Evening star., 1942-04-15
Profits and Labor
Issues Taken Up by
House Committee
Reports Of SIowdowns
In War Plants Threaten
Further Complications
~ tie Associated Pr.ss.

House Naval Affairs COMMITTEES
went TO work today on projected
legislation which Tentatively
called not only for limit on wa
profits. but also for suspension OF
the 40-hour week and curbs or
labor union activity for the dura
ton.
While the administration attitude
was expected to influence the com.
mittee's deliberations to some extent
informed sources said 1t was beins
made pointedly plain at this time
primarily because Senate and HOUSE
conferees will make their initial ef.
forts In few days to settle differ
ences between the two chambers or
pending sl9 200 900 900 war sup
plies bill.
House Backs 6 Pet. Top.
When the House passed this meas
TIRE II imposed per cent top or
war profits, whereas the Senate made
profit limitation discretionary and
vested control with the Secretary OF
War. the Secretary of Navy and
chairman OF the Maritime Commits
sion From the first, key admin
istration officials have indicated
their belief that the profit control
could be dealt with by taxation.
Hence neither House nor Senate
control version was said TO be sat
isfactory to the administration, and
II was understood that heavy pres
sure was being exerted TO have the
conferees strike both provisions from
the legislative drafts, canceling all
profit control clauses.
Apart from this controversial ques-
deliberations on legislation affecting
both the profit and labor issues
promised to be complicated further
by reports of slowdowns in vital
arms plants.
Senator Byrd. Democrat of Vir-
ginia raised this point late yesterday,
announcing the Navy had informed
him that slowdowns were delaying
work in several plants engaged on
war orders for the feet, and in one
case inefficient management was re-
sponsible. Aircraft factories were on
the list.
Wide Publicity Urged.
Senator Byrd acknowledged that
he knew of no action that could be
taken to end slowdowns "other than
give them wide publicity"
TITS pretty hard" he remarked,
"to define a showdown In legisla-
ton"
At Grand Rapids, Mich, r. W.
Clark, president of the Hayes Corp.
named as one factory where there
was a showdown, said that while
dispute with the c. I, o, United Au-
tomobile Workers over wages had
contributed to a showdown, he be-
lieved more important factor" was
the almost constant specification
changes the prime contractors have
ordered"
I'VE are behind schedule" Mr..
Clark admitted, "but 1t is not the
fault of the Hayes Corp. You can't
operate at capacity when your plans
are continually altered from the
outside"
Mr.. Clark's statement differed
with one by Leonard Woodcock, in
ternational representative OF the
U. A. VIC. I. O., who said the cor
poration was ahead of schedule in
the production of aircraft parts.
Supporting his claim, Mr.. Wood
cock said that 300 workers had been
laid off recently.
Curtiss Wright Showdown Denied.
AT Columbus, Ohio. Nicholas
Dragon of the c. I. o, United Auto
Workers denied that the union had
engaged in a showdown at the Cur
tiss-Wright plant there. He tele-
graphed Senator Byrd that the rea-
son the corporation had been un-
able to meet schedules was that
"Navy brass hats" had made so
many changes in plans.
Chairman VinSon of the House
Naval Affairs Committee promised
that the open hearings on the pro-
tected profit and labor curb legis-
lation would be wide open" with
pro and con arguments publicly
aired by the committee for the
first time since Pearl Harbor.
The first session was convened as
Congress Speculated on the posi-
oility that President Roosevelt. who
repeatedly has expressed opposition
to any change in the hours ceiling,
would lay down a national war la
Dor policy before either the House
or Senate acts on variety Of pro-
posed labor law changes.
Knox Predicts Action.
Navy Secretary Knox told the Ma
val Affairs Committee yesterday
that he wouldn't be surprised" II
such a policy was proclaimed by
the President.
Mr.. Knox. last of long list of
Government oficials. labor leaders
and industrialiStS to appear before
the committee, declared that there
is no need for legislation as far as
the Navy Is concerned, and eau
toned Congress against impeding
production through restrictive
statutes.
Instead. he advocated:
!. Voluntary agreements by labor
70 free union status for the dura-
ton of the war, with action by Con-
gress to put the status quo in effect
If the agreements were not forth
roming after q period of 80 or so
days.
2 A vigorous campaign" to "ad-
wise and acouaint the workers in
war plants that their own personal
security rests on the production of
the tools of war"
8 Recspture Of excessive profits
through renegotiation and the
TreaSury's plan for sharply increased
excess profits taxes. rather than
through a percentage limitation.
Mr.. Knox described the 4o-hour
week issue as wage question only,
end said that its suspension would
force readjuStment of workers pay
and result in confusion and delays"
In production.
Dad