Evening star. [volume], May 05, 1937, Page A-9, Image 9

About Evening star. [volume] (Washington, D.C.) 1854-1972

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Delay Sought
In Changing
Wagner Act
Miss Perkins Calls for
Time to Decide on
Amendments.
BY DAVID LAWRENCE.
PRESUMABLY acting for Presi
dent Roosevelt, Secretary Per
kins of the Department of La
bor has just completed the
second of a series of conferences de
signed to teach business men how to
accept domination by labor unions in
the least painful manner.
Although the Department of Labor
nas notning to do
with the most im
portant tribunal
in Washington
today, namely the
National Labor
Relations Board.
Miss Perkins is
nevertheless tell
ing the employers
gathered at her
conferences how
important it is
for them to re
frain from asking
for any amend
ment of the Wag
ner labor act.
David Lawrence.
Her speeches or lectures or explana
tions of governmental labor policy are
mainly to the effect that the Wagner
act ought to have a chance to operate
for a year or so before amendments
are considered.
It so happens, of course, that the
Wagner labor act has been in effect
since July, 1935, and the theory of
collective bargaining has not been
questioned in the courts, but only the
manner of its application. There is
plenty of experience available already
as to the one-sided nature of the
Wagner act. It happened to catch
the eye incidentally of the Supreme
Court, which, in its majority opinion,
took cognizance of the unfairness of
the law, though declaring, of course,
that this was not in itself a reason
for rejecting the act in the particular
lawsuit before the court at the time.
Prefers U. S. Out of Disputes.
Miss Perkins tells the employers
that really she would prefer to have
the Government keep out of labor
disputes altogether, leaving the infer
ence that all the squabbles and con
flicts are matters to be worked out by
the unions themselves. This has been
her attitude throughout the sit-down
etrike situation, namely, that she
didn’t know whether they were legal
or not and that anyway labor was
not to be publicly condemned for
Using such a weapon.
From nobody in the Roosevelt ad
ministration who has anything to do
with the handling of labor matters
has come a single word of condemna
tion of ruthless tactics by union or
ganizers. A Senate committee has
been busy for weeks showing how thugs
and spies are hired by employers—and
it is a shameful practice of various
employers which ought to be con
demned—but not one bit of testimony
has been introduced to show who
started the sit-down strike in Michi
gan, what strong-arm men were im
ported from other States to lead the
“sit-down" strikes and what was the
nature of the “flying squadron” of
physically powerful agents of the
textile unions, employed during the
big textile strike of a couple of years
ago.
Miss Perkins may have a dozen
conferences and the Roosevelt admin
istration may talk about the impor
tance of developing an attitude of
love and neighborliness between capi
tal and labor, but the reason why the
conferences here are not getting any
where—they are attended as a matter
of perfunctory politeness—is that the
Roosevelt administration does not be
lieve fundamentally in being fair or
Impartial in the use of its govern
mental powers.
See Job a« Labor Partisans.
T^ke the attitude of various per
Bons connected with the National La
bor Relations Board. They frankly
say they were charged by Congress
witlTthe duty of being partisans of
labor and that their primary job is
to see to it that labor is organized
Into unions.
The administration theory about
the Wagner act is that it should be
operated a year or so before discuss
ing amendments, because by that
time enough will have been learned
about it to determine how it should
be amended. Most business men would
like to see the act amended before
It subjects the economic system to
more strikes and damage. One em
ployer said that it reminded him of
the way the surgeons used to bleed
patients a century or so ago.
The tragedy of the situation here
Is that President Roosevelt does not
know that his Secretary of Labor has
completely lost the confidence of most
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News Behind the News
Roosevelt Faces Problem in Looming Stampede of
Capitol Hill Herd.
BY PAUL MALLOX.
LATELY reported unrest in the herd on Capitol Hill is becoming
personal—and serious, for President Roosevelt. A stampede among
the legislators is not only possible, but probable.
What has held them in check, frankly, is the fact that Mr.
Roosevelt hWs been more popular out in the country than they have.
Since the 1936 popularity census, however, many a new idea has
been born, or delivered to them. Court packing, taxes for next year
(their re-election year), a peculiar budget, a Government reorgani
zation program which leaves them out.
The members of the House and one-third of the Senate (but not Mr.
Roosevelt) must submit themselves to the political Jury in 1938 on the basis
of whatever they do about these raised problems. As they foresee it, the
issue of their re-election campaigns next year will not be Mr. Roosevelt
(as It has been in all their past New Deal elections). The question will be
what they did about it. They can foresee this issue in the evidence that
the Republican organizations are inclined to promise backing for candi
uhles on me dbsis oi ineir recora,
rather than their party affiliation.
Also the inherent rumblings in
their mail is ominous. Their noses
know.
Congressmen are not much
different from other people, as far
as human instincts are concerned.
They like to get along successfully
and quietly, which, in their case,
means they want to be re-elected.
Now, with the situation get
ung arouna to me point wnere tneir opposition is likely to base a campaign
against them on the question of whether they voted their own convictions
or Mr. Roosevelt’s—they are beginning to look twice at the power of the
Roosevelt organizations in their districts. Also, as far as they know, he,
personally, will never run again. Their problem, therefore, gets down to the
plain issue minus Mr. Roosevelt.
It may not mean they will topple over the program and establish
their own campaign basis. That remains to be seen. But it cer
tainly is the first time in four years that they have been thinking
along these lines.
And it may develop more trouble for the program than you have
suspected was possible,
ik * * *
This homely feeling Shaving a direct effect already upon the Supreme
Court packing line-up. Best authorities will tell you the President has
lost at least six Senate votes in the last two weeks. The most the Presi
dent can expect from the line-up today (they say) is two additional judges
and a constitutional amendment for retirement of judges at 70 years
of age.
This authoritative private analysis certainly is true as far as it indi
cates that six or more Senators have experienced increasing doubts.
* * * *
A dinner gathering of statesmen down the historic Virginia Pen
insula a few days back nearly had a Harlan County ending.
Everything moved smoothly until Dr. Steinholtz of Leipzig Uni
versity was introduced as the only speaker. The distinguished
German professor explained that a site for a vast clothing factory
had been selected in North Carolina and he was privileged to an
nounce it. It would manufacture cloth by a secret process which
required neither spinning nor weaving. The lucky city, he said, was
Greensboro, N. C. Senator Bailey of North Carolina moved his chair
forward and applauded loudly.
But then Dr. Steinholtz began on court packing, the Wagner act
Federal housing, the triple A, the New Deal. His language was ultra-Re
publican, if not downright critical. Senate Leader Robinson's flush
came up. Senators McGill and Thomas urged Robinson to reply. Sam
Massingale, a House member from Oklahoma iso his. colleagues say;
threatened to use a cow knife upon the speaker.
Just as the uproar was growing into a riot, Dr. Steinholtz pulled the
mask from his face. He disclosed Charles Ketcham, secretary of the
Greensboro Chamber of Commerce.
Note—Only Senate Leader Robinson was in on the hoax. They de
«-iucu iiuu iaj taNtr ix uuunce on nim.
Ketcham is to “Ketcham" again
as a Scotchman lecturing a com
ing Washington gathering on the
subject of balancing the budget.
* * * *
The names of Henry Stevens,
former head of the American Le
gion. and former Representative
William Rogers of New Hampshire
are marked in the President's
private notebook for Assistant
secretary oi war or sometning equally desirable.
You are not expected to believe it, because no outsider could, but
the White House really had the Jitters last week over the thought that State
Secretary Hull might resign to take the Tennessee senatorial vacancy.
Mr. Hull was overruled in an Inside squabble on conferences (his first
defeat) and White Housemen thought he might take it to heart. Shortly
thereafter, they were able to reassure themselves.
Talk of postponing the court-packing fight until next session is pure
imagination. It would be the poorest conceivable administration strategy,
in view of the line of congressional thought outlined at the top of this
column.
Tomorrow or shortly thereafter, the House Committee will probably
wastebasket that legislative paragraph denying the Federal Trade Com
mission jurisdiction over liquor advertising. No one will say so where
you can hear it, but the reason is that Treasury Secretary Morgenthau
does not like the idea, in view of the number of prominent party politicians
who have joined that good business at good salaries lately.
(Copyright, 1937.)
of the employers of the country. What- !
ever employers do nowadays they do
because they wish to abide by the
principle of a law upheld by the Su
preme Court. Mo6t of them do not
expect justice in the application of
the principle.
Experience Seen Deficient.
These things may sound harsh, but
they are true and often the truth is
most effective if It is plainly blurted
out. Miss Perkins has a bright mind
and knows the theory of labor rela
tions better than anybody in Wash
ington, but she has never had direct
experience in handling a labor prob
lem under the financial responsibility
of making ends meet in a large busi
ness.
There is a man in the Department
of Labor—the Assistant Secretary—
who is far from being a partisan of
the employers; in fact, he is a former
executive of the American Federation
of Labor. His name is Edward F.
McGrady, and his title is Assistant
Secretary of Labor. If he were the
Secretary of Labor, business men
might pay more attention to the De
partment of Labor. Miss Perkins be
longs at the head of a department of
social welfare, for which she would be
the most capable person the admin
istration could possibly find.
(Copyright. 1937.)
CTHE opinions of the writers on this page are their own, not
necessarily The Star’s. Such opinions are presented in
Tne Star s effort to give all sides of questions of interest to its
readers, although such opinions may be contradictory among
themselves and directly opposed to The Star's.
Taxation and Criticism
New Deal Journalists May Take a Tip From Comment
on British Program.
BY DOROTHY THOMPSON.
ON APRIL 30. the same day
that President Roosevelt dis
closed to Congress the In
creased Government deficit,
Mr. Neville Chamberlain, chancellor
of the British exchequer, Introduced a
new and drastic budget, designed to
meet a oompre
hensive program \
of social security
plus extraordi
nary expendi
tures for arma
ments. Since
then a spirited
debate has been
going on in the
British P a r 1 i a
ment and in the
British press.
Both the budget
itself and the
criticism of it are
so highly illumi
nating to an
Dorothy Thompson. |
nmerican, viewing Dotn our own fiscal
policies and the public attitude to
ward them, that I intend to devote
considerable space to the matter.
The British budget is breathtaking.
Its first feature is the increase of
the basic income tax rate to 25 per
dent—in contrast with our own low
normal rate of 4 per cent—and the
fact that the tax base is so broad
that it reaches down to touch in
comes of $500 for single persons and
$900 for a married couple. In this
it is in sharpest contrast to ours.
Senator Robert M. La Follette has
repeatedly inveighed against the non
democratic character of our income
tax. and has pointed out that 92 per
cent of the taxable individual net
income in the Nation falls in classes
below $50,000 a year of taxable in
come, but that during the fiscal year
of 1936 only 46 per cent of the Fed
eral income tax revenue came from
these brackets.
However, the British have long ac
cepted the theory that taxation should
be in highest measure direct and so
widely distributed that revenue would
be firm and dependable and that every
citizen would realize that it is his
money that is being spent and not
that of some economic royalist.
Supertax Important.
More important, therefore, is the
'new British corporate supertax, called \
"national deficit contribution." and
popularly referred to as the N. D. C.
This tax is designed as a national de
fense contribution from the heavy in
dustries who may be expected to profit
from the arms program superimposed
on the housing boom and the heavy
industry prosperity, which has been I
far more steady and cumulative than
ours. This new tax starts from a
base of standard profits for 1933-1935,
and the period averages out as equiva
lent to 80 per cent of the profits for
the year 1929—in marked contrast
with out own corporate deflation and
depression, with the submergence of
profits and incurring of deficits, and
with very slow emergence, which
picked up momentum only last year.
The new British supertax has cer
tain abatements and safeguards, and
an alternative base also is provided:
Industry has the choice either of ac
cepting the level of normal profits
against which to figure excess profits,
or to accept the so-called "capital
standard" under which profits not ex
ceeding 6 per cent in equity capital
are exempt, with taxes then ranging
upward, the next 4 per cent being
taxed one-fifth with a maximum levy
of one-third on profits over 15 per
cent of equity capital.
Now, it is clear from this that, in
spite of the extraordinary demands
that the British budget must meet,
and in spite of the relatively more
favorable position of British industry,
the new corporate profits tax is much
more adjustable than the American,
and those who pay it better safe
guarded.
Debate Sheer Folly.
Our tax legislation, like the utility
"death sentence” and the current
court packing, proceeded along the
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lines of benevolent autocracy and
disciplinary coercion. Evidence and
debate were reduced to sheer fu
tillarianism.
The original miscellany of advisers
called the brain trust was free of
both the omniscience and irresponsi
bility which has been arrogated by
the present cabal of unknown en
cyclopedic amateurs who proliferate
bills about subjects in which Con
gress is infinitely better versed and
trained. With the passing of the
emergency and in the present period
of transition from recovery to what
ought to become prosperity, the or
derly processes of free and unprej
udiced inquiry are urgently necessary.
But they have not had either a
popular hearing, or a hearing in Con
gress. Although the anti-administra
tion part of our press has often been
one-sided, fault-finding and not very
constructive, our democracy is also
suffering from the professional New
Deal journalist who attacks any critic
of the regime as being influenced by
crude or corrupt motives or incapable,
by reason of association with eco
nomic royalists, of being disinterested.
Prom courts to taxes, debate becomes
a name-calling contest.
Logical Challengers Considered.
In the British case, responsible of
ficials are called upon to think with
Parliament and meet the practical
and logical challenges of co-operative
Inquiry. And when Mr. Keynes, most
radical of English money theorists,
concurs with the Tories that the new
tax is a “levy on the growth of youth
and enterprise as such”—precisely
the objection made against our own
tax plan by leading business men—
no Labor party journalist has seen
fit to argue that Mr. Keynes’ opinion
is prejudiced by his position as chair
man of an insurance company, direc
tor of an investment trust, and pri
vate investor.
Here in America the corporation
tax bill has been consistently criti
cized by the United States Chamber
of Commerce. In the New Deal press,
and by the New Deal journalists, those
criticisms have been largely dismissed
as being just the fulminations of men
trying to hold on to their personal
goods and hamper social progress.
Would it interest those journalists to
know that the British tax bill is being
criticized for precisely the same rea
sons by the New Statesman and Na
tion? That publication is socialist in
orientation and is the unofficial organ
of the British Labor party, but in
the last issue to reach this country,
that of April 24, under the heading,
"Budget Chaos," it attacks the dis
criminatory elements of the plan on
grounds similar to the Twentieth Cen
tury Fund's critique of our undistrib
uted profits tax and the capital gains
tax, which same grounds were ad
vanced by the United States Chamber
of Commerce.
If liberals will not listen to Ameri
can business men, perhaps they will
listen to British Socialists, so in the
next column I shall take up the New
Statesman’# criticism of the British
tax, and compare it with some un
heeded criticism of our own taxation.
(Copyright. 1937.)
This Changing World
Rebellion of Indian Fakir Draws 30,000 British
Troops to Northern Frontier.
BY CONSTANTINE BROWN.
THERE are at present no leas than 30.000 British and Indian troops
on the northern frontier in India to catch the Fakir of Ipi, who
has raised the standard of rebellion in that section, always ready
to follow a leader who preaches war against the established form
of government.
Most of the tribes which follow a new prophet are out for loot. But
there is always a danger that in these days of world unrest rebellions of
inis type mignt oecome revolu
tions. And the British believe in
talcing their precautions in time.
Many Whitehall officials have
tried to minimize the importance
of the Fakir. But they were
brought to their senses and told
to leave nothing to chance when
they were reminded of Swift's
tribute to the power of the fleas,
who could have accomplLshedmuch
“had they been unanimous. The
Fakir and his brigand followers might be just insects for the time being.
But they could devour the lion If many other tribes joined them.
Hence the presence of the commander in chief of the Indian forces,
of many tanks and airplanes and of an imposing military force on the
British Afghan frontier.
* * * *
The authoritarian states do not like to explain what lies behind the
frequent meetings between their principal government officers. All we
know is that Neurath, Blomberg, Schacht, Goenng, Ciano, etc., meet now
frequently, have long conversations with Mussolini and Hitler, then go
back to their own countries, and more visits are exchanged once more.
There is no doubt that the visit of Chancellor Schuschnigg to
Venice has been initiated by Mussolini after the German-Austrian
conversations in Vienna. We also know that the Austrian chancel
lor has been “advised” by his Italian friend to pipe down on the
restoration of the Hapsburgs. This was tn keeping with the Italian
German agreement not to double-cross each other in their political
game in Central Europe. Now there is a question of Mussolini call
ing on Hitler in his mountain retreat at Berchtesgaden. The date
of the visit has been tentatively fixed for the month of May. soon
after II Duct comes back from Budapest, where he will accompany
the King and Queen of Italy on a state visit.
The chancellories of the democratic states of Europe wonder what
all these calls might mean.
There is a lull on the European political battlefield at the present
time. But when German and Italian leaders rush to see each other so
frequently, a sense of uneasiness becomes prevalent in Paris and London.
^
Nobody has been able to guess exactly how strong the German air
force is today. Charles Lindbergh estimates the producing capacity ot the
Reich at two-and-a-half times that of the United States.
Bombing and scout planes become obsolete and are withdrawn from
service after two years.
This might seem an expensive proposition, but in fact, the German
government loses only the labor and that, being regimented, means mighty
little. The 2-year-old airplanes are sold to foreign nations in the Balkans
or in ooutn America, iney are
much sought after because they are
still good war machines and are
being paid for, not in cash, but in
“what have you"—beef, coffee, cop
per, cotton, fats, etc.
* * * *
Seventy-eight-year-old George
Lansbury, who has thrown a bomb
shell by announcing to the world
that Hitler is ready to enter into
an international economic confer
ence proviaea rresiaeni tcooseveit or any otner leaaer ot a Dig nation is i
prepared to call It, admits now that there is a good likelihood of this idea
perishing.
Mr. Roosevelt has indicated plainly that he was not ready to summon
such a conference under the present political unstable conditions.
Leon Blum, who is probably the most enthusiastic advocate of any
kind of a conference which might bring about a settlement of the present
international troubles, is hesitant, too. Blum is willing to take a chance, but
he is being discouraged by London and Washmgton from sticking his
neck out.
* * * *
The bombing of the Basque civilian population by the Franco aviators
(German and Italian) smacks very much of the German war methods.
The British government is deeply sorry for what is happening. But many
a cabinet officer and diplomat sees in these bombings a distinct help for
the future policies of his majesty’s government.
Heretofore, the hands of the government have been tied by the fact
that there were almost as many Franco sympathizers in the United King- j
dom as there were loyalist sympathizers. Now public opinion might change.
And it may be, these public men think, that with a reversion of public
opinion and with the favorable—for Great Britain and France—neutrality
law of the United States, the government might be able to take a different
tone when speaking to Hitler and Mussolini.
iCopyrlgtit. 1937.)
Headline Folk
and What
They Do
Widow Carries on Nar
cotic War Started by
Hamilton Wright.
BY LEMUEL F. PARTON.
Ht, gooa men do lsn t neces*
sarily interred with their bones
If they have co-operating
wives. The late Hamilton
Wright’s world war on narcotics has
been shoved on down through 19 years
of tireless fighting by his widow. At
Richmond, Va , Mrs. Wright pleads
to the National Congress of Parents
and Teachers for united and effective
action against the Marijuana weed,
murderous Mexican narcotic smoked
by school children. She calls it the
“most pernicious of drugs.”
In New Mexico, 12 years ago. the
State Narcotics Commission found
growers and cigarette manufacturers
pressing a campaign among children,
and they found the children smoking
marijuana. They passed a law. The
use of the weed crept on to New York,
Rhode Lsland, Massachusetts, Penn
sylvania, Texas and several Southern
States. Just about a year ago Brook
lyn police were tearing up marijuana
patches in vacant lots and chasing
marijuana racketeers.
At the Richmond congress, Mrs.
Wright represents the Federal Bureau
of Narcotics. In 1921 she began her
service as one of three international
members of the Opium Advisory Com
mittee of the League of Nations, and
has since yeged her fight against the
drug traffic in every country where it
originates. She was Elizabeth Wash
burn, the daughter of the late Senator
William Drew Washburn, who had
been Minister to France.
Hamilton Wright traveled, agitated,
organized, wrote and lectured for years
against narcotics. When, in 1918, he
went to Paris as a member of the Peace
Conference, he was killed in a street
accident. Mrs. Wright, highly placed
socially in Washington, left her pleas
ant home and her four children and
picked up her husband's gage where it
had fallen.
There are so many things to be
against these days, it is hard to pick
your opponent. Why not just take
marijuana weed? This writer speaks
with feeling on this subject, having
observed one citizen chewing another s
ear off in a mountain hamlet in.
Southern Mexico, quite a few years
before the weed became an extra
curricular interest in American hign
schools. I had joined in singing the
auaint "La Cuearacha" song about *h ■
cockroach that got so full of marijuana
weed that he couldn't walk hom°.
There was nothing in the song about
the drug's peculiar incitement to
mayhem.
It was about 11 years ago that the
Brooklyn police arrested Andrew
Huerta, a Mexican sailor, who was sell
ing marijuana cigarettes. In a back
yard in Queens, he showed them a
knee-high croop of marijuana. This
led to the arrest of racketeers, growing
the weed and selling cigarettes to sol
diers. Every year or so there is an ar
rest. The cigarettes are made from
the dried leaves and the flowers of the
weed, which is known as "wild to
bacco" and looks like a tomato vine. It
is a tough growth and so is the habit.
If somebody bites you on the subway,
you will know what is the matter.
(Copyright, 1937.)
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