Indianapolis Times, Indianapolis, Marion County, 15 March 1939 — Page 2
1
4
AX
ARE BEING BUILT
“BY ROOSEVELT
# NATIONAL AFFAIGS +. ROOSEVELT maps defenses * for existing taxes. WAGNER Law arguments . .- presented. “a -. HOUSE group - considers “. Roosevelt’s renewed request & for 150 million dollars ~ relief funds, (Eo .” DEADLOCK causes recess of labor peace parley. " TUNNEY testifies in Congressional monopoly probe. SENATORS again take up - fortification of Guam. 2 2 8 -(Editorial, Page 14) + By THOMAS L. STOKES Times Special Writer es “WASHINGTON, March 15— President Roosevelt is building up defenses to protect—as far as possible—existing taxes such as: the undistributed-profits tax and the Capital-gains ‘tax from the increasing business pressure for repeal or modification. His strategy, as unfolded in his pronouncements ‘and those of his Gongressional leaders, is twofold: £1. He and party leaders ate agreed that revenues must be maintained at their present level in any rearrangement of schedules, so that any reduction in one tax must be made up elsewhere. 2. He and party leaders are warnfhg of the danger that readjustment thay increase the burden on small
Business. : Bids for Support
Thus the President is seeking to draw small business to his side in ‘the forthcoming battle over tax revision, in order .to prevent too much revision of the taxes which hit the big fellows.
The President revealed at his press conference yesterday that discussion thus far with Treasury officials and Congressional leaders had revolved about proposals to merge all corporation taxes into one tax. This, he explained, is still in the “study stage.” ) - Mr. Roosevelt resumed his tax discussions today with Senator Harrison (D. Miss.), Finance Committee chairman, and Rep. Jere Cooper (D. Tenn.), of the House Ways and Means Committee. Secretary. of Treasury Henry Morgenthau Jr. and Undersecretary John Hanes also participated. , This meeting today and the Presi--dent’s press conference remarks dispelled the interpretation, drawn from statements by Speaker Bankhead and Senator Barkley (D. Ky.). that tax revision had been dropped | for this session. The Speaker opposed any revision on the ground that readjustments might hurt small business.
Expect Strong Stand
These statements are interpreted now as indications that the Administration will take a position against any considerable revision, and seek to hold as much as possible.
Mr. Roosevelt cannot avert tax|
revision. for both the undistributedprofits tax and a bevy of nuisance taxes expire in the next few months and Congress must renew them, remodel them or let them lapse.
Pointing out that the various forms of corporation tax bring in more than a billion dollars, including undistribui#d-profits, ecapitalgains, excess-profits and capitalstock, Mr. Roosevelt explained that repeal or reduction of any of them would leave a gap which must be filled somewhere else. If, in making up the revenue, Congress prorated the loss up and down the line, this would increase the tax on small corporations, he explained. He is against further taxes on the small corporations. The tax then, he added, would have to go on the big corporations.
House Committee Scans Relief Fund Request
~ WASHINGTON, March 15 (U. P.). —The House Deficiency Appropria-
tions Subcommittee began consideration of President Roosevelt’s new request for 150 million dollars addi-
DEFENSES
Union Groups Charge Move - Is Attempt to Destroy Bargaining Rights.
By LUDWELL DENNY Times Specizl Writer WASHINGTON, March 15— Wagner Law opponents are making use of further delay in Senate hearings to whip up. sentiment against
the closed shop. ‘The widespread Washingion - hofel strike; which entered its third week today
to the inconvenience of GCovernment officials and Congressmen, is being used as a “horrible example.” Senator Taft of Ohio, Republican Presidential candicate, assumed leadership of the amendment bloc yestedday in the Senate Labor
|Committee and broke the “indefi-
nite” postponement of hearings. Using again the argument that hearings would embarrass the A. F. of L.-C. 1. O. peace conference, the Wagner ‘Act cefenders were able to hold off “only until next Tuesday the time for fixing a hearing date. The strategy of the so-called nullification group, supporting the Burke amendments, is to permit the C. I. O. fight against the A. PF. of L. amendments fo divide and confuse the pro-Wagner Law majority; and then use that opening to drive through’ the anticlosedshop and other employer provisions.
Hope to Unite Labor
Althoughh no counter agreement has been reached as yet by the warring A. F. of Li<C. I, O. factions, New Dealers hope to unite labor against the “nullification” amendments even though the C. I. O. continues its work on the A. F. of L. amendment to replace the Labor Board, which William Green calls pro-C. 1. O. The A. F. of L. itself is divided. Despite a face-saving resolution supporting the Green-Walsh amendments, the recent Miami meeting of the A. F. of L. Council in effect scrapped most of those amendments by the new (Barden) amendment to replace the present board with a five-man board. New Dealers, in their latest attempt to arrange an A. F. of LeC. I. O. truce on Wigner Law amendments, are using the employers’ new move against the closed shop as an emergency reason for uniting the labor forces.
Has Three Provisions The Burke and other amendments supported by the National Associa-
the closed shop out of the Wagner Law by:
Members of the Indiana delegation in Congress paid tribute to Thomas R. Marshall, Vice President under Woodrow Wilson and a native Hoosier, by placing a wreath ct his statue in Washington yesterday. Left to.right are Rep. Louis Ludlow, Rep.
Wagner Law Foes Use Hearing Delay To Strengthen Attack on Closed Shop
liam H. Larabee.
Eugene B. Crowe, Senator Minton, Earl J. Cox, Thomas R. Marshall Club president, and Rep). Wil-
announce formation of a McNutt-for-President Club in the District of Columbia. so
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| Times-Acme Photo,
Mr. Cox also used the occasion to
times despite the employer and sometimes in an unholy alliance with unscrupulous employers. That it invites an “extremist rather than a reasonable attitude on the part of labor,” and thus pre-
{vents true collective bargaining and
workable contracts conducive to industrial recovery and progress. That it breeds the “worst strikes, the strikes most unfair to the workers and the public, and the strikes hardest to conciliate, as witness tile Washington hotel strike.” : That the old argument for a closed shop—namely, to enable a
{union to enforce collective-bargain-
ing rights—no longer applies because the Wagner Law itself how guarantees such rights. That organized labor insisted on
tion of Manufacturers would knock
PARLEY ON LABOR PEACE RECESSED
NEW YORK, March 15 (U. P.).— A deadlock on jurisdictional questions, it was reported today, forced
the 10-day recess in peace negotiations between the American Federation of Labor and the Congress of Industrial Organizations. A. PF, of L. peace negotiators left New York to confer with President William Green “on questions affecting progress of the negotiations.” It was reported without confirmation that the Pederation’s executive council would he called into special session or polled privately on some C. I. O. suggestions before the unity sessions resume March 24 in Washington. A It was said that the A. F. of) L. committee will seek clarification’ of the precise meaning of an A. F. of L. council offer to take back without challenge the C. I. O. unions which formerly were in the Federation. The C. I. O. committee asked during negotiations whether this meant return of their original charters or acceptance of the extended jurisdiction these unions have taken since labor split in 1836. Inability to obtain a definitive answer to this question was said to be holding up the negotiations and
the recess was taken at the request
of the Federation's committee.
the successful railway Labor Act provision outlawing the closed shop in that industry. To which Labor spokesmen in the Senate hearings will reply: The Railway Labor Act example is a phoney analogy. The purpose of that provision wis to outlaw company-union closed shop, and was necessitated by unique “conditions in that industry. i This move to eliminate the c¢losedshop provision of the Wagner law is really a move to destroy the basic collective-bargaining purpose pf the law, because in many cases only a closed shop can force a contract and preserve a union agaist antilabor employees. | The most vicious “unfair labor practice” of the employer is not listed or outlawed by the Wagner act—namely, the “right” of the employer by subterfuge to’ discharge union men for fake “reasons” other than union activity. Since apparently there is no direct way by law to prevent an employer breaking up a union by firings—as long &s he can invent excuses other than union activity—the closed shop is a necessary weapon. It gives the union the chance of self-defense in the exposed zone beyond the specified ‘“unfair ldbor practices” of the Wagne law. .
Question of Balance
There also is the question of achieving balance of bargaining power between employer and employee, which is the purpose of the Wagner Law. Often a union strong enough for that reason cannolb be maintained without the closed shop. Only through it can the majority of employees force the minority to support with dues and solidarity the union, which at great’ expense and effort obtains better wages and ¢onditions for that minority. The closed shop, plus “checkoff” of union dues by the employer for the union, is based on the same logic and justice by which, for instance, a Republican voter must pay taxes just the same as a Democrat when a Democratic administration is in office. Thus runs the labor aigument. i The A. P. of L. and C. I. O. are exploded, for a purpose, to stand together in this defense of closedShop protection for the Wagner W.
which
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TUNNEY TO TESTIFY
NMOL quiz
WASHINGTON, March 15 (U. P.). —GQGene Tunney, whose fight with
{Jack Dempsey involving a “long
count” still is debated by the boxing . fraternity, was scheduled to testify today before a Congressional committee that monopolistic con-
|trol of the whisky industry threat-
ens his company with a “short count.” : Mr. Tunney, former world heavyweight champion, is now chairman of the board of the American Distilling Co. of New York. He will appear before the National Monopoly Investigating Committee. The Federal “Trade Commission has introduced data alleging that four large distillers have gained control of the $1,250,000,000 business through production and price manipulation. Mr, Tuney, as a repre~
sentative of a smaller company, was expected to testify that the “big four” were forcing such firms as his out of business.
Guam Fortification ‘Reservation’ Sought WASHINGTON, March 15 (U. P.).—~Some Senators, seeking to avoid a fight over the Navy's request for five million dollars to improve the harbor at Guam, today considered a “reservation” that would express Congress’ opposition to fortification of the Pacific island. : . Chairman David I. Walsh (D. Mass.), of the Senate Naval Affairs Committee revealed that the proposal has been suggested informally fo. various Committee members, although it was conceded that such a statement of “policy” in the pending Naval Base Bill would not. bind future Congresses. Opposition to such a ‘“reservation” came immediately from sev-
9 STATE OFFICIALS “TAKE OATHS TODAY
The oath of office was to be adSmisterad to two State officials toy. Wilbur Fleenor, newly appointed
Chief Deputy State Treasurer and|L®
Floyd I. McMurray, superintendent of public, instruction, whose new term begins ‘officially today, were to be sworn in by Supreme Court Judge Curtis G. Shake. Mr. Fleenor was appointed yesterday by State Treasurer Joseph Robertson. He has been an auditor
eral committeemen, who felt that it was designed to placate Japan. The Committee tentatively concluded hearings on the bill yesterday. It may not vote until it receives a supplemental report on the
Navy's recommendations for'an air |
base in Florida. :
’ > Jd in the State Highway Department and is a native of Seymour and a Indiana University graduate. * He succeeds E. N. Kestner Brownstown who died March 8.
FULL CREW LAW VOIDED HARRISBURG, Pa. rch 15 (U. P.)~—The Dauphin | County Court today declared unconstitutional the state Full Crew ilroad
of
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tional relief money today. Democratic members of the subcommittee met briefly before the meeting opened, excluding Republican members. While waiting to enter the committee room, Rep. John Taber (R. N. Y.) charged that any reductions in relief rolis would be made “among the most deserving people for the purpose of creating pressure.” WPA Administrator F. C. Harrington denied that there was any _ attempt to use reductions to influence members of Congress.
Three Votes Certain
Two private polls by conservative Democrats counted only three out of 12 members of the Committee as Serta to support the Administraion. Polls of the Subcommittee indicated that five Democrats and four Republicans might oppose any attempt to speed the bill to the floor. Opponents of the bill feared the possible loss of at least two of these, but the Administration would need seven votes to report it to the House.
1. By outlawing so-called coercion and unfair practices by labor as well as by employers. = 2. Limiting | collective-bargaining | #2 representation to the ‘voluntary”| == choice<of employees. 3. Eliminating the Wagner closed- | E8S Shop protection, which provides: { “That nothing in this act . . . or SBreniras: in any other statute of the United 3. Jost heck? pérspinacion States, shall preclude an employer § pays k ocr from making an agreement with a fom perspiration, keeps your labor organization. . . . To require armpits dry. as a condition of employrient membership therein, if such labor or-| ganization is the representative of | the employees as provided in Section 9 (A), in the appropriate col-lective-bargaining unit covered by such agreement when made.”
Opposition Gives Position
In support of the anti-closed-shop SR position, employer groups will argue Eo 2) at the Senate hearings: LAIRZ That the closed shop gives a union i dictatorship over the embnloyer. : That it gives union ofcials a dictatorship over employees as well. That it permits anti-labor and
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