The Washington times., 1933-05-13
PUBL|C'S VOICE
WINS PLACE
IN CONTROL
President Purposes to Set Up
Federal Pact With Business,
Labor, and Consumer


created under President Roose-
velt's industrial revival program.
The President would establish
this partnership through series
Of industrial control boards, with
broad powers to help industry re-
capture prosperity.
He probably will submit the
plan to Congress in legislative
form early next week, along with
o $5,200,000,000 public works pro
gram for creating even more jobs.
The whole program would be
predicated on a national control
board, consisting of four Cabinet
officers and an executive to be
chosen by the President. In this
board would be vested the final
powers for stabilizing industry.
Public to Have Voice
A series of secondary control
boards would be created to en-
courage each industry in putting
its own house in order. Manage
ment, labor, and the general pub
sc will have equal representation
on these secondary boards.
The principle of voluntary
agreements" for stabiliZing wages,
working conditions, work hours,
and even price levels would domi.
nate. Each industry would be
invited to elect its own control
board and then to thrash out
trade agreement.
If the industry adopted an
agreement affecting wages, hours,
conditions, or prices, it would be
submitted to its own control
board for ratification. Then the
agreement would have to be ap-
proved by the national board.
Only the national board would
have power to set aside the anti
trust laws to promulgate the
agreement. And only the ma
tional board would be armed with
authority to force recalcitrant
units of an industry to conform
to the agreement.
Two Weapons Seen
Two forms Of compulsion-
termed sanctions in the Presi.
dents plan--would be invoked,
as the bill now stands.
One would be the levying Of a
tax against the entire industry
with granting of exemptions to
each unit carrying out the agree
ment. The other would be to
license the entire industry and
revoke the license Of each unit
refusing to abide by the agree
ment. This power will rest solely
with the Federal board.
Then there was the plan of
Budget Director Douglas for a 10
per cent sales tax against any
industry failing to reorganize,
with exemption of the tax for any
industry reorganizing in a man
ner satisfactory to the Federal
Government. The Presidents plan
struck a half way mark between
the two.
It was the Presidents idea, how
ever, to use the taxing process
only after an industry agreed to
I1eorganize, and then only to whip
recalcitrant units into line.
Liceses Urged
His advisers urged the licensing
system, with revocation of those
of recalcitrant units. With the
bill still being studied, it was pos
Sible the final form would apply
one system to all industries, with
relaxation to those reorganizing,
and the other form to whipping
recalcitrant units into accepting
the reorganization agreements.
There was unanimity of opinion
on the public work features of the
prosperity bill. There will be pro-
vision for normal Federal con-
struction, Federal aid to States
and cities in constructing public
projects, and loans for private in
dustry. probably through the r.
F. C.
A $4,000, 900, 900 bond issue will
finance the program, while the
President will make 81, SOC, 900 900
available from funds already ap-
propr1ated or funds not coming
ALUM CLS treasury
Like Liberty Bonds
The President will decide how
to guarantee and market the
bonds. It has been decided to |
support the bonds through Spe.
cial taxes and they may be sold |
on the same scale as were Liberty |
bonds during the World War.
Three methods of supporting |
taxes have been submitted to |
Mr.. Roosevelt. He favors a small |
Unemployment tax" in the nature |
of a sales tax upon industrial |
commodities. The other methods
would tax tea, coffee, and sugar,
and payrollS.
Administration leaders pre-.
dicted the bill would be in final
form Monday.
Amortization of the $4,000, ,0OO,-
900 bond issue proposed for the
construction program could be
accomplished by a 1b per cent |
general unemployment" tax levied |
against virtually all articles of |
commerce, according to plans |
worked out by Treasury and |
Budget Bureau experts and sub
mitted to the President.
The remaining $1,000, ,O0O, 900 to
be raised will be for loans to the |
Reconstruction Finance Corpora
ton and other institutions and |
will be paid off by them.