The Washington times., 1933-05-18
DOUGLAS TELLS
HOUSE GROUP
Of AIMS
Hearings Open; Tax Problems
t. Up First As $780, ,000,000
Need Faces Congress
(Continued from Page y

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said:
"In certain industries there is
what Is known as Cut-thrOat
competition. There are q few
employers not imbued with pub
Lie spirit who have cut wages to
q sweat shop level. 1t is for the
purpose of rectifying these con-
ditiOns that the bill is intro
duced."
Douglas continued:
! "The purpose of the bill
Is to provide decent wages and
working conditions"
He insisted there is ample
authority left with the Govern
ment to prevent monopolies.
State Authority
Admitting that it is question.
able whether the Federal Govern.
ment can apply the bill to in
dustrial firms operating wholly
within the States, Douglas
approved a suggestion of Repre-.
sentative Mccormack Cd OF
Massachusetts,, that States be
given authority to enter into com
pacts. Douglas said:
"The bill gives authority to
license industries. 1t is not
proposed that this authority be
used except in rare instances.
without that power lodged in
the President in some cases it
would be almost impossible to
insure good wages, shorter
hours Of labor and decent work.
ing conditions"
While conceding that the
authority given the President tc
license industry and to revoke
licenses gives him vast power over
them, Douglas emphasized that
the bill first of all gives the in
dustries a chance to agree among
themselves on a code Of fair com
petition.
Applies to Banks
Representative Lewis (D.) OF
Maryland referred to a section OF
the bill naming industry and com
merce and another section bring
ing business within its terms
He said:
Gam I to understand that it
would apply to a bank, a whole
sale distributing organization
or a similar non-induStrial busi-
nesS?"
Douglas said:
Eyes, I should think sO.'
Representative McClintic D0
Of Oklahoma asked Douglas what
could be done if the Supreme
Court held the Federal Govern
ment could not rule business
purely within a State, in the
event some oil producers, operat'
ing wholly within States, refused
to agree to a code of fair com
petition. McClintic asked:
"DO you think the Federal
Government could prohibit these
oil producers from shipping
their products in interstate COM
merce?"
QUESTION OF OIL
81 should think sO.'
McClintic said that control of
production Of oil was absolutely
necessary in any oil-controlled
plan.
Douglas noted the bill embraces
the purpose of conserving natural
resources. He said:
"There are cases where 10 per
cent of an industry will indulge
in cut-thrOat competition and
upset the entire industry"
Douglas told the committee
that lit is not the purpose to
perpetuate industries that should
not survive economically"
The war powers of the Presi-
dent are followed in the bill, he
said, but contended the power
given him is not as drastic as
in war time.
Senator Wagner CD of New
York, and Donald r. Richberg
counsel for railway labor organi
cations, were in the committee
room. Both aided in framing
the bill. and it was announced
they would be called to explain
in detail the industrial control
plan.
Gifts to Cities
Explaining the $3,30O,000, ,00O
to be appropriated for public
works, Douglas said it is hoped
to provide real employment fol
many people but he did not esti
mate the number of jobs to be
created.
He said that under the bill the
President could make a gift to
States, counties, cities or other
political subdivision of not more
than 80 per cent Of the cost OF
a useful improvement.
"MoSt of the useful public
works that can be constructed
are the works of States, cities
and other subdivisions and not
the Federal Government. We
want to make it possible for
the States and other public
bodies to go ahead with useful
public works.
"There is a provision that If
no assurance is given that the
budget of the States or other
subdivision will not be brought
In approximate balance, the
President may deny loans.
FLOOD CONTROL
"This is an attempt to per
Suade the political subdivisions
to reduce costs and thus to re-
duce taxes"