The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1935-04-03
NYE CHARGES
WAR SCARES
BYF|RMS
Arms Probe Chairman Says
Campaign Is Made When
Naval Bills Are Up
international News Service


Senate munitions investigators
today charged private shipyards
circulated Japanese war scare
propaganda" every time Congress
considered a naval building pro-
gram.
Evidence before the Munitions
Committee revealed that w. S.
Newell, president of the Bath, Me-,
Iron Works, sent clippings to
newspaper editors discussing the
potential source of war with
Japan" in 1882. Senator Nye (RO
of North Dakota, committee chair
man, charged:
every year before a Navy
bill is passed this japanese war
scare propaganda is circulated"
Mr.. Newell, on the stand, de-
clared that the 1882 incident
marked the only time he had sent
out such clippings.
Hale Criticized
This testimony and evidence
was disclosed after correspond
ence revealed private shipbuilders
in 1892 criticized the action of
Senator Frederic Hale (R0, of
Maine, and chairman of the Sen
ate Naval Affairs Committee, for
inserting in a naval bill provi-
sion that Government shipyards
should get preference in construc-
ton.
The Secretaries Of War, Navy
and Treasury have been asked to
appear before the committee as it
launched a drive for drastic legis-
lation to remove profits from war.
The new measure will be intro
duced in the Senate at the COM
pletion of hearings next Monday,
and the committee chairman,
Senator Nye (R.) of North
Dakota, announced he expected
the bill to be written into law be-
fore the present session of Con-
greSS ends.
Under the committee bill the
President during wartime would
be empowered to draft industry,
man power and money.
Provisions of Bill
Corporations would be deprived
Of all profits Of more than 3 per
cent on stock. Individual income
exemption would drop to $500 for
a single individual and $1,000 for
a married man. All industries
would be licensed for operation by
the President, and a commodities
control commission would be set
up with power to fix prices, close
commodity exchanges and, if
necessary, provide for Government
purchase of the whole output of
any industry.
The drafting of industry would
be handled under an industrial
management board composed #
such officers and directors Of cor
porations as the President saw fit
to appoint. H..
Rule Of Exchanges
In the field of war financing,
a securities commission would be
established with power to ap.
prove or disapprove all new is
sues of private securities during
wartime. The President also
would be empowered to close all
security exchanges and to issue
rules governing the sale of
securities.
A tax provision was designed
to slash corporation income by a
unique method. These would levy
an income tax Of so per cent of
all net income up to six per
cent Of the declared value of the
capital stock, plus 100 per cent
of all net income in excess Of
six per cent.
On Annual Basis
These income taxes would be
levied on an annual basis, but
would be reported quarterly and
paid within 80 days of the re-
porting date. The heavy tax
would become operative immedi-
ately upon declaration of war
and remain in force until Con-
gress declared the emergency at
an end.