Evening star., 1933-05-19
Green Qualities Carefully in
Backing Industry Control
Measure.
ASKS CHANGE AFFECTING
YELLOW DOG CONTRACTS
Senator Wagner Predicts Four Mil
lion Men Will Be Given Work,
but Shuns Tax Stand.
BY the Associated Press.

By the Associated Press.
With a qualified Endorsement of the
sales tax method of financing, William
Green, president of the American Fed
Grafton of Labor, today placed labor
squarely behind the public works-in-
dustry control measure of President
Roosevelt.
Testifying before the House Ways
and Means Committee, after Senator
Wagner, Democrat, of New York. had
predicted the measure would put -four
million men to work, but had declined
to support any specific tax plan, Green
approved the bill.
Asked which of the four methods
proposed by Budget Director Douglas
he would use to finance the $3,300,-
600, 900 bond issue for public works
Green replied that while labor always
has been uncompromisingly opposed tc
the principle of the sales tax" he per-
sonally would support the sales tax II
the revenue was restricted to financing
the public works bill and the tax used
only during the emergency.
Breakfast Tax Opposed.
Green said that while labor would op-
pose the so-called breakfast tax pro-
gram, it would not object to raise
in income taxes, imposition Of income
rates upon stock dividends and boost
in gasoline taxes
Green said that with the adoption Of
two amendments clarifying the Ian
guage dealing with what he called vel.
low dog" contracts, labor will extend
to this proposed legislation its full,
complete and hearty Endorsement.
AS hearings proceeded 1t was dis
closed that an oil-control provision may
be attached to the bill.
Green said the public works program
Ought to be amended" to provide ex-
penditure of S5,000,0 900 900 instead OF
the administration figure of $780,
900 900.
Asserting that tremendous support
was gathering behind the President s
program, Wagner said so far as the
effect with regard to the antitrust laws
was concerned, the bill would not
abolish competition, but would lift 1t to
a higher plane.
Just before the committee began its
session, Representative Cullen OF New
York. one of the ranking Democratic
members of the committee, said he be-
lived the committee would approve
plan raising income taxes, imposing
these levies on corporate incomes, and
raising the gasoline tax.
Called JobIess Relief.
Cullen said he felt it would not be
possible to get the sales tax adopted
even though he favored it. He added
that if the sales tax was not adopted
the first of the combination taxes sug-
gested by Budget Director Douglas
would be.
Wagner said the bill was essentially
an employment measure" One Of the
drafters of the legislation. he was the
first witness at the resumption OF hear
ings on the bill. Henry I. Hartman
president of the Chamber of Commerce
of the United States, was present tc
testify also.
Wagner said the bill was designed
to do away with the sweatshops and the
kind Of competition that is tearing
down industry"
1T will have great economic effect
and a great social effect because it will
permit workers to live in decency."
The bill apparently is headed fol
speedy congressional action despite the
troubles presented by the need of rails.
ing new taxes.
Budget Director Douglas told tht
committee at its first hearings yester-
day that repeal of the eighteenth
amendment would provide S250,000, ,00(
in revenue annually, more than enough
to cover the costs of the bonds. But
until the States ratify repeal, Dougla:
told the committee, new taxes must bt
imposed to raise an annual $220.000, 900
He offered four tax schedules between
which he refused to choose:
A sales tax of Is or rs per cent
with no exemptions, or IA per cent
with food and medicines exempted; OIL
three different plans for increased in.
come taxes plus a miscellany Of rates
in different combinations.
Upon repeal. he said, 1t will be safe
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