Evening star., 1938-12-02
lammot DUPONT Hits
incentive Taxation
Proposal -.
Tells Senote Body He
Fovors Higher Wages
Bosed on Efficiency

- the Associated Press.
Lammot du Pont, widely-known
lndustrialist, told the Senate Com
mittee on Profit Sharing yesterday
that business was still afraid Of
what Government might do to it
and as a result was tagging in enter
prise.
The president Of E. I. du Pont de
Nemours & Co. testified that he was
opposed to incentive taxation to en-
courage industrial profit-sharing
because he feared "there would be
danger Of too much administrative
interpretation of such tax laws
and of consequent bureaucratic in
reference with the conduct of bust-
ness enterprise"
He said that "once the principle is
established. 1t can readily be used
for ends definitely harmful to busl-
ness-thus creating even greater
uncertainty"
Instead of profit-sharing systems,
Mr.. du Pont favored high wages
based on efficient performance"
In taking a stand against both
proflt-sharing systems and incentive
taxation. he differed with three
other witnesses who appeared be-
fore the committee during the day.
Three Indorse Plan.
Frank Gannett of Rochester, N.
Y, publisher of the Gannett news
papers; A. L. Marsh, Detroit manu-
facturer, and Willford L King, New
York University professor, all in
dorsed the principles of profit
sharing and incentive taxation to
encourage it.
Mr.. Gannett asserted that the
operation of profit sharing systems
on his newspapers had proved a
bulwark against labor disturbances
and had increased efficiency and
profits.
Talking to reporters after the
hearing. Mr.. du Pont said he did not
believe business was prepared to take
up the slack in employment that
would be occasioned by a sudden
cessation in Government spending.
Nevertheless, he said he thought
q start should be made toward
economy in that portion of the Gov
eminent budget not represented by
relief appropriations. He blamed
high taxes and fear of possible fu-
ture punitive taxation for lack of
business enterprise.
Urges Simpler Laws.
Mr.. du Pont told the committee
the best tax incentive" for business
would be simplification of the tax
laws, reasonable" freedom from
frequent changes in these laws and
"the lowest possible tax rate, based
on economically administered Gov
ernment activities"
Taxation should be for revenue
only, he said.
Finally" he added, there should
be a tax system both for individuals
and corporations which does not
penalize success through progress
sively higher rates as the income
increases, but which recognizes that
under our competitive system,
~ oAAoo dAC UNUSUALLY Adl &c Ollly
where the risks have been great,
and management is sound and
progressive"
Mr.. Du Pont said his company
paid out approximately $20,131, 900,
OF $50 900 900 in net profits, in bene-
fits for employees during 1887, of
which 1888 900 represented cash
payments to employees for meritori-
Gus work.
"As one who is critical of profit
sharing, you are one of the best
profit sharers I ever saw" OBJ
served Senator Vandenberg, Re-
publican, of Michigan.
Think how good we could do If
We believed in it," Mr.. Du Pont
replied.
He told reporters he thought the
National Labor Relations Act should
be amended to permit employers to
discuss labor conditions with their
employees.
IAN employer ought to be able to
talk things over with his employees
and they ought to be able to talk
back" he declared, observing that
the laws provision against coercion
of employees had been interpreted so
rs virtually to prohibit such con-
versations.