The union times., 1944-07-01
Publish Fake Yarn On US. Tax Returns

syndicatOrs of WestbrOOk Peg ler's rantings, which are mo- tOrious for twisting the news to blacken organized labor, Outdid themselves in ''smear" propaganda this week.
 They carried fantastic story out of Washington-branded by labor spokesmen as a fake to the effect that labor had high pressured the Treasury's Bureau of Internal Revenue into having handed down a policy that will permit unions to 'cover up" their income. '
 As readers know, a provision of the Smith -Connally law requires unions to file income returns along with other non-profit organizations. They are due by August Is. The law doesn't say whether each of the cOuntry's 75,OOO local unions must file separately, or whether interna- tional unions may submit combina- ton returns for their affiliated To- calls.
 The Treasury decided to give the unions their choice of either method. Whereupon, the Scripps- s-Howard pa- pers emblazoned this decision as "an- other victory" for organized labor. which would be used to hide the in come of locals.
 Congressman Roy o. Woodruff (Rep, Mich.) was quoted as being amazed that the Treasury would be so raw in evading the plain intent of Congress The Straightforward story added that without more definite ac- ton by Congress the financial affairs of any local union will be protected from any kind of Federal examina- tion."
 The facts are exactly the oppo- site from the inferencess made by the Scripps-Howard papers. In- stead of favOring lump returns. practically all international unions have instructed their local to send separate reports to the Bureau of Internal Revenue.
 Joseph A. Padway, A. F. of L. gen. eral counsel, pointed out that the Federation's Executive Council has voted unanimously" to have locals file their own returns on the ground that the internationals would be put to endless trouble" in preparing group reports.
 'sAs usual, the Scripps-Howard papers have Over-reached them selves in their anxiety to find some ground for slandering labor," Pad way said. s'And as usual, they are utterly wrong.'
 Furthermore, the right to file group returns has in the past been extended by the Treasury to other nOn-profit organizations having To- cal afiliates around the country, and no one has ever questioned that policy before, Padway pointed out.
 Ironically, while labor is being given the same privilege, 1t will not, except for possibly few interna- nationals, exercise that privilege, Pad way said
 Julius c. Luhrsen, executive secre- tary of the Railway Labor Execu- tives' Association, likewise denounced the Scripps-Howard smear"
 "All of the railroad unions prefer to have their locals file returns di-3 rectly to the Treasury,3 Luhrsen said. "In few instances they may send in combination return-but for reasons exactly opposite to those inferred by the Scripps-Howard papers.
 Secretaries of many of the smaller locals are men employed in full-time jobs on the rails, who devote their spare time gratis to union duties. They may find it too difficult to fill out the forms and, therefore, neglect sending them in to the Treasury. In such instances, tO assure that the Treasury will receive income information of all the slocals, the internationaIs may send in group returns.
 If the Scripps-Howard papers had taken the trouble of inquiring from the unions, they could have gotten these facts. But, of course. that would have spoiled their smear story"