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Evening star. [volume] (Washington, D.C.) 1854-1972, March 04, 1936, Image 25

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. SIMM) TAX
SEEN IN PROPOSAL
Surplus Levy Held Spur to
Business, Also a
Check.
BY CARLISLE BARGERON.
Confronted with the proposition of
giving "business a breathing spell"
and at the same time the necessity
of raising more taxes, President
Roosevelt has worked out a plan
which he thinks will stimulate busi
ness. His plan, observers agree, and
he intimates, is designed to get the
huge corporate surpluses into the
marts of trade.
The newspaper men went to his
press conference en masse yesterday—
there was the biggest crowd since he
uttred his famous statement about
the "horse-and-buggy days,” which he
later regretted—saying to one an
other, "Is it another carefully dis
guised 'soak-the-rich bill’?” but came
away in a more deliberate thought
about its ramifications.
Aside from the fact that it is in
tended to raise revenue, the impres
sion was that it is intended, perhaps
primarily, to get corporate money into
more usefulness. Mr. Roosevelt, in his
talk with the newspaper men, seemed
to have the small investor in mind.
This is to say, that he figures that
the small investor, under his proposed
taxes on the undistributed surplus of
corporations, will receive bigger divi
dends. And, receiving bigger divi
dends, this investor will, of course,
spend more money. Under the new
tax plan it will be a distinct liability
for big business units to keep money
on hand as undistributed surplus.
These units have contended heretofore
that big surpluses were necessary to
, take care of unforeseen eventualities.
And economists agree that had not
the big business units of the country
had large surpluses on hand at the
beginning of the depression, the un
employment and resulting distress
would have been greater than it was.
Opens Doors to enterprise.
Apparently Mr. Roosevelt sees the
Situation on the upgrade, however,
end rather than having these sur
pluses as a protective reserve he would
like to see them made useful towards
petting men back to work. In sup
port of his supposed theme, observers
recalled “excess tax lays” of 1927 when
, big business organization, rather than
pay the excess profits tax. threw their
money into one adventure after an
other in an effort to lose money, but
Instead made money out of the addi
tional enterprises. Whether they made
money or not, they were creating this
enterprise and that, in an effort to
avoid paying the excess profits tax.
6uch a mood on the part of business
now would be most acceptable, it is
* pointed out.
An indication of just what Mr.
Roosevelt probably has in mind was
seen in Wall Street, where industrial
shares, instead of weakening as a re
sult of a “sock-the-rich" tax measure,
responded with higher values.
One immediate result of such a
tax program as has been proposed
Was. as observers saw it. to make
toward driving Ford and General
Motors into the “hands of the bank
ers.” which has been an obsession of
Henry’ Ford for several years. Both
he and General Motors, it is pointed
out. have been able to finance their
industries through their corporate sur
nlus.
Ford Reported Anxious.
In the case of Ford, it is pointed
cut, he takes no dividends from his
organization except what is necessary
to run him and Edsel. That is, speak
ing generally. Under the new tax
plan, he would either have to pay a
high tax on his surplus profits or
else distribute it in dividends. But,
as an economic matter, it is pointed
out in New Deal circles, Ford can't
• be expected to live so long, and when
he does die his estate would be largely
eaten up in taxes and the same re
sult obtained as is now brought about
under the new tax plan.
That Ford is most anxious about
the turn of events is indicated by the
Jact that last Sunday night his pub
licity representative. W. J. Cameron,
made a radio address, anticipating
such a program as has been enun
ciated and warning against it.
There seems to be another method
In Mr. Roosevelt's mind, and that
Is to keep big business from running
wild. Apparently he can't get over
his earlier impression that the coun
try is over-built, as evidenced by the
time he pointed out that there were
plant facilities capable of turning out,
more shoes than the country could
possibly consume. To this end his
proposed tax program would not
exempt the expenditures of corpora
tions for plant extensions.* The plac
ing of money into plant extensions
was one of the ways of avoiding the
excess profits tax in 1927, which
created additional industrial activity.
Apparently, Mr. Roosevelt has in
mind a plan which would jar loose
the corporate surpluses without at
the same time creating what he con
siders useless or "inflationary” ac
tivity.
AUDITTO COMPLETE
ACTION FOR DIVORCE
Court Will Then Announce De
cision in Mantz Case in
Los Angeles.
8r the Associated Press.
LOS ANGELES, March 4.—The
Mantz divorce case, in which the
name of Amelia Earhart Putnam fig
ured, was completed yesterday except
for an audit to determine the interest
of Mrs. Myrtle L. Mantz in the avi
ation corporation of which her hus
band, A. Paul Mantz, is an execu
tive.
The court announced a decision
Would be given after the audit.
Mrs. Mantz charged her husband
flew around the country with woman
friends as his guests instead of his
Wife.
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-- -DAILY SHORT STORY
MISS FIX-IT
By Betty Adams.
__
TP HE had been j
a woman, the
fingers that held
the note would
probably have
trembled. But, be
ing a man, the only
sign of emotion
was a tight look
around the jaw.
"I shall arrive on
the Pennsylvania,” jj
said the decorative, |
precise w'riting, jf
"please meet me.”
How like Marian k
that calm com- .?
mand was. She }
expected him to ^
drop everything
and rush to her ?
just as if t hey were
still married. F
Well, he'd fool
her this time, he ■
thought suddenly.
He'd meet her all
riirVit—with anoth
er woman!
But who? Hp confronted the ques
tion blankly—what woman? Since
Marian had divorced him to "live her
own life” there had been no other
woman. Only work and more work
until what had been John Driscoll be
came a veritable human machine.
The thought of work brought to
mind Miss Nichols, the girl who day
after day pounded out letters, orders,
reports in his H street office with the
efficiency of half a dozen ordinary
stenographers. What did she look like?
He had never really noticed.
* * * *
1JE REMEMBERED vaguely that
! the employment office card gave
her age as 20-something, and he would
have noticed if she hadn’t been rea
| sonably neat and clean. Well, what
j ever she looked like she'd have to do.
| He'd tell her in the morning to call
a cab and meet him on Fifteenth
street at 3:30.
So this was the w oman he was go
ing to take to meet Marian, he thought
sourly the next morning. A frump if
there ever was one. Perfect example
of the girl nobody ever notices.
He didn't bother with explanations,
j "Go home at noon and get into some
j thing a bit dressier.” he told her. "I
want you to help me, er meet a lady.”
| She looked scared to death. "Poor
kid, I guess she thinks I'm cracked,”
I he said to himself afterward.
They were in the cab. "I see, Mr.
Driscoll,” she said demurely, fingering
I the gardenia he had given her.
i "You're still in love with your wife
| and you want me-to make her j^al
I ous.”
* * * *
! JOHN DRISCOLL'S jaw dropped.
| J "Why, I didn't say anything of
j the sort,” he snapped. "You've en
| tirely misunderstood everything I've
| told you. We re through . . . washed
j up emotionally . . . there's nothing
j but friendship between us. All I
j want to do is cure her of this possessive
i feeling she still has about me and I
! thought producing a fiancee would be
| the best way of doing it."
I "Oh.” said Miss Nichols cryptically,
| "I see.”
“ 'Lo, John.” said the tall girl in
I silver foxes. "I'm so glad you came.”
She was, too . . . you could see it in
her eyes. "I thought afterward it was
j pretty cool of me to expect you to meet
me . . . now.”
i John felt uncomfortable. If only
' he'd known Marian would be like
, this he’d never have cooked up such
a silly plan.
j "Oh. my dear,” cooed a voice he
| scarcely recognized, "so you're John
I ny’s ex-wife . . . I'm so glad to meet
you after all he’s
told me-’
* * • *
J.JE EVADED
Marian's hurt
' glance and looked
in blank astonish
j ment at what he
had always thought
the demure Miss
Nichols.
Instead of the
reserved secretary
he had left the of
fice with, at his
side was a simper
ing little nit-wit
posing like a cheap
movie actress and
'• making goo-goo
eyes at him for all
she was worth.
’’Darling, what
divine furs,’* she
simpered at Ma
rian, "and so be
coming to you. A
gift from John?
Isn't he the generous darling? wny
even before we ere engaged he gave
me a sable neckpiece that must have
cost hundreds. And for our honey
moon we're going to Europe on the
Beretania. Aren't we, precious?”
"Precious,” who, after all had got
himself into this, choked a weak
assent.
* * * *
"CHALL we sit down,” suggested
^ Marian in a small voice.
"Oh, no.” cooed Miss Nichols.
"John said you have an hour between
trains—we're going to Jean's. John,
dear, get a cab while Marian and I
have a nice little chat.”
John slunk away trembling at the
havoc that might be befalling his rep
utation in his absence. Not that he
cared what Marian thought of him,
he hastened to assure himself. But it j
did hurt his pride to have her think ]
he had fallen for a little fool like ■
that.
At Jean's there were cocktails . . .
and Miss Nichols drank too many.
"It's nearly train time.” said Marian, i
She added bitterly: "Look at her ;
. . . Look at the girl who’s going to !
run your house and raise your chil
dren ! ”
"Well, you wouldn’t-" said John j
humbly. "There was your art to be ;
considered,” he accused her.
* * * *
A/TARIAN flushed. Suddenly her
i’1 eyes grew tender.
"John.” she said, “I didn't realize
till now how you need looking after.
While you were gone this common
little person told me all about the
parties, you’ve been taking her to—
the money you've been spending for
furs, clothes, jewels. John, you don't
love this woman. This gold digger
| . . . you can't, and I can't stand to see
! you taken advantage of. Come back
to me, John, let's get married all over
again—let's have a home—babies ”
•Marian, honey.” he said, and took
her in his arms to the delight of the
assembled bar.
"A headache ... of course, you've
got a headache,” said John Driscoll to
his secretary the next morning when
she telephoned. "A girl who's prob
ably never had more than one drink
at a time in her life is sure to get a
headache tossing them off like you did
yesterday. And as for taking the day
off . , . well, all I can say is, there's
a check for $500 in the mail for you
now. And if you don't use it to take
a cruise somewhere. Marian and I
flatly refuse to name our first baby
after you.”
1 (Copyrlcbt iP16.)
John felt uncomfortable.
Girl, Laughing for Last Week,
May Be Able to Quit in Few Days
; By the Associated Press.
WESTON. W. Va.. March 4.—Pretty
Teresa Hawkins didn't laugh so much
| today, and this led doctors to hope
i there soon will be an end to the spasms
of merriment which within a week
i made her a semi-conscious invalid.
The 18-year-old business college stu
dent began her seventh day of almost
constant laughter, which started as
she sat in a theater last Wednesday
J night.
Dr. J. E. Offner announced that as
I soon as passible he will operate for a
pelvic disorder, but declined to say
whether that had any connection with
i the case. The doctor said it might be
a week before the proper diagnosis
can be made, adding:
“There is to be much examination
I and some laboratory work before we
I can venture an opinion as to the
| cause.
I, =
| “She is limp and not interested in
anything. Her laughter is growing less
and less frequent now, and probably i
will stop within a day or two.’’
Other medical attendants also de
clined to advance an explanation of
the laughter, which first broke out
while Teresa was watching a serious
show—not a comedy.
Meanwhile in her room at the Wes
ton Sanitarium the attractive patient
was able to eat a little between the
giggles, but paid little attention to her
surroundings.
She picked up two rings and held
them close to her eyes—the doctors
say her sight seems affected—and im
mediately laughed hilariously.
Dr. H. C. Van Tromp. also attending
the girl, described her laugh as a natu
ral one, "just as it would be from any
normal person.”
..1
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r
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