Evening star., 1932-03-16
Rainey Says One or the Other
Must Prevail to Meet
Nations Budget.
ANSWERS WILLIAM GREEN
ON NECESSITY FOR LEVY
Railway Unions Join Federation
Chief in Opposing Proposal
of House Majority.
Nv the Associated Press

BY the Associated Press.
A statement that II the position of
William Green, president Of the Ameri-
can Federation of Labor, against the
manufacturers sales tax prevailed in
Congress sweeping reductions would
have to be made in Government en-
ployes' salaries was made today by Rep
resentative Rainey Of Illinois.
The Democratic leader said he had
supported the American Federation Of
Labor for % years, but that its position
on the principal phase Of the $l,096,-
100000 revenue bill was wrong.
II am not in accord with Mr..
Green's statement" Rainey said.
From my information on the subject
and the study made Of the financial
situation of the Government as a
member Of the Ways and Means Com
mittee, / am convinced the sales tax
Is the best and most just solution"
Pay Cuts Are Alternative.
Green outlined his views against the
sales levy in a statement last night.
He said his organization was tradition
ally opposed to all forms of sales taxes.
If Mr.. Green's position prevails, it
will become absolutely necessary, in
my Judgment. for Congress to cut SAL
aries Of every Government employe
from the highest to the lowest en-
ploye," Rainey said.
If the sales tax Is defeated. I shall
De compelled to support bill imposing
the irritable wartime taxes on the
q -
oi1ne, radios, automobiles, conveysYlces
and transfers of real estate, besides an,
increase In postage.
We are going to stay here all Sum-
mer to get bill that will balance the
budget. I hope Mr.. Green agrees that
II Is absolutely necessary to balance the
budget and restore the solvency of the
Government.
Backs Green's Stand.
I hope he realizes the manufactur-
ers' sales tax Is an emergency measure
and that sales tax has been adopted
by every nation of Importance in the
world except Great Britain and the
United States"
Green's opposition to the sales tax
was indorsed today by the Railway
Labor Executives Association. In a
letter TO Representative La Guardia
Republican, New York;, Timothy
Shea, acting chairman, said:
The Railway Labor Executives As
sociation, representing the 81 standard
railway labor organizations in session
at washington, gave serious considera-
tion TO the manufacturers sales tax
now before Congress and heartily in
dorsed the statement by President
william Green, American Federation Of
Labor, opposing this bill.
I'VE feel that any further tax i'm
posed on the now overburdened work.
ing people of America cannot be justi-
Ned under any circumstances"
Representatives of the farmer also
swung into action today against the
sales tax
Fred Brenckman of the National
Grange said imposition Of the tax would
meet "the unqualified disapproval of
the 27,ooo, 900 people upon the farms of
this country"
Meetings Planned.
IF Congress becomes convinced these
spokesmen are rejecting the will of
their groups the leaders of both parties
who are seeking to put through this
tax will face barrier hardly surmount-
able. The already large opposition to
this project for making almost every
thing that is manufactured and sold
carry a share of the cost of Govern
ment sought today to weld itself in
bloc form. A meeting of Democratic
opponents was called for tonight to or
ganize, and Representative La Guardia
was consolidating the dissenters in his
party.
Proponents Of the sales tax came
part way to meet the opposition by con-
senting to leave canned foods as well
as virtually all other eatables untaxed.
But, as Green pointed out in his dec
laration, clothing, shoes and such
ed under the plan.