Evening star., 1933-05-15
Financing of Program to Be
Discussed With Leaders
of Both Houses.
Definite DECISION
ON LEVY HELD LIKELY
Byrns Reports Number Of Protests.
Draft Is Complete Except
for Revenue Section.
BY the Associated Press.

BY the Associated Press.
Congressional leaders were sum-
moned to q White House conference
today to discuss with President Roose-
welt the proposal for "re-employ-
ment" Or "sales" tax to finance the
gigantic public works program.
The Chief Executive was expected to
determine whether it would be feasible
to recommend the imposition of gen.
eral tax on industry Of slightly more
than l per cent.
Speaker Rainey. Senator Robinson
of Arkansas, Representative ByrnS OF
Tennessee, Chairman Doughton Of the
House Ways and Means Committee,
Senator Harrison of Mississippi. chair
man of the Senate Finance Commit
tee; Representatives Ragon, Democrat,
Of Arkansas. and Vinson, Democrat. OF
Kentucky, are among those to attend.
The draft Of the measure Is COM
plete except for the revenue section,
DESIGNED to raise 1920, ,000, 900 a year
for sinking fund and interest require
ments. Representative Byrns said the
meeting this afternoon was Tor the
purpose of deciding definitely upon
whether the sales levy could be adopted.
Protests Received.
"Already have received several pro-
tests from members against the sales
tax" Byrns told reporters. 1T is not
a popular tax. Maybe the protesters
will be asked to suggest . more popular
tax"
Speaker Rainey told reporters he
thought the administration could get
the sales tax passed by the House, put
that lit will be the hardest thing to
get through the President has asked
for" He said there are 180 House
members. who voted against the sales
tax in the Seventy-second Congress,
who were reelected to the Seventy
third Congress. :,
If the sales tax Is defeated. he said,
Congress probably must levy taxes on
nine lines. trucks and motor buses,
broadcasting companies and advertisers.
coffee. tea, sugar and spices.
Besides calling for an outlay OF
s., 800 ,00O. 600 through an 19-year bond
issue to finance Federal, State and mu-
nicipal public construction, the draft
of the measure provides S400. .0O0, 900
for highways, about $4,000 600 Tor
naval construction. and an INDEFINITE
amount for rivers and harbors improve
ment.
Il permits trade agreements between
trade associations and with labor or
eanizations subject to the approval OF
the Government. In the event certain
industries cannot make agreements on
production, the President Is empowered
to initiate investigations to determine
what may be done.
A director of public works and indus
trv Ia to administer the law. He would
have power to approve agreements be-
tween trade associations, thereby sus-
pending the antitrust laws, IN so lar as
the agreements 60.
The President gave further thought
today to including provision Tor q oack-
to-the-farm momevent In the bill. This
legislation has been widening gradually
and plans for rebalancing the CITY
population were looked over by MI.
Roosevelt last night.
Advisers who have proposed q re
employment" or manufacturers tax OF
between l and III per cent believe the
President is inclined to regard this levy
as the best available. They have IN
sisted to Mr.. Roosevelt that the alter.
native Is Q number of other special
taxes. including . boost in the present
wartime income tax schedule.
The Steering Committee Of the Ma
tional Association Of Manufacturers was
called together today to discuss the
provisions in the measure for industrial
supervision by the Government.
Would Relax Trust Lawn
This proposal contemplates . LIBERAL
ixation Of the antitrust laws to permit
Government sanction Of trade agree
ments for minimum wages, shorter
working hours and control Of surplus
production.
Some of the industrial leaders are
looking questioningly at the new tax
schedule proposed for helping to
finance the public works program.
They are suggesting an alternative Of
loans to industry to stimulate employ
ment rather than the expenditure Of
capital in public works to bring about
more jobs.
What provision is to be worked out
for q back-to-the-farm movement is
problematical. Mr.. Roosevelt hopes to
accomplish this in part through his
Tennessee Valley development bill now
nearing conclusion. Leasing Of lands
by the Government to absorb former
farm dwellers now idle In the cities is
believed to be . part Of this program.