"Behind The Scenes In American Business —By John Craddock— // New York, Jan. 2&—PAY-AS YOU GO — With fiscal experts here offering 3 to 1 that Congress will adqpt some form of “pay-as you go” system of collecting in come taxes before June, specula tion is centering on how it will be done. Reports are that the greatest volume of mail since the lend-lease discussion has been landing on Congresmen’s desks, practically all of it from consti tuents who demand some solution that will enable taxpayers to get tax payments on a current basis. The President, who maintained strict silence on the subjemt when the Ruml plan wtos under discus sion last summer, is now on rec ord as favoring the pay-as-you-go idea if it can be accomplished without “forgiving” 1942 taxes— a pretty strong indication that some acceptable compromise will be found. The Treasury, which has fought the Ruml plan with the argument that the forgiving of 1942 taxes would give those in the upper income brackets a windfall, is now said to be considering a combination of withholding at the source and forced savings. While John Taxpayer would pay the current year’s estimated tax by funds withheld from his wages, he would also be required to buy an equivalent amount of bonds, w'hich, at the end of the year, would be applied on the 1942 tax debt. “bLCAK —Alumina looks like powdered sugar, but is even more precious for it is the material from which aluminum is made. It’s extracted from bauxite. War is repidly depleting the nation’s once-large reserves of high grade bauxite in Arkansas and wartime shipping problems are prevent ing us from bringing as much as we need from South America, where there is plenty and from which we have been importing large quantities for 20 years. Now the Aluminum Company of Amreica, culminating 25 years of research, has announced perfec tion of a new process which ex tracts from low-grade bauxite as high a percentage of alumina as was formerly obtained from the high grade ore. The new pro cess becomes important because of the large reserves of lowi-grade bauxite in Arkansas. Neverthe less, Alcoa coupled with its an nouncement the statement that it more economical to use the high grade ores, so that these would still appear to be more desirable. We can use the low-grade ores un til the shipping conditions im prove, but ships are still the No. 1 problem, and it would seem that when the war is over the com mercial industry in a competitive world would be obliged to revert to using the higher-grade more economical ores. BOOMERANG—The scrap we sold to Japan in the decade pre ceding the war is coming home again and soon will be back on the firing line, only this time we’ll do the firing. Speakers at the annual convention of the Institute of Scrap Iron and Steel revealed that the metal situation at the nation’s steel mills has been ma terially eased by shipments of metal scrap brought back from the battlefields of the South Pa cific and North Africa as ballast in ships returning from those fighting fronts. It includes much of the metal originally shipped to the Japanese who converted it into armaments and munitions which United Nations fighters then proceeded to re-convert to junk. Japanese and German tanks, airplanes, guns, motorized equipment and marine wrecks, i stripped of all salvageable parts, make up the bulk of the welcome material. The supplies are said to be actually piling up on the Pacific Coast with one large steel mill having such a large stock on hand that it is finding difficulty providing storage space for 200 additional carloads just received. THINGS TO COME—A sur gical sewing machine made by Singer which does a -much neater job. But you don't get such fan cy stitches . . . for blackouts, a luminous electrical switch plate which, after a few minutes ex posure to average room light, glows for afbout two hours . . . plastic license plates, already ad opted by Massachusetts . . . two- j in-one wax that clean floors and polishes them at the same time. FAREWELL, MY LOVELY— Cigarette smokers who have clung loyally to brands which had their greatest popularity before World War I are in for a shock. Mostly Turkish types, their passage de corated with lush harem beau ties, the cigarettes of the “23 Skidoo’ area, probably will fade ,quiet|y from the scene as tobacco companies faced with a demand that out strips the supply, con centrate on the big-name brands. Last year American manufactur ers turned out 200 billion cigar ettes and tobacco farmers failed to keep pace with the rise, which amounted to about 25 per cent over 1941. In 1935, when pro duction was only 162 billion cig arettes, farmers grew 1,286 mil lion pounds of barley and flue cured tobacco. Last year they raised only 1,176 million pounds of both types. In addition, there is a growing shortage of glycerine, used to keep cigarettes moist, and cellophane, for wrapping. GOOD NEWS—The cheering news that sufficient alcohol pro duction is in prospect to meet all industrial needs, including en ough for synthetic rubber re quirements, was revealed by a high-ranking official of the War Production Board in a recent ap pearance before the Senate Agri cutural [Subcommittee. One fac tor behind this news was the fpeedy conversion of all whiskey distillers to war alcohol produc tion, which made available to the government the largest single source of supply. Schenley dis tillers corporation, for example, with 14 distilleries busy day and night on this task, multiplied its output tenfold in 1942. Altoge ther XJ. S. distillers will produce more than 240,000,000 gallons of alcohol this year. GITS O’ BUSINESS—Ladies of the assembly line now have a fashion booklet devoted to work ing styles. Published by General Electric and directed specifically at welders it offers styles created by famous designers—jackets, aprons, gloves, headgear and helmets. The Brewing Industry By ALVIN GRIESED1CK Chairman, Brewing Industry Foundation Sharing with all industry the extraordinary problem of wartime production—and its necessary re strictions—the Brewing Industry faces 1943 with more than aver age concern. The economic hazards of 1943 not only encompass gasoline and rubber ratinoing, as with all busi ness, but also include physical problems of packaging the pro duct after manufacture has been completed. Another factor confronting the brewer is increased consumption with decreased facilities for dis tribution. The common man, by nature, drinks moderately. Beer is his beverage. Today, with na tional income soaring (estimated at $117 billion for 1942) millions of men are earning and working beyond the average levels; ami beer is in demand. The political aspects of the coming year are somewhat dis turbing. Dry factions, in both state and national legislatures, will be increasingly active, using the war as a screen behind which to again disseminate their propa ganda. Had it not been for the popular uprising against the e\*ile of Prohibition and the out spoken intervention of War Sec retary Stimson, Navy Secretary Knox, numerous Senators, and public figures, the Dry bide might have been successful in its at tempt to outlaw the sale of beer to soldiers, sailors or marines, near military j)osts. The Josh Lee amendment to the Teen-age draft bill sought that objective, and had it been enacted might have constituted the first step toward a return of national Pro hibition. Accepting the premise that beer sales follow the dips and rises in the national income chart, beer is, and will continue, falling below the income rise because of the (peculiar problems engaging the industry. While beer is at an average of 64 million barrels today, the increase is far under the rate of increase in national income, which is 23.8 per cent over 1941, as compared with 12 per cent for beer sales. This can be particularly attributed to the high excise taxes paid by the brewer on each barrel of beet sold. Physical reasons for under av erage sales relate immediately to distribution and delivery. The tire problem is so acute that some breweries have resurrected old brewery wagons and have acquir ed th once familiar Percheons and Clydesdales to make up teams that arc sharing the delivery load with trucks. Even horses are scarce and so do not offer any major relief. Practically all breweries have cut down the number of deliveries per week. Cans, during 1942, became a total casualty as far as civilians were concerned. They are now available only for overseas ship ment to the armed forces. (Canes take less shipping space than bottles). Tbe shift to total packaging in bottles developed heavier demand for crowns. In spite of this new load, breweries were allowed only 60 per cent of the weight of crowns they used a year ago. Laboratories have been experimenting with composition substitutes. None have been ac cepted as yet. Meanwhile, this problem might become more acute before a solution is found. Machinery manufacturers have gone to war. Like scores of other domestic industries, brewing must —and gladly does—make its way without much needed replace ments during the war. An adequate supply of ingre dients is the most favorable fac tor at the present time. The brewers’ raw materials do not compete with the table—such materials, as in the past, have been grown in surplus quantity. The single exception is hops. Un less later indications point to a more favorable outlook, scarcity of pops pickers may cause a shortage. Important among 1942 de velopments was the rise of one of beer's by-products—brewers yeast —in recognition and acceptance as a valid vitamin source, and therefore, having an important place in the war effort. Dr. Ed 1 W A DOBSON Regional Executive, Region : No 6. Boy Scouts of America ward S. Rogers, director of the Office of War Nutrition Services ct' the New York State War Coun cil, announced plans to supply war workers with vitamin B com plex through brewers yeast tab lets. The supplemental diet for war workeis is part of the New York State nutrition plan which will reach not only into the in dustrial plants, but i^fco into the workers' lunch box and the home. The brewer contributed in va 1 ious ways to the war effort dur ing 1942. But taxes, war bond purchases, and morale-building were his major contribution. In the first year since war bonds were made available, the indus try has purchased more than 20 million dollars' worth. Brewers during 1942 handled a record tax assessment—more than eight times the rate paid per bar rel in 1914, when beer consump tion hit its all-time peak. The new Federal tax, $7 per barrel, became effective November 1. (In 1914 the Federal tax was but $1 1 er barrel and there was no state tax, which now averages $1.42 per barrel throughout the coun try.._ The 1942 Federal tax was ap proximately 590.000.000, or at the rate of more than one million dollars a day. Adding approxi matelj $ 1 35,1)90,000 in state and local taxes, beer’s total contri bution to public revenues was (about $525,000,000) over a half billion dollars Overshadowing the economic complexities of the year for the brewing industry, the role of beer as a morale-building asset for the ai med forces ranked above all ether considerations within the in dustry. No single factor bright ened the outlook for the brewer more than that military offic ials in all branches of service publicly reaffirmed their faith in beer as a force for moderation and temperance. Major Merrill Moore, writing in the Military /Surgeon, reiterated the expressed convictions of Cab inet officers, Army, Navy and Marine Corps officers, when he stated: “I, for one, think emphatically that beer should be sold and that drinking in moderation should be encouraged.” Much of the favorable public expression about beer as a bev erage of moderation has emerged since the self-initiated, self-regu lation program of brewers was undertaken in 1938 under the sponsorship of the Brewing In dustry Foundation. The program was in operation in 14 states be fore the first Selective Service registration; its objective being the maintenance of clean, decent, wholesome retail outlet conditions by tavern owners. This plan was well organized prior to Pearl Har bor and has been intensified since. Today the brewing industry ia actively cooperating with State and local goverment, and with commanding officers of Army posts and Navy stations, to main tain wholesome conditions in all retail beer outlets in a total of 87 states, in which concentrations of our armed forces are now lo inc Drewing inqustry s pro gram of self-regulation is quite simple, and is proving effective. In each state where the Founda tion conducts a state-wide opera tion, a State Director is in charge of a State Committee, whose members are all brewers and and beer wholesalers doing business in the state. The State Director's duties are first to warn those beer retailers ian whose places violations or infractions arc observed by his field force. If those warnings are unheeded, the State Director is empowered automatically to petition the prop er authority to revoke the offend er’s license or otherwise to take action against him. In these states in which there is not a full-fledged Foundation State Committee, the work is car ried forward by the state brewers’ association, the state wholesalers’ association, or by the individuals in the industry where no associa tion exists To date, the work of the Foundation Committee alone has assisted retailers in bringing about voluntarily more than 2, 400 corrections of minor law in fractions, and in officials revok ing, suspending or taking “close up action” against more than 1,600 irresponsible proprietors. In conclusion, the brewer can say, with all modesty, that this industry has endeavored to meet the highest obligation of good citizenship and to deserve the trust and confidence which the American people have placed in beer as a beverage of moderation find as an aid to the national morale. THIS WEEK WASHINGTON Washington, D. C. (NWNS) — Eveu. the smartest political inter preters are still puzzled over why President Roosevelt, facing the first anit-New Deal congress since 1932 set off political fireworks at the very opening of the new ses sion by naming Edward Flynn to be “ambassador” to Australia. To anyone in Washington who knows the political relationship between Mr. Flynn and the Presi dent, it was clear that the Presi dent was (paying off a political debt—but no one here believes that Mr. Roosevelt was so indebt ed to the New York politician that it was worth the sacrifice of repu tation he made to give “Eddie” a break. As chairman of the National Democratic committee, Mr. Flynn undoubtedly has thrown a con siderable amount of support to the President, but Mr. Flynn’s reputation, particularly in the East where he is known, is ques tionable. Even loyal New Dealers will find it difficult to forgive the President for appointing such a man to handle such an important and ticklish job as being represen tative of our country in the Pa cific. On several occasions since he has been President, Mr. Roose velt has been able to get away with appointments which were based chiefly on politics—such as the appointment of Justice Black to the U. 'S. Supreme court—but this most recent appointment has brought more criticism than any made so far. Obviously fearing that he may not have the isilpport of the new congress, the President made strong pleas that politics be set aside for the duration of the war and Republican leaders agreed that politics should in no way be permitted to interfere with the war effort. But now that the President has, in the eyes of the Republicans as well as many of his own party, shown a complete disregard for the non-politics agreement, it is feared that pol itics will hereafter run rampant in Washington Some analysts feel that the President made the Flynn appoint ment as a means of testing his power with the new congress, but all agree that, no matter what his reason, he has invited a political blackeye that will hurt him for a long time to come. So. far as the war program is concerned, however, even those who most strongly oppose the do mestic policies of the President are expected to continue to give him the support he needs. It is very difficult for some congress j men to consider approving a fed eral budget of over 100 billion dollars, but it is known that the people favor expenditures of money, no matter how fantastic the amount may seem, if it seems necessary to guarantee winning the war. There is little doubt therefore that, Flynn or no Flynn, the appropriations will be ap proved to furnish funds to pro ducc more war equipment than is being turned out by all other nations combined. Latest figures indicate that dur ing 1943 Germany will spine slightly over 34 billion for war. Italy less than nine billion and and Japan about Seven billion — a total of about half of our ex penditure. Among our Allies, England is expected to spend about 21 billion, and Russia 11 billion. To produce more war supplies than all of the rest of the world, our civilian population may have to make even greater sacrifices than are now apparent. Such a huge portion of materials will be used for war goods that even though plans on paper call for giving civilians adequate food and supplies, it is quite possible that we may be lacking many essentials before the year is over and our distributoon system may suffer many serious breakdowns. Estimates call for production of civilian goods which would amount to ahout $500 worth per family, hut this means that even if everything goes ahead on schedule we are apt to'be reduced to a scale of living lower than many of us have ever experienced. With more money available to buy goods than ever before in the history of our country, and with supplies less than they have been during this century, it is apparent that even with rationing and price con trol it is going to be a very dif ficult problem to keep our econ omy from exploding. The outcome will probably de pend on the voluntary coropera tion of the people. Hoarding, black markets or any “me-first’’ activity will result in severe hard ships for all of us. AT FIRST SION OF A USE 666 TABLETS. SALVE. NOSE DROPS PRESCRIPTIONS FILLED AT Houser Drug Co. WE DELIVER PHONE 4771 windows On New Worlds Hair-splitting is no longer a joke with the new electron micro scope, which makes visible a whole world that has previously been too small for scientists to study. I 1. Using particles of electricity instead of light, the instrument makes a mosquito's stinger, 1/1000 the diameter of a hair, look like this. 2. Crystals, dust particles, disease■ producing viruses can be enlarged to a million times to examine their nature and structure. 3. Portable, operating from ordi nary power lines, it is expected to speed war research in laboratories of colleges and war plants. 4. After the war, it may be useful in many fields — for example, in searching for the cause of such dis eases as the common cold. General Electric believe* it* Erst duty a* a citiren is to be a good soldier. ' ''ompany, Schenectady, N. Y. m so tn GENERAL ^ELECTRIC Here’s the EASY WAY TO SLICE / X / mm _ Uy the loaf on its side with ' i inaf away tr°m bottom ot loo ' you * * * start slice at ner of loaf * * * Be sure to use a sharp knife * * * use l°n9< steady th® blo^c. ZZ* A—TOSlRVt ENRICHED WHITE BREAD GROCERS RAKING COMPANY GASTONIA, N. C.

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