Evening star., 1933-05-18
TAX PLANS LISTED ]
| FOR INDUSTRY BILL
Byrns Foresees House o. K.
Next Week Without
Sales Levy.
Continued From First Paae.)

and municipalities for public works up
to 80 per cent of the cost Of labor and
on projects regarded by the
as necessary and useful"
This, however. would be conditioned
on the local governments balancing
their budgets with rigid economy, re-
ducing taxes
1T is an attempt to persuade local
to balance their budgets" !"
Douglas said. 1T Is not planned to
scatter unnecessary buildings through
out the country. On the contrary, it
is intended to limit them to necessary
and useful buildings"
Under questioning by Cooper, Demo-
crat, Of Tennessee, Douglas said there
would be no objection to adding flood
control to the public works section,
since, he said, it had been felt the
language Of the bill was sufficiently
broad to cover food control.
The huge Federal works program, in
Guiding naval construction, was out
lined by Douglas without mentioning
specific amounts to be expended.
Security Necessary.
In making loans to States and mu-
inequalities, he said, the Federal Gov
eminent would require reasonable as
sCrance of security with the idea OF
preventing expenditure OF money for
unnecessary public building but to per-
nit the construction of necessary build
ings during times Of unemployment.
With the sales tax now out of con-
sideration by the House leadership. at
tention was focused on higher income
taxes and other special levies to raise
the 10000 900 which the President
asked to finance the public works pro-
gram.
Douglas told 1.-The committee that un-
der the $500, ,0G0 600 highway program.
State Highway Commissions would be
designated Federal agencies to handle
the fund
The effect of the new distribution. he
said, was to allocate on the basis OF one
half on population, one fourth on length
OF post roads and one-fourth on area Of
each State as c5ntrasted with the pres
ent base of one-third each.
Opposes Partisanship.
Doughton opened the hearing
with an appeal that the committee
forget partisanship after Chairman
Summers Of the House Judiciary Com
mittee had suggested that the proposals
dealing with the antitrust laws came
within jurisdiction of his committee
Ragon successfully moved that five
lawyer members OF the Ways and Means
Committee study the section, and
Doughton appointed Ragon chairman
of the snbgroup with power to name
the other four members, two from each
party
This bill" Secretary Woodin said
should be taken up in all seriousness,
Tor II affects all the people of the
country"
He delegated Douglas TO speak for him
In certain industries there is cut
throat competition and cut-threat SELL
ing" Douglas said. employees wages
have been cut to sweatshop levels" in
some instances the purpose" OF the
measure being to rectify such conditions
He then explained the measure
Meanwhile, Julius S. Weyl Of Phila
delphia. president of the United Typo
thetae OF America. the trade associa-
ton OF the printing industry. an
nounced that meeting was being held
OF leaders Of that industry to initiate
program OF cooperation with the
Government under the industrial bill
Weyl said the program was intended
to bring self-regulation for the com
mercial printing industry.
At the congressional hearing Repre-
sensitive Mccormack Democrat, Of
Massachusetts,. suggested States nigh,
join with the Federal Government t.
effect mtrastate compacts for contro
of industry.
Power May Not Be Used.
The bill enables the President te
license industries if they don't agree
among themselves on methods to bet
ter conditions. but Douglas said It va.
not proposed to use this power unles,
voluntary industrial action proved i'm
possible
II the code is agreed on by indus
trialists and approved by the Presiden,
violators are subject to penalties.
In reply to a question by Representa-
tive Lewis. Democrat, of Maryland
Douglas said he believed" the measure
would apply to wholesale houses ano
banks, as we'll as to industrial plants
and mines and even the Oil industry
and this bill is designed to compel the
10 per cent willful minority in industry
that refuses to cooperate"
Representative McClintic. Democrat
of Oklahoma, asked whether in the
event the oil industry failed to agree
to limit production the bill gave the
Federal Government power to prevent
shipment of the offending product in
interstate commerce.
Il believe" Douglas replied. "it has
that power
He said powers given President
Roosevelt under the bill were "Substan-
war powers" given President Wilson
Only" he explained, the war pow
ers were infinitely more drastic I can
show you if you desire"
As the hearing progressed Senator
Wagner, Democrat. of New York. anc
Donald Richberg of the American Rail.
way, labor representative. who had
much to do with the drafting OF the
measure, entered the crowded room ano
sat beside Secretary Woodin.
A number Of well dressed women
members of Congress and lobbyists
were interested spectators.
Revision Demanded.
Meanwhile demands for revision OF
some parts of the public works-lndus-
trial control measure came lIOIil rloU-
ert L. Lund, president of the National
Association of Manufacturers.
In statement issued last nlgh'
Lund assailed particularly the authori-
Zation contained in the measure foi
the President to license industry Il
necessary to compel agreement among
the various groups on working hours
minimum wages and stabilized produc-
ton. 80,
"The licensing provisions Of the bill
as now written" he said, are. 1t ap-
pears, not constitutional, since undeI
the Supreme Court decision in the case
of the New State Ice Co. Of Oklahoma
the court invalidated the statute which
required those desiring to engage IN
manufacturing to secure license.
"This licensing provision. however
would probably be sustained by INT
courts il applied to natural resourcs
industries only Fortunately, 1t Is WIZ
respect to natural resource industries
that the licensing provision is most fHa'
portant."
With its own representatives atdinl
in drafting the legislation. the manu-
- = vht -