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Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-08-21

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Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-08-21

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Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-08-21

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Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10
The Plight of Small Business

the companies above those
brackets would be soaked to
make up the difference in in
come to the Treasury. Instead
of reducing the corporate tax
from its present rate of So per
cent. the plans Of those who
claim to be concerned with
small business" would indeed
penalize many hundreds Of
thousands of such firms with
a tax rate of 81 per cent.
1t is evident already that
the present high taxes are
damaging many small bust
nesses. For company that
is making 100000 a year in
an industry where the big fell
lows are making $40 million or
more a year is really a small
business" and needs to be per-
mitted to put aside more and
more surplus each year in
order to buy up-to-date equip
ment and stay in the compete
tive race.
Today liquid assets in Amer
lean companies have been
drawn down to the lowest
point reached since the war
years. That's because taxes
are so high that the amounts
set aside each year for surplus
are not enough to furnish the
funds needed for expansion
without drawing on working
capital. Already many bust
neSses have for this reason
curtailed or abandoned expan-
sion plans. This of course.
gives the big companies their
chance to go ahead with new
plant and equipment which. in
turn. reduces their costs.
Some day Congress will wake
up and find out what is hap
pening to small business" in
America and will be compelled
by events to cut all corporate
taxes. If the rate could come
down again to IS per cent, it
would help all small businesses
and would mean the biggest
stimulus to employment Amer
lea has ever experienced. 1t
would permit the highest wage
levels ever attained. For a tax
cut across the boards would
benefit all the small businesses
and at the same time would
have favorable effect on the
economic status of almost
everybody employed. 1t would
bring in the highest record of
tax receipts ever collected
from business since the income
tax was enacted.
Reproduction Rights Reserved
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10

troll in 1855. and the area, he
said, was contaminated for near
ly year.
Mr.. Montgomery said scientists
don't yet know the cause CT the
reactors instability, so of course
they don't know how to correct
it,"
The union official denied con-
struction of the Michigan plant
was being opposed because the
unions did not wish the develop
ment of atomic power for peace
full purposes to fall into private
hands. If that charge were true
he said, the unions would have
fought construction of three
other A-power plants of a differ
ent type.
1T is not our purpose to prove
this reactor is unsafe" Mr.. Mont
gomery continued. 1T is our hope
to persuade the Acc to fulfill its
responsibility under the law and
its regulations and have the COM
pany make showing the reactol
is safe"
Mr.. Montgomery quoted Acc
Chairman Lewis Strauss as say
ing "the fast-breeder is the most
hazardous of all reactors" and,
to further make his point, he
said, Great Britain was building
its plant of the type lin a re-
mote area at the very top of
Scotland"
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10
Northern and Western Democrats Seen
Bitter Over Committee Assignments

The relations Of Northern
and Western Democrats in
Congress with their Southern
leadership have been further
embittered by the new COM
mittee assignments in tn e
House and Senate.
The outstanding example of
the bold use by the Southern
ers of their powers in this i'm
portant field is the nomination
of Senator John F. Kennedy
of Massachusetts for the Sem
ate Foreign Relations Com
mittee.
To achieve this end, Major
ity Leader Lyndon B. johnson
of Texas ruthlesSly exercised
his personal prerogatives.
scuttled the normal operations
of the seniority system and
openly inSulted his fellow but
more liberal Southerner, Sena-
tor Estes Kefauver of Tennes-
see. Kefauver has four years
seniority over Kennedy.
The Democratic cloakrooms
describe the Johnson maneu-
yer as the opening gun Of an
effort to put across Johnson
Kennedy ticket at the Demo-
cratic National Convention in
1860. The shape of this new
effort emerged clearly in the
1856 convention and it's prog
ress will be political news for
the next four years.
1t is still only a side bar to
the big story which is the
struggle for the soul of the
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10
THOMAS L. STOKES
Senator johnson 'Unbends'

in a way which the South
erners would never have ac-
cepted. That adventure by the
more liberal wings of each
party, which was widely adj
vertised in advance, began on
the opening day of Congress
and ended the next day in
defeat.
In this episode it was re-
vealed that the Republican
leadership. headed by Sena-
tor Knowland, was willing to
go no further than the South
ern Democrats, led by Sena-
tor johnson, though Vice Presi-
dent Nixon, who was presiding,
tried to take the curse off,
presumably for the Eisen-
hover administration-and for
himself. He sided with the
liberal coalition in some re-
marks from the chair.
After Knowland and john
son had quelled the revolt,
Senator Knowland came for
ward with his compromise
which the Republican leader
ship was willing to sponsor.
Thereupon Senator johnson, a
foxy fellow. covered that bet
in behalf Of the Democratic
leadership which he embodies.
Consequently, Republicans and
Democrats, so far as the
leadership goes, are on a par
now on this issue.
What has been surprising to
observers of this performance
is how the Republicans, under
Senator Knowland's leader
ship, have mufTed an oppor-
tunity which they had, hot
after the election, to put the
Democrats in a hole, and a
deep one, right at the start
Of this Congress. The party
could have gone all out for
rules revision along lines
sought by more liberal Repub-
leans, put it over and got
credit for it. AS 1t is, both
parties are almost equally
divided within themselves on
both sides Of the issue. Repub-
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10
CONSTANTINE BROWN
u. Ms Usefulness Only for Debate
Called a Main Reason for PROPOSAL

There are multiple reasons
why the administration used
legitimate dramatics to bring
out the American plan intended
to prevent further Communist
encroachment in the Middle
East. Most of these have been
discussed publicly or given to
responsible members of Con-
gress in confidence. One of the
main reasons - rarely men
TONED and never by White
House spokesmen-iS the reali-
cation that the United Nations
is useful to world peace merely
as debating society where dip
lomats who think alike have an
opportunity to exchange views.
There is no doubt that Con-
gress will indorse overwhelm-
ingly the Chief Executives
standby request to use force
to stem Communist aggression
in the Middle East. Whether
that power will be limited to
two or four years is immaterial
from our overall political
point of view.
At the same time, it is
equally probable that President
Eisenhower will not be given
a blank check for the 5000
million a year in additional aid
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10

Democratic Party. The North
ern and Western liberals had
1t rubbed in last November
what it means in this day and
age to carry on their shoulders
a congressional record favored
by the Southerners whose
share of Democratic victories
nationally always is control of
the major committees.
The liberal rebellion took
shape in the refusal Of the
new Democratic Advisory
Committee to drop dead be-
cause the congressional leaders
refused to join it. The South
erners have now had their
inning.
In all major committee as
signments. the Southerners
and big-city Democrats in
whom they discern potential
allies got the best Of things.
The liberals, who can be
counted on to stand UP and
fight until they hear the bell,
got no such consideration.
For example, in addition to
the prize plum falling to Ken
nedy. Senator Frank Lausche,
the Ohio conservative. got two
major committees. The tough
and outspoken Senator John
Carroll of Colorado. who has
had House experience, was re-
fused Judiciary and got only
Interior. Interior is important
to Carroll, but it is regionally
important. Lausche got two
committees nationally i'm
portant.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10

for the Middle East. Most
members of Congress have be-
come convinced the Middle
Eastern plan is the best sub
stitute, due to the obvious in
ability of the United Nations
to be effective in matters in
volving the USSR or Commu-
mist China.
The alleged success of the
world peace organization in
the short-lived Suez ARRAY was
not due to its initiative but to
Americas stand against the
use of force by its closest al
lies. Had the voice of Wash
ington not Numbered in Lon
don and Paris and had Britain
and France not felt the pinch
of the oil shortage, there is lit
tie doubt that British-French
forces would still be in Egypt
and Israeli troops deep in the
Sinai peninsula.
The same determination was,
however, not shown in the
case of Hungary where the
Soviet forces were directly in
volved. The Hungarian people
were clobbered by Russian
troops, after their own mill
tary sought freedom under a
socialist regime of their own
choosing
And while the Hungarian
fighters for freedom were
dying by the thousands. the
United Nations was acting like
the Byzantine Senate in 1853
when the Turks were under the
walls of Constantinople: 1t
discussed for days whether the
angels had sex.
The representatives of the
Tree nations, large and small,
IN 1856 were discussing wa
tered-down resolutions of con-
domination of the "barbaric
acts" of the Kadar regime and
Moscow. But they did not dare
take even moral sanctions as,
for instance. were taken earlier
against Spain.
On December IL. 1916. with
in a year after its birth, the
United Nations resolved by a
vote of SO to 6, with IS abb
stentions. that ''if within a
reasonable time there is not
established tin SPAIN a gov
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10
Behind the Mideust Policy Plan

eminent which derives its
authority from the consent Of
the governed, committed to
respect freedom of speech.
religion and assembly and to
the prompt holding of an cleo
ton in which the Spanish
people, free from force and
intimidation and regardless Of
party. may express their will,
the Security Council consider
the adequate measures to be
taken in order to remedy the
situation.
THE General Assembly rec
ommends that all members of
United Nations recall from
Madrid their ambassadors and
ministers plenipotentiary ac-
credited there" All ambassa.
doris. except those of six Latin
American republics. were with.
drawn.
U.N. delegates recently were
reminded of that move by at
least one American delegate
who wanted action - to show
at least that the U.N.'s moral
fiber had not been damaged
with age. The answer from the
British and French was: I'VE
can't get the votes this time"
while the State Department
contended that we could not
take unilateral action lest I'VE
lose an invaluable listening
post" in Moscow or Budapest.
Despite President Eisenhow-
er's references to the United
Nations in his request to
Congress for standby powers
to use American military
might if necessary, these are
regarded as a mere courtesy
to that body.
The White House is slowly
and reluctantly reaching the
conclusion that because Of the
present makeup of the United
Nations. it can do very little in
the event of a Soviet aggression
even by proxy-in the Mid
die East. If the United Ma
tons, it is now argued in
Washington, has let a golden
opportunity like Hungary go
by and did not call the Krem-
lin onto the carpet, there is
even less hope that it will do
something in the less spec
tacular area of the Middle
East. Hence. our decision to
become the sole policeman on
the beat in that area.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10
POTOMAC FEVER
FLETCHER KNEBEL

Prime Minister Eden quits Having decided the Middle East
to the Americans he decided before they could trick
him into taking it back
IkeS the Union streamned Substance
Thanks to the high Dues this union is soven-whch
than can be said for some of the members"
Democrats propose Middle East doctrine only "a words
long Other experts further and it word
"Why?"
Communist Poland restore free enterprise to
Polish Expected cable Agriculture Secretary Ben
towards! Anybody could do in Poland Dare
try it here!"
pick Kennedy Kefauver for the
Foreign Relations Committee Difficult scholastic choice Kefau
he through coegeand Kennedy looks
a if he left.
celebrates his 44h birthday The guys
making One and he'll be half old Sena
tor Theodore Green of Rhode Island.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10
DORIS FLEEsON
Southerners Pass the PIuns

Westerners generally got no
plums in the House either.
though some of them cracked
districts which have never be-
fore sent a Democrat to the
lower chamber.
Washington is always con-
scious of precedents, and the
Kennedy nomination, which
knocked the seniority system
galley west. is much debated.
The johnson camp has come
forth with the argument that
it achieved regional repre-
sentation" on Foreign Rela-
tions. The Westerners would
be the last to jeer at the JUS
tice of that theory, but they
have no expectation that it will
be used to elevate them. At
least, it hasn't.
Some of them are ready to
discuss whether they want to
go on waging their terrific
election battles every two or
six years against the Repub-
licans in order to establish a
congressional rule by tn e
South.
When we get to Washington
we find always that the South
erners are the dukes. the Wis
counts and the rest of the
peerage in Congress-" one put
it. Were strictly the COM
monerS.
"They get the top committee
posts and the big offices. We
are told it's seniority that
counts. But when they want
to throw seniority in the ASH
can, as in Kefauver's case,
they do it. Maybe we need
three parties around here"
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10
DAVID LAWRENCE

This is the season Of the
year when several members of
Congress profess to be inter-
ested in small business" No
greater piece of demagoguery
emerges in politics nowadays
than the alleged concern for
the fate of small business" as
the term is used by Congress-
men. For the truth is, small
business" as 1t should be de-
fined, has more enemies than
friends in Congress, and the
trend is toward more strangu-
lation of such businesses in
America through the power of
monopoly.
The monopoly in question is
not "big business" but big
unionism. There is a lot of
talk now about giving some tax
relief to small business" so
that those firms earning around
$25, 900 to $4,000 a year may
get a slightly lower tax rate.
But that's no real relief. 1t is
infinitesimal and does not re-
lieve the main burden-the
necessity of paying national
scales of union wages, ire
spective of lower costs of living
in small towns and rural Sec
tons where many small plants
are located.
Today labor unions Ak the
costs for the Small-businesS
man. Whether or not he has
up-to-date machinery, he has
to pay the same national wage
rates that the large business
pays. Indeed, the prevailing
wage rates are fixed in negoti-
alton with the big businesses,
and then the smaller ones
have to pay the scale, or close
to it. just the same.
Nobody in Congress has had
the temerity to propose that
there be substantial differen-
tials in wage scales SO as to
benefit the smaller businesses.
Nor is anybody introducing bills
to prohibit labor unions from
applying wage rates on a ma
tional basis. No committee of
Congress under the Democrats
ever would venture to ..esti-
gate this Subject. yet it's at
the heart of present-day diff
ficulties for small business.
Labor unions are exempt
today from the jurisdiction of
the antimonopoly and anti
trust laws, and they can do
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10
Democratic Leader Joins KnowIond
On New Fiibuster-C urbing Plan

ton on debate. or cloture, it
now requires two-thirds of the
Senate, or 81 members. what
is called a constitutional"
majority, the Knowland-John-
son revision would permit clo-
ture by a vote Of two-thirds
of those actually present when
a vote on a cloture4 petition
occurs.
More important is another
feature of the Knowland-
johnson amendments. Under
Rule % as it now stands, it is
possible to filibuster even a
proposal to change the rules,
so that it becomes virtually i'm
possible to revise the rules to
make 1t easier to limit debate.
The Knowland-Johnson pro-
posal would make it possible to
apply cloture to limit debate
on rules changes.
You will pardon an inter-
lection here which won't be
suppressed. which is that when
you spell out the intricacies of
the rules it all seems so silly
and picayunish and more like
kids than august Senator'S
but there 1t is, and you must
respect senatorial dignity.
To continue-throughout the
opening skirmish on the civil
rights and Senate rules issue,
Senator johnson has been
most adroit in getting the
most advantage possible for
his party without really COM
hitting it very far, and in di-
luting credit for the Republic
cans.
He was able. in the first
place, to take the Republican
Senate leader and a majority
of Senate Republicans along
with him to quell the rebellion
of a coalition of Northern
Democrats and Republicans
who wanted to revise the rules
so as to make some sense, and
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10
Companies Seen Squeezed by Taxes
And High Union Woqe Scales

as they please in fixing. by con-
certed action throughout the
country, the labor costs that
small as we'll as large business
must pay. In fact, all bust
nesses face not only this mo-
nopoly but in many instances a
monopoly on labor member
ship through the imposition
of restrictions on how many
apprentices may be accepted
each year. If a small plant
tries to hire nonunion labor,
it runs into boycott troubles.
This tight hold on the labor
supply and national wage
scales gives "big unionism"
tremendous power in the eco
nomic system of today. and yet
the DemocratS-who claim to
be 1.-The party of the people
do nothing for the vast number
of workers whose jobs are being
jeopardized now by rising
costs. The main reason for
this indifference of the Demo-
Gratis is that they get the bulk
of their campaign contribu-
tons from big unionism."
That's why the Democratic
Party in Congress refuses to
tackle the problem of the
labor monopoly.
The plight of small business
in America is indeed serious.
The definition by members of
Congress of what is small
business" is inadequate. 1t
usually applies to the bust
nesses which employ fewer
than 20 persons. According to
the latest available figures,
there are. for instance, only
8.887,000 persons employed in
the 3,865,000 establishments
that have 20 or fewer en-
ployeS. The figures show also
there are 81 $4,000 persons
employed in the 4,060,740 bust
ness establishments that en-
ploy fewer than 500 persons.
This compares with 1887. 900
employees in the $3.50 business
establishments that employ
500 or more persons.
AS for the various tax bills
now being proposed for small
business" relief, they would
mean saving of $4,000 in
taxes to each firm earning
$4,000 a year and about
$1,700 to each company earn
ing around $4,000 a year. But
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10

The Southern Democratic
leadership of the Senate has
been reading the election re-
turns of last November 6.
This is obvious from the
slight bending" from the
waist by Senator Lyndon
johnson of Texas, party lead
er. He has espoused with a
courtly gesture the proposal of
the Senate's Republican leader.
Senator William F. Knowland
of California. for moderate
changes in the Senate rules to
make it somewhat easier to
check fllibustering, which, as
you know, means endless run
ming off at the senatorial
mouth.
An analysis of the Novem-
Der 6 election returns finally
has demonstrated, even to the
most obdurate and unrecon-
structed Confederate, that the
Democratic Party was hurt by
the rigid and adamant atti-
tude Of its Southern wing,
which is dominant in Congress,
toward civil rights bills and
the readiness of Southern
Senators to talk forever If need
be to keep such measures off
the floor. This Southern brand
on the party was responsible
for considerable defections of
Democrats interested in pro-
lection Of minority rights, in
Guiding those of Negroes. They
switched to President Essen
hover in protest. That hap
pened both North and South,
but to an even greater degree
"at the South" as Southern
orators used to put 1t in pre-
Civil War debate in Congress.
What Senator Knowland
proposed, and what Senator
johnson now accepts. is a
change in the famous Rule %
in two respects:
Whereas to impose limita-
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10

nuclear reactor would be safe;
they merely wished to explain
why they have stepped into the
case.
The only two atomic power
producers of the type under con-
Struction at Lagoona Beach -
known as a fast breeder reactor'
because it produces more atomic
fuel than it consumeS-ever built
in this country. Mr.. Montgomery
said, broke down. The last me
at Arco, Idaho, went out of con.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10
3 Unions Threaten Suit
In Atomic Plant Dispute

Spokesman for three labor
unions threatened court action
yesterday in a dispute over cree
ton by a private company of an
atomic power plant at Lagoona
Beach, Mich.
Unless the Atomic Energy
Commission halts construction
of the SAB million plant until
the builders can give reasonable
assurance" as to safety of the
facility, the dispute may very
we'll be" taken to court, the
Spokesman said.
/ The three unions - United
Auto Workers, United Paper
Workers and International Union
of Electrical Workers - charge
the Acc violated the law by
issuing a conditional construc-
ton permit last August before
recurring the builders to show
the power reactor would not
pose undue risk to the health
and safety of the public"
On the grounds that they have
large memberships and proper
ties in the Lagoona Beach area,
which is midway between Detroit
and Toledo, Ohio-about 30 miles
from each city-the unions under
atomic law have interviewed with
the Acc and hearing OF the
dispute has begun. The builder
the Power Reactor Development
Co., presented its case to hear
ing examiner Tuesday, and the
unions will be heard in February
The Acc has the final word.
/ Don Montgomery Of the United
Auto Workers, chief spokesman
for the unions. told news con-
ference yesterday they did not
wish at this time to rebut the
company's argument" that the
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10

licans threw away their golden
opportunity.
They knew that the South
ern Demo cratic leadership
would give" a little. though
not much, on account of the
terrific pressure from the rest
OF the party. Republicans
could have outbid what they
might figure would be Senator
Johnson's highest offer. But
they made it easy for him.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-10

Like dazzling. white.hot meteor,
the rondertul world OF tomorrow
has arrived today! See the sensa-
fiorpaL 81 cars, tomorrow's dream
cars come true today! See the.
fabulous experimental cars. See
exciting futuristic surprise ex-
hibiisl