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The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, November 23, 1950, Image 6

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Snyder Asks 75% Tax On Excess
Profits Ducks Oni Retroactivity
Washington (LPA) Secretary I*
of the Treasury John B. Snyderlperity during the proposed base
has asked the House Ways andl period years” probably would pre
Means committee to approve a 751 fer the invested capital base.
percent tax on excess corporation
Appearing before the committee
Nov. 15, Snyder declared such a
tax should be applied to profits
exceeding 75 percent of a corpor
ation’s average profits in ’the three
best years in the 1946-49 period
or on its “invested capital,” which
ever base is the easier on the com
Although Snyder read a prepar
ed statement which was a master
ly presentation of many aspects of
the case for an excess profits tax,
he proved once more that he is just
i a conservative banker at heart
after the Congressmen began ask
ing questions. (Snyder was a bank
er in St. Louis before entering the
The Secretary testified the day
after President Truman in a letter
to Ways and Means Chairman Bob
Doughton of North Carolina urged
an excess profits tax retroactive
i to July 1, 1950. Snyder, however,
refused to endorse the retroactive
date and is known to dislike it.
Under questioning he also showed
himself as.something less than a
Fair Deal advocate on other aspects
of the tax.
Feeling is growing that there
won’t be any excess profits tax
passed by the “lame duck” session
of the 81st Congress which con
venes Nov. 27. And it’s no cer
tainty that the 82nd Congress will
enact the kind of tax labor and
liberal groups have demanded.
However, the tax-writing commit
tees of the 81st are obligated by
the tax law passed in September to
report excess profit tax bills for
Congressional consideration.
Snyder said the administration’s
proposal would yield about $4,000,
000,000 for fiscal 1951, which be
gan last July 1. However, he urged
that Congress place no termination
date on a tax program which will
endure for a number of years. He
also indicated that his excess pro
fit proposals were only a fore-run
ner of still .stiffer proposals to
come when the defense program
gets rolling.
Here is how the profit tax .would
be figured: A corporation with sub
stantial defense profits would first
have to decide whether to use the
1946-49 “base period” or its invest
ed capital (money invested in the
business plus “retained earnings”)
as a tax basis.
Say the base period is decided
upon, and 1947-48-49 are found to
be the. most profitable postwar
years. Say the average profits in
those years is $10,000,000. Take 75
percent of that sum, which is $7,
500,000. All annual profits in ex
cess of this latter figure would be
subject to an excess-profits tax of
75 percent (while the “normal”
profits would be subject to a regu
lar corporate income tax of 45 per
Or say invested capital is decid
ed upon. Snyder said that corpora
tions that earn “a low rate of re
turn on capital”, or that have been
recently organized or that “failed
to participate in the general pros-
Used Exclusively By
PHONE 3200
215 WMt Fifth StrMl
1 Jllfi
In such a case, a corporation
would be allowed to earn an arbi
trary maximum rate on invested
capital before an excess profits tax
could be applied. Snyder made no
specific recommendation but de
clared the exempted percentages
in force during World War II
should be increased. (The bigger
the corporation, the smaller the
exempted percentage of invested
capital which can be earned as pro
fit without being subject to the ex
cess profits tax.) Snyder also sug
gested revision of the “relief” pro
visions of the World War II Tax.
Synder rejected the proposals, of
the Committee for Economic De
velopment and the National Asso
ciation of Manufacturers. The CED
asked for a flat increase in the
corporate income tax rate. Snyder
said this would require taxing all
corporations at 57 percent tax rate
which “would accentuate the un
even effects which the defense pro
gram will have” and “impose par
ticular hardship on corporations
whose profits are declining.” He
said he and his staff had “consid
ered” an NAM proposal that ex
cess profits taxing be forgotten,
the present corporate tax rate be
lowered, and a manufacturers ex
cise tax, which would fall on con
sumers, be imposed.
The Secretary said that in ask
ing for an excess profits tax, Pres
ident Truman hoped to accomplish
three things: meet the increased
costs of defense check inflation
tax high profits out of the defense
program. He didn’t even pretend
that he shared the President’s de
sires, however.
The committee voted to conclude
the hearings Nov. 22, so as to be
ready, to present a proposal to the
House soon after Congress meets
Nov. 27. Republicans protested.
With a straight face they insisted
the committee should hear as many
as possible of the more than 200
individuals and groups who have
asked to testify.
Price War Cuts
Coffee Prices
Portland, Oregon (LPA)—When
one shop advertised below-cost
prices on coffee, a price war start
ed here. Independents and some
chain food markets cut prices on
some nationally advertised brands
to 65 cents.
The merchants* groups rushed to
District Attorney John B. McCourt
demanding he enforce the state
anti-price discrimination law, but
when McCourt asked which groc
ers would testify they are being
damaged by the price-cutting, Rob
ert Green, executive secretary of
the Oregon Food Merchants Asso
ciation, said no one would testify.
He said that was because the en
suing publicity could drive custom
ers to the violator.
When Green offered' to testify,
however, on the evils of loss-lead
er selling, McCourt explained Green
would havfe to qualify as an expert
in the economics of loss-leader sell
ing before he could testify. And
even then, McCourt said, Green
couldn’t be both an expert witness
and the complainant in the case.
And on top of that, McCourt point
ed out, such a court case would be
hard to win, because the jurors
would be consumers, and in sym
pathy with price-cutting.
(In Denver, a ctydn-letter cam
paign against coffee buying has
driveh prices down.)
Buy Union* Made goods from
others aa you would have them
pay Union wages unto you!
ACTUAL charges for 500 consecu
tive funerals conducted by the
Funeral Home are as
Under $150
Under $300
Under $500
Over $500
Funeral Home
for so little*
Phone Main 10
Tly strike of 17,000 workers
against the Western Electric Co.
had idled 120,000 phone workers,
since many operators and other
Bell System employes respected
the picket lines. The Western Elec
tric workers, mostly repairmen and
installers, won nine to 14 cent hour
ly raises. Another 16,000 phone
workers on strike against Michigan
Bell, won $3 to $5 weekly raises,
some departments getting $9 boosts
as a result of reclassifications.
Officers of Communications
Workers of America praised the
solidarity shown by CWA members
during the strike. They hailed the
15-month contract, which broke a
pattern of 18 to 24 month wage
freezes throughout the Bell Sys
“As a result of the wonderful
stand and field work by virtually
every officer of the union, together
with the solid support of virtually
our entire membership, we have
seen the Bell System give in on
every major point in the dispute,”
said a letter from the officers to
all divisions of the union.
“While this fight was fought for
the specific benefit of our fellow
members in Divisions 6, 15, 18 and
68, the splendid demonstration of
trade unionism by those who re
spected the picket lines cannot help
but serve as an example which the
Bell System management cannot
ignore. We are certain the splendid
demonstration of solidarity 'will
have its beneficial effects in all
negotiations in the future.”
Experts expressed the opinion
that the new “hit and run” tech
nique used by the union was res
ponsible for the victory. Pickets
went from one phone exchange to
another instead of maintaining a
continuous picket line. As a result,
the company found it more difficult
than usual to establish substitute
service. They never knew when
their regular operators would be
In St. Louis, CWA Division 20
announced it would reopen wage
clauses “in line with the national
pattern” in its contract with South
western Bell. The current contract,
covering 50,000 workers in Miss
ouri, Texas, Arkansas, Oklahoma,
Kansas and part of Illinois does
not expire until next June 4, but
union officials said that inflation
brought on by the Korean war
makes wage changes necessary.
Ohio Hotel Workers Get Pay Boost
Columbus, Ohio (LPA) The
state industrial relations director,
Albert A. Woldman, issued an order
upping the minimum wages of
more than 115,000 minors employ
ed in hotels and restaurants. Ser
vice workers will be paid 40 cents
after Dec. 9, non-service workers
will get 49 to 55 cents depending
on community population. A
spokesman for the Ohio State Res
taurant Association said the order
“undoubtedly” would be appealed
to the courts.
PHONE STRIKE ON—Long distance phone operators stand across the
exchange in New York and turn thumbs down on crossing the picket line set
Phone Strike Victory Expected
To Effect Future Negotiations
New York (LPA) An eleven*!*-—-------r
day phone strike ended Nov. 19 in
what union leaders described as “a
magnificent victory.”
.......................................................................................... up by Western Electric em
ployes on strike. Communications Workers of America has tried a new technique, hit-and-run striking, in
which the pickets move from one exchange to another in an effort to prevent the company from getting a
scab system going at any one plant.
Pittsburgh Papers
On Streets Again
As Strike Ends
Pittsburgh (LPA) The strike
of AFL mailers and truckdrivers
which tied up this city’s three daily
newspapers for 47 days is over, but
members of other unions are now
suing to recover lost wages.
The strike began Oct. 2 with
the walkout of Mailers Local 22
AFL, and Local 211, Newspaper
Delivery Drivers-AFL for a 1314c
an hour increase. They settled Nov.
14 for an 16-month contract pro
viding 10c an hour now and 3l/ic
after nine months.
Members of other unions refused
to work until arbitration was work
ed out to cover their claim for pay
during the strike. The first issues
of the Post-Gazette were not pub
lished until Nov. 17, the Press and
Sun-Telegraph printed Nov. 18.
Three separate arbitration pro
ceedings are now under way to
settle claims for $1,750,000 in
wages. Newspaper Pressmen’s
Local 9 and Paper Handler’s Local
5, both AFL, will arbitrate at a
national level with the president of
the American Newspaper Publish
ers’ Association. The AFL Typo
graphical Local 7 will arbitrate at
the local level as provided by con
tract, and eight other unions in
cluding the American Newspaper
Guild will abide by the decision of
an impartial arbiter.
Port Huron, Mich. (LPA)—Local
647, United Automobile Workers
AFL, has gained two wage in
creases at the Auto Lite Corp, here
in the past 60 days. Just before
Labor Day the workers got 5’4c an
hour, plus company-paid health
and accident insurance. Now a sec
ond increase, retroactive to Aug.
28, of 10c an hour has been won for
all day workers and 8c an hour for
incentive workers. Total package
gains are estimated at 21c an hour.
At Grand Haven, Mich., Local
709, AFL Auto Workers, strength
ened its contract with the Michigan
Brass Co. by gaining 9c an hour
raise, plus a modified union shop,
better seniority provisions, and
three weeks’ vacation for 15 year
employees. A 5c an hour raise was
won in June. Package gains this
year average 16c an hour.
Phoenix, Ariz. (LPA)—Arizona
voters on Nov. 7 defeated a pro
posed constitutional amendment
which would have upped unemploy
ment payments to $25 for 26
weeks. The voters also rejected an
amendment which would have set
$300 as the fop monthly wage for
which workmen’s compensation
benefits could be computed.
Whereas, Almighty God in His infinite wisdom, has seen
.fit to take from our midst our friend and fellow worker,
Brother Ralph E. Pickens, respected and admired for his fel
lowship and character, and
Whereas, We the members of Local Union 33, recognize
the loss of this Brother, and shall cherish and respect the
memory of his pleasant manner and as evidence of sympathy
and esteem, it is hereby further,
Resolved, That we extend our profound sympathy to
his family, a copy of this resolution be published in our
official journal, The Potters Herald, a copy spread upon the
minutes of the Local and a copy sent to the bereaved family.
Also that our charter be draped in mourning for a period of
thirty days.
street from a Bell telephone
Railroads Give Up
On Sticking US
For Hauling Mail
Washington (LPA)—Comes next
January, the nation’s railroads are
going to stop sticking Uncle Sam
twice for hauling the mail. A stip
ulation to that effect was entered
before the Interstate Commerce
Commission Nov. 8.
Ever since 1916 the railroads
have been charging Uncle Sam for
hauling a carload of mail to its
destination, and then charging him
exactly the same rate for return
of the railroad car, empty.
No other customer of the rail
roads has been stuck that way. All
other customers pay a one-way
rate, and even that one-way rate
is under the rate charged Uncle
Sam for the outgoing trip.
The ICC of course must agree to
the stipulation. At the hearing
Nov. 8 the railroads introduced
their exhibits, and the Post Office
department its exhibits, and then
the hearing was adjourned to Nov.
29, when the argument will be over
nelv rates for hauling the mail.
Final decision is up to the ICC, and
it possible that the new one-way
rate set by the IOC may approxi
mate the. present (round-trip rate.
Estimates as to the extra cost
to 4he government of the round
trip provision range from $30,000,
006 -to $100,000,000 a year, Legis
lation to repeal that provision was
introduced in the Senate last year
by’Sen. Hubert H. Humphrey (D,
Minn.) and was fought by the rail
roads at hearings on the measure.
Th$ Senate Post Office and Civil
Service Committee decided the
matter needed “further study.”
The committee asked the Post
master General, General Account
ing-Office and the General Services,
Administration to make the Study.]
They did, and all recommended
elimination of the “round trip” pro-)
The results of the study were
published last month. Shortly
thereafter the railroads capitulate
ed, and notified the Post Office De
partment that they would agree to
eliminate the provision Jan. 1,1951.
End of Segregation
In Schools Asked
I^ew York (LPA)—Elimination
of. racial segregation in education
al bodies was recommended both
here and in St. Louis Nov. 16.
Columbia College’s Board of Stu
dent Representatives set Oct. 1,
195g as the deadline for removal
of restrictive membership clauses
from by-laws of student organiza
tions. Seven of the school’s 16 fra
ternities use discriminatory clauses.
In St. Louis the State Commit
tee of the Mid-Century White Com
mittee recommended non-segre
gation in all levels of public
cation in Missouri.
The group, appointed by
Forrest Smith last year, will
a delegation to the national
ference in Washington on Dec. 3.
President Truman has called the
conference to consider youth
Unemployment Compensation
Should Be Expanded
Montpelier, Vt. (LPA)
Montpelier, Vt. (LPA) Ver
mont’s unemployment compensation
law should be changed so that
workers in firms having one or
more employes would be covered
instead of eight or more as at pre
sent. That was the recommendation
of the Advisory Council of the
State Unemployment Compensa
tion Commission. It estimated that
thejroposed change would increase
the number of covered workers by
22.1 percent, raising the total to
76,429. The number of employers
affected would be increased from
1975 to 7423*
Demand the Union Labal*
Sebring, Ohio James Lloyd
Murphy, 66, of 125 West Indiana
Avenue, retired potter, died at the
Alliance City Hospital Nov. 18. Ill
since October, Mr. Murphy died fol
lowing a cerebral hemorrhage.
He had lived in this vicinity for
13 years, having been born in
Beaver Falls, Pa., November 25,
1883. He had worked at the Royal
China Company for 12 years and
was a potter in Cannonsburg, Pa.,
for 30 years. He was a member of
the K. of P. lodge and Local Union
44, National Brotherhood of Oper
ative Potters.
In addition to his wife Viola at
the home, he also leaves three
children, Mrs. William Dakin of
Pontiac, Mich. Mrs. John E. Vance
of North Canton and S. D. Mur
phy of Cambridge, two sisters, Mrs.
Gertrude Grossman of Pittsburgh
Mrs. Richard Anderson of Rochest
er, Pa. two brothers, Elmer and
Curlis Murphy of Beaver Falls,
Pa. and his mother, Mrs. Katherine
Murphy of Stoneboro, Pa. Seven
grandchildren and two great grand
children also survive.
George E. Snowden, 58, died Nov.
22 in his home at Lawrenceville,
Chester, following a three-week ill
Mr. Snowden was born in East
Liverpool. He was employed by the
Homer Laughlin China Co. for 40
years. He was a member of Local
124, National Brotherhood of Oper
ative Potters.
He leaves his widow, Mrs.
Rosella Tams Snowden two sons,
Ralph W. Snowden and George A.
Snowden of Chester two daugh
ters, Mrs. Alma ’West of Chester,
and Mrs. Lon A. Rice of East Liv
erpool his mother, Mrs. Susie
Welch Snowden of East Liverpool
two brothers, Fred K. Snowden in
California, and Raymond A. Snow
den of East Liverpool, and five
Charles H. Watson, 77, died Nov.
21 in his home, 143 West Second
Street, following a long illness.
Mr. Watson was a native of St.
Marys, W. Va., and lived here 66
years. He was employed for 29
years by the Newell Street Rail
way & Bridge Co. and later work
ed for the Homer Laughlin China
Co. He had been retired since 1944.
He was a member of the Cal
vary Methodist Church, the Wes
leyan Bible Claes and Local Union
141, National Brotherhood of Op
erative Potters,
He leaves his widow, Mrs. Lulu
Clark Watson three sons, John
Watson and Harold Watson of
East Liverpool, and Milton Watson
at home two daughters, Mrs. Har
old Benty of East Liverpool, and
Mrs. Scott Tripp of Andover a
brother, A. J. Watson of Newell
two sisters, Mrs. Flora Gutton of
Detroit, and Mrs. Charlotte Plun
kett of East Liverpool, and nine
grandchildren and three great
Charles Hay, 76, died Nov. 11 in
Rocky Glenn Sanatorium, following
a six-month illness.
Born in Wellsville, Mr. Hay
spent most of his life in East Liv
erpool. He was a kiln-placer and a
member of Local Union 9, National
Brotherhood of Operative Potters*
Mr. Hay leaves three sons,
erson Hay of South Bend,
Lawrence Hay of Detroit,
Clyde Hay of Damascus, and
eral nieces and nephews in
Huntington Park, Calif.—^Joseph
Diehl, 52, died Oct. 31 in Soutelle
Hospital, following a long illness.
Death was attributed to a throat
Mr. Diehl was born in Evansville,
Ind. and spent most of his life
there before moving to California
five years ago. He was a jigger
man by trade and affiliated with
Local Union 188, National Brother
hood of Operative Potters.
He was a veteran of World War
I and a member of St. Malachy
Catholic Church in Los Angeles.
He is survived by his wife, Mrs.
Margaret Diehl two daughters,
Mrs. Mary Jane Hermanson, Mt.
Rainer, Md. Mrs. Ester Miller,
Evansville, Ind. two sons, Joseph
B. Diehl of Los Angeles and Nor
man Diehl at home.
Athens (LPA)—A greater role
for the unions in Greek reconstruc
tion has been urged by George
Philip Delaney, of the American
Federation of Labor. Delaney, in
Athens to consult with the Mar
shall Plan mission on labof policy,
said he hoped his visit would lead
to increased participation of Greek
labor in the planning of Greek re
Recent changes in structure, said
Delaney, “will bring the Greek
trade union movement into line
with those methods which have
been found most fruitful by all the
leading democratic labor move
ments of the world*"
Steel Must Go Up, But That’s Not
Inflation, Ben Fairless Declares
Los Angeles (LPA) They’ve*
got President Ben Fairless of the
US Sfhel Corporation on the defen
sive, if his Nov. 16 remarks to the
American Petroleum Institute are
any indication.
Fairless was on the defensive
against organized labor, govern
ment, the general public, the past,
the future and the oil industry at
the same time.
No question about it, Big Steel’s
chief said, the Steelworkers are go
ing to get a wage raise. But he
was pretty grudging, nonetheless.
Latest government index showed
the costs of living was “almost ex
actly what it was on the day when
our workers got their last pay in
crease,” he insisted.' However, he
was willing to give his employes a
boost, he said, because “Whether
we like it or not, the fifth round of
wage increases is already well
under way in this country.”
The union has not revealed the
increase it is asking of Big Steel,
but Fairless used 15 cents to
“prove” that a wage increase would
make an increase in the price of
steel inoperative. He put it this
A 15-cent boost would cost US
Steel $182 million, or about $6 a
ton. The cost of “outside” mater
ials the company has to buy to
make steel has gone up $88 million
a year. Add the two and you get
$220 millioi).
That is more than the company
can afford from its profits ($178,
821,540 for the first nine months
of 1950), Fairless insisted. Out of
profits, the company has to pay
dividends and pay for expansion of
steel capacity, he said. Why, he
observed piously, $220 million “is
nearly twice as much money as the
owners of US Steel (stockholders)
have ever received from us in any
year of our entire history. It is
more money, in fact than all the
dividends we have paid to all our
stockholders in the last two and a
half years put together.” (CIO
economists and statisticians say the
figures give a different picture.)
But even if Big Steel did' raise
the price of its product, the in
crease would be a tiny one that
would have virtually no effect on
anything, said Fairless, striking at
the theory that steel prices are
basic to the entire economy.
Steel costs abopt a nickel a pound
(less than a candy bar), he said. A
10 percent rise would be half a cent
a pound. Less than one percent in
the price of an automobile, a bat
tleship or a bridge an extra four
cents for a $22 automatic toaster
60 cents more for a washing ma
chine, or $1.50 more for a refriger
ator. Pouf, you’d never notice it.
“Gentlemen,” said Fairless piously,
“I yield to no man in my desire to
prevent inflation.”
Meanwhile, there would be
enough steel for everyone includ
ing the oil industry which is hard
pressed for pipe, the industrialist
said, but he added a couple of great
big “ifs”. There mustn’t be a steel
strike “(Gentlemen, America can
not afford another steel strike.”
Any shortages now existing are
“due to the fact that strikes have
cost our nation 29 million tons of
steel since V-J day.”) In addition,
nothing must be allowed to block
the industry’s expansion program.
(Just who would block it, Fairless
didn’t say.)
Actually, Fairless added some
further “ifs” without calling them
that. It’s a matter of what is
meant by “enough” steel. “There is
not enough steel, at present, to
satisfy the maximum wants of
everybody,” he declared. “But there
is a great deal more steel than is
necessary to meet America’s min
imum needs.”
Thursday, November 23, 1950
He boasted of Big Steel’s cur
rent expansion program which will
be completed by 1952. By then, he
said, new expansion programs
would be under way. Fairless was
openly defending himself against
charges hurled at the steel indus
try that its reluctance to expand
delayed World War II production
and that the present shortages are
due to its reluctance to start post
war expansion soon enough.
Laugh of Week
No Price Gouging
Chicago (LPAJT—There’s abso
lutely, positively, no truth to the
charges that business is price
gouging and building up excessive
inventories. Who says so The bus
inessmen themselves.
The Chicago Journal of Com
merce, ever enterprising, made “a
comprehensive 'survey of a wide
cross-section of business,” polling
169 leading corporations. Said the
“American corporations are not
price-gouging. The prices of the
things they buy have gone up fast
er than the price tags they put on
the things they sell. In short, the
survey shows that corporations
have done exactly the opposite of
what the enemies of the American
business system have charged.”
That explains, of course, how
corporations have managed to
make such fantastic profits, some
even showing amazing percentage
increases on decreased sales.
(In Philadelphia, Charles E.
Wilson, president of General
Motors, declared that wages ought
to be boosted in line with profits
from improved technology but that
such increases should not bring
higher prices. Speaking on a na
tion-wide broadcast, Wilsoh said
“it is fair, logical and reasonable
to maintain the purchasing power
of an hour’s work in terms of
goods and services the employe
must purchase in his daily living.”)
Demand the Union Label.
Sunnq dags
arc ahead
for those
who save.
Btain now!
First Federal Savings
& Loan Association
1032 Pennsylvania Ave.
love of a
May by NELEN DEUTSCH Bawd on tha Naval by H. RIDER HAGGARD

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