Evening star., 1942-04-14
THREE CENTS.
Knox Says Navy
Sees No Need
Of Labor Control
40-Hour Week Bon
Would Bring Delay in
Output, He Asserts
BS the Associated Press.

3. the Associated Press.
Secretary of the Navy Knox
told the House Naval Affairs
Committee today that suspension
of the 40-hour-work-week law
would result "only in confusion
and delay" He opposed a nat
percentage limitation on war
profits and urged a cessation of
industrial disputes over the
closed-shop issue.
He said there was no need for
labor legislation so far as the Navy
was concerned.
Secretary Knox told the commit
tee fatty that he thought the mat
ter Of changing the 40-hour week
was only a question Of wages and
would mean a 10 per cent cut In the
income Of workers.
He urged for both industry and
labor a psychological appeal" to
stimulate production through pa
triotism, rather than having Con-
gress enact legislation, and ex-
pressed belief that the force of the
profit motive was diminishing and
would further diminish as the war
continued"
Favors Treasury Plan.
Called to testify on the Smith,
Vinson bill, which would put a s per
cent limit on war profits and sus-
pend the 40-hour week law and
freeze the closed shop status, Secre-
tary Knox said he thought the
profits question could best be dealt
with through the Treasury's plan for
sharply increased excess profits
taxes.
He suggested vigorous campaign
to arouse and aequaint" the work
ers in war plants that their own
personal security rests upon the
production Of the tools of war"
He said that "the Nation needed
they type of spirit engendered i'm
mediately after Pearl Harbor," add
ing that a considerable part" of
that wave of enthusiasm still re-
mains.
Production Loss Negligible"
Secretary Knox emphasized that
the loss of production since Pearl
Harbor was practically negligible"
Chairman Vinson Of the commit
tee submitted his new version of the
Smith -Vinson bill.
1t would limit profits on large war
contracts to 5000 plus 8 per cent
Of the cost of the contract.
1t would not apply to contracts
under 100000, nor would it affect
individuals or organizations per-
forming technical or professional
services.
Incentive to Small Contractors.
The original bill proposed a 6 per
cent profit limitation on Navy con-
tracts over $4,000. The revision,
Mr.. Vinson said, was intended to
offer an incentive to small con-
tractors to convert to war produc-
ton" 1t applies to all war con-
tracts.
Administration of the proposed
legislation would be vested in the
Treasury Department, which would
have authority to exclude, IL CON-
putting profits, improper elements"
in construction costs.
While proposing TO abolish all
double pay for overtime work, Mr..
Wilson's new bill would provide
payment Of time and one-half for
hours worked in excess Of 48. It
would freeze the closed shop as Of
last March 81, except as to renewals
Of existing contracts.
Restrictions placed on labor in
clude limitation Of union initiation
fees in closed shop defense work to
IS, with a maximum of 81 per month
for dues and assessments, and ban
against denying union membership
to any individual or discharging
members for dues arrearage Of less
than two weeks.
Production Bonuses.
Partially to offset the loss Of
double time and other premium
payments, the new legislation pro-
poses that the War Production
Board but into operation q system
Of Government-financed production
bonuses not to exceed a workers
regular pay. This bonus system
would be operated by the Navy. the
War Department and the Maritime
Commission in the case Of Govern
ment-operated plants such as ar
senals. docks and shipyards.
If approved in its present form,
the new bill would lay down as q
congressional policy that certain
practices are inconsistent with the
expeditions and successful prosecu-
ton Of the present war and are
prejudicial to those serving in the
armed forces"
Among these are the retention Of
excessive profits" the payment Of
overtime wages before full six days
of work, the insertion In labor
management contracts of clauses
prohibiting the employment Of any
but union workers and the charging
by unions of excessive initiation