April 12, 1940 (6 pages)

~~.Record,.March-20, PAGE TWO NEVADA CITY NUGGET teat 2 Se ee i ae ke a? * _ Nevada City Nugget A Legal Newspaper, as defined ‘by siatute. Printed and Published at Nevada City. * O ak ok hk es H. M. LEETE Editor and Publisher Published Semi-Weekly, Monday and Friday at Nevada City, California,“and entered as mail matter of the second class in the postoffice at Nevada City, under Act of Congress, March 3, 1879. SUBSCRIPTION RATES One year «(In Advance) The Unwelcome Guest A former official in the United States Treasury was recently quoted to the gloomy effect that government is about a twenty per cent partner in all business. In other words, government through its power to tax has made itself the fifth member of every company’s board of directors. the silent partner, the unwelcome guest who eats off the extra plate that is set for each meal by every family in the land. It’s a discomforting thought that one out of every five dollars earned by the sweat and toil of average Americans everywhere goes automatically to government. And the more the evidence in the case continues to pile up, the more it begins to look as though any revision of the Treasury official's estimate will have to be in an upward direction. Now a careful study into the tax situation conducted by the state of Wisconsin puts more of the real and painful facts on the table. The Wisconsin study shows that in 1938 the 7.800 corporations in that state paid $112.158,743 in taxes to various units of government, and that those taxes represented $20,606,913 more than those same corporations earned as a result of their businéss operations. In other words, when John Smith establishes his own business these days, in the interests of accuracy, the sign on the door ought to read as_ follows: Government, Government, Government. and Smith. Inc. The came type of survey could probably be repeated, yielding the same or even more disquieting results, in almost every state of the union. It points once again to the flood-like ravages of wasteful government spending. And it shows forcefully how the productive abilities of this country are being turned away from the job of providing goods at low prices in order to pour taxes, taxes, and still more taxes into the insatjable maw of government. Mobilizing For American Progress There have been ten years of economic stagnation in this country. For the first time in our national history, a decade has passed without producing a higher standard of living for the average American family. In fact, President Green of the American Federation of Labor remarks sadly that the standard of living has actually declined 7\7 per cent since 1929. Meanwhile, the same ten years period saw savave and bitter attacks on business and industry. Everyone who had a pet new insult for the business man was assured an attentive audience. Again and again, demagogues of al! shades of opinion and belief told Americans that if business was whipned and scourged and told how to rvn its affairs, economic planning would bring us all back to prosperity. All that time, the experienced voice of industry was unheeded, and often lost in the babel of conflicting tongues. But in spite of the assurances of the easy promisers, the full tide of prosperity didn't conie—and it’STILL hasn’t come!” Today industry, tired of malicious attacks, unfair criticisms, and meddlesome interference, has announced its intention of standing up in its place and bringing its practical experience to bear on the problem of restoring American progress. In a militant yet reasonable voice, it proclaims a great program of “Mobilization for Understanding of Private Enterprise’”’ to set the public straight concerning industry and to aid in regaining the road to progress. ‘Announcing the program over a coast to coast network of the National Broadcasting Company recently, H. W. Prentis, Jr., President of the National Association of Manufacturers, called upon “every patriotic industrialist” to “pledge himself‘to become an outspoken advocate of the free institutions and traditional ideals of America,” and ‘‘to take enough time from his business to’ buttress the foundation of private enterPrise upon which this nation has been built.” It is high time that such a program was inaugurated. It is essentially a determined effort on the part of industry to confound the falsehoods of its critics. If is high time that all who are interested in the welfare of this country united and mobilized for the furtherance of progress. And high time. finally that, industry effectively avails itself of every opportunity to defend freedom of iniitiative and Private enterprise as vigorously as other groups in our society consider it their responsibility to defend freedom of relgion, freedom of the press, academic freedom and the other traditional American liberties. a Jimmy Cromwell's appointment as minister to Canada is another evidence of the debasement of our F. oriegn Service, when such a post is awarded to a Cromwell simply because he “laid it on the line’ when political campaign funds were needed.—Rep. outer Sweeny, D., Ohio, Congressional 2 Nevada County Photo Center PHONE 67 Portraits, Commercial Photography, 8 Hour Kodak Finishing, Old Copies, Drorceeraprer Enlarging and Framing, if Kodaks and Photo Supplies, Movie Cameras and Films 1 THE MOTHS AND THE FLAME . ta A \ \ . cy durxr WonpbgeR-IN I wonder when so many things Lay siege.-to human minds, The isms, itys, ists and ers, And numerous other kinds, How one may guide his little mind Through showers of pamphlets thrown, And come into a breathing space, With thoughts that are his own. I wonder how we are to keep our thinking straight and analytical, through the months to come, when there are so many things brewing calculated to warp the most seasoned mind. : Here it is, all the welter of propaganda. It comes from every direction and in every conceivable shape and form: ham and eggs. served cold this time, third term mysticism, and third nartv cullibility: republican and democrats in cacophony of “Katy did-Katv didn’t,” big wigs explaining everything to their own complete satisfaction, little fellows shouting “I know what I'd do if I—‘‘charge and counter charge—discussion, percussion and repercussion, the great American comedy in full swing, and every one of us a so-called mind to be depressed or obsessed, led aright or led astray. I wonder if the red handed militarists of Germany think to divert our minds from the horrors and outrages of their type of warfare. by the writing of little books, white or otherwise. _ On this side of the Atlantic, we should like to hear the charge of the White Tirade met with strong, forthright denials. There are some things which intelligent Americans do not care to take with one, two, or even three grains of salt—— they don’t want to take them at all. In all of this, there is one consolation: if Moscow and Berlin have combined for the purpose of discrediting President Roosevelt, even the Republicans will love him for the enemies he has made. I wonder why we allow ourselves to be so unduly disturbed by typographical errors; considering the vast amount of printed matter consumed each day by the reading public, these little inadvertencies are met with rather infrequently. Sometimes.they are amusing, so why not pay them the tribute of a smile and read on? Why call up the editor and berate that patient man for something which is no more pleasing to him than it is to us? I'm a typographical error and no one is fond of me, . twist the lines of a sonnet or a title of high degree; I’m no respecter of person, I muddle the bombast of kings, the tirades of tyrants and rulers and other less trivial things. I’m a tynographical error and . laugh in unholy glee, when a reasonable human being is driven to frenzy by me. ; Uncle Silas says: ‘Hitler says he will match all allied action with reaction, and as action is equal to reaction, it would seem that the reactionary stalemate is to go on and on.”’ —A. MERRIAM CONNER. POLITICAL PARADE BY CLEM WHITAKER California is rapidly getting the reputation of being the hardest nut to crack, politically, in all America. Certain Eastern political experts, in their chagrin and bewilderment, lis Allen’s Ham and Eggers, Governor Olson’s Rough Riders and Jack Garner’s Middle of the Roaders. By JOHN W. DUNLAP United Press Staff Correspondent SACRAMENTO, April 11.-—(UP) —When Governor Olson assured capitol] correspondents several weeks ago there were no changes expected in his cabinet, he reckoned without the resignation of Howard Philbrick his director of motor vehicles but private investigator. Ever sincé Philbrick told the legislative dictagraph committee that he was responsible for the hiring of the technician who installed a recording device in the hotel room of Assemblyman Speaker Gordon Garland, there has been speculation whether he would resign, be fired, or given a coat of whitewash. the ness as motor vehicle director. He emphasized his quest of corrupt lobbying practices, rather than an attempt to snoop on legislators. Finally, he said a lucrative offer of private employment prompted him to resign. “ Governor Olson lauded Philbrick as an executive but minced no words in condemning the invasion of privz acy occasioned by the dictagraph incident. Some will say Philbrick “took the rap’ for the governor because someone had~-to be goat. Perhaps the biggest mistake made in the whole episode was the stalling and buckpassing while the legislature got hot under the collar. A quick frank admission of al circumstances surrounding the incident would have saved the administration many grey hairs, hundreds of black headlines, and the lengthy inquiry just made to order for opponents of the governor. Olson said he would. announce Philbrick’s successor after the resignation becomes effective on April 15. Soon after the Philbrick resignation, Olson announced he was dismissing Lt. Col. Charles» Henderson from his staff because of his implication in the dictagraph scandal. He indicated Henderson would be moved to some other department at the end of April, perhaps to a new committee on aviation. Henderson had indicated he might resign but son beat him to the punch. It was take action against Stanley Mosk, another of his secretaries, who was concerned with the spywould re} lindirectly ing case. Mosk denied he sign, Henderson's case was not aided any the assembly committee on governmental efficiency and economy opened the closet door and rattled the skeletin of three automobile accidents involving Henwhen State car abl can wait until the legislators return to Sacramento to wrestle with relief problems. The session should set a new high for something or other because the many, explosive investigations which have been conducted in the interim. A half dozen or more ¢ommittees will be submitting reports, with recommendations for corrective action. The joint committee on relief has found much to criticize on the SRA and varfous pressure groups. The. assembly committee on £Overnmental efficiency’ and economy will rip into asserted extravagant state telephone bills, over use of the state cars, duplicated services, and other alleged wastes. The horse racing committee, dormant for the present, will] revive a mass of charges about pressure on race tracks and demands for cam paign contributions. The senate committee investigatThere’s a gulf there as broad as the Gulf of Mexico, and apparently no one to bridge it. The Republican slate of delegates are inclined to attribute this to the fact that the California nut is nuttier than any other—and as balmy as the climate. ing state: operation of the Pacific States Savings and Loan company will offer a blistering attack on the building and loan commissioner, nominally pledged to Senator Jerrold L. Seawell of Roseville, is actually uninstructed and uncontested— the G. O. P.’ers having decided that harmony was the better part of valor. But there, all harmony ends. Lieutenant Governor Patterson’s But the home-guard politicos just scratch their bald pates and say, kind of belligerently: ‘“We’ve got so Many varities.!’’ Truth of the matter is that. California’s post =— depression polyglot The assembly revenue and taxation es third place, Fighting it out for first Place, as the smart boys figure it, will be Jack Garner’s Texas chargers and Govbetter. known as a former G-man — not believed Olson would. of . “out “of the night with an almanac. population, which simply swept in horse, probably the most erratic in the Democratic field, has been enand no compass, has badly upset the state’s political equilibrium. knows! fracas is a case in point. in the parade, to be sure, but the Democratic atterson’s Gal tered by the extreme leftists, and Mhas the backing of Labor‘s NonPartisan League and other left-front organizations. If you pick Mr. Pat: terson’s skittish nag, bet your money to show; not to win. In the same general caegory is: Willis Allen’s steed, although most prophets, at the moment, think that Ham: and Eggs And as Califoria goes, nobody The current presidential primary There’s only one G. O. P: elephant divisions include Ellis }thing can-happen! ernor Olson’s Rough Riders. The slate pledged to Vice President Gar. ner is composed of Democratic leaders who are definitely opposed to a third term for Mr. Roosevelt. The Olson slate, on the ‘other hand, is a Roosevelt ticket, but is handicapped by several desertions and the fact that Governor Olson is facing the threat of a recall. It’s a nutty race—and-almost any£ committee may surprise some of the legislators with an admission that new taxes are necessary if the state jis to get out of the red but tremenq. ous pressure against any new taxes of any kind will sandbag any such program. . The “Little Dies committee” is he. coming famous for caustic attacks on /Communism, pressure groups .anq subversive activities. It will add more coal on the fire in May. The Call dictagraph committee wil} put the climax to the story book Gar. land incident. There will be other fireworks, too, because it is an election year and the recall threat against the governor will have a bearing on the politics.? eee — There'll be a hot time in the olq thought his connection with ae oun scandal might impair his effective. Washington, . Snapshots © . By JAMES PRESTON Washington’s strategists have now figured out a way to keep the year’s real. bad news away from fafmers, small businessmen and white collar taxpayers untib 1941. The bad news will be a combination of higher taxes and a reduction of federal handouts. Both are certain. The budget submitted to Congress, as most readers will recall, called for another deficit. This, deficit would have brought the debt to only $41 million less than the $45 billion permitted by law. That is an extremthat the $41 million is only 1,225th of the total $9 billion budget. Congress started off in an economy drive. Now, stimulated by pleas of variou bureau chiefs and appeals from thoughtless constituents, economy has been crippled if not thrown out the window. As things now stand, Congress is either going to have to authorize the or raise new taxes. The catch is that it doesn’t~-have-to act immediately. because the debt now is only $4214 billion, or $2% billion under the Jimit. : So the strategists have figured it out this way: Congress will go.aneaa and preserve what remnants it can of economy. It won’t do anything {about taxes or the debt limit until after it meets next January. Thus when election § time around next November, voters won't rolls derson,. ibe especially conscious of the finanWith the reappearance of sunny: ¢j,] dilemma, And Congressmen of skies, it does not seem likely Gov-. aj] political faiths who have. helped ernor Olson will call the legislature! tg end the economy drive won't be back into special session sooner than called to task. the scheduled date of May 13. He: Only one major change may be thought for awhile the pressing need made in this strategy. There is some for appropriating funds for rehabtalk about creating a special Comilitation might require a special sesmission to study the whole tax and sion but emergency funds are being! financial problem afte Coneress.adused and federal aid secured in Ssev-. journs, Tu votars could be eral fields. The plight ofthe north-; told that they had nothing to worry ern flood areas is serious but prob-. about. because this Commission would solve the problem. The ‘solution still will be higher taxes and a cut in federal handouts, regardless of what the commission might do or of which candidates win in the November elections. While all this talk and planning proceeds, the debt continues to rise. The first 261 days of this fiscal year the federal government spent an average of $10,471,763 a day more than it took in. That amounts. to more than $7,000 a minute. 7 . Of course, too, this means that the tax future will remain uncertain for more than aother six months. This is*the time of yearwhen a lot of employers ordinarily make plans for expansions, But they don’t know what their tax burdens will be, and they won't know for months. They probably don’t fee] ‘very happy about it, because next year’s tax bill will make eight new tax laws enacted in the last nine years. There is some comfort for the wealthy and big corporations in the fact, however, that the strategists in Washington agree privately that most of the new taxes must come out of the so-called middle income brackets. Taxes on corporations and the rich have reached what tax experts call “the point of diminishing returns.” That means that the rates are so high that the rich won’t invest their money because if they make a profit it is more than eaten up by taxes. So the white collar group will get it next—folks with annual incomes from around $1,090 up about $50,000. to Bride ,at bank)——“I want to open an account.” Tellef—“Fine! How much do you Wish to deposit?” __ Bride—“Oh, I want a—charge ac« loping Leftists, Wilane will nose out Patterson’s entry for count like I have at the stores.” government to go further into debt ely slim margin when one remembers

~~.Record,.March-20, PAGE TWO NEVADA CITY NUGGET teat 2 Se ee i ae ke a? * _ Nevada City Nugget A Legal Newspaper, as defined ‘by siatute. Printed and Published at Nevada City. * O ak ok hk es H. M. LEETE Editor and Publisher Published Semi-Weekly, Monday and Friday at Nevada City, California,“and entered as mail matter of the second class in the postoffice at Nevada City, under Act of Congress, March 3, 1879. SUBSCRIPTION RATES One year «(In Advance) The Unwelcome Guest A former official in the United States Treasury was recently quoted to the gloomy effect that government is about a twenty per cent partner in all business. In other words, government through its power to tax has made itself the fifth member of every company’s board of directors. the silent partner, the unwelcome guest who eats off the extra plate that is set for each meal by every family in the land. It’s a discomforting thought that one out of every five dollars earned by the sweat and toil of average Americans everywhere goes automatically to government. And the more the evidence in the case continues to pile up, the more it begins to look as though any revision of the Treasury official's estimate will have to be in an upward direction. Now a careful study into the tax situation conducted by the state of Wisconsin puts more of the real and painful facts on the table. The Wisconsin study shows that in 1938 the 7.800 corporations in that state paid $112.158,743 in taxes to various units of government, and that those taxes represented $20,606,913 more than those same corporations earned as a result of their businéss operations. In other words, when John Smith establishes his own business these days, in the interests of accuracy, the sign on the door ought to read as_ follows: Government, Government, Government. and Smith. Inc. The came type of survey could probably be repeated, yielding the same or even more disquieting results, in almost every state of the union. It points once again to the flood-like ravages of wasteful government spending. And it shows forcefully how the productive abilities of this country are being turned away from the job of providing goods at low prices in order to pour taxes, taxes, and still more taxes into the insatjable maw of government. Mobilizing For American Progress There have been ten years of economic stagnation in this country. For the first time in our national history, a decade has passed without producing a higher standard of living for the average American family. In fact, President Green of the American Federation of Labor remarks sadly that the standard of living has actually declined 7\7 per cent since 1929. Meanwhile, the same ten years period saw savave and bitter attacks on business and industry. Everyone who had a pet new insult for the business man was assured an attentive audience. Again and again, demagogues of al! shades of opinion and belief told Americans that if business was whipned and scourged and told how to rvn its affairs, economic planning would bring us all back to prosperity. All that time, the experienced voice of industry was unheeded, and often lost in the babel of conflicting tongues. But in spite of the assurances of the easy promisers, the full tide of prosperity didn't conie—and it’STILL hasn’t come!” Today industry, tired of malicious attacks, unfair criticisms, and meddlesome interference, has announced its intention of standing up in its place and bringing its practical experience to bear on the problem of restoring American progress. In a militant yet reasonable voice, it proclaims a great program of “Mobilization for Understanding of Private Enterprise’”’ to set the public straight concerning industry and to aid in regaining the road to progress. ‘Announcing the program over a coast to coast network of the National Broadcasting Company recently, H. W. Prentis, Jr., President of the National Association of Manufacturers, called upon “every patriotic industrialist” to “pledge himself‘to become an outspoken advocate of the free institutions and traditional ideals of America,” and ‘‘to take enough time from his business to’ buttress the foundation of private enterPrise upon which this nation has been built.” It is high time that such a program was inaugurated. It is essentially a determined effort on the part of industry to confound the falsehoods of its critics. If is high time that all who are interested in the welfare of this country united and mobilized for the furtherance of progress. And high time. finally that, industry effectively avails itself of every opportunity to defend freedom of iniitiative and Private enterprise as vigorously as other groups in our society consider it their responsibility to defend freedom of relgion, freedom of the press, academic freedom and the other traditional American liberties. a Jimmy Cromwell's appointment as minister to Canada is another evidence of the debasement of our F. oriegn Service, when such a post is awarded to a Cromwell simply because he “laid it on the line’ when political campaign funds were needed.—Rep. outer Sweeny, D., Ohio, Congressional 2 Nevada County Photo Center PHONE 67 Portraits, Commercial Photography, 8 Hour Kodak Finishing, Old Copies, Drorceeraprer Enlarging and Framing, if Kodaks and Photo Supplies, Movie Cameras and Films 1 THE MOTHS AND THE FLAME . ta A \ \ . cy durxr WonpbgeR-IN I wonder when so many things Lay siege.-to human minds, The isms, itys, ists and ers, And numerous other kinds, How one may guide his little mind Through showers of pamphlets thrown, And come into a breathing space, With thoughts that are his own. I wonder how we are to keep our thinking straight and analytical, through the months to come, when there are so many things brewing calculated to warp the most seasoned mind. : Here it is, all the welter of propaganda. It comes from every direction and in every conceivable shape and form: ham and eggs. served cold this time, third term mysticism, and third nartv cullibility: republican and democrats in cacophony of “Katy did-Katv didn’t,” big wigs explaining everything to their own complete satisfaction, little fellows shouting “I know what I'd do if I—‘‘charge and counter charge—discussion, percussion and repercussion, the great American comedy in full swing, and every one of us a so-called mind to be depressed or obsessed, led aright or led astray. I wonder if the red handed militarists of Germany think to divert our minds from the horrors and outrages of their type of warfare. by the writing of little books, white or otherwise. _ On this side of the Atlantic, we should like to hear the charge of the White Tirade met with strong, forthright denials. There are some things which intelligent Americans do not care to take with one, two, or even three grains of salt—— they don’t want to take them at all. In all of this, there is one consolation: if Moscow and Berlin have combined for the purpose of discrediting President Roosevelt, even the Republicans will love him for the enemies he has made. I wonder why we allow ourselves to be so unduly disturbed by typographical errors; considering the vast amount of printed matter consumed each day by the reading public, these little inadvertencies are met with rather infrequently. Sometimes.they are amusing, so why not pay them the tribute of a smile and read on? Why call up the editor and berate that patient man for something which is no more pleasing to him than it is to us? I'm a typographical error and no one is fond of me, . twist the lines of a sonnet or a title of high degree; I’m no respecter of person, I muddle the bombast of kings, the tirades of tyrants and rulers and other less trivial things. I’m a tynographical error and . laugh in unholy glee, when a reasonable human being is driven to frenzy by me. ; Uncle Silas says: ‘Hitler says he will match all allied action with reaction, and as action is equal to reaction, it would seem that the reactionary stalemate is to go on and on.”’ —A. MERRIAM CONNER. POLITICAL PARADE BY CLEM WHITAKER California is rapidly getting the reputation of being the hardest nut to crack, politically, in all America. Certain Eastern political experts, in their chagrin and bewilderment, lis Allen’s Ham and Eggers, Governor Olson’s Rough Riders and Jack Garner’s Middle of the Roaders. By JOHN W. DUNLAP United Press Staff Correspondent SACRAMENTO, April 11.-—(UP) —When Governor Olson assured capitol] correspondents several weeks ago there were no changes expected in his cabinet, he reckoned without the resignation of Howard Philbrick his director of motor vehicles but private investigator. Ever sincé Philbrick told the legislative dictagraph committee that he was responsible for the hiring of the technician who installed a recording device in the hotel room of Assemblyman Speaker Gordon Garland, there has been speculation whether he would resign, be fired, or given a coat of whitewash. the ness as motor vehicle director. He emphasized his quest of corrupt lobbying practices, rather than an attempt to snoop on legislators. Finally, he said a lucrative offer of private employment prompted him to resign. “ Governor Olson lauded Philbrick as an executive but minced no words in condemning the invasion of privz acy occasioned by the dictagraph incident. Some will say Philbrick “took the rap’ for the governor because someone had~-to be goat. Perhaps the biggest mistake made in the whole episode was the stalling and buckpassing while the legislature got hot under the collar. A quick frank admission of al circumstances surrounding the incident would have saved the administration many grey hairs, hundreds of black headlines, and the lengthy inquiry just made to order for opponents of the governor. Olson said he would. announce Philbrick’s successor after the resignation becomes effective on April 15. Soon after the Philbrick resignation, Olson announced he was dismissing Lt. Col. Charles» Henderson from his staff because of his implication in the dictagraph scandal. He indicated Henderson would be moved to some other department at the end of April, perhaps to a new committee on aviation. Henderson had indicated he might resign but son beat him to the punch. It was take action against Stanley Mosk, another of his secretaries, who was concerned with the spywould re} lindirectly ing case. Mosk denied he sign, Henderson's case was not aided any the assembly committee on governmental efficiency and economy opened the closet door and rattled the skeletin of three automobile accidents involving Henwhen State car abl can wait until the legislators return to Sacramento to wrestle with relief problems.

The session should set a new high for something or other because the many, explosive investigations which have been conducted in the interim. A half dozen or more ¢ommittees will be submitting reports, with recommendations for corrective action. The joint committee on relief has found much to criticize on the SRA and varfous pressure groups. The. assembly committee on £Overnmental efficiency’ and economy will rip into asserted extravagant state telephone bills, over use of the state cars, duplicated services, and other alleged wastes. The horse racing committee, dormant for the present, will] revive a mass of charges about pressure on race tracks and demands for cam paign contributions. The senate committee investigatThere’s a gulf there as broad as the Gulf of Mexico, and apparently no one to bridge it. The Republican slate of delegates are inclined to attribute this to the fact that the California nut is nuttier than any other—and as balmy as the climate. ing state: operation of the Pacific States Savings and Loan company will offer a blistering attack on the building and loan commissioner, nominally pledged to Senator Jerrold L. Seawell of Roseville, is actually uninstructed and uncontested— the G. O. P.’ers having decided that harmony was the better part of valor. But there, all harmony ends. Lieutenant Governor Patterson’s But the home-guard politicos just scratch their bald pates and say, kind of belligerently: ‘“We’ve got so Many varities.!’’ Truth of the matter is that. California’s post =— depression polyglot The assembly revenue and taxation es third place, Fighting it out for first Place, as the smart boys figure it, will be Jack Garner’s Texas chargers and Govbetter. known as a former G-man — not believed Olson would. of . “out “of the night with an almanac. population, which simply swept in horse, probably the most erratic in the Democratic field, has been enand no compass, has badly upset the state’s political equilibrium. knows! fracas is a case in point. in the parade, to be sure, but the Democratic atterson’s Gal tered by the extreme leftists, and Mhas the backing of Labor‘s NonPartisan League and other left-front organizations. If you pick Mr. Pat: terson’s skittish nag, bet your money to show; not to win. In the same general caegory is: Willis Allen’s steed, although most prophets, at the moment, think that Ham: and Eggs And as Califoria goes, nobody The current presidential primary There’s only one G. O. P: elephant divisions include Ellis }thing can-happen! ernor Olson’s Rough Riders. The slate pledged to Vice President Gar. ner is composed of Democratic leaders who are definitely opposed to a third term for Mr. Roosevelt. The Olson slate, on the ‘other hand, is a Roosevelt ticket, but is handicapped by several desertions and the fact that Governor Olson is facing the threat of a recall. It’s a nutty race—and-almost any£ committee may surprise some of the legislators with an admission that new taxes are necessary if the state jis to get out of the red but tremenq. ous pressure against any new taxes of any kind will sandbag any such program. . The “Little Dies committee” is he. coming famous for caustic attacks on /Communism, pressure groups .anq subversive activities. It will add more coal on the fire in May. The Call dictagraph committee wil} put the climax to the story book Gar. land incident. There will be other fireworks, too, because it is an election year and the recall threat against the governor will have a bearing on the politics.? eee — There'll be a hot time in the olq thought his connection with ae oun scandal might impair his effective. Washington, . Snapshots © . By JAMES PRESTON Washington’s strategists have now figured out a way to keep the year’s real. bad news away from fafmers, small businessmen and white collar taxpayers untib 1941. The bad news will be a combination of higher taxes and a reduction of federal handouts. Both are certain. The budget submitted to Congress, as most readers will recall, called for another deficit. This, deficit would have brought the debt to only $41 million less than the $45 billion permitted by law. That is an extremthat the $41 million is only 1,225th of the total $9 billion budget. Congress started off in an economy drive. Now, stimulated by pleas of variou bureau chiefs and appeals from thoughtless constituents, economy has been crippled if not thrown out the window. As things now stand, Congress is either going to have to authorize the or raise new taxes. The catch is that it doesn’t~-have-to act immediately. because the debt now is only $4214 billion, or $2% billion under the Jimit. : So the strategists have figured it out this way: Congress will go.aneaa and preserve what remnants it can of economy. It won’t do anything {about taxes or the debt limit until after it meets next January. Thus when election § time around next November, voters won't rolls derson,. ibe especially conscious of the finanWith the reappearance of sunny: ¢j,] dilemma, And Congressmen of skies, it does not seem likely Gov-. aj] political faiths who have. helped ernor Olson will call the legislature! tg end the economy drive won't be back into special session sooner than called to task. the scheduled date of May 13. He: Only one major change may be thought for awhile the pressing need made in this strategy. There is some for appropriating funds for rehabtalk about creating a special Comilitation might require a special sesmission to study the whole tax and sion but emergency funds are being! financial problem afte Coneress.adused and federal aid secured in Ssev-. journs, Tu votars could be eral fields. The plight ofthe north-; told that they had nothing to worry ern flood areas is serious but prob-. about. because this Commission would solve the problem. The ‘solution still will be higher taxes and a cut in federal handouts, regardless of what the commission might do or of which candidates win in the November elections. While all this talk and planning proceeds, the debt continues to rise. The first 261 days of this fiscal year the federal government spent an average of $10,471,763 a day more than it took in. That amounts. to more than $7,000 a minute. 7 . Of course, too, this means that the tax future will remain uncertain for more than aother six months. This is*the time of yearwhen a lot of employers ordinarily make plans for expansions, But they don’t know what their tax burdens will be, and they won't know for months. They probably don’t fee] ‘very happy about it, because next year’s tax bill will make eight new tax laws enacted in the last nine years. There is some comfort for the wealthy and big corporations in the fact, however, that the strategists in Washington agree privately that most of the new taxes must come out of the so-called middle income brackets. Taxes on corporations and the rich have reached what tax experts call “the point of diminishing returns.” That means that the rates are so high that the rich won’t invest their money because if they make a profit it is more than eaten up by taxes. So the white collar group will get it next—folks with annual incomes from around $1,090 up about $50,000. to Bride ,at bank)——“I want to open an account.” Tellef—“Fine! How much do you Wish to deposit?” __ Bride—“Oh, I want a—charge ac« loping Leftists, Wilane will nose out Patterson’s entry for count like I have at the stores.” government to go further into debt ely slim margin when one remembers