Evening star., 1933-05-20
COMMITTEE BACKS
HIGHER INCOME TAX
Dividend and Gasoline Levies
Also Urged to Pay for
Public Works.
Continued From First Page.)

Chairman Harrison of the Senate
Finance Committee announced his COM
mittee would begin hearings on the in
dustrial control-public works bill Mon
day.
William Green. president Of the
American Federation Of Labor, and
Henry I. + riman, president of the
Chamber OF Commerce OF the United
States, yesterday approved the sales tax
plan of financing the bond issue. but
important committee members, includ-
ing Chairman Doughton and Repre-
sentatives Ragon, Democrat, of Ar
kansas: Vinson. Democrat, Of Kentucky,
and Cullen, Democrat, of New York.
said program Number l is preferable y
They said there might be some slight
change, but that when the committee
goes into executive session late today,
they expected an agreement to be
reached on program based on num-
ber l."
Four revenue programs were submit
ted to the committee by Douglas With
out recommendation.
President Roosevelt although asking
for far-reaching authority to deal with
industry and labor, made no recon-
mendation as to taxes, saying, however,
he would submit his own program next
upon one.
Opposition was voiced by both Green
and Hartman to the so-called break
fast tax in Number program sub
mitted by Douglas, after these leaders
had Endorsed the measure and Its pur-
pose. They were only lukewarm toward
program Number 3, levying tax on
cheap ong-distance telephone calls and
lowering the base Of admission levles.
Green Qualities Stand.
Green yesterday qualified his ap-
proyal Of the sales tax with the pro-
vision that this levy be imposed during
the present emergency for the public
works bond issue only and with the
stipulation that 1t be automatically
ended when the revenue Is not needed.
Asserting he favored repeal OF the
eighteenth amendment, Hartman SAID
If that was brought about revenue on
LIQUOR would amount to between $400,-
OO0,O and $500000, 900.
"I think the American people nave
enough common sense to bring ABOUT
repeal within two years." Hartman
said.
He referred to President Roosevelt's
message to Congress on the legislation,
asking for a tax levy until either the
eighteenth amendment is repealed or
until the Treasury can bear the interest
burden on the public works bond issue.
II think the manufacturers sales tax
Is the fairest item on the program
and the most unfair Is that tax on
dividends, because that Is double taxa
ton, Hartman said in discussing the
four programs submitted by Douglas.
In hailing the measure as q forward
step bringing about economic recovery,
revival of industry. increases in en-
ployment and raises in wages, both
Green and Hartman advocated removal
of the limit of 80 per cent outright
grants by the Federal Government to
States, cities and towns for projects.
The Federal Government, they said.
should give the whole amount IN order
that small communities, where there Is
no employment, may be given work.
Opposes Gasoline Tax.
In opposing the proposed increase
in the gasoline tax, Hartman said. This
should be left to the States" He said
he would prefer the launching of a
So 900, ,0000 900 public works program,
and opposed the recommendation by
Green that the bill be amended to pro-
vide for a $1,000 100000 public con-
struction program He added. however,
he did not think the 100000, 900 allot-
ment for highway construction was
large enough.
Hartman suggested that provision
be inserted to continue the life OF the
act for the life of the emergency, in
stead of limiting it to two years.
"If wisely administered" he said,
$50 that production can be properly CO.
ordinated, I am convinced the full use
of trade practice agreements will raise
wages and purchasing power, stabilize
production and increase employment.
Hartman said the Presidents pro-
posal to bring about national industrial
cooperation, increasing purchasing
power and stabilized prices are con-
structive and are of the utmost i'm
portance."
1.-THE Nationwide cut-throat compe-
tition brought on by the depression has
brought destruction of profits, successive
wage cuts and industrial chaos" Harrl-
man said. IF wisely administered, this
bill will raise wages and purchasing
power, stabilize production and increase
employment"
The National Automobile Chamber Of
Commerce, represented by Pyke john
son. vice president, protested against
boosting the gasoline tax, claiming that
to impose general sales tax on pres
ent excise levies on the automobile in
dustry would constitute new super
tax"
Charles A. Collins, representing the
American Automobile Association, said
his organization has consistently IA
vored general sales tax in preference
to series of excise taxes" and de-
scribed the proposal for an increase in
gasoline rates as another raid on gaSo-
line taxes"
DR.. Irving Fisher, economist Of Yale
University, advocated the issuance OF
stamp money" to pay for the public
works program.
The measure was described as pass
ing the buck to President Roosevelt" by
Benjamin c. Marsh. executive Secre-
tary of the Peoples Lobby.
Make it mandatory and get some
thing DONE" he said "The bill makes
the President a dictator over every
thing except the banks, which helped
bring on our disaster. and land specu-
lators, who will wreck the scheme"
Baruch Sounds Warning.
Bernard M. Baruch, chairman of the
old War Industries Board, last night
warned the Nation mot to oppose, but
to examine carefully recent and pending
legislation placing out entire industry
under more or less careful regimenta-
ton"
"In todsys desperate struggle for the
Scant remaining business" Baruch said
in an address before the Brookings In
stitution, cost and price have become
such factors that, in the unstable
fringes which surround each industry
few operators have taken the last dan
gerous step in economic retrogression-
the attainment of low costs by the deg
relation of labor standards.
Low costs secured in this way create
an unbearable competitive disadvantage
to companies Of larger vision and
sense of social obligation. These COM
panies have no defense save to follow
suit-thus a whole industrial and labor
group is forced to drop to lower step,