Evening star., 1950-12-28
Democratic Politics
Seen Harming Nation
More Than Criticism .
Factions Influence Held
Largely to Blame for
All Kinds of Profiteers
By David Laurence

the international situation, the
public jumps to the conclusion
that the Republicans are the ones
to blame. The usual outcry is
that the Republicans are stab
bing the country in the back" or
disturbing unity"
But, in all fairness, it must be
reported that the playing Of poll
tics occurs on both sides. AS for
damage done. the Democratic
administration. by playing politics
and considering the influence of
groups and factions to which 1t is
beholden for votes, has inflicted
more damage in the last five
months than all the criticism by
the Republicans.
II there were in Congress con-
structive partisans on the Repub-
lican side-and some partisan
ship is necessary in Government
to apply checks agaist abuses
there would today be a thorough
going investigation in Congress of
the political deals made by the
Democratic administration since
the outbreak of the Korean war.
Questions Unanswered.
Here are some unanswered
questions which reveal the in
fiuence Of politics as played by
the Democratic administration:
/. Why did the administration
remain silent as labor union chiefs
reopened contracts on every side
and compelled increases in wages
In several industries, even threat
ening work stoppages and wildcat
strikes to force wage increases
where contracts did not provide
for reopening?
2. Why did the administration
pass the word out to the unions
in the steel industry to stall nego-
tiations for wage increases until
after the November elections so
that the announcement of the
inevitable price increase would
be delayed past the elections, be-
cause the steel companies had
indicated they would announce
price increase along with any set
tlement for increased wages?
8. Why, although Congress had
provided the necessary power for
wage and price sterilization, was
nothing done until just before
Christmas and then only In one
industry?
4. Why was a "rollback" of
prices to December l announced
In the auto industry and why was
there an announcement of a wage
freeze. too. only after public
criticism?
5. What deals are going on now
with labor unions to permit rises
in wages before the freeze is ap-
piled, and what deals are being
made in various industries, includ-
ing coal. to let prices rise enough
to absorb wage increases?
Clearly the Nation expects when
men are dying on the battlefield |
that all kinds OF profiteering-not
only by management but by labor
union politicians. too-will be
frowned on.
1t Is customary to say that poll
tics-but only Republican politics
helps the game of Russia and
the Communists, but all the
speech-maKing by Hoover and
any one else with a conscientious
point Of view will never do the
damage that sordid politics does
behind the scenes when special
privilege gets the upper hand. No
system, whether 1t be capitalism
or socialism, can remain strong if
1t Is corrupted from within by fac
tionalism.
Vicious Piece of Politics.
Perhaps the most vicious piece
OF politics played thus far In the
international situation is the pas
sage Of the excess-profits tax
with provisions that favor the
larger companies and discriminate
against the smaller ones. Will
any one in Congress have the
temerity to put an amendment on
any current piece Of legislation re-
quiring that full publicity be given
at the end of this year not to
amounts earned or profits as such
but to the tax rates being paid
by individual businesses under the
so-called excess-profits law? The
country would be very much in
terested to see a table showing
that the successful companies pay,
for example, a total rate of around
As per cent Of their profits or
less while the companies with
low earnings during the base
years may have to pay as high
as so per cent. Such tabulation
would forever condemn excess
profits legislation as an excess
penalty on the less successful
and as a discriminatory appli-
cation Of the taxing power.
The politics back Of the excess
profits legislation should be
thoroughly exposed. It will be
found that labor unions supplied
the chief pressure on Capitol Hill
because of a belief that higher
corporation taxes would mean less
and less resistance to increased
wage rates. The inflationary spiral
Of today owes its origin to selfish
politics played by an administra-
ton interested in currying favor
with the labor vote.
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