Evening star., 1933-05-27
Industries.Publ Works Bill.

Industries.Publi Works Bill.
The House after two days considera-
tion passed the public works and indus
tries bill, most ambitious of all the
measures included In the administra-
tion's recovery program. The attention
of the public has been centered par
ticularly on the revenue feature of the
bill and the strife over the income tax
provisions and the proposed manufac-
turers' sales tax. Far reaching pro-
visions Of the measure as they relate to
industry and the life of the country
have been overlooked for the moment
in the more spectacular conflict be-
tween the two schools of thought on
taxation. Provision Is made In the
bill, however, for nullifying the anti
trust laws to considerable extent.
These laws are to be broken down, 1t
Is claimed, in the interest of preventing
production. Yet these laws were
designed to preserve and protect COM
petition, and competition Is yet the
most eficient means Of preventing over
production. AS a matter of fact, failure
to enforce the antitrust laws, and the
creation of the great trusts and chain
organizations in industry and business
have done more to bring about over
production than any amount of honest
competition.
Under the control of industries law,
competition is to be still further at
tackled. Industrial concerns are to be
permitted to get together on the matter
of production, prices, wages and hours
of labor. 1t is obvious that the prices
viii be SO fixed as to give . profit to
the concerns whose costs of production
are the highest. Where does the con-
sumner figure in any such arrangement?
The consumer, as usual, comes out at
the little end of the horn. The bills
intent is to Put people back to work, to
give industry new lease on life. 1t
might be far better If the Government
should undertake to break down the
huge sEgregations Of capital and bust
ness and permit return to the smaller
unit of operation.
The bill is called an emergency
measure and is to be operative for two
years. There is always the possibility
that it may be made permanent For
two years, at least, individual initiative
and efficiency are to be restricted. And
If there is inefhciency the public is to
pay for it. Furthermore, the bill ap-
parently will tend to protect the present
concentration of wealth. 1t may well
lead to still greater concentration.
Once more the House has turned its
back on the manufacturers sales tax.
This was expected, notwithstanding the
failure Of the present income tax sys-
tenn to produce the needed revenue for
the Government. When it was devel-
Cpd at the Senate Banking Committee
hearing that the twenty partners of J. P.
Morgan q Co. during the years 1881
and 1882 had paid no income taxes,
the supporters of the income tax sys-
tenn as 1t has been written and en-
forced caught their breath and there
was roar from the men and women
of moderate means who have been
paying taxes from their meager incomes
to support the Government. In a hurry
the opponents Of the sales tax rushed
forward with another amendment to
the income tax law, 50 ~ to prevent
the carrying over of net losses from
one year to the next in arriving at the
base for the payment Of income taxes.
1t still leaves possible, however, the
writing OF Of these capital or net losses
in the income tax returns for the year.
and while wealth may not have the
same opportunity so to utilize such
losses, spreading them over two years,
it still will have that advantage.
The huge public works program, to
cost the people $500, 900 900, is car
ried in this bill. II 1t Is put through
in its entirety it may well sink the
Nation in mass of increasing debt
An upturn Of business, for which the
whole Nation waits and hopes, may not
make it necessary to 60 forward with
all these projects. The people are
going to pay for this program by the
sweat Of their brows.