The Washington times., 1935-04-09
GEN. JOHNSON
IS ASSA|LED At
ARMS HEARING
Committee Counsel Attacks
Criticism of war Profit
Bill by Ex-NRA Head

Gen. Hugh JohnSon's criticism
of the Senate Munitions Commit
tee for it's bill to take the profits
out of war drew a slashing re
tort today from the committee
counsel, Stephen Raushenbush
He said:
"SOme of the ants have got
ten into JOhnSOn's pants be-
cause he spent 16 years work
ing on a scheme supposed to
take profits out of war and
the Munitions Committee didn't
like it.
johnson also seems to be
disgruntled because after the
bust he made of the NRA no
body is particularly interested
in getting him to make a bust
of anything else.
"The Senate committee Is
trying to stop wartime infla-
ton and postwar chaos and is
going to tax to pay as we
fight, which is what the Amer
lean Legion wants, and is not
going to be stopped by anybody
who spent 16 years on a
scheme that his boss admits
increases war profits. In all
these 16 years Johnson worked
out no scheme to tax profits
until yesterday.
DENIES MAPPING PLAN
"As far as facts and truth go,
if Johnson has. respect for
these, 1 didn't have anything to
do with the tax bill. When 1
pointed out in the hearing to
Mr.. Bernard Baruch that we
needed miracle man as Secre-
tary of the Treasury to enforce
this or any other tax bill, he
could only answer that he
would nominate me for that
job.
johnson, the breakdown col
umnist, now ought to get to-
gether with Mr.. Baruch and
agree on whether 1 am to be
Secretary of the Treasury or be
shot for not helping to draft
q bill he doesn't like.
"The thing I'm really inter-
ested in finding out is whether
johnson is the official quarrel
picker for the Administration
or whether he just thinks he
is"
BILL APPROVED
The Munitions Committee tc
day was told the War Depart
ment approves the principle o
legislation to take the profits Oh
of war, but feels that the pre-
posed limit of 3 per cent OF
profits may be too low.
Speaking officially for the de
partment, Lieut.. Col. c. T. Harris
jr., said that in his opinion tn
profit limitation should be 5 or
per cent.
Except for the too stringen
limit on profits, the colonel sait
that the department viewed tn
proposed legislation drafted b!
the committee chairman, Senate,
Nye (R.) of North Dakota with
favor.
Limit Too Low
Committee members questioned
Colonel Harris closely, but die
not succeed in getting him to con
cede that, even if the 3 per cen
limit was fixed, industry woulC
shrik it's job in wartime. He sim
ply said that there was question
in the minds of War Department
officials as the wisdom of the law
limit. He said:
I'm time of war we won't
want anybody to make anything
but a fair profit, but 1 doubt if 3
per cent will pay plant charges.
As long as the Government is
not guaranteeing losses, it seems
to me that 3 per cent is too
small. 1t seems to me that 6
per cent would be better, or say,
S per cent"
Although the colonel gave q
broad War Department approva
of the legislation he said thai
some phases still called for study
He said that he would like tc
have more time to study the pro
visions allowing the Government
to mobilize industry almost as il
does man power. He said he
wanted to study the bill further
too, before committing the de
partment to the proposal to have
industrial chiefs drafted and used
in industrial work-in their own
plants, if rossible-and at the
same time be paid just as Army
officers.