Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-08-16
NEW LEGISLATION
HELD HODCE-PODGE.
Congress, With Session
Near End, Is Criticized
for Actions.
BY DAVID LAWRENCE.

trying to get pet measures through
has replaced mature delioeration,
and the final result will be almost
the worst hodge-podge of legislation
that any Congress has ever passed.
Two outstanding criticisms may be
made of what this session has done.
The Constitution as expounded by the
Supreme Court has been ignored by an
unwarranted delegation of power In
many legislative proposals, and the
destructive character of the bills from
the standpoint of economic stability or
assurance has been so manifest that,
except for the pressure from the White
House. most of these measures would
have been abandoned.
Political Move Confirmed.
The last few days have seen good
deal of warmth toward recalcitrant
members by the administration. Pub
lie works projects are being approved,
nominations are being prepared to
please members who have recon-
mended their friends, and altogether
the wind-up Of the session will confirm
the political nature of the whole pro-
ceeding.
The social security bill, which is
now law. passed with less comment
than most bills because of a feeling
that the idea is popular. Ultimately
the pay roll taxes will be so large as
to exceed the corporation taxes. Just
where business is going to get the rev.
enue to absorb the billions in pay roll
taxes, unless there's boom like 1929.
is difficult to answer.
Thus in 1929 the corporation taxes
were S1,263 100000. but in 1887 the
pay roll taxes alone are to amount
to SLOT ,OOO, 900, and by 1888 they
rise to S1,557 100000, and by 1889
they are to reach 81 .790,000,00o.
The query may naturally be inter-
jected that if in the days of So
called prosperity the corporations
yielded $l,263, 100000 in taxes, they
must have business conditions equally
as good or better to get more than
double that sum.
Faces Legality Tax.
Pay roll taxes must be paid before
there are any earnings. Every en-
ployer's contribution Is to be measured
carefully by Federal inspectors. An
army of administrative officials is to
be required. Jobs galore will be
handed out to deserving Democrats.
And then
The Supreme Court of the United
States probably will knock out the
law as invalid, for the simple reason
that taxes can only be collected to
meet the general expenses Of govern
ment, and not to subsidize a par
ticular class. That's what the Circuit
Courts of Appeals have been saying
about the processing tax and the gen.
eral impression is that the processing
tax arguments are not far different
from those to be made against the
pay roll taxes.
The session which is about to end
will see the death of many measures
that have been forced to final con-
sideration through blocs and groups.
Thus the utility holding company
bill probably will die in conference
committee, death sentence" and all.
The administration is reported to be
anxious to make campaign issue
of it and the utilities are not anxious
to compromise on the death SEN
tence" clause.
Guffey Bill Faces Defeat.
AS for the Guffey coal bill. it may
be beaten either in conference or
in the Senate, as its constitutionality
is in grave doubt.
The new tax law will be very much
along the lines of the measure passed
by the House, with the exception OF
inheritance taxes. The Senate ver-
sion on estate taxes will be accepted
instead. The tax on intercorporate
dividends put in by the Senate and
desired by lie 1--;'1istration would
not take effect until the end of 1887,
so even if it gets by now the drive for
repeal or modification may be ex-
pected at the next session.
The powers given the A. A. A. by
the new amendments are extensive,
but of doubtful constitutionality. The
Walsh bill to require certain labor
standards on all Government work
will create considerable havoc in in
dustry, but will wind up in the courts
as an attempt to do by indirection
that which the Sup me Court has
said cannot be done directly. While
Congress T. conceded the power to
regulate Government purchases. the
provisions in the Walsh bill which
delegate the administration of the act
are open to legal question.
Wagner Law in Doubt.
The Wagner law, whic'' validates
collective bargaining by majority rule
under Federal authority, is bound to
get into the courts as an unjustified
attempt to give the Federal Govern
ment police powers that belong to the
States and as an interference by the
Congress with the freedom of contract
Of individuals who are in the minority
in any shop or plat.
The new banking bill is in some re-
spects the most constructive of all the
measures passed by the present Con-
gress, but the merits Of it cannot be
ascertained till the final report comes
from the Conference Committee, which
is expected before Monday.
Aside from these bills, the Congress
may look back with pride or regret,
as the case may be, to the grant early
in the session of $4,000, 100000 to the
President for discretionary use in
work-relief. Most Of the money has
not yet been expended and that which
has been authorized relates in no small
degree to projects that used to be
known as pork barrel" when Congress
itself did the spending. But with the
Works Progress administrator and the
Public Works Administration handling
the projects, the political nature o.
the spending is more or less concealed.
The present session will ever be re-
membered as the most political and
the most abject, so far as legislative
independence is concerned, in all the
history Of Congress. With only few
exceptions during the present session
the Congress has bowed IN the will of