Evening star. [volume], October 27, 1947, Page A-9, Image 9

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

Image provided by: Library of Congress, Washington, DC

                
Tax-Free Straight Pay
For Overtime Urged
To Raise Production
Incentive Held Needed
To Increase Output as
Real Cure for Inflation
By David Lawrence
The strangest aspect of President
Truman’s plans to aid Europe and
to tackle the problem of high prices
in this country is that hardly any
attention is being focussed by the
administration on the real cure for
inflation—increased production.
What the President advocates
when he recommends “allocations”
or “controls” of materials and sup
plies is a dividing up of existent pro
duction He admits that there are
not enough goods available to supply
the world-wide demand, but never
theless he fails to offer any plan to
stimulate the production of goods.
Throughout the world, of course,
the problem is the same—lack of
production. It has been said re
peatedly that the world is not suf
fering from a shortage of dollars but
a shortage of goods. Actually there
is not enough work being done to
meet the crisis.
This is due in large part in Amer
ica to penalties and barriers erected
by Government itself. Instead of
providing incentives to greater pro
duction, the existing policies tend
toward limitation of production by
placing penalties on increased out
put.
What can be done about it? This
correspondent offers a plan which it
may be hoped will prompt others to
do likewise with the basic objective
of increasing production and event
ually bringing prices down.
Plan Offers Incentive.
The plan consists of a primary
incentive to the workers of America.
It involves the granting of a tax
exemption for that part of the
worker’s income represented by as
many hours of work above 40 hours
a week as he will agree to accept
payment for at “straight time” rate.
This would not involve any manda
tory change in existing arrange
ments where overtime is customarily
worked and paid for at time-and-a
half rates as provided by law. It
would apply only to those hours
voluntarily worked in excess of ex
isting work schedules and would be
applied only to what could be
specifically designated as “extra
hours.” The salaried man should
have the same exemption as the
wage eaener.
Labor unions, of course, would
have to agree to a temporary modi
fication of their agreements for a
fixed period. The entire success ol
the plan would depend on volun
tary action. Congress would merely
make such arrangements permis
sive by amending the present wage
and hour law for one year only
and by granting the worker a tax
exemption for all hours above 40
worked at straight-time rates.
The plan would be simple to
administer since payroll deductions j
nowadays for the purpose of the
withholding tax are readily calcu
lated op a flat percentage basis
anyway and the accountants of the
employer would merely keep sepa
rate the amount of income the
worker received for tax-exempt
hours of work. In making out in
come-tax returns, individuals would
receive data at the end of the year
as to the amount of income which
the employer’s record would show j
to have been derived from tax-1
exempt hours. It would be handled I
as any other tax deduction.
Production Increase Seen.
The effect of the plan would be
instantly to raise production by
tremendous amounts. Today em-1
ployers hesitate to put on workers
at time-and-a-half rates for a
few hours a day or night because
of the heavy expense and yet they
often do not have enough man
power willing to work a full extra
shift at straight time. The plan
would increase “take home” pay .
for millions of workers.
Actually the wage and hour law
by holding production to a 40-hour
week with no overtime is the biggest
deterrent to increased earnings and:
increased production in America
today. There is, of course, no law
against working overtime but the!
time-and-a-half requirement op
erates as a penalty because it im
mediately increases the cost of pro
duction for which there is no way
of increasing the price.
The whole drive should be just
the reverse—to remove penalties so
as to increase the number of hours
worked and thus to enable pro
ducers to sell in larger and larger
quantity and, by bringing down the
unit cost of production, pave the
way for price reduction. The psy
chology of dividing present produc
tion merely adds strength to the
economic forces that send prices
higher. Price control is no answer
because it invites conditions under
which black markets flourish. Surely
there must be many ways to in
crease production if the President
will use his powers of publicity and
will indicate to Congress what legis
lation he will approve so as to pro
vide incentives to production.
(Reproduction Rights Reserved)
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\ »«S"
A
Man to Man
World Watches U. S. Supreme Court
In Case of Restrictive Covenants
By Harold L. Ickes
Half of the nations of the world
have been the recipient of abundant
and free American advice on how
best to get rid of unsightly political
blemishes that
we see so clearly
on the skin of
other nations.
However, it was
not until last
week that we
finally got
around to ex
amining a par
ticularly disfig
uring blemish of
our own. The
eruptive disor
der in question
that has devel
oped from ma
lignant discrim- Harold L. Icfcts.
ination against Negroes and other
racial and religious minority groups
in our population, does not look
pretty in any mirror, especially on
the face of the eloquent defender
of democracy in other parts of the
world.
So urgent did the need to do
something about it appear, that
the Supreme Court agreed to review
a series of cases challenging the
legality of restrictive property
covenants that have barred Negroes
from white areas.
Hearings on these cases, the first
of their kind to reach the high
court, are scheduled for December
3. When all the evidence is in, the
Supreme Court may say whether or
not such restrictive covenants can
be inforced in the greatest democ
racy on earth. One may be sure
that a great many foreign eyes,
both in colored and white faces,
will be watching the result.
The court will review two Wash
ington cases dealing with restrictive
deed$, another from St. Louis, a
third from Detroit, and, perhaps
additional ones from Columbus,
Ohio, and Los Angeles. It has been
announced by counsel for the white
property owners that they will base
their arguments on the validity of
private contracts and on what they
regard as the weight of legal prece
dent in similar cases in various
State courts.
LT. N. Charter Factor.
Lawyers who hope to have the
Covenants invalidated by the court
will assert that their enforcement
i by injunction violates the due proc
ess clause of the Fifth Amendment
'to the Constitution, as well as the
! civil rights assurance that all citi
zens shall have the same right as
i is enjoyed by white citizens to in
jherit, purchase, lease, sell, hold and
j convey real and personal property.
| Naturally, the attorneys for the
| Negro litigants will not overlook
Icalling the Supreme Court's atten
tion to the fact that in signing the
United Nations Charter, this coun
try pledged itself to “universal re
spect for, and observance or, human
rights and fundamental freedoms
for all, without discrimination as
to race, sex, language or religion.”
I do not need to point out that
the cases to be heard by our highest
court are not isolated incidents. The
practice of “covenants” in real
estate transactions is widespread
throughout the Nation. Negroes are
not the only victims of it. Jews and
those of other minority groups also
suffer. (One might read Laura Z.
Hobson’s best seller, “Gentleman’s
Agreement.”)
Only a month ago a particularly
vicious display of discrimination,
against a Jew named Aaron Tuchin,
had its setting in Bannockburn
Heights, an exclusive real estate de
velopment just outside of Wash
ington. Mr. Tuchin had offended
certain elements of that restricted
area by buying a home and taking
his wife, who is non-Jewish, and
their -three children to live there.
When Mr. Tuchin refused to move,
nine householders, including a high
Federal official in the Office of the
Bureau of the Budget, petitioned
the Montgomery County (Md.) Cir
cuit Court to restrain Mr. Tuchin
and his family from living in his
newly acquired property. The nine
covenanters, who believe in the
Constitution every Fourth of July,
asked the local court for "relief”
on the grounds that violation of the
real estate covenant by Mr. Tuchin
was causing the plaintiffs “irrepar
able damage” and was “injurious.”;
Didn’t Know Him Personally.
None of the five women and four
men who signed the petition knew
Mr. Tuchin personally. None of
them even lived within half a mile
of him. It did not matter one whit
to them what happened to the non
Jewish Mrs. Tuchin and the chil
dren, or if the thought occurred to
them, perhaps they hoped that she
might divorce him on the grounds
of desertion. All that mattered was
that Mr. Tuchin was of a different
racial strain.
Fortunately the plaps of the
plaintiffs went awry, under the
glare of adverse publicity. The
petition was grudgingly withdrawn,
with the plaintiffs promising that
they would resume their effort to
oust Mr. Tuchin and his children
when “it can be brought up as a
purely legal issue.”
Tension between minority groups
and the majority of the Nation’s
population has been growing for
some time. The situation gives
cause for the alarm and appre
hension of every American who
loves liberty. If this contagion of
hate and prejudice is to be eradi
cated, stern measures are neces
| sary. Unless .all of us, of whatever
religion or race, strive together to
cut out this social cancer* it will
once again, as it did in 1939, de
stroy both the essential rights of
man and the peace of the world.
(Copyright, 1947)
Large Sale of New and Used Household
FURNITURE .
Including New Bankrupt Stock of John Covington, Inc. ]
OFFICE DESKS—CHAIRS—TABLES—SMALL SAFE FILING
PARIN'FTS _ PIANOS — RADIOS — NEW RUG CANTON
AND LIMOGES CHINA — GLASSS - ORNAMENTS
By AUCTION
At WESCHLER’S—905 E ST. N.W.
TOMORROW
Commencing 9:30 O'clock A.M., Continuing Until Late Afternoon
v.w furnishings include: commodes, lounge, occasional and side chairs:
bookcases, table* and floor lamps, mirrors: end. occasional lamp and cock
Booacases. , , groups, unusually fine odd sofas, etc. also
substantial used groups for dining, dinette, living and bedrooms: secre
tarT kneehole and fall front desks, baby carriages, hi-chalrs, gas and
electric ranges, books, metal wardrobes, utility and kitchen cabinets. *'**•'
f.. ssace heater, odd beds, box and coil springs, felt and
u5e“VHM »atTre.se. dr««rs, chest of drawer,, vanities, tables, chair,
and other personal effects.
Inspection This Afternoon
j What is
The Most
I
Exciting
Christmas Packaged
Ever Opened ?
*
(Watch this paper
for the answer)
LOUIE —By Harry Honan
On the Record
De Gaulle Victory Galled Result
Of French Distrust of Communists
By Dorothy Thompson
The way the municipal elections
went in France merely illustrates
the law of polarity in swings of pub
lic opinion, and the already dem
onstrated fact
that commu
nism is the
parent of reac
tion.
Gen. D e
Gaulle’s ‘‘rally
of the French
people” is gen
erally consid
ered the most
r i g h t-w i n g
French party.
The answer of
the French peo
ple to the estab
lishment of the
“Cominform” as D.r.thr Th.»p..B.
an instrument for the rapid com
munization of Europe, has been to
sweep the anti-Communists en
masse into De Gaulle’s camp. His
party hardly was bom when the
"Cominform” gave to it the first
clear majority in Paris of any party
in a hundred years. This occurred
in spite of the fact that the French
Communists, like the Italian, ap
parently have endless funds for
propaganda, employ them cleverly,
are able to pay organizers for every
district, and control—or are sup
posed to—French trade unions.
But every man is alone in a voting
booth, and apparently the control
does not extend beyond the green
baize curtain. Many French work
ers must have voted for De Gaulle.
Probably It was less for De Gaulle
than against communism, but it
went, quite naturally, to the most
unequivocal anti-Communist leader.
Greeks Scorned Left Wing.
It repeats a pattern. If the Greek
elections, which certainly were as
fair as anv ever held in Greece, re
turned a “reactionary” government,
is that any proof that they were not
“democratic?” If democracy means
anything, it means the government
the people want. After the at
tempted left-wing coup in 1945, the
Greeks wanted the opposite of that
movement.
Normally, the instinct of self
governing people is toward the
golden mean. A long term of con
servative government turns the
people left, and sufficient leftism
turns them right. Each experience,
however, influences the succeeding
government; to some extent, the
left educates the right and rice
versa, and this is the pattern of
evolutionary progress.
But extremisms cause the pendu
lum to swing widely. Thus com
munism in Italy and Germany was
not strong enough in the ‘20s to
capture power, but was trouble
some enough to make it almost
impossible for moderates to gov
ern. The answer then was fascism.
This, in turn, created many Com
munists, but the reaction of the
people against fascist violence in
cluded reaction against all violence.
As long as the people could take
communism watered down by its
alliance with more moderate par
ties, they swallowed it. When it
stands out nakedly and aggressively
they retreat—and far. Communism
is thus more dangerous when
masked behind fellow travelers
and in a “popular front,” where
it gets the indirect support of many
who are against what it opposes
but not for what it affirms.
Czech Parties Unite.
The reaction to the “Comin
form” in rrance is echoed in
Czechoslovakia where the Com
munists, basking in places under
other names, have been the largest
party—profiting from the factional
ism of the opposition. Now, the
Socialist parties, separated in Bo
hemia, Moravia and Slovakia, have
fused into one national party; and
Slovak Socialists who have had
“unity” with Communists have
pulled away and denounced the
Communist nine-country program.
Nor will the apprehension of war—
though exploited by the Communists
—help them. The instinct of peo
ple who feel the nation may face a
great crisis turns them to indubit
ably patriotic leadership. No
Frenchman could trust Maurice
Thorez in war. He became a patriot
—from Moscow—only when Russia
was attacked.
People Want No Violence.
Finally, the masses of the people
everywhere are sick of violence and
apprehend it from the Communists
when they break away from the
moderating influences of alliances.
If violence comes, as the Com
munists in France have threatened
in case of a De Gualle government,
the people will—I believe—rally,
even violently, against whoever
starts the violence.
Communism, however, might come
in defeated countries, where the
national spirit is stifled and the peo
ple feel they have been sold out by
the West, which they trusted as
thjy never trusted Russia. The
worst danger points are Italy and,
above all, Germany. Just why, at
this moment, our military authori
ties should have decided to dis
mantle more German plants is in
comprehensible. This will create
really effective Communist propa
ganda in the western zones of
Germany.
{Released by Th« Bell Syndicate. Inc.)
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Mimbtr Depoiit In»ur»net C*rp*r«ll*«
* t
McLemore—
Banks Emphatically Say
They're Friendly Places
By Henry McLemore
They asked for It and they shall
get It.
Far be it from me to refuse to
apologize to the banks of this coun
try if it will
make them
happy.
Ill have to
admit that I
never dreamed
that the stuff I
beat out on this
rattle-trap type
writer would
ever cause the
financial insti
tutions of the
United States to
start S run on
my door, and
demand that I
wash my mouth McL*m»r«.
out with soap and take back my
words.
Perhaps some of you need a little
explanation. Back in June or July
or one of those summer months
when banks are in full flower and
at their loveliest. I did a piece for
the papers describing my emotions
when I realized I needed to go to a
bank and attempt to negotiate a
$100 loan.
Letters Were Explosive.
Yesterday, a batch of mail that
had accumulated in the New York
office while I was gadding about in
South America reached me, and a
goodly part of it was from bankers.
Mercy, what those bankers had to
say to me! Fortunately, I live on
the ocean and thus was able to run
out into the waves and put out the
flames when the letters got too hot.
I had always thought that bankers
were dignified, level-headed men;
cool, judicious men who never al
lowed themselves to become ruffled.
But I am telling you that I got let
ters from bankers that were every
bit as explosive as those I used to
get from wrestlers back in my
sports-writing days.
I never dreamed that bankers
were so sensitive. I thought they
had hides as tough as their vaults
but I’m all wrong. The gist of the
letters was that a bank, not the
country club, or the bowling alley,
or the pool hall, was the real social
and recreation center of a town or
city. The more letters I read the
more I regretted that my ignorance
had kept me from spending most of
my spare time in banks. A bank—
if bankers from all 48 States are to
be believed—is where one will find
the welcome mat always out; the
glad hand of fellowship and friend
ship always extended.
If a man had never been in a
bank, and based his opinion of banks
solely on the letters I got, he would
spend his last penny trying to buy a
membership in one. He would un
doubtedly get the idea that a dance
band played there all day and half
the night; that the floor was
crowded with men and women sing
ing and laughing and calling one
another by first names; and that the
delightful green stuff was always!
being shoved through the wickets to
any and all who needed it.
Makes His Apologies.
Naturally, now that I know what
grand fun-spots banks are, I want
to apologize. So, to all the banks
in the United States I take off my
blue serge cap, tug at my forelock in
humility and say, "Excuse me,'
banks, I did not know.”
Now I realize that the place that
I have been carrying on my financial
transactions couldn’t be a bank at;
all. It has a cool, quiet, dignified
atmosphere. Serious men sit back of
large mahogany desks, and none of,
them whistles at you when you come
in and none of them runs up and
hopefully asks you if you couldn’t see
your way clear to borrow money.
Thank goodness I know what’s
what new. The next time I go to
New York I’m not going to waste
my time at the Stork Club or ”21” or
El Morocco when I can go down to
Wall Street and make real whoopee
in those banks.
Thank you, bankers, for enlight
ening me, and I trust that you will
accept my apology in the spirit in
which it was written.
(Distributed by McNaught Syndicate, Inc.) i
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