Evening star., 1938-11-20


to cope Uith conditions groi0-
ing out OF the slump. The tar
on undistributed SurpluseS 1UdS
one srenue OF approach.
By G. GOULD LINCOLN.
zone of the most constructive in
vestigations ever undertaken by
Congress" is the characterization of
the hearings on profit sharing sys-
TENS in American industry given by
Senator Clyde L. Herring, Democrat,
Of Iowa. chairman of finance sub
committee, who arrived yesterday to
preside over the first session at II
am. tomorrow.
All summer the committee, set up
In persuance of a resolution offered
by Senator Vandenberg. Republican.
of Michigan and adopted by the
Senate, has had force at work in
Chicago collecting information re-
garding profit sharing systems.
Twenty employees were engaged in
sending out schedules of informa-
ton" to five thousand business and
industrial concerns and employers.
Senator Herring said yesterday
that approximately 5000 concerns
have adopted some kind of profit
sharing plan in this country.
Whether legislation by Congress re-
suits from the present inquiry or
not, he said. the committee will have
produced comprehensive picture of
what has been done along these
lines. Such a picture, he said, could
not be obtained anywhere until this
inquiry was started.
Tax Concessions Possible.
The Vandenberg resolution directs
the committee to consider what con-
tribution might be made to the en-
Cpuragegment of profit sharing sys-
TENS by the Federal Government,
'including the granting of cOmpen-
satory tax exemptions and tax re-
wards when profit-sharing is volun-
tarily established
Il believe" said Senator Herring.
that general use of profit-sharing
systems in this country would do
more to put an end to industrial
strife than anything else. Some of
the concerns which had profit shar-
ing with their employes-and some
of these are among the largest con-
Germs in the country-have had less
trouble by far than other concerns.
Furthermore. these concerns have
been run more efficiently than
others
Richard R. Deupree. president of
Proctor 81 Gamble Co., Cincinnati,
will be the first witness. He will be
Followed by NJ. B. Folsom, treasurer
of the Eastman Kodak Co, Roches-
Ter. N. Y, and Gen. Robert E. Wood,
president of Sears Roebuck 6s Co.,
Chicago.
On Tuesday Walter D. Fuller,
president of the Curtis Publishing
Go. Philadelphia. is to be heard. and
also w. G. Marshall, vice president
of the Westinghouse Electric &
Manufacturing Co., Pittsburgh, and
George M. Verify, chairman of the
board Of the American Rolling Mills
Co, Middletown, Ohio.
Spalding 10 be Witness.
: The Wednesday witnesses will be
n. Boardman Spaldlng, chairman of
the Taxation Committee of the Ma
tional Manufacturers Association,
New York; William Green. presi-
dent of the American Federation of
Labor; Donald S. Funk. vice presi-
dent of the Sangamo Electric Co.,
Springfield, Ill. and w A. Sheaffer,
apresident 0 fthe Sheaffer Pen Co.,
Fort Madison Iowa.
Senator Herring said that new
lists of witnesses would be prepared
afrom time to time He expects the
hearings to continue month. After
that the committee will consider all
the data obtained and get to work on
a report to Congress. The other
members of his subcommittee are
Senators Johnson, Democrat. of
fColorado and Vandenberg of Michi-
gan.
I'VE have found the heads of in
.dustrial and business concerns very
willing to cooperate with the COM
smittee,' Senator Herring continued.
This inquiry is not an inquisition
.in any sense of the word. No sub
poenas will be issued for witnesses;
merely invitations. William Green,
president of the American Fedora
stion of Labor already has been help
sful. We have invited John L. Lewis
president of the new Congress of In
sdustrial Organizations, to come be-
sfore the subcommittee also
Reversal of Punitive Tax.
The theory back of compensatory
Atax exemptions, to encourage all
American concerns to go into profit
sharing plans with their employees
may or may not receive approval by
the Roosevelt administration. It is
the reverse Of punitive taxation"
which some Of the New Dealers have
insisted upon in the past. President
Roosevelt took an adverse stand on
incentive taxation, holding that tax
concessions were to be avoided, when
he expressed himself on the Lambert
housing plan calling for certain in
come tax exemptions on income re-
invested in housing.
Senator Herring is confident, how
ever, that the inquiry will be of great
value to employers all over the coun-
try, whether any Federal legislation
follows or not. Employers will be
able to obtain from the committee
hearings and from it's ultimate re-
port information helpful in estab-
fishing profit-sharing systems. The
committee will obtain information
regarding systems which have failed
as well as those which have been
successful.
There are concerns which lose an
nually both in efficiency and profits
because of sabotage on the part of
employees who resent the fact they