Evening star., 1938-01-24
SENATEUN|T GETS
PLEAFOR T'AXCUT
Committee on UnempIoy.
ment Receives Final Busi-
ness Appeal.
BACKGROUND

BACKGROUND
Business mems cry against un-
distributed profits tar became shriH
tn October Ul,en recession Dds
young and Congress Wds about to
meet IN special session. From Senate
came optimism tor complete repeal
of tar, but Treasury recently sug-
0ested only renaouing corporate in
comes OF $4,000 or less from its
purDietD. influential Senators, hon.
euer, sttH are driving for complete
repeal.
BY the Associated Press.
A Senate committee studying the
relation Of unemployment to the re.
eession received today q final appea,
from organised business for lowe,
taxes and q respite from new regula-
tions Of trade and industry.
As experts began the task Of Sitting
thousands Of words spoken by lead.
ers OF industry, labor and Government
during three weeks Of hearings, Presi.
dent George H. Davis of the United
States Chamber of Commerce wrote
the committee:
The real cause Of the present re.
cession Is due to lack of confidence ir
the future, caused accumulatively BY
the passage OF laws eliminating ir
the undistributed profits tax and the
threat OF the wages and-hours bill
Possible Effect of Changes.
Davis said laws repeating the profits
tax. easing the capital-gains tax anc
freeing stock and bond markets anC
commodity exchanges from rigid con.
troll would result in restoration o,
confidence which would revive bust.
ness activities"
This. he added. would do more te
solve the unemployment and relief
situation than possible by furthe,
artificial means, regardless OF what
form they would take"
The data now being summarized b,
committee experts will form the bash
OF report covering the extent Of cur
rent unemployment, the outlook fo
the first six months Of this year, ane
the fitness of existing agencies TO,
coping with the situation.
Report May Aid Congress.
Committee members said Congress,
would have the report as a guide ir
drawing up relief plans for the veal
beginning next July.
The committee will consider late]
the long-range aspects Of relief anc
unemployment in another series O,
hearings. 1t will study the develop.
ment OF Federal relief policies, the ef.
feet Of new machines on unemploy.
ment, and the question Of what share
Of relief costs the Federal, State anc
local governments should bear.
Meanwhile. President Roosevelt con.
tinued his study of Government-busi.
ness relations and arranged for talks
with representative small businessmen
IN the near future.
The President also is going aheac
with his study Of public utilities. Gov
Gordon Browning of Tennessee sale
Mr.. Roosevelt had asked him to dis.
cuss with Federal power experts a,
the White House Thursday his Brown.
ing's) proposal that State and Fedora
agencies purchase privately -ownec
utilities in Tennessee.
Willkie Suggested Purchase.
Wendell L. willkie, president Of the
Commonwealth and Southern Utility
System, recently suggested Govern
ment purchase Of that concern A.
"a last resort in q desperate stu
alton" caused, he said. by competition
arising from the Tennessee Valley
Authority.
Administration power advisers said
the President had stressed, in talks
with utilities men from nearly every
section Of the country, q conviction
that sound utilities could find ready
investors for new building programs
Following President Roosevelt's re-
cent comment that Americans might
we'll study the British laws govern
ing labor unions. John P. Prey, presi-
dent of the A. F. of L. Metal Trades
Department, said last night the Eng
lish system Of regulating wages and
hours might suggest q way OF end
ing the "stalemate" In Congress over
such legislation
Under the British system. he ex-
planned, boards are set up to fix mini
mum wages. maximum hours, and
working conditions for "sweated in
dustries."
PRESSES +, v, A. FIGHT.