The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1942-04-09
Rv STAFF CORRESPONDENT

on CIlG JOO, I'll NOAAA' -
uation by scheming an unofficial
recess with daily meetings con
tinuing in the house for those
who didn't take advantage of it
Consequently, although the
house is officially in session, there
were very few representatives. II
agreement had been made thai
no action would be taken until
their return.
The house members, many Of
whom are up for reelection IN
November, were torn between
their feelings that recess didn't
fit the times and their desire tc
get home and check with theil
constituents on how they really
feel about labor legislation, tax
es and other matters OF major
concern here.
Those who already have re-
turned from short visits to their
districts report widespread sup
port for labor legislation among
the people-particularly for leg
islation which will prevent
strikes in war production indus
tries. Those from rural districts
say the sentiment is strong for
freezing of wages among labor
DC 11,o11 &C for limitations on pro-
fits of industry.
When the house is in full ses-
sion again, there is little doubt
that such legislation will be de-
manded by many members in
spite of the fact that the admin
istration is opposed to both types.
The administration has taken
the stand that strikes have been
practically stopped without legis-
lation and that curbs on wages
will contribute in no way to in
creased production. AS for pro-
fits of industry, it has been point
ed out by treasury officials that
in the great majority of cases,
profits are to be limited to less
than 6 per cent by taxation. Ran
dolph E. Paul, tax advisor to the
treasury department, in testify
ing before the house naval at
fairs committee, said that if pre-
sent treasury tax proposals are
enacted, they will, in practically
all cases, "recapture for the gov
eminent more profits than those
in excess of per cent of the cost
of performance"
He estimated that for a COM
pany to make more than 3 per
cent profit after taxes the COM
pany would have to make more
than So per cent actual profit on
its production. Although there
may be few isolated instances
of companies which are doing
this, general checking up on the
cost of production will soon lead
to the elimination of excessive
profits on government contracts.
The navy, for example, is now
requiring firms getting govern
ment contracts to swear the price
to the navy is as low as the price
quoted on any other type of or
der which the company has re-
ceived.
It is probable, however, if la
Dor legislation is enacted, it will
be accompanied by law to limit
profits of industry, since labor
would have less grounds for OBJ
lection if it were made clear that
curbs applied to management too.
There is considerable support
in the senate for a measure writ
ten by Senator Connally of Tex
as which would give the Presi-
dent the right to seize for the
government any plant where pro-
duction is slowed up by either
labor or management. The mea-
sure also prescribes that if a
plant is seized by the government
all labor relationships will be fro
zen, except for possible readjust-
ments of wages.
Union leaders have jumped on
the new "sixth column" phrase
of the Presidents, used to de-
scribe groups which are interior
ing with the war production pro-
gram, to intimate that the Presi-
dent included in that group those
who are trying to put curbs on
labor. The 'tsixth column" term,
which is now being applied here
to most anyone with whom a per-
son is not in agreement, was &C
tually first used by Richard c.
Patterson, Jr., chairman of the
New York state defense savings
staff, and former assistant secre-
tary of commerce. Mr.. Patter-
son named four categories as be-
longing to the "sixth column
and being of aid to the Fifth
column" The categories were;
gossipers, skeptids, fault-finders
and the let-George-do-it crowd
The President was brought into
it when reporters asked him what