Evening star., 1935-02-18
"PAY AS YOU co"
WARPOL|CY URGED
McSWain Committee Offers
Plan to Curb Profits
and Debts.
BY the Associated Press.

BY the Associated Press.
A "pay-as-you-fight policy for any
future war was urged upon Congress
today by the House Committee on
Military Affairs.
After studying means Of taking
profit out of war, the committee urged
the establishment of a level beyond
which wartime prices might not go,
a 100 per cent levy on excess profits,
and higher taxes for everybody.
The report submitted by Chairman
McSWain, Democrat, of South Car
olina, said "outrageously extravagant
profiteering" doubled the cost of the
World War. Such measures as 1t
urged, it said, would prevent that hap
pening in any next war, and there
would be no staggering debt to con-
sumo the substance of the survivors
and of the succeeding generations"
Draft Of Wealth Opposed.
OF proposals to draft all wealth in
wartime, the McSwain report said
Some loose thinking, based on
noble sentiment. has proceeded upon
the theory that all of the wealth OF
the Nation would be drafted and con-
fiscated for the use of the Nation in
time Of war.
"a little more careful and analytic
thinking would convince such persons
that such a plan and program would
socialize and communize all OF the
property and industrial system Of
America. To contemplate such re-
suit is truly abhorrent."
McSwain said bill embodying COM
mittee suggestions, including price
limitation or "stabilization, probably
would be offered this week. Since the
House Ways and Means Committee
is the only one authorized to act on
taxes, he urged upon it the sugges-
tions to levy 100 per cent tax on
"all profits shown to be due to war
time business conditions"
Doughton Sees No Need.
But Chairman Doughton, Democrat,
of North Carolina, of the Ways and
Means Committee, replied to news
paper men:
IF the Military Committees bill
does what 1t is designed to do, there
won't be any war. So there will be
no need for us to levy 100 per cent
excess profits tax"
The Military Committee report esti-
mated the World War cost $39, ,000,-
00O, 900, including around $4,000, ,00O,-
900 loaned to allies.
IF we sacrifice more" the commit
tee said, "if we cut out extravagances;
If we conduct a war on an economical
basis; then, surely, we can raise 100
per cent of the cost of the war during
the period of the war. -
"Pay-As-You-Go" Explained.
eff we make allowances for infla-
ton whereby war costs were doubled;
if we deduct the amount of money
lent to our allies; if we agree to
sacrifice little more than we did by
the payment of taxes; if we prevent
tax dodging in its multiform phases;
if we tax from the hands of those
who do make profits resulting from
the increased business 100 per
cent of such excess war profits, then
when the war is over the paying for
it will be over. >"
Written by McSwain, the report
that the price stabiliza-
tion" in his bill and price freezing"
were not identical.
Under the bill, he pointed out,
maximum" prices would be fixed at
the levels they had reached on a par
ticular date before war. Although the
prices would not be allowed to go
above that ceiling, he added there
would be freedom of competition"
under the maximum.