Evening star., 1936-06-22

So as the President expressed it in
his letter to Roy Howard, the sdmfhis-
tration influence was powerful enough
to force through into law tax bill
that revolutioni7es the tax structure
of the Nation.
For many years to come, unless re-
pealed, the new tax on management
and prudence. otherwise called the
'undistributed surplus tax" will affect
the policies of companies, their future
credit and their safety in the event
Of business depression.
Wage Power Authorized.
But the new tax law was not the
only violation Of the spirit and letter
of the breathing spell" The Walsh
Healey bill enacted in the closing
hours of the session, introduces a new
aspect of fasCism so far as America is
concerned. 1t bestows absolute power
in the hands of the executive branch
of the Government to determine the
scale of wages and hours which shall
be obeyed by all contractors who fur
nish articles or equipment to the
Various agricultural products are
exempted and the Executive is given
certain discretion to make exceptions
''in specific cases or otherwise when
Justice or the public interest will be
served thereby"
It is curious inconsistency that the
President. who a few weeks ago, said
there was a 'no-man's land pre-
scribed by the Supreme Court and that
minimum wages could not be fixed, is
about to put his signature on an act
of Congress which undertakes to en-
power the Secretary of Labor, in CO.
operation with all other Government
agencies, to require the payment of
certain minimum wages and limtta-
ton of maximum hours of work done
for the Government.
May Be Expanded.
If the Government of course. can
constltutionally compel certain stand
ards of wages on products bought by
il. the law can easily be amended
to cover, as indeed it was written in
the original Senate version, all SUBJ
contractors NS We'll as All peISUllS
furnishing directly or indirectly any
supplies to the Government. 1t can
be made to embrace, as the Senate
first proposed, all persons or busi-
nesses which directly or indirectly
receive grants or loans or benefits of
any kind from the Federal Govern
nent. Thus. by prohibiting shipments
of freight over railroads that have
outstanding loans made by the Gov
ernment, the whole industrial system
can be dominated from Washington.
Obviously a business which makes
products needed by Uncle Sam-who
spends hundreds Of millions annually
for supplies-cannot have one set OF
wages for Government work and an
other for private work. Likewise,
the principal contractor can be re-
ouired in effect to boycott all sub
contractors who do not conform.
The Walsh Healey bill has been |
called revival Of the n. r. A, The |
measure is significant Of the unceaS-
ing desire Of the New Deal to put into |
effect laws which contain processes |
that have been declared by the ST. |
pISHlt SOuIJ W Dc " ali uIl-
constitutional end.
Merchandising Change Possible.
Another vital piece of legislation |
known as the Robinson -Patman bill,
designed to appeal TO those who are
politically anti-chatn store in their
views, may have disturbing effect
ip TjI
the chains greater advantage than
they have had before. The new law
may force large chains to acquire
control outright of producing facto-
ries and will injure the independents
by making it more difficult for them
to get the benefit of quantity dis
counts than heretofore.
A complete rearrangement of the
tax system of the country. the in
PRODUCTION of the Fascist principle of |
government regulation of wages and
hours. and the spending of such sums
as make the budget more unbalanced
than 1t ever was before is the record
Of the Seventy-fourth Congress that
the forthcoming Democratic Conven-
ton will ratify.
Nor is the Republican record of
opposition too good either For the
Republicans in the Senate were asleep
Saturday night when the Walsh
Healey bill was jammed through,
though it could have been debated
and probably would have failed, as
Gid the Guffey coal bill.
Incidentally, the last "a hours of
Congress marked big victory for
William Green, president of the
American Federation of Labor, and a
defeat for his opponent. John L.
Lewis, president of the United Mine
workers. Lewis saw his Guffey bill
60 down to defeat by a well-organ-
lied filibuster. but the Walsh -Healey
bill demanded by the A. F. of l.. was
pushed through successfully.
May Invoke Labor Party.
The Walsh-Healey bill, as finally
adopted by both Houses is much tanner
than the measure that passed the
Senate a year ago, but 1t opens the
way to further Government regula-
ton of wages and hours. Under a
reactionary administration labor will
be at the mercy of the Government
bureaucrats, hence, labor must in
evitably participate in politics and the
formation of a labor party some day,
as espoused by John Lewis, may be
the result.
Clearly the happenings in Con-
sress make the Democratic Convention
a ratification meeting. For the plat
form Is the record of the New Deal
itself and the candidate Is the man
who exercised more influence on theh