Evening star., 1938-01-10
Unemployment
Continued From First Page.)


reluctance of the witness to tell Con-
gress what to do"
Reminded that he had expressed
such ideas in recent addresses. Mr.. du
Pont finally suggested that Congress
might consider such legislation as will
tend to dispel the fog of uncertainty"
The witness complained that some
OF the present laws are so complicated
that his company's legal advisers cam
not interpret them.
We're not responsible for your
legal advisers" Senator Byrnes re-
piled.
Asked about his theory that in
duStry might invest $25 900 900, 900 to
re-employ 100000 men if given as
surances of tax and labor sterilization,
Mr.. du Pont said he thought the
prospects are good. but added that the
money must come from somebody's
savings, either corporate or personal.
Mr.. du Pont estimated his COM
panys 1887 earnings at 81 per share
OF common stock, as compared to
about $6 per share in 1896.
The witness also said that his COM
pany expects % per cent drop in
sales during the first half OF 1898.
compared with the first six months
in 1887.
Il hope that this forecast proves
erroneous" he said, but on the basis
of careful oStiroofee ,onn,+ I. 80.
hopeful of increased employment In
our company during the first half OF
this year, for it is evident that we
are in a pronounced recession"
Emphasizing the need for industrial
peace, effective cooperation of man.
agement and wage -earners," which he
specified will not be best attained by
complicated new legislation" Mr.. Du
Pont did suggest that Congress might
clarity the labor relations law.
Wards OF Questions.
Although complaining about present
taxes, the witness warded off oues-
tions of Senator Murray, Democrat,
OF Montana on details of tax legisla-
ton by confessing, Il haven't thought
the matter through"
Regardless of his company's profits,
he admitted under further questioning
by Senator Murray that he always had
felt personal distrust in the policies
OF the present administration.
Mr.. du Pont, frequently led into
admissions of lack of knowledge about
policies of government most desired,
climaxed a discussion of protective
tariffs as they affected products of his
company by contending IF the Japa-
nese can make better dolls than we
can, let them ship them in here and
give our kids the advantage"
1T seems to me-" Mr.. du Pont said,
that some of the components in
the present fog are: Uncertainty as
to the amount or type of taxes, the
fear of higher prices due to the
steadily increasing public debt and
the uncertainty as to the future value
of money, the unprecedented number
OF strikes last year, the fear of further
changes in and the multiplication of
the legal rules under which business
must operate. These influences were
cumulative in their effects last year,
leading successfully to some specula-
ton in commodities, doubts, loss of
confidence, decline.
The capital gains tax undoubtedly
has the effect of deterring capital in
Vestment. II an investment proves
successful. most of the profit goes
to the Government. If unsuccessful,
the individual bears all the loss. The
investor hesitates to wager several to
one on venture attended with such
risk. The undistributed profits tax
inhibits the reinvestment of earnings
OF a corporation. If it turns in its
needs for capital to the investor pub
lie, it encounters today a lac, of ven
ture money. 1t cannot prudently use
bank loans, which are short time
money, for venture purposes that
require longtime patient money.
Change of law with respect to these
and certain other taxes, together with
the simpliticaton OF the tax structure.
would relieve management OF some
OF the present worries, and give
greater confidence for the future"
Developing the present employment
#.