Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-03-21
War Profits Block
Universal Draft,
Senator Hill Says
Remedy Called Toxes
To Eliminate Eorninqs
Under Present Law
BY J. A. O'LEARY.

The profits that war industries
may still earn under existing tax
laws are the chief barrier to enact
n1ent of a universal service law for
the assignment of workers on the
home front. Senator Hill. Democrat,
Of Alabama said last night.
Senator Hill is believer in uni
versal service and is member of
the Senate Military Affairs Com
mittee, now holding hearings on
the Austin Wadsworth bill. He also
is Democratic whip in the Senate
Nevertheless. he said, the profit
angle undoubtedly is one Of the
reasons" workers shy away from
compulsory assignment to indus
tries. as distinguished from the
draft system for military service.
Profit Angle Problem.
When workers are drafted into
the Army they are working for the
Government. with the profit angle
eliminated, the Senator contended,
whereas in being assigned to indus
try, he said, they feel they would
be made to work to help make a
profit" for private firm.
The biggest barrier to a univer-
sal service act is the large war
profits being made even with the
present tax law" the ALBANIAN con-
tinued and the best way to re-
move it is by tax law that will
take those profits"
a
Military Affairs Committee cannot
deal with that phase of the problem,
which is the task of the House WAYS
and Means and the Senate Finance
Committees.
Slight War Profits in England.
In the present tax law the excess
profits levy goes up to 90 per cent
In the top bracket, with a 10 per
cent postwar credit The current
law also contains an overall ceiling
Of 80 per cent of surtax net income.
During the recent hearings on the
Austin Wadsworth bill it was en-
phasized that the other major
powers involved in this war have
universal service. Commenting on
Gnal. senator Hill said.
There are two main reasons why
It has worked so well in England.
First, England is battlefront, with
the war brought closer by bombings;
second, under the British tax sys-
tenn practically no one in England
Is making any war profits"
The Alabaman indicated that for
the war period he would take in
taxes all Of the excess profits.
Phillip Murray, CLIO president,
Is slated to be the next witness
when the committee resumes hear
ings on the Austin Wadsworth gill
at 10 am. Tuesday. John l.. Lewis.
United Mine Workers leader, is ex-
pected to testify later in the week.
Hearings Until April 1.
Chairman Reynolds expects the
hearings to continue until about
April !, before the testimony for
and against the measure is taken
under Amusement. Present indi-
cations are that any bill involving
compulsory assignment of workers
would face an uphill fight at this
time, unless the administration
should decide to get behind it.
The President indicated Friday he
wants to avoid that step as long as
possible. He told his press confer
ence it may or may not become
necessary.
Senator Quincy, Republican. of
South Dakota, also a member of the
Military Affairs Committee. said
yesterday he has not yet been con-
WINGED the national service bill is
the only solution to the manpower
problem. Asked what alternative
step might be taken first, he said:
Inform the people, so they will
know, how serious this war is, and
that if they don't get at it with an
About effort, it will last for years"
While the Military Affairs Com
mittee goes ahead with its hearing,
the Senate War Investigating Com
rnittee, headed by Senator Truman,
Democrat, of Missouri, also will call
IN labor leaders this week, starting
Wednesday, to explore the possibili-
ties Of obtaining increased produc-
ton with the facilities, materials
and manpower already available.