Evening star., 1939-02-27
Possibility Is Seen
For Labor Peace
Without Union
A. F. Of l. Advances
Pleo for Cooperation
In Greeting Jobs


Plea for Cooperation
In Greeting Jobs
BACKGROUND
Many industrialists and Fed
erdl officials pie,O any agreement
betiDeen A. F. L. and C. I. O. as
a major factor in t1rthering
onfdence and sending indus
trial figures higher T,uo labor
groups split on issue OF craft
"A. F. L. DerSuS industrial IS.
I. o. unionism and differences
haze been intensified By political
disputes. NeU Deal officials haze
made repeated unsuccessful at
tempts to bring two factions to-
gether.
By the Associated Press.
A peace without union" between
the c. I. o. and the American Fed
Grafton of Labor was being discussed
today as the possible outcome of
President Roosevelt's appeal to end
organized labor's civil war.
Predictions were general in both
Government and labor circles that
the two organizations, at odds for
, three years, would be much more
likely to arrange a formal division
of the union labor field than to
merge their forces entirely.
Although some experts were none
too optimistic that even such a
truce could be reached. they ex-
pressed certainty that John L. Lewis
OF the c. I. o. would follow William
Green of the A. F. of L. in accepting
the Presidents invitation to appoint
peace committee.
Mr.. Lewis was silent during the
week end. but Mr.. Green promptly
selected three officials to represent
the Federation in negotiations. He
said, nevertheless, that the A. F. OF
l.. would not change its fundamental
position.
Archbishop Edward Mooney Of
Detroit, as spokesman for the Ma
tional Catholic Welfare Conference,
expressed the hope Mr.. Roosevelt's
letter would attain its ends,
Recalling that Catholic bishops
urged more than year ago that
the C. I. O. and A. F. L. settle
their differences. the churchman
declared unity between them is
even more insistently needed today"
Suggests Labor Council.
Shortly after Nj. Green made
known his position. the A. F. L.
Yesterday issued a general call for
cooperation of Government, busi-
ness. labor and farmers in expand
ing production and putting men to
work. 1t also suggested creation OF
labor council to help advise the
3 Government on economic problems.
These proposals, contained in the
monthly A. F. l.. business survey,
came as a Roosevelt administration
campaign to reassure business and
industry was going forward on sew
efal fronts.
Besides the new attempt to bring
about labor peace, this drive in
cluded:
l. Secretary Hopkins pledge of
cooperation and his declaration
lildG ClcdllUll VI
was New Deal aim.
2. Statements by Mr. Roosevelt,
Secretary Hopkins and Secretary
Morgenthau that no new taxes were
planned and that corporation taxes
might be revised to help "unfreeze"
idle capital
3. News that Treasury experts al
ready are formulating corporation
tax revisions.
4. The decision of the Federal
Monopoly Committee not to pro-
pose new antitrust legislation this
year.
Wait Income Tax Guage.
The proposed corporation tax
changes, resigned to make business
taxes slightly smaller and substan-
TALLY simpler, will not be made
public for at least month, high
official said, because the Treasury
wants to guage the March IS in
come tax payments before offering
a new tax bill.
The official, who declined to be
4 quoted by name. explained the
underlying purpose of the proposed
revision as follows:
Businessmen have heard lot
of promises about cooperation. Now
they want something definite"
THE official indicated the revisions
would be aimed particularly at
unifying into possibly two taxes the
five different levies now paid by
corporations and also giving corp
orations larger allowances for capital
asset losses.
He pointed out that corporations
now pay an income tax, excess
profits tax. undistributed profits tax.
capital stock tax and social security
tax.
Profits Tax Declared Dead.
The undistributed profits tax,
storm Of business protest, is dead
letter in present discussion, the
official said, because the 1893 Con-
gress substantially reduced 1t and
provided for its automatic expiration
at the end of this year.
The chief objection of corporations
to present tax laws, he said, is the
$4,000 limitation on deductions of
net capital losses. A corporation
which makes s1,0OO,OO0 profit on
selling capital assets property and
securities, primarily and losses
100000 in liquidating other cap
ital assets can claim only a $4,000
loss as an offset against income from
sources other than the sale of capital
assets.
\ Similar limitations formerly bound
individuals as we'll.
The official said many business
men regard the corporate capital
gain and loss provisions as unfair
because in good times they get taxed
on the profit from capital assets.
hut in bad times they cannot deduct