Evening star., 1939-05-02

Senator Byrd, Democrat, of Virginia,
a vigorous critic of administration
spending, and DR.. Harold G. Moul-
ton, president of Brookings Institu-
ton, was pitched on the same key
that marked the opening meeting
this morning; then George H. Davis,
chamber president, and S. Clay
Williams, chairman of the board of
the r. J. Reynolds Tobacco Co. and
former N. r. A. administrator
blamed the lag in industry to the
lack of confidence on the part of
businessmen and criticized the levies
they declared are crippling opera
ton.
In his speech, Mr.. Woll took issue
with those who say that taxation
is of no consequence to the worker.
"It is said," he amplified, that
if tax adds to the cost of living 1t
will have to be met by an increased
wage from the employer. This, of
course, allows that labor pays all
taxes in the sense that they come
out Of the product of labor. The
more practical question is whether
they come out of that part of the
product of labor which would other
wise go to labor or out Of the part
that would otherwise go to property
income. To say that it makes no
difference to labor what the tax
system is or to the extent or pur-
pose to which it is being used, is to
say that it does not matter whether
the capitalist system is efficiently
administered or not; for some forms
are very burdensome and others
may be seriously questioned regard
ing the ultimate objective intended.
"Unquestionably, If net produc-
tivity is reduced, the inescapab1e
effect will be to reduce and to keep
labor down to a very low wage
level"
Favors Direct Taxes.
The A. F.. of L. officer said that
"in general, it might be said that
labor favors direct taxes, such az
land, property, income and inherit
ance taxes, rather than indirect
taxes" He also favored progress
sively higher rates of taxation on
the larger incomes"
The speaker warned against the
evils of indirect or hidden taxes
growing from the ease with which
they may be levied by politicians
more concerned with political ex-
pediency than with the ability OF
the ultimate taxpayer to absorb
more taxes"
In his speech, which was designed
to acquaint manufacturers with the
Government needs they would be
required to meet in wartime, Col
Burns said that 10000 plants have
been surveyed to determine what
they could do toward supplying
fighting implements and that a war
load has been assigned to 10000.
Recalling that foreign countries
have already gone into extensive in
dustrial mobilization, the speaker
said that fortunately, the present
military estimate of the situation
does not require that we match the
supply strength of any power"
But it does require that we be
able to implement the forces already
Indicated" he said. Our efforts al
industrial mobilization and our gen.
eral experience disclose that we can.
not convert potential production
into actual production in a large
way in complicated items in les!
than some II months.
No Scarcity of Money.
In bristling speech in which he
pointed to the lag in industry, Mr.
Davis, Kansas City grain operator
declared that there is mo scarcity
of money" to revive business; "ths
only scarcity is of confidence in tn.
future"
Asserting that tax liberalization i!
principal need, Mr.. Davis said tina
in taking a poll of 1000, 900 owner.
managers of business, approximate!
one-third of which are members O.
this organization, we find larg,
percentage willing and eager to ex'
pand their enterprises If given ever
fighting chance to succeed"
The Davis speech launched +,
three-day session in which the Ill.
of industry and agriculture ane
suggested remedies will be discussed
at more than a score of meetings
Adopting new tactics this year
the chamber delegates are plannine
to bring their problems directly tt
the attention of Congress at serie.
of dinner meetings tomorrow night
at which members of Senate ane
House will get together with con.
stituents attending the convention
Retiring from the presidency O.
the chamber this year and slated t
be succeeded by William Gibsor
Carey. jr., Of New York, the AZ.
year-old president of the Yale
Towne Manufacturing Co., Mr.. Da'
Wis told the chamber that unemploy.
ment can be cured only by "cre.
ating new enterprises or expanding
old ones"
Starting new enterprises require.
what might be called 'ventur,
money he continued. I'VE mus
change tax laws in a way that vii
encourage people who have money
to invest"
I'm working for present nationa
recovery and for safeguard of fu
ture prosperity" he continued, Il
is an act of wise craftsmanship t,
effect those economies now-both II
private industry and in public &C
tivity-that will keep Americ,
keyed in with world competitive
conditions"
Mr.. Davis assailed "centralization
of Government, and said the Amer
lean people are aroused at last" d
Its dangers.
i A lack of confidence also va