Evening star., 1935-06-06
Leaders Concur, but Plan
Lacks Approval of
Committee.
INCREASE IN TAXATION
DISCUSSED AS POLICY
Senate Bill Seen Likely to Be
Passed Without Change
in House.
By The Associated Press.

~ NV h'0V' ldIFu IlI.h,
A resolution extending p skeleton
n. r. A. organization Until April !.
1886. but repeating all presidential
power to prescribe, approve or enforce
codes Of fair competition, was agreed
10 today by House, Senate ana admin
lstratlon leaders.
Earlier, study Of The possibility Of
preserving labor standards through
interstate compacts bolstered by Fed
eral cooperation was initiated by
President Roosevelt.
Congressional leaders also said
President Roosevelt may send a mes
sage soon advocating increased in
heritance taxes 10 raise revenue and
10 replace n R. A. as a means Of
distributing income Some thought
the proposal would include gift taxes
also. but there was a difference Of
opinion OF this.
The resolution agreed to had vet
to obtain approval by the fun House
Ways and Means Committee. but
Democratic leaders expressed the hope
that would be obtained before night
fall and the "stop-gap" resolution
brought up in the House tomorrow.
No Change in Bill Foreseen.
The schedule. as the Ways snd
Means Committee met 10 act this
afternoon. was to accept without
change the first section Of the Senate
resolution extending the n. r. A. or
ganizatIon until April ! 1886.
The rest of the Senate resolution
would be eliminated because the
Supreme Court ALREADY has overruled
the Governments power 10 control
intrastate business and fix prices N
COdes
Added. however. would be a separate
section specifically declaring that so
much of the original recovery act as
gave the President power TO prescribe
and enforce codes is hereby repealed d"
The opinion was expressed by some
committeeman that with this language
il would be unnecessary to add permis-
sion for industries to agree to volun-
tarv codes.
Industries, they said privately. could
agree to voluntary codes which could
be submitted informally to the Presi-
dent. There would remain. however.
no way Of enforcing these voluntary
codes.
The President made known his in
tention 10 study interstate compacts
in a reply to resolutions adopted by
the Joint Commission on Interstate
COmpactS in session here.
Meanwhile a secret meeting ot
Senate, House and administration
representatives was held after some
congressional Spokesmen had said
the White House was tentatively con-
sidering new and high taxes on in
herltanceS and gifts as a part OF the
future N. r. A program
In letter to Henry Parkman. ir..
Massachusetts State Senator. President
Roosevelt said:
My Dear Senator Parkman,
i am glad to receive the memoranda
and resolutions that YOU have so
kindly sent me from the Interstate
Conference on Labor Compacts.
Sees Work of Value.
81 have for some time followed with
great interest the work which the
conference has been doing. There
is no doubt that continued efforts IN
every State to improve and safeguard
labor standards is of definite value
L am directing that a study be
made of the proposals made IN your
resolutions and that I shall be kept
in touch with any further work Of the
conference.
Very truly yours,
FRANKLIN D. Roosevelt T"
The conference on State compactS.
after receiving encouragement from
Secretary Perkins. asked the President
to consider the possibility of accord
ing Federal protection to States enter
ing into such agreements. 1t would
be similar 10 the Trade Commission
vigil against unfair trade practices.
The interstate compact propose.
will be placed before the annual con-
ference Of Governors at Biloxi. Miss
On June l6. and Will be pursued
further by the Interstate COmpaCtS
Commission at Spring Lake, N. j., on
June 10.
Tax Plan Sketched.
The tax plan as explained by leg
islators who did not wish TO be quoted
by name. would be an attempt TO
continue and broaden IN. r. AS
basic social aims L would seek,