil
the
re­
Supreme Court Says
Fed. Trade Commission
Can Check Corps.
Washington (LPA) The Sup
reme Court gave the Federal Trade
Commission some strong new teeth
Feb. 6. Now the agency can force
a corporation to supply facts and
figures showing whether it is com
plying with a cease and desist
order obtained by FTC in the
courts.
FTC, which has the job of regu
lating business practices to pro
tect competition and the public in
terest, had been i«*fi*d by two salt
manufacturers. Morton Salt Co.
and International Salt Co. had le
fused to turn over detailed price
and operation information. FTC
needed the data to check whether
the two companies were actually
stopping practices banned by FTC
as monopolistic.
The Supreme Court unanimously
ruled that FTC was completely
within its rights in demanding the
report. Justice Robert Jackson de
clared that the Court on many oc
casions had ruled that “corpora
tions can claim no equality with in
dividuals in the enjoyment of pri
vacy.” Consequently, he said, no
question of invasion of' privacy
guaranteed individuals by the Con
stitution was involved, as the com
panies had claimed.
Ask for Union Labeled merchant
ACTUAL charges for 500 consecu
tive funerals conducted by the
DAWSON
follows!
Funeral Home are as
Were
Were
Were
Were
Under $150
Under $300
Under $500
Over $500
Funeral Home
for so little'
Phone Main 10
IL
ECA MONEY SUPPORT THEM—The most important group
fed, educated and secure if they are to become responsible citizens,
is part of a project built with Marshall Plan funds.
MAYBE IT'S ME!
By RUTH TAYLOR.
When everything is crossways.’
and upset, when you feel that all I of those who are fair to us. Dont
... v __
those around you are either mal
ingering or doing their jobs badly,
when you are overwhelmed by the
crass stupidity and inefficiency of
those in authority—then is the time
to stop and say “Maybe it’s me!”
Self-searching is one of the car
dinal principles, a first factor in
establishing good public relations.
No competent advisor on this im
portant subject would start his
work by attacking the action of
competitors. He begins his task by
a survey of his client’s business
and attitudes. He makes very sure
that there are no flaws, no errors
to be corrected at home, before he
Starts to win public opinion abroad.
“Maybe it’s me!” We must ap
ply this same routine in consider
ing our own relations with those
with whom we come in contact. Are
people always fighting us? What
wo must ask instead is—are we
combative. Have we a perpetual
chip upon our shoulders? Have we
been interested only in cur own
rights and in our own problems
Are we misunderstood by our
fellow men?—Well, what has been
our attitude toward others? Have
we been open and friendly, ready
to understand and to be understood,
or have we assumed a “take it or
leave it” attitude? Calling up the
past works both ways.
We cannot create good feeling
by force. We cannot legislate
friendship. We cannot get full co
operation on demand. But—we can
draw to ourselves all these things
by our own attitudes.
We like people who like us. We
are friendly toward those who give
us friendship. We are considerate
14-44^
BARBARA BELL PATTERN
No. 3188
This pair of colorful aprons will
servo nicely for kitchen duties or
when you entertain. Each combines
two fabrics effectively. The heart
shaped tip on the bib apron is
very attractive.
Pattern No. 3188 Is a sew-rito,
perforated pattern for sizes 14, 16,
18, 20, 40, 42, 44. Size 16, bib
apron, requires 1% yards cf plain
fabric in 39-.'nch, yard checked:
half apron, 1!4 yards of checked
fabric, yard plain.
I For this pattern, send 25 cents,
coins, your name, address, pattern
number and size wanted to Barbara
Press Association, P.
Station G, New York
Bell, Labor
O. Box 99,
19, N. Y.
I Send an
cent?, today
additicnal twenty-free
for ycur copy of the
Spring and Summer STYLIST.
This latest issue has 48 pages fill
ed with special features, wearable
styles for all the family—gift pat
tern printed inside the book. Don’t
miss it!
forget, that this works
in reverse, as well.
“Maybe it’s me!” Maybe the
trouble is with us. Let’s be sure
our own attitude is right before we
start criticising the other fellow.
Let’s do some self-searching and
some self-straightening first.
a
ihowever,
____ thio wnrg'4
Let’s not be so quick on the trig
ger to defend ourselves. If cur
actions were right, we don’t have
to put up a defense—we just have
to tell the facts. Let’s be readier to
understand the opinion and wishes
of others and deal with them as we
wish them to deal with us.
“Maybe it’s me!” That’s the
place to start to improve the con
ditions around us and our public
relations. And, after all,—maybe it
is me!
AFL Expert Hits
Downey Backer On
Social Security
Washington (LPA)—Sen. Sheri
dan Downey (D, Calif.) who 18
seeking renomination, is backed by
George H. McClain, whose moss
back ideas on pensions are as bad
as Senator Taft’s. Downey has so
far refused to say whether or not
he repudiates McClain’s plan,
which Downey discussed in the
Senate Finance committee’s social
security hearings.
To “help Sen. Downey make up
his mind,” Rep. Heleii Gahagan
Douglas (D, Calif.) sent to the
Senate an analysis of the McClain
plan, by Nelson Cruikshank, the
A FL expert on pensions. Mrs.
Douglas has announced she will
seek the Democratic senatorial
nomination in the June 6 primary,
as an opponent of Downey.
“Mr. McClain’s scheme would re
duce our elder citizens to a com
mon level of poverty,” Mrs. Doug
las charged. “Sen. Downey, who is
receiving Mr. McClain’s political
assistance, should let the people of
California know whether he intends
to defend the McClain proposals in
return for the promist'd
support.”
political
McClain
the con
Workers
Cruikshank charged
“completely fails1 to grasp
cept of social insurance.”
who belong to the A FL “are per
fectly willing to pay through regu
lar payroll contributions their
share of the cost of social insur
ance.” They don’t want vague pro
mises that the government will
take care of them in their old age,
•Uhey want this right established
in a manner to remove the question
of their old age security from the
uncertainties of political fortunes.”
Cruikshank also hit at McClain’s
proposal that a means test be re
quired for pensioners, and his at
tack on the “privileged groups”
like railroad workers and indus
trial wage earners covered: by the
two federal social security pro
grams. He challenged McClain to
state whether he means to wipe out
these programs. Instead ef wiping
cut federal social security, Cruik
shank called for strengthening the
present program.
Transit Strike In Philadelphia
Averted, No Fare Increase
Philadelphia (LPA)—A “pack
age” settlement has averted a tran
sit strike here. The settlement in
cluded an understanding that there
be no fare increase. The executive
board of Local 234, Transport
Workers, accepted the settlement
at a two-hour meeting at which
Michael J. Quill, national president,
and Andrew J. Kaelin, local head,
spoke for the proposal.
Operating employes will get an
increase of 2 cents an hour main
tenance employes, .5 cents. Other
improvements included better
“swing run” pay, vacations, pen
sions, and sick benefits. The “pack
age” was agreed upon at a five
hour meeting between both parties
and a fact-finding board headed by
Albert M. Greenfield.
W'!:
THE POTTERS HERALD, EAST LIVERPOOL, OHIO
in Europe, the children, must be well
This nursery school in Southern France
$500,000 Gift Of
Steelworkers
Hailed By Miners
Pittsburgh (LPA)—In a historic
display of inter-union solidarity,
the United Steelworkers forward
ed a check for $500,000 to the em
battled United Mine Workers of
America. In a leter to UAW Sec
retary-Treasurer John Owens,
Philip Murray, president of the
Steelworkers said the donation was
to “assist the needy miners and
their families in their struggle
^gainst the coal operators.” Mur
ray, a former miner and UMW
vice-president, revealed that the
steel union’s executive board voted
unanimously to make the contri
bution.
Speaking for the coal diggers,
who have been trying since June to
obtain a new contract, Owens re
plied: “The action of your union in
this instance will, I am sure, go
far toward promoting a common
spirit of unity and support among
the members of organized labor in
their mutual determination to pre
serve their present standards and
to attain the sound objectives of
all labor.”
Murray said he was requesting
all Steelworker locals “to lend
every degree of financial and moral
support to the mine workers and
theft? families by making contribu
tions which, I trust, will be help
ful in bringing ultimate victory to
th#! United Mine Worker^ of Am
erica.”
In Miami Beach, Fla., President
William Green of the AFL, also a
one-time miner and
asked what effect
would have on the
said: “I doubt very
court action will result in resump
tion of mining activity. I don’t
want to enlarge on that. But know
ing the miners as I do I feel justi
fied in saying it.”
AFL In Jersey To
Fight Rent Hikes
*~-5r
UMW official,
an injunction
coal situation,
much that the
New Jer
Labor has
any state
rent in-
Newark (LPA)—The
sey State Federation of
announced it will fight
legislation permitting
creases and will mobilize its re
sources to fight for continuation of
federal rent controls.
Vincent J. Murphy, state AFL
secretary-treasurer, declared “there
are reports that under proposed
state legislation, landlords who re
ceived no increases under the pre
sent law would be enabled to hike
rents up to 10 per cent. We shall
fight any such proposal. Rents
should remain frozen at their pre
set|t level because of the high cost
of living and increasing unemploy
ment.”
Murphy added that if a nine
member board is set up to super
vise state rent control, the AFL
will insist on labor, representation,
as well as on the respective county
supervisory bodies. “The workers
must have "their representation to
insure against any injustices,” he
said.
The proposed state legislation is
presumed to be a reserve measure
to be invoked if federal controls,
ending June 30 are not renewed.
Murphy announced that state AFL
legislative representatives are
watching the measure “to make
sure the workers’ interests are pro
tected and the real estate lobby
doesn’t get the upper hand.”
DELAY ACTION ON LABOR
EXTENSION BILL
Washington (LPA)—The Labor
Extension Service bill, supported
by- organized labor, came within
one vote of being approved by the
House Labor Committee, and then
was held up for further study on
Jan. 20. By a 13-12 vote, the com
mittee decided to wait 60 days be
fore taking action, and to bring the
measure to the floor at the same
time a the controversial federal
aid to education bill comes up. A
similar labor extension service bill
now on the Senate calendar.
is
?-w
WOMEN IN
INDUSTRY
In a new report on night work
for women in hotels and restaur
ants, the Women’s Bureau of the
U. S. Labor Department says that
employment of women*at night has
long been a matter of concern
among those interested in social
welfare conditions. However, the
bureau points out, conditions under
which women work either by day
or by night have undergone trem
endous changes since the ebneern
about night work first arose, and
this has altered some of the found
ations of the old concern.
Night work for women has been
objected to on physical as well as
moral grounds. For some years the
effect of night work upon health
has been a subject of much contro
versy. “If there is no physical rea
son,” says the report, “why sleep
is not possible by day, nor why
women cannot work by night, there
may still be social reasons why
fatigue remains a problem. The
accumulated testimony of years of
investigation tends to substantiate
the conclusion drawn long ago that
women, more than men, suffer
from fatigue on night work because
adequate sleep by day is impossi
ble for the worker who leaves work
to assume a multitude of domestic
responsibilities.”
Sound public policy with regard
to night employment of women, the
report indicates must rest upon
fuller understanding of basic em
ployment problems under present
day conditions. A broad approach
to dealing with night work for
women must include a considera
tion both of appropriate legisla
tion and of the policies which lie
outside the realm of legislation.
For many women who now need to
work at night, so that their days
can be open for family and house
hold responsibilities, the develop
ment of better community services
for their convenience would pro
vide greater freedom to accept
daytime employment.
The survey covered hotels and
restaurants in Atlanta, Indiana
polis and Hartford, Conn. Surpris
ingly enough it was found, in the
hotels studied, that night work
was not a very significant part of
women’s total employment, even
though there was no legal limita
tion on such work in the areas
studied. While women accounted
for more than half of all employ
ment in hotels, only very small pro
portions were employed after 10 p.
m.
In restaurants, the proportion of
women workers employed after 10
p. m. was greater, but most of the
night work for women as well as
men was limited to a late evening
rather than a “graveyard” or all
night shift. Restaurants in the
areas studied tended to close by 12
midnight or 1 a. m. Those remain
ing open all night were the fewer
in number and were usually the
small counter-type establishments
employing small numbers of work
ers.
The Illinois State Federation of
Labor Weekly News Letter says
that Mrs. Ann Douglas Fook, 28, a
member of Barbers’ Local Union
No. 939, Chicago, was recently ap
pointed a member of the State
Beauty Culture Examining Com
mittee, the first Negro to serve on
this important committee which ap
proves licenses of beauty cultur
ists, shops, schools and teachers
throughout Illinois. She is a grad
uate of Northwestern University
with a degree in science and
sical education.
phy-
Sen-
Following adoption by the
the Equal Rights Amend
the National Young Wo-
ate of
ments,
men’s
peated
sure. Mrs. Alfred E. Mudge, chair
man of the national board’s public
affairs committee, described the
Christian Association ve
ils opposition to the mea-
SO, NO SNOW, SO Cleo Gianos
models ski togs, at Miami Beach,
Fla., as part of fashion show for
the benefit of the March of Dimes.
Wacky, but wonderful way to whip
up wampum
for wonderful cause.
House Makes Slight Cut In Postal
Subsidies For Giant Publications
Washington (LPA) A small ..
cut in the postal subsidies for the
welfare of the Luce publications,
other big magazines, and such
newspapers as the Chicago Tribune
with a large mail circulation, was
voted by the House Feb. 9. The bill
now goes to the Senate.
In approving a new postal rate
bill, which cuts $131,000,060 out of
the annual Post Office deficit of
over $550,000,000, the House voted
to increase rates for second-class
mail by about 50 per cent, for pub
lications with circulation over 50C0
which are published for private
profit. Labor publications, except
those privately owned, are specifi
cally exempted from the increased
rates, since they are not published
for a profit. The same exemption
applies to religious, fraternal and
farm publications that are non
profit.^
“This ought to be the first iq a
series of changes designed to put
the *Post Office back on a paying
basis by taking powerful corporate
entities off its charity lists,” Rep.
Andrew J. Biemiller (D, Wis.) told
the House in debate preceding pass
age of the bill.
Referring to the second-class
subsidies, Biemiller charged that
“here is a real hand-out—a hand
out to the bitterest critics of
human welfare measures. The Post
Office figures that it spent $200,
000,060 more in' 1949 in handling
second-class mail than the second
class mailers paid into the depart
ment.”
“W’hile Time, Life, and Fortune
took pot-shots at a welfare state
aimed at human well-being and
abundance,” Biemiller said of the
Henry Luce publications, “their
publisher got an estimated $11,
000,000 subsidy from the govern
ment, of taxes of you and me and
everybody else.” He charged that
the three top magazine groups
(Luce, Curtis publications, and
Collier’s) got annual subsidies of
$34,000,000.
Small newspapers and magazines
have been squeezed financially
through the way postal subsidies
are allocated, Biemiller charged.
He pointed out that in the last 20
years, the number of dailies has
dropped from 2700 to 1700, and the
number of weeklies from 21,500 to
10,000. “I note with gratitude that
the committee has not increased
rates for non-profit periodicals,
weeklies of 5000 or less paid cir
culation, and dailies of 10,000 or
less, Biemiller said. “I would sug
gest that we assist these and news
papers of up to 50,000 circulation
even more.”
Instead, the postal “charity”
now goes to such papers as the
Chicago Tribune, which covers a
three-state area “with a pay load
of advertising that is matched only
by the bulk of advertising in the
Luce and Curtis magazines. The
Congress sets up postal rates to
help disseminate worth-while read
ing matter, and the American peo
ple end up by paying for the mail
ing of ads telling them they have
halitosis.”
The bill as it was sent to the
Senate would:
1—Raise the rate of postcards
amendment’s “feminist ideology as
both fallacious and obsolete.”
“The YWCA,” Mrs. Mudge said
in New York, “opposes the Equal
Rights Amendment because we dis
agree with its basic premise that
identity of treatment before the
law would give equality of treat
ment to both sexes. We agree with
constitutional authorities that such
real discrimination against women
as still exists would not necessarily
be removed by this blanket amend
ment and a valuable body of pro
tective legislation for women would
be threatened.”
STARTS
THURS
Directed
CERAMIC
Thursday, February 16, 1950
Two Men and a Beautiful
Girl in An Exotic Land!
from one cent to two cents. More
than 90 per cent of postcards last^f
year were sent by commercial con
cerns and by business houses for
commercial purposes. There would
still be a subsidy, for it costs 2.6
cents to handle each card.
2—Leave unchanged the present
$50,000,000 subsidy to the air lines,
which theoretically is for airmail
carried. Another committee has
jurisdiction over the airline sub
sidy, and the Post Office depart
ment has placed before it a request
that this subsidy be removed from
its budget.
3—Raise second class rates 50
per cent over present rates, except
for non-profit religious, education
al, philanthropic, fraternal and
labor publications, which will not
receive any increase unless they
happen to be paying less than one
eighth per copy. No increase for
weekly, semiweekly or triweekly
papers with circulation under 5000.
4—Increase rates on third-class
bulk mailing from one cent to 1J4
cents.
5—Increase fourth class rates
for catalogs, books, and parcel post
an average of one cent a package.
Union Sponsors Exhibition at Hotel
Palm Beach, Fla. (LPA) The
Biltmore Hotel will house an ex
hibition of painting and decorating
March 21-24 sponsored by the Bro
therhood of Painters, Decorators
and Paperhangers of America
AFL, which believes shop person
nel should have a chance to display
its talent and “to advance crafts
manship of the industry.”
Entries include decorative panels,
sign painting, graining, lettering,
wood finishes and mural painting.
Multer Hits Army Jim Crow
Washington (LPA) Another
Congressman has added his name
to the growing list of solons urging
the House Armed Services commit
tee to eliminate Jim Crow in the
armed services. Rep. Abraham Mul
ter (D, NY) has urged the commit
tee, now working on draft exten
sion proposals, to take six specific
steps aimed at barring race segre
gation in Selective Service and
Nat’l Guard and military procure
ment programs.
Whatever you
may want, you
can have it thru
regular saving
in your account
here., liberal
earnings added
TRACY STEWART
VALENTIN*
$
UREDlx
&
First Federal Savings
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aiAWCORTESAI—
iriM-G-M’s
SYDNEY GREENSTREET
JOHN HODIAK
LIONEL BARRYMORE
Largest set ever constructed on the
studio lot. 37 acre Malayan jungle—a
studio made river in which Johnny
Weissmuller formerly swam was length
ened and widened for native sanpans.
Exciting Sequences.
By Richard Thorpe—Produced By Edwin H. Knopf*
1/
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