The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1944-01-22
Observations
Contract Fight
May Affect New
Tax Measure
BY Helen Esssry


tax bill passed at all by Congress.
4 battle Is shaping up over the
measure that will at least delay
its enactment, but the fight has
nothing TO do. strangely enough
with taxes
The controversy is over me
changes voted by the Senate ~
nance Committee in the war con
tract renegotiation law passed an
April. 1912, and designed to re-
capture excessive war profits. TIE
house reWrote the law and atta'n-
ed il 10 the tax bill as a rlder
Then the Senate rewrote the House
version.
Army. Navy and several govern
ment agencies we're not pleased
with the way the House revised
the law. But they are likewise
less satisfied with the Senate
work. They contend the House
action would punch a hole or t"o
in it, but they add the Senate
work would scuttle the law entirely.
So, IL the tax bill carries with it
changes in the renegotiation law
which war agencies feel would I'M
pair their ability to recapture eA-
cossive profits, il is entirely like
" President Roosevelt would veto
the bill That would mean no tax
bill at all at this time.
There is an added likelihood me
president might veto the act. II
the bill, as finally passed, contains
the Finance Committee provision
freezing the old age benefit pay
roll tax at present levels, II IL like
~ to meet with executive dlsap-
proval.
Finance committee changes
which have aroused greatest adj
ministratiou opposition are those
exemptins certain manufacturers
from renegotistion. For example
all makers Of standard CONNER
c!al articles would be exempt and
exemption also would be granted
machine tool manufacturers ret
roactive to the time the law went
into effect
A formidable array OF legisla
tors has announced opposition to
the measure as II now stands.
Among those who have announced
thew will fight II TO the limit are
Senate Majority Leader Alben
Barley. and Senators Harry Tru-
man Hatch. Walsh and Robert La
Toilette.
Amidst all the talk about man
power needs and increased var
production. the word "unemploy-
ment" has strange sound But
a little-noted paragraph in a re
cent Owl report on curtailments OF
war production had a portentous
ring. owl pointed out that the
shifting OF production needs, al
though minor N relation 70 the
whole program undoubtedly will
throw some people ont OF work. Is
this the beginning Of the end OF
the war employment boom : Some
employers think so.
Owl said that when some war
production Is curtalled. unemploy-
rent is not likely to become ser
tous SO long as plants can shift
rapidly from one item TO another.
For instance. tank factory recent
" went back 10 making locomo-
tives
The Foreign Economic Admins
tratior. in predicting German war
production cannot be increased 70
meet the crushing attack 10 he
launched against the Reich soon
pointed out also that japan prob
ably can expand its output Of ma
terial.
The Japs have passed their peak
OF plant expansion but are believed
able TO turn out more armament
With present facilities BY intensive
methods.
The Nipponese, formerly the
worlds greatest imitators. have
advanced technically and are nov
doing creative work OF their own.
However. there is an optimistic
note. The Japs have failed 10 e1-
plot their conquered territory and
resources fully. principally because
OF lack of shipping None of the
captured territory has added ma
terially to japanese steel making
capacity. II has. however, proyid.
ed oil for the Jap navy.
The size OF the japanese war
machine is determined directly by
steel. Presumably after current
steel stock piles are exhausted the
laps will be in bad shape.
The FEA thinks Japan. IL left
undisturbed for 90 or 80 years IN
possession Of its conquered areas
might easily reach the front rank
OF industrial nations. But mere
possession OF potentially rich coun-