Evening star., 1950-12-04

ton unless there were accompany
ing general controls.
Mr.. Snyder emphasized that
additional tax increases, on indi-
vidusls as well as corporations,
will be sought next year. In reply
to q question by Senator Millikin,
he said the Governments wants
all the revenue the Congress will
give It,"
Hearings Recessed.
There Is no question:" he
added. about additional revenue
being requested" ..
He said previous Treasury esti-
mates Of a 81 billion deficit for
the current fiscal year probably
was too low" in view Of mounting
defense needs.
In his direct testimony Mr..
Snyder said recent events in
Korea and other parts of the
world testify to the compelling
need for enactment of a tax on
profits during the present Con-
gress."
After hearing Secretary Snyder
the committee recessed hearings
until tomorrow to enable commit
tee members to take part in Sen
ate consideration this afternoon
of a bill to extend rent controls.
Sees Inequities Created.
Mr.. Snyder was the first wit
ness as the Senate Finance Com
mittee began hearings on the ex-
cess profits tax bill.
While describing the House bill
as "a major achievement" in the
short time that was available for
its preparation, Mr.. Snyder urged
the Senate Finance Committee Ito
lreyiew carefully'' the methods by
which the bill can be amended to
meet the goal set by President
Truman.
He also said the House bill con-
tainS some provisions which tend
to create rather than alleviate
inequities."
Among other things. the Secre-
tary criticized a provision Of the
House bill which he said gives
preferential treatment amount
ing to virtual exemption" to rail-
roads and other utilities subject
to public regulation. He said this
provision would discriminate
among different companies and
bestow special benefits primarily
on large companies.
Cites Reduced Yield.
Mr.. Snyder said another section
Of the House bill would greatly
enlarge the area of preferential
treatment" for the mining indus
try.
He also said Congress should
consider the desirability of making
it clear that unnecessary and
unreasonable" expenditures by
corporations subject to an excess
profits tax will be disallowed for
tax purposes.
Mr.. Snyder said one reason for
the reduced yield under the House
bill was the adoption of a base
period earning credit of IS per
cent instead of the IS per cent
recommended by the Treasury on
profits to be subjected to a rs
per cent excess tax.
House Vote Due Tomorrow.
In advance of the hearings
Chairman George of the Finance
Committee said he hoped to have
a bill ready for Senate considera-
ton within 10 days.
! Under a rule under which the
legislation was speeded to the
House floor, debate was limited to
two days with a vote expected to-
morrow. House passage Of the bill
is regarded as certain.
| President Truman talked over
the tax legislation with his Con-
gressional leaders at the weekly
conference today. The President
already has asked for speed on the
measure.
Disapproves Steel Boost.
In the Banking Committee hear
ing, Senator Ives, Republican, OF
New York. sought to pin Mr.. VAL
entine down on the question what
he would do about wages If he
found it necessary to roll back
prices. -,
Mr.. Valentine said he would
consult the Wage Sterilization
Board. which is part of his agency
Senator Long, Democrat, o1
Louisiana, asked:
do you think we're late al
ready in putting on controls?"
Mr.. Valentine said that. he
would like to duck that question
for fear his answer might leac
to the assumption that control.
should be put on right away.
Senator Capehart asked wheth.
er Mr.. Valentine had approved
the recent increase in Unitee
States Steel Corps wages ane
. prices.
mo, sir" Mr.. Valentine an
, swered.