Evening star., 1933-06-10
The Industries Bill.

Senate action on the public work.
and industries bill last night mad
sure the final passage of this act, 81
revolutionary in character as it relate.
to industry. Heretofore the Govern.
ment of the United States has through
its antitrust laws undertaken to pro.
vide for the freest kind Of competition
It is true that when 1t was found that
unfair methods of competition needed
curbing the Federal Trade Commission
was set up and has been in operation
to prevent such undue rivalry. But now
the administration has urged that in
dustries be permitted to adopt codes,
with the approval of the President,
which will deal with production, hours
of labor, wages, methods of competi-
ton, etc. In the twinkling of an eye
the old principle of free competition
is to be wiped away. Industry Is to
be controlled to the nth degree, and
the Government is given authority to
compel the producers to live up to the
codes established through a licensing
provision. Never before has there in
this country been such an attempt to
manage industry. But this is the day
of government management.
The industries control bill is writ
ten down as an emergency measure.
It's period of life is to be two years.
It's proponents believe, however, that
when it has been in effect for two years
the system will be continued indefl-
nitely. They look to it as a sort OF
cure-all for the industrial ills OF the
country, in which production, wages,
hours of labor and like have been in
volved. The proof of the pudding is
in the eating The American people are
restive under too much Government
regulation.
Much will depend upon the way in
which the industries act is enforced.
The danger is that attempts viii be
made to curtail competition to an ex-
tent which would place huge burden
on the consuming public. The great
difficulty in this country has not been
overproduction, but the fact that pro-
duction could not be properly distrib-
uted. There is no overproduction OF
shoes, for example, when many people
are unable to have shoes.
The Senate has written into the in
dustries bill a large number OF amend
ments and two of them deal particularly
with the tax system of the country.
Both are salutary provided they can
be made to stick" The first provides
against the furthur issue in this country
of tax-exempt securities by the Federal,
State and municipal governments In
the past 1t has been held that it would
take a constitutional amendment to de-
clare against tax-exempt Government
securities, although in some quarters 1t
has been held otherwise. There should
be no sax-exempt securities. The system
has led to tremendous governmental ex-
travagance, with money easy to raise.
1t has led to great avoidance of the
income taxes, with billions upon bill
lions of dollars-estimated to run as
high as s3S, 600, ,OOo, o,o0o-escaping income
taxes by this route. Such treatment
of a huge part of the wealth of the
country is inexcusable.
The second far-reaching provision
relating to the tax laws is that for the
publicity of income tax returns. The
amendment, offered by Senator La Fol-
lette of Wisconsin, was adopted by a
vote of SIS to 27. The revelations be-
fore the Senate Banking Committee OF
the way in which men of great wealth,
keeping within the law, have been able
to avoid the payment of income taxes
is responsible for this amendment.
Publicity is likely to put an end to this
kind of thing. And if persisted in the
income tax laws may be amended to
close up the holes through which the
tax evaders move.