Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-01
BY WILLIAM HARD.

The youthful senior Senator from Wis
consin, Mr.. Robert Marion La Toilette
stands forth at this week end as the chief
organizer Of proposals for enlarged Fed
eral activity regarding unemployment
| next Winter in opposition to the en-
phasis placed upon local activity and
private activity by the Hoover admins
tration.- This has resulted largely from
the hearings now being conducted by
the Senator on Capitol Hill in prepare
ton for the reintroduction into the
Congress next December of his bill FOL
q national economic council.
These hearings have attracted dis
tinguished witnesses, such as President
Gerard Swope of the General Electric
Co.. and seem likely to become sort
of bible for Progressive oratory and argu-
mentation as soon as the Congress con-
venes. Accordingly, this writer sought
light upon the Progressive program
from Senator La Toilette.
X
Senator, is it your contention that
relief of unemployment distress through
local private charity and local public
funds next Winter will not be ade-
quate?"
ut will not be adequate If by ade-
quacy we mean the maintenance OF
normal health and OF normal decent
standards of living for the unemployed
and their dependents"
Have you any basis Of fact, Senator,
for that view"
81 most decidedly have. refer you
to the testimony before our subcom-
mittee Of Miss Frances Perkins, indus
trial commissioner of the State Of New
York She showed that in that State
the wage loss this year from unemploy-
ment will be approximately $500, 000.-
600. She showed at the same time that
relief expenditures in that State this
year from local private charity and
from local public funds will not exceed
some SIS, 600, 900. You need only a
pencil and paper and the skill to sub
tract 35000,000 from 800,000,000 to
see that there will be big gap this
wear in the State of New York between
actual relief and adequate Talisf.
What, then, Senator, do you pro-
pose?"
st continue to believe in the principle
of the bill introduced into the last ses-
sion of the Senate by Senator Walsh OF
Massachusetts,. The Federal Govern
ment should grant to local governments
a sum of money equal to the excess ex-
bAlC RASoSAAN SAA-SN
has imposed upon them. There might
also be need of an emergency Federal
body which would allocate special sums
to communities in special local financial
weakness and helplessness
But. Senator. aren't the unemployed
worrying through somehow anyway?
"Only at extreme cost to coming gen.
erations. I direct your attention again
to Miss Perkins testimony. Sne
showed that the hospitals are reporting
an alarming rise in the types OF phys
ical trouble due to ACKNOWLEDGEMENTS,
She showed also that the schools are
reporting a marked decline Of mental
alertness among pupils and marked
appearance of physical laSsituoe among
them. We cannot even estimate the
tragic consequences which VIII now IN
fltiire wears from such developments"
'Why. though, put the burden on the
Federal taxpayers instead OF snnpIy on
the local taxpayers?"
Because local taxation does not
properly reach the incomes derived
from, for instance, securities. Local
taxation is based primarily on real es-
tate. The Federal income tax toucnes
incomes from all sources, SecuLiues
are still producing large incomes, wnlcn
should be taxed further in this crisis.
I ask you TO note the testimony OF Mr..
l. H. Sloan, vice president OF tne
Standard Statistics Co. He showed that
the dividends paid this year by our
$50 largest corporations Will pronaniy
total approximately 81 500, 600 600. That
is rs per cent Of what they totaled dur
ing the prosperity Of 1923. Sucn money
should bear its fair share OF the present
unusual burdens. The only way 10 &C
cor,nii.I, tnot nrd .Factively is through
Federal action"
&&*
st observe. Senator. that you also
favor large additional expenoitures 'o OF
Federal public works for the giving OF
more employment"
II earnestly do The only concrete
suggestions made to our subcommittee
by any of our witnesses Tor any pro-
gram TO overcome the present uncon-
trolled deflation and depression nave
been in the direction Of enlarged puonc
works. Myself. I am convinced tnat
the appropriations for suen puohc
works must be conceived IN terms not
of thousands Of dollars or millions, put
billions. The period during Ehich
this work may be necessary as q remedy
for employment Is likely 70 De quite
long"
Why 50, Senator"
Well. rely in this matter on the
experts. ] quote to you our witness
Mr.. Sloan, whom I have already quoted.
His company is most certainly no rad
cal propaganda company. 1t Is quite
the other way He stated to US that,
In his judgment, it will be many years
before-eyen with good luck-we can
regain the sort Of prosperity that We
had two years ago. think that we
should be prepared to supplement pri-
vate employment with public works
employment throughout the period OF
our slow prospective return TO full In
duStrial activity