Evening star., 1938-11-23
Profit-Shurino
Continued From First Page.)

costs. The standard wage is the
cost item which is the first charge
in industry and which is necessary
70 the sustained consuming power,
upon which all business depends.
6. Profit sharing or a partner
ship wage is the share which labor
would have in the net income of
the enterprise. In reality, labor is a
Partner in production, not from the
investment of capital but from the
investment of experience and work
ability. AS partner labor would
have voice in determining rates
of profit sharing.
Recognition of real partnership
and frank acceptance of the priv
ileges and rights derived therefrom
would be the greatest incentive to
sustained efficiency in work that
industry could devise. Nothing in
volved in the acceptance of this
real partnership alters the functions
of management and workers. Man
agement would still write the work
orders and the production staff
would execute them," Mr.. Green
added.
Use of Tax Power Disfavored.
On the issue of tax relief Mr.
Green told the committee:
"The American Federation of
Labor is unalterably opposed to
using the tax power of the Govern
ment to promote profit-sharing
plans. We are squarely opposed
to amending the Social Security Act
to provide tax credits for funds
allotted to profit sharing or any
similar purpose, however worthy
they may be in themselves.
THE Social Security Act is to pro-
vide some degree of security for
the victims of industrial unemploy-
ment. 1t cannot be used to remedy
the defects of industry without in
terfering with its prime function.
"The costs of administering So
cial security are already too high
between $40,000000 and 100000 900.
These high costs are due in part to
our experience in the field and in
part to the very complicated provi-
sions in our laws. Merit rating pro-
visions in the laws not yet in effect
will definitely increase these costs.
The federation believes these pro-
visions should be removed. Credit
for profit sharing would multiply
the difficulties and the costs"
In its opposition to tax conces-
sions, the A. F. of l.. was unexpect-
edly lined up with the National AS
sociation of Manufacturers, al
though the background of their re-
spective objections differed.
The N. A. M. position was made
known during the appearance of H
Boardman Spalding, chairman of
its tax committee, who read the fol-
lowing resolution as approved yes
terday by the Executive Committee
OF the employer group:
1--WE are opposed to the proposal
that any special tax relief or in
centive be granted to companies
having regularized compensation
laws.
ANY such tax treatment in the
general tax law would tend to SUBJ
sidize employers who find it eco
nomically feasible to regularize pro-
duction and employment at the ex-
pense OF those who are unable to
do so."
Frankly" Senator vandenberg
told the N. A. M. witness, II am
somewhat amazed at this action OF
the Executive Committee. This is
completely contrary to the testimony
Of thousands of employers who are
tremendously interested in the idea
of incentive taxation. am wonder
ing how we can find the true voice
of the employers when your Execu-
tive Committee comes along and in
rather cavalier fashion Just an
nounces the whole idea is wrong.
Subject to More Consideration.
I'm wondering also how the N. A.
M. feels itself consistent on these
principles in view of its position on
the tariff question"
Explaining that yesterdays action
OF the Executive Committee is sub
ject to further consideration by the