The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1941-11-20
(By Staff Writer)

WASHINGTON, D c., Nov. IL
1t looks as though no new take:
will be passed by congress at tins
session in spite of the proposal by
Secretary of Treasury Morgen'
than for heavy new taxes to be
deducted from 1912 incomes.
The secretary's aim of putting
our war effort a little closer to be-
ing on a pay-as-we-go basis ano
at the same time curbing lnfla'
ton by higher taxes is being care
fully side-tracked by congressman
who already are acting with ar
eye on the congressional elections
a year from this month.
The secretary had suggested
that a new tax be passed before
the end of the year so that it could
be collected beginning with the
first week in 1912. He proposed
tax of as much as Is per cent
of the taxable income Of all wage
earners, to be deducted by en-
ployers from wages and salaries.
It was pointed out that this plan
would really call for the paying
of two income taxes in one year
since the new tax would be paid
out of 1912 income and 1941 in
come taxes would also be paid
during 1912.
Congress, however, is not ex-
pected to act upon new taxes this
year. And as the 1912 elections
get closer they are less and less
apt to pass tax measures unless
the President puts on great pres
sure for their passage.
Almost as frightening as taxes
to congressman is the demand for
price control legislation which
they are now forced to act upon.
It is expected that some form of
price control will be passed, but
unless the congressional attitude
toward it changes radically it is
unlikely that a measure when
enough teeth in it to stem infla-
ton will be enacted. Opposition
by farmers to price control and
by labor to wage control is ,ex-
pected to prevent passage of any
adequate measure. Therefore, it is
predicted by economic experts
here, that we can expect high in
creases in prices during 1912 and
therefore continued demands by
labor for more increases in wages.
The railroad situation, with a
general strike threatened for Dec
ember 5, has centered attention
on labor problems again. The rail-
road mediation plan, which in
cludes a 3O-day cooling off, pc
riod before strike goes into eff
feet, has been held up as model
plan which should be followed to
prevent strikes in other industries.
It is only because of the cooling
off period provision that the rail-
road strike didn't begin on Nov
ember 6. At that time both rail-
road employers and employees
turne ddown a compromise plan
offered by a fact-finding board
appointed by the President. The
plan provided for temporary wage
increases which would have cost
the railroad $27O,0O0,O00. If be-
cause of the cooling off period, the
railroad strike is averted, it is
held likely that congress will
make such a mediation period
mandatory before any strike can
be carried out. But if the railroad
plan doesn't work out, then the
public demand for anti-strike leg
islation will again be strong.
AS the United States becomes a
more active participant in the
war, following congressional ac-
ton ending restrictions on our
merchant marine and permitting
the arming of our ships, this city
is playing host to two important
diplomats who may have a lot
to do with our next moves in the
war. One visitor is a Well-knoWn
japanese dipolmat, Saburo Kuru-
SUI, whose conversations with our
government officials may deter
mine whether we will have war
or peace in the Pacific. The other
diplomat, with whom government
officials are most anxious to work
out plans for the part we will
play in this war, is Maxim Lit
vinoff, of Russia.
With a leading japanese an'c
Russian diplomat in Washington
at the same time, it is wondered i
any effort will be made to bring
them together to aim at working
out the delicate relations which
now exist between the Soviet ant
Japan, but it is probable that Mr.
Kurusu's mission will be confined
entirely to relations between hi
country and the United States.
Whether the strained relation
which exist between this countr,
Ia 1oeeo1,aI hwy Al