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Evening star. [volume] (Washington, D.C.) 1854-1972, August 05, 1941, Image 11

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Tax Action
Passes Buck
To Senate
Senators Seen
Less Susceptible
To Pressures
The hot weather and a multiplic
ity of pressures seem to have affected
the otherwise serene and peaceful
relations which hitherto have existed
between the ad
ministration and
the House Ways
and Means Com
mittee. To put a
$3,200,000,000 tax
bill through the
House, however,
after several
weeks of consid
eration by the
Ways and Means
Committee is no
small achieve
ment even
though one im- David Lawrence,
portant feature—mandatory joint
returns for husband and wife—was
eliminated from the measure at the
last moment
The controversy over joint re- j
turns is by no means over. The
Senate will have to wrestle with it I
for many reasons, not the least of
which is ‘the fact that elimination
of the proposal means elimination
of $300,000,000 of needed revenue.
The House Ways and Means Com
mittee having struggled with all the
various kinds of taxes that nobody
really wanted to see imposed—excise
taxes and special levies—there was
no enthusiasm for the task of re
writing the bill to make up the
deficit. So the committee just
passed the buck to the Senate.
Heavy Pressure Applied.
When the Senate faces the task
of rewriting the House bill, it will !
discover that the members of the
House were subjected to an sorts
of pressure to keep them fromr rais
ing certain taxes and that if the
$300,000,000 is to be made up, there
must either be higher individual
income taxes or high corporation
taxes or some higher consumption or
sales taxes.
All House members come up for |
election in November, 1942, but only I
one-third of the Senate does. So it
may be assumed that the Senate
will not find itself influenced by as
many inhibitions as appeared dur
ing the House discussion by its com
mittee. As a matter of fact, the
House is glad to get rid of the bill
as usual and pass it on to the Senate.
There is, on the other hand, a
certain amount of basic tax raising
which has been done in the House
bill which will not be touched by \
the Senate because it represents a
ir\h r>n the n-Vinla «>«ll
House committee's position on man
datory returns was unfortunate. The
proposal was doomed to defeat be
cause there are so many community
property States whose Representa
tixes, irrespective of party, were
pledged to vote against the joint
return idea. Then, too, there has
been a fallacy to the effect that only 1
the rich would be affected by the !
joint returns. Once the Joint re- !
turn idea is written into legisla
tion it would eventually affect more
and more taxpayers as the ex
emptions were lowered.
“Unpopular Position.’’
It is significant that President
Roosevelt has gone on record in
favor of broadening the tax base
by cutting the exemption of married
persons down to the $1,500 level and
unmarried persons down to $750 as
b basis of exemption. This is in
line with sound tax theory and it
is encouraging to find Mr. Roosevelt j
taking his stand on what doubtless
is, numerically or politically speak
ing, an unpopular position.
In the exchange of letters between
♦he President and Chairman Dough
ton of the House Ways and Means
Committee—a strong administration
adherent—there appears a sour note.
Mr. Dough ton says:
"The committee at times found it
Impossible during the course of its
hearings to reconcile the testimony
of different officials representing the
administration. * * * Nothing in
this letter is intended as a defense
or an apology for the action which
we have taken, but only as an ex
planation, so that you and the coun
try may understand some of the
reasons for our conclusions.”
It is natural that in hectic times
like these and with so many prob-;
lems of the war emergency pressing j
on the Treasury Department that |
It should not be able to present a
meticulously worked out plan. Tax
bills to raise $3,000,000,000 or more
are not presented every day and the
Treasury is for the most part in-!
terested in revenue raising, while
coa uaa iu tiiiiixw lAJuuveu
toes it may step on. In the last war,
the late Representative Claude
Kitchin, chairman of the Ways and
Means, and also from North Car
olina, told the House that it might
as well close its eyes and pass the
tax bill—the inequities were numer
ous and the problem almost in
The Doughton bill follows in the
main the Treasury's recommenda
tions, but if the Senate doesn’t re
store the mandatory joint return
proposal, there will have to be some
higher taxes imposed somewhere to
make up the $300,000,000. Some Sen
ators may insist that the exemptions
be reduced and the tax base broad
ened because many billions of dol
lars of income will flow into the
lower brackets which will not be
touched by the present bill.
If the purpose of the tax measure
fc to curb inflation, then some tax
restraints to keep down the enor
mous expenditure of money by the
people in lower brackets might ap
peal as logical. If the Senate is
political, it will sidestep the issue
and let the inflation come. Maybe
by the time the debate is further
along, the Nation will have been
educated to the dangers of price
spirals and the failure to tax
everybody as a means of avoiding
Okaroductiaa Riffeti Referred.)
-t ;!>
The Political Mill
Choice for U. S. Held to Be to Act With Allies
Now or Gamble on Facing Axis Alone Later
FALMOUTH, Mass.—More in
dustrial war activity probably is
in full swing in .America today
than there was in 1917. This
statement is based on reports
from Rhode Island, the smallest
State in the Union, to be sure,
but also one of the most thor
oughly industrialized. Eighty
per cent, it is said, of all indus
trial activity in the State is cen
tered on defense, direct or indi
rect. This country is preparing.
It is not yet prepared for a con
flict—not as it should be pre
pared—but it will be. Obviously,
the sooner the better.
All the time the country is
preparing to fight if necessary,
the emphasis is placed on the
idea that this country must, if
possible, keep out of a “shooting
war." Economic warfare, yes.
The aiming of other nations now
at wrar with potential enemies
of the United States, also yes.
But no shooting by the American
Navy or Army. Whether this
attitude is correct or not depends
not so much on cold, hard facts
if? J2.
as it does on whether you are
discussing the question with an
"isolationist" or an "interven
The American people have
been fed on the suggestion that
it is possible to win this war for
the democracies without our ac
tually getting into the battle.
It is an appealing idea. No one
likes to think of American boys
dying in battle. It is an idea not
dissimilar to that which enabled
a dance hall operator in a
Western frontier town, years
ago, to get his music free
through the simple expedient of
erecting his own hall a few feet
from another dance hall, so that
his patrons could hear the music
played in his competitor’s place.
He did the building, but that
was all.
Axis Feels Same Way.
It happens that this Idea of
staying out of actual war, for the
United States. Is appealing also
to the three Axis nations. None
of them, up to this time, has
wanted to drag this country into
war. It could have been done
overnight, could be done any
day. It is not in Hitler's book
to take on the United States until
he has overrun Russia and de
feated Britain, or at least defeat
ed one of them. It has always
worried Japan to think of battle
with the United States while al
ready engaged in a long, hard war
with China, with possible war
with Russia in the offing.
Americans are great gamblers.
They are gambling now for the
highest stakes perhaps In their
history. They are placing their
bets on the ability of Britain and
Russia and China to turn the
trick against the Axis powers.
It may be a good gamble. If it
fails, however, the country will
be faced with the need of doing
its own fighting.
The Choice for U. S.
The choice lies in the hands of
the Nation to enter the war now,
making use of its Navy and the
men it has trained so far, and its
air forces, or to continue to go
ahead with its preparing for
war, hoping that the democracies
will hold out until this country
is so well prepared that no
nation or combination of nations
would dare to attack this coun
No one knows, of course, how
much impressed the Axis powers
would be by America’s prepara
tions if and when they should
overrun the rest of the world.
Probably not too much impressed
to undertake by every means
possible to break down this coun
try, economically and militarily.
The isolationists insist that all
this country has to do is to arm
and it will be completely safe
from any attack. They might
add that the country would have
to continue as an armed camp
The interventionists — those
who would have this country
enter the conflict now—take a very
different view. They see Hitler
and Mussolini with their hands
overfull with fighting Great Brit
ain and Russia. They see Japan
in a more or less desperate situa
tion economically because of the
long war with Cnina, which shows
no sign of ending. To them the
only wise thing is an attack
now on these potential enemies
when they are already overex
Hitler Approves Isolationists.
Obviously, the isolationist idea
of staying out of the war is just
what Hitler desires. If he had
any other idea, he would have
gone to war with this country
months ago. Instead, he has
sought to impress people in this
country with the suggestion that
the last thing he wants with
America is war.
He has had every kind of prov
ocation to deliver attacks on
American ships, for example. He
has sunk only one—and that
may have been a mistake. Any
way, he was obviously glad it
created no more of a stir in this
country than it did.
Japan has played the game
close to the board, inching for
ward only when she believed that
she could do so without precipi
tating actual war with the United
States. She is inching forward
again, moving south into Indo
china and on the move Into
Thailand. These moves are po
tential threats to American in
terests in the Far East and to
the Philippines and possibly
Action Against Japan.
The administration, however, is
now taking definite steps to clip
Japan's wings economically and
to bring such pressure to bear
that she will find herself con
fronted with all the difficulties
that a war with the United
States would entail. The strong
stand now being taken by this
country in the Far East may
bring a showdown at any time.
The fact that the American
battle fleet is in the Pacific has
for many long months been a
strong deterrent on the Japanese.
They have devoutly hoped that
fleet would be withdrawn to the
Atlantic. But the administra
tion has been adamant in that
Defeat of Japans Navy would
effectually destroy Japan's hope
of controlling Asia, or of ever
making a serious contest against
this country.
The President has moved care
fully—and at some times with
extreme boldness—in dealing with
this foreign situation. Two of
his boldest steps have been the
trade with Britain of American
destroyers for naval bases in the
Atlantic Ocean and his more re
cent decision to take over the
defense of Iceland against pos
sible Nazi attack and occupation.
THE opinions of the writers on this page are their own, not
necessarily The Star’s. Such opinions are presented in The
Star’s effort to give all sides of questions of interest to its
readers, although such opinions may be contradictory among
themselves and directly opposed to The Star’s.
British Offensive Possibilities
Finland, Norway and French Coast All Offer
Problems; Mediterranean Area Held Best Bet
The German attack on Russia re
mains stalled by Russian defense
after six weeks of fighting—a fact
of tremendous military significance
in itself. In
creasingly, the
pressures of in
ternal morale
and external
prestige are de
manding of the
German staff
that they pro
duce some sort
of token victory.
Last week they
apparently tried
for Leningrad
and bogged
down: now they m»j. g. rieidint Eiiot.
seem to be trying for Kiev, with
prospects as yet uncertain, though
somewhat more promising than
It is too early to assess the real
warth of the high command’s claim
of great accomplishments in the
Smolensk sector.
Meanwhile, however, the German
people are feeling the war more
and more severely.
In Eastern Germany, hospitals
are filled w'lth wounded; hospital |
trains arrive daily at the principal
railway stations: private homes are
being requisitioned.
In Western Germany the scale of
the British air offensive increases
almost day by day, and the unfor
tunate officer upon whom rests the
final decision as to the allocation
of fighter squadrons between east
and west must be a distracted and
uarucu man.
Throughout the occupied regions, I
rumor brings word of the stirrings
of revolt, requiring stem measures
for which there is available decreas-1
ing means as the Russian fighting
absorbs more and more troops.
Chances of British Landing.
These are grave problems. They
are now intensified by rumors of an
impending British offensive by land
as well as air, and it may be well to
check over the possibilities in this1
respect, just as the German staff |
must check them over in its
The most immediate of these re
ports refers to the Far North—the
region of Kirkenes, Petsamo and
Murmansk. It is suggested that the
| establishment of a British beach-1
1 head, expanded as means permit, in
i this area would be a thorn in the
I side of the Germans, a threat which
could not be neglected, and might
j become a means of sending supplies
' on a considerable scale to the
i Russians. ,
ims sounas attractive, out mere
are many difficulties to be overcome.
Every British strategical problem
seems to get back, sooner or later,
to a question of shipping.
Many Difficulties.
In this case the distances are con- .
siderable; it is, for example, 1,7001
nautical miles from Liverpool to
Murmansk, about the same from
Iceland to Murmansk. To support
an expeditionary force in this
northern area (to say nothing of
sending supplies to Russia) would
require a large allotment of ship
The line of communications would
be extremely vulnerable to the at
tack of German submarines, aircraft
and surface raiders operating out of
Tromso, Narvik and other Nor
wegian ports.
The actual communications with
Russia would be limited to the
Murmansk and perhaps the Arch- j
angel railways, and it is hard to see
why at least the latter cannot be
used anyway, without any British
expeditionary force; while the
Murmansk railway is likely to be j
cut In the vicinity of Petrosavodsk,
which no British expeditionary force
in the far north would be able to
Political Barriers, Too.
The political and psychological
barriers to a British attack on Fin
land are considerable, and might
have American repercussions; such
a move would be ammunition for
isolationist guns at a moment when
those guns are running rather short
of ammunition.
It is, of course, possible that the
real purpose of such a British move
might be the recovery of substan
tial portions of Norway, perhaps
aided by an internal movement of
some kind; in that case its effect
on the Russian campaign would be
diversionary rather than of direct
assistance. But the moral gain from
Britain, if the enterprise were to
prove successful, would be very ereat.
As to British attacks on other
portions of the coast opposite the
island of Great Britain, again con
siderations of shipping apply. Nor
way seems the more likely location
for such thrusts, because it is the j
most difficult part of the coast for
the Germans to reinforce, as well
as because there is always the pos
sibility that success might lie in
Sweden, especially if the attack
came at a time when the German
difficulties in Russia were increasing
rather than decreasing.
Raids on Coast.
As to raids on the coast for the
purpose of creating confusion and of
doing material damage to such ob
jectives as harbor works, oil storage. 1
railway terminals, shipping and the
like, there is this to be said: That
a skilled party of engineer troops ;
provided with proper demolition
equipment and plenty of explosives
can do far more damage, if given
undisturbed possession for a few
hours of an area containing large
material objectives, than can almost
any amount of air bombardment;
especially if they have carefully re
hearsed the operation on dummy
reproductions of the area to be
However, there is always to be
considered the weighing of risk
against advantage; a staff consider
ing such enterprises must always
ask itself whether the damage rea
sonably to be expected to enemy
works will offset the losses of skilled
men, weapons and equipment which
may also reasonably be expected.
A Major British Landing.
A major British landing in Prance,
say for the purpose of cutting off
the peninsula of Brittany and the
naval and air base at Brest, would
be of enormous advantage were it
successful; but it can hardly have
been possible to prepare the plans
for such an enterprise, assemble the
shipping and troops since the Rus
sian war began to show signs of
affording the opportunity.
There is, however, a third area in
which British offensive operations
are possible, and if one were guess
ing on the basis of existing proba
bilities as they may now be per
ceived through the “fog of war,”
one would be inclined to the view
that the Mediterranean affords the
most attractive field for a British
attack on the Axis at the present
There are. indeed, not wanting
signs of activity in that region. Brit
ish submarines and aircraft are
busy; a vigorous attack on the
Cretan airdromes has been followed
by raids on Sicily; Malta has just
been heavily reinforced; the garri
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This Changing
U. S. Held Extending 0
Before Exerting Full Pre
Japan has become entangled
In her own rope. She Is now
about to find herself bound hand
and foot and soon may be gagged.
But before this happens she Is
being given every chance to dis
entangle herself.
This is the policy'the United
States is following toward Japan,
according to those who are
quietly planning the next moves
on the Far Eastern checker
Freezing of Japanese funds
here and in Britain, with all Its
important implications, was a
mere shot across the bow.
Soon after this shot was fired,
Japan was told that the Irrepar
able has not happened yet and
that she still has a chance to
recover if she decides to mend
her ways.
The United States and her
friends are quite prepared, it is
stated in well-informed quar
ters, to sell to Japan oil, gasoline,
cotton and whatever else Japa
nese industry may need for peace
time activities. Also Japan may
sell to this country all that her
factories are producing. Fur
thermore, under certain circum
stances, credits could be opened
to enable her to finance her
trade and improve the difficult
internal economic and social
To obtain all this she has to
do just one thing: Abandon her
present aggressive attitude and
come to a peaceful understanding
with the United States, Great
Britain and the Netherlands
about the future of Asia.
Naval Force Goes to Pacific.
Whether the Japanese leaders
will listen to these earnestly
given warnings is unknown here.
For the time being there Is little
that can be hoped from the pres
ent regime. Changes in the cab
inet are not difficult and there
is a sufficiently large number of
Japanese statesmen to draw from
if the Emperor decided to put
a less militant government in
Besides having extended an
olive branch to the Japanese,
military and naval measures are
being taken by America. Britain
and Holland to checkmate any
further aggressive move by
Shfp movements are confiden
tial matters, but it can be said
without divulging any secrets
that there is a combined naval
force in the Pacific today not
far from the new Japanese bases
which could give the Japanese
admirals a severe headache.
Warned of Retaliation.
Japan also has been warned in
a most earnest manner that any
further move in the Southern
Pacific on the Asiatic mainland
son of Tobruk grows more enter
prising day by day in its raids on
the Italian besiegers, while report
has it that the major part of the
German aircraft and troops havi
been withdrawn from North Africa.
This may or may not be true, but
it is certain that the enormous diffi
culties of supply and maintenance
are having their effect on the Axis
forces in Libya, and that these diffi
culties are less for the British.
The heat is still very great in the
live Branch to Japan
ssure to Curb Her Expansion
would bring about further retal
iation. A move into Thailand,
for instance, would further In
crease the economic pressure
from both American continents,
to say nothing about what mili
tary steps the British might feel
compeued to take to safeguard
their vital strategic position at
An attempt to lay hands on
the rich Borneo oil fields—that
island is only poorly prepared for
defense—might bring action by
the naval units now being rushed
to the South Pacific.
Besides a number of American
ships protecting the Philippines,
the British, according to press
reports which now appear to be
confirmed, have sent naval units
from the Mediterranean where
they are needed less than in the
past. The number of units is un
disclosed—although by now the
Japanese naval intelligence must
have a fair idea—but besides
battleships there are a number of
cruisers and modern destroyers.
Japan a Policy Losing.
U/itil last week the British base
at Singapore could only boast of
an insignificant naval force. A
few cruisers and mostly old de
stroyers and submarines. ' This
force has now been substantially
Increased, and while alone it
could not meet a Japanese men
ace, it has together with the other
squadrons, turned the tables on
the Japanese and has become a
first-class menace to Toklo s ex
pansionist ambitions.
The old Japanese policy of
squeeze and smile then squeeze
some more is not likely to be as
effective as it has been in the
For the first time In many
years a definite policy has been
agreed on between London and
Washington. No common policy
was possible because In certain
British quarters there was a belief
that if Japan could be humored
the sword need not be drawn.
Appeasement Ended.
The United States and Great
Britain have now gone as far as
they could go with the humoring
Even the appeasers in both cap
itals—men who were loath to see
the conflict expand to the Pa
cific—have come to realise that
the appeasement policy encour
ages the Japanese to want more
and more until they chose their
time to squeeze the Western
powers out of the Pacific.
But before all the bridges are
destroyed a last attempt Is being
made to make the Japanese
leaders understand that neither
this country nor Britain wish the
destruction of Japan. Quite the
contrary they are willing to ex
tend a helping hand provided
jingoism Is replaced by a sensi
ble policy.
western desert; it begins to dimin
ish with September, though really
good campaigning weather does not
arrive until November.
However, Italy remains as she has
always been—the weak end qf the
Axis, and an attack on Italy must
always seem attractive to the mas
ters of British grand strategy if
means can be contrived to get at
that country.
(Cetrrltbt, 1941. by New York Herald
Means Something
■ - —j—— - " ! - ■ —— — j!
If your check is drawn on
National Savings and Trust
Company it means that you
are a customer of a hank char
teted by Congress in 1867— ”51
one which regards its depositors as neighbors, with »
many different services and the most modern equip
ment for the transaction of your busi
ness. It means that you are a discrimi
nating person in selecting an institution
possessing a solid background of accom- J
plishment extending over a period of |
nearly 75 years.
Savings /Trust Company
Chartered by Congress 1867
Member Federal Reserve System • Member Federal Deposit Insurance Corporation
Discusses the Most
Dangerous Man in U. S.
The most dangerous man in
America is that mysterious “other
fellow” who causes all the automo
bile accidents.
He is to blame for every collision,
dented fender,
smashed bump
e r, side - swipe
and turn-over
from Key West
to San Fran
Neither you
nor I nor any
one we know has
ever been in the
wrong in a
Just think
back and see if
Henry McLemore. this isn't true.
Have you ever admitted (other
than to yourself) that if you had
been a bit more careful the accident
could have been avoided?
Neither have I, pal. Let’s shake.
You and I are always way over
in the right line, aren't we? We
never go over the speed limit, either,
do we? We always have our eyes on
the road, too, and have yet to make
a turn without sticking out our
hands. We're the first to dim our
lights and the first to take it easy
when the road is slippery or there is
a sharp turn ahead. You'd never
find us tearing up to a red light and
slamming on the brakes.
But that ‘‘other fellow” Is the
biggest dam fool.
Only yesterday this fact was
brought home to me again.
A friend borrowed my car to go to
the ball game. When he came back
the two front fenders were all
crumpled. Before he started ex
plaining I knew what had hap
pened. That confounded "other fel
low” was to blame again. I was
“I was coming up Fifth avenue ‘
he said, “Just barely creeping along,
when this other fellow in front of me
decided for no reason at all to stop.
If I had-”
But I interrupted him.
“I know Just the spot you were
in,” I said. “I can tell you were just
creeping along by the fact that the
front of the car is only half smashed
in. And if you had turned right or
left you would have been much
worse off. You made the right de
cision. And I’ll bet you this, too,
the ‘other fellow’ got out of his car
and said you were wrong, didn't he?”
* * * *
My friend looked at me as if I
were clairvoyant.
"He sure did, and was I burned
up. Said I was going too fast, and
didn't see the red light. The big
That's one of the worst things
about "the other fellow."
He never has the brains to see
that you are completely in the right,
and has the audacity to argue with
you and me. He cant seem to get
it through his head that drivers like
you and I don’t make mistakes, that
we don’t take chances, and are good
enough drivers to drive at Indian
apolis if we only had the time.
But, boy, do we get our revenge
when we tell our friends or the
garageman about the accident. We
lay the “other fellow” out for fair.
His ears would bum If he could
hear the things we call him.
The “other fellow” is a stupid oaf
that shouldn’t be driving a kiddie
kar. He's a blind so-an-so who
shouldn’t be allowed on the high
* * * *
Our friends always nod sympa
thetically. They understand. They
too have had trouble with the “other
fellow” many a time. And they
remember when we sympathetically
listened to their stories of automo
bile mlxups which so obviously were
not their fault.
The number of automobile acci
dents in this country each year is
appalling. It constitutes a major
It seems to me that it could be
solved so easily. All that needs to
be done is to locate and isolate that
ubiquitous menace, the “other fel
low,’’ who is constantly sneaking up
on you and me and causing an acci
He does have a name. He dors
have license plates, and a driver’s
So how on earth dees he elude
detection and detention?
It cant be that the "other fellow"
thinks of us as the "other fellow."
It isnt possible, Is it, that he tells
his friends and his garageman that
ive are the "other fellow”?
Let us all meet somewhere and
perish the thought.
IDlstrlbuted by MeNausht Syndicate. Ice )
Church to Give Supper
The annual supper of 8t. Mark's
Episcopal Church at Falrland, Md„
will be held between 5 and 8 p.m.
Thursday at the church. Chicken
»nd ham suppers will be served and
proceeds will be used for the benefit
>f church work.
Cron tom port
traced to shoes
•ometlmes s tenehr temper eea
be traced to ill-attlnr cheee. Here
we neeiaUse ta health theee that
leek Heart and (triiah. Three
fameat maker te choree from:
Ground Gripper. Cantilever. Dr.
Sold Exclusively in Washington by
Ground Gripper,
Cantilever, Dr. Kahler
521 11th St. N.W.
"Ife Fit thl Felt n Nature Intended"

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