Evening star., 1935-04-09
Section to Permit ConSCrip-
tion of ManpoWer Is
Eliminated.
BILL AIMED TO PREVENT
EXCESSIVE PROFITS
Tax of 100 Per Cent on Earnings
Over Certain Mark Proposed
by House.
BY the Associated Press.

Carrying sternly worded provision
for taking away all excessive war
earnings, the McSwain anti-war profits
bill was passed today by the House
and sent to the Senate.
The vote on final passage was 367
to IS.
Just before passage the House, by a
205-to-183 vote, eliminated a section
permitting conscription of manpower
in wartime.
The bill would give the President
broad powers to commander the Ma
tion's money, public services and in
dustrial and material resources to
prosecute war.
To Prevent Booms.
To prevent uncontrolled price
boomS rising out of heavy wartime
demands, the measure would place q
ceiling over all prices upon declara-
ton Of war.
The House voted that upon the
declaration Of war there shall be i'm
posed tax of 100 per cent on all ex-
cess war profits that may be earned
during said period of war"
On this the Senate was expected by
some House members to attempt tc
hang a specific tax schedule SO dras-
tic as to restrict corporations war
earnings to per cent of their invest
ment and individual incomes tc
around the $4,000 limit of q major
general.
The per cent limit was opposed
by a War Department spokesman
earlier in the day before the Senate
Munitions Committee.
1t was generally expected that con-
siderable difficulty would be encoun-
tered in reconciling all the differ
ences.
The McSwain bill and the one ap-
proved by the Munitions Committee
differ In many respects.
Conscription Out.
The House had voted to send the
bill back to committee to eliminate
the conscription provision. The COM
mittee, on the floor, instantly did so,
and passage came in a few minutes.
Meanwhile, the War Department
put before the Senate Munitions Com
mittee its opinion that 3 per cent
limitation on war profits might en-
danger loss of a war. Some COM
mittee members, however, stuck to
their view that such limitation
should stand.
The War Department view was ex-
pressed by Lieut.. Col. c. T. Harris
of the War Plans Division, who said:
Il must, in the name of the Secre-
tary of War, again warn that any
measures adopted must not be SO
restrictive or binding in character as
to prevent necessary production, since
any failure to produce munitions
when needed must be paid for, not in
dollars and cents, but in human lives
and the consequence of possible
defeat"
TAX rates should not be placed
so high they will restrict the produc-
ton Of essential war materials, 81
Harris asserted.
Flynn Bill Discussed.
Harris discussed the drastic bill
prepared by John T. Flynn, economist
adviser of the committee, to conscript
industry and make the country pay
as it fights" by high taxes on profits
and salaries.
Harris discussed briefly wartime
legislation the War Department has
worked out.
"The two main objectives of these
plans have been the assurance of an
adequate supply of munitions and the
prevention of profiteering," he said
Equal Fairness.
THE maintenance of the national
morale demands that all elements OF
the population shall be treated with
equal fairness and justice and hence il
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