Evening star., 1935-03-19
LIMIT ON SALARIES
in WAR ADVOCATED
Proposal Would Draft In
dustry by Constitutional
Amendment.
By the Associated Press.

! By the Associated Press.
! A drastic wartime industrial
draft-backed by constitutional
amendment-was urged upon the
Senate Munitions Committee today
by John T. Flynn, writer and attor-
ney retained by the investigators to
shape a policy for taking profits out
of war.
Urging the necessity for anti-war
profit legislation. he declared the up
ward spiral" of munitions costs al
ready has begun.
I'VE may have begun the next war
imitation already" he said. without
being in the war"
While labelling his proposal as the
committees plan. he agreed with
Chairman Nye that the committee had
not yet formally accepted his views as
the ones to be sponsored by the COM
mittee.
Would Limit Salaries
He proposed a draft of industry
that would limit salaries to $4,000 a
year and take for the Government by
taxation virtually all profits above 3
per cent.
Members of the committee joined
with Flynn in criticizing the Colt
Arms Co. for alleged Haunting viola
tion" of N. R. AS labor guarantees.
Nye opened the attack, saying the
Colt company had consistently vio-
lated" section IA of the recovery act.
If they should refuse in time of war
to make arms at price offered by the
Government" Nye said, "the Govern
ment should be able to take over the
plant"
That ought to be put beyond all
reach of doubt" Flynn added, by a
constitutional amendment"
Senator Bone. Democrat, of Wash
ington, declared for more drastic en-
forcement of regulations.
you are not going to do any
thing by spraying rose water on these
men, Bone said. We should tell
them If they chisel on the Govern
ment we would take over their busi-
ness"
He declared all munitions indus
tries should be subject to Government
communicating during the war and
even in peace times
Il am not going to have my boy
killed" he said, ito enrich Eugene G.
Grace or any one else"
It was the second reference to the
head of the Bethlehem Steel Corp.
The first was made by Flynn in point
ing out that Grace would likely be
one of those whose earnings would be
limited to $4,000 a year under the
conscription plan now being studied
by the committee. Grace's bonuses
during the last war were reported to
the committee at nearly 100000.
Would Prevent War.
1T is more important to prevent
war" Flynn said, gesturing with his
hands. than to take the profits out
of war"
Flynn roughly outlined the plan as
follows:
ITO take so per cent of the first 6
per cent profits of corporations. and
100 per cent on all over that in excess
profits
ITO limit all individual incomes to
$4,000, and to take all over that in
income taxes.
ITO impose income taxes on every
body from $1,000 or less up in suff-
cient amount to cover war expenses.
ITO assess and collect income taxes
quarterly out of income as it is made.
ITO check numerous known meth
I Is Of defeating income tax levies.
Publicity Of all salaries immediate
u rpon declaration of war.
Would Draft Executives.
Industrial management draft-all
general officers Of corporations to be
registered in a draft Of management
and when deemed necessary inducted
into military forces of the United
States.
CLOSE all commodity exchanges,
forbid speculation in commodities. fix
commodity prices at proper PARTIES
and allocate to essential professors.
Regulate all new private financing
through a wer finance agency.
"a war finance corporation to assist
in financing of essential war indus
tries.
Communicating of essential in
dustries and services.
Licensing industries, establishment
Of priorities in purchasing and when
essential price-dxin&"