Evening star., 1933-06-03
LICENSING AND OIL
SECTIONS KILLED IN
INDUSTRY MEASURE
Authority for Embargo on
Imports Written Into Bill
by Committee.
HARRISON PLANS FIGHT
TO RESTORE PROVISIONS
Mississippi Senator to Propose Tax
on Stock Dividends and Capital
to Ban Income Levies.
By the Associated Press.

By the Associated Press.
The administration public works
industrial control bill today appeared
shot so full of holes by Finance Com
mittee amending that struggle on the
Senate floor will be necessary to get 1t
back in shape.
Hurrying to get it reported, late last
night, the committee struck out the
licensing provision drawn to compel
objecting industries to cooperate; voted
authority for the President to embargo
imports and rejected the administra-
tion's plan for regulation of the oil
industry.
Chairman Harrison declared he would
campaign in the Senate to defeat these
changes, asserting the licensing pro-
vision, defeated by 1877 vote, was the
only effective weapon" in the bill To
prevent cut-throat industrial competi-
tion.
For Use as Reminder.
1t was designed as sort of birch
rod in the cupboard" ostensibly not
to be used, but to remain as q con-
slant reminder to any business that
the Government was ready to act If 1t
refused to join in voluntary trade
agreements to control competition and
production. boost employment and
wages.
Under it the Government would re-
quire non-co-operators to obtain licenses
to engage in interstate commerce, and
licenses would be issued only upon COM
pliance with Federal wage and produc-
ton regulations. A similar clause for
food professors exists in the farm act
The constitutions Of the plan has
been challenged repeatedly.
Because of controversy over these
changes, the committee did not get TO
the tax sections of the bill, where
Harrison proposes to substitute a tax on
stock dividends and re-enactment of
the capital stock tax for the income
tax increases now in the bill. This re-
manned to be dealt with today.
Association Meets.
Last nights changes apparently were
IN line with some of the demands made
by Robert L. Lund, president of the
National Association of Manufacturers.
To work for adoption of his plan, the
association was called into special meet
ing here this morning.
The embargo clause, voted In 10 to q
on motion of Senator Reed. Republican.
OF Pennsylvania, would permit exclu-
sion OF products which because Of the
new trade agreements might undersell
domestic manufactures. Most Demo-
Gratis believed it contrary to the ad-
ministration tariff policy.
An EFFORT by Senator Clark, Democrat,
OF Missouri, to strike out the entire
industrial control section was defeated,
16 TO 8, at the three-hour executive
session.
clark, however, won approval Of an
other amendment subjecting all en-
ployeS In the new set-up, paid over
$4,000, to confirmation by the Senate.
Another amendment approved provided
for board of three with $40 600 salaries
to administer the public works pro-
gram instead of one administrator as
originally planned.
How Committee Voted.
The vote on the oil amendment fol-
lows:
Democrats, against: King, Waisp.
Ccnnally, Bailey, Clark, McAdoo, Byrd
and Lonergan.
Republicans, against: Keyes, Metcalf
and Walcott.
Democrats, for: George, Barkley,
Gore, Costlgan and Harrison.
republicans, for: Reed and La Fol-
lette.
Those voting to strike cut the licens..
ing feature were:
Democrats: King, Connally, Gore.
Bailey, Clark, McAdoo, Byrd and walsh
Republicans: Reed, Keyes, Metcalf
and Hastings.
Those voting to retain licensing were:
democrats: George, Walsh, I3arkley,
Costlgan, Lonergan and Harrison.
Republicans: La Toilette.
Those voting for the Reed embargo
provision:
Democrats: Walsh, Bailey, McAdoo
and Lonergan.
Republicans: Reed, Keyes, La Fol-
lette. Metcalf, Hastings and WaIcott.
Against we're: Democrats: King.
Barkley, Connally, Gore, Costigan,
Clark, Byrd and Harrison. George
voted present.
Expected Sales Tax.
The committee had held several brief
meetings during the day to go over the
program, and the night session was
called to help speed the bill through
to enactment.
Several Republican members had been
expected to advance the general sales
tax an an alternative to the House taxa
ton program, but Harrison said his
plan would eliminate the controversy"
over sales tax and make unnecessary
any raises In income tax rates.