Evening Star Newspaper, January 22, 1937, Page 4

SECURITY 108 TAX TIME IS EXTENDED States Given Until April 1 to Put Programs Into Operation. E) the Associated Press. | The Treasury has decided to give States more time to put unemploy- ment insurance programs into opera- tion, postponing to April 1 a collec- tion of first unemployment taxes under the social security act. ‘The original collection deadline was January 31, The taxes to be paid quarterly are borne only by employers of eight or more persons, and do not fall on employes. . The law provides that States with unemployment insurance programs may receive up to 90 per cent of taxes paid by their citizens. In States with- out such programs all collections go into the Federal Treasury for general spending purposes. § Officials sald the postponement was granted because about 20 States re- cently have passed unemployment in- surance laws and have not yet had time to perfect administrative organi- zation. The ruling was & blanket order, how- ever, covering States both with and without insurance programs. The ruling provides that taxes not paid by April 1 will be subject to in- terest at the rate of 6 per cent until paid. The taxes are 1 per cent on wages pald in 1936, 2 per cent on 1937 wages and 3 per cent thereafter. Formulated by the Internal Revenue Bureau and approved by Secretary Morgenthau, the order had no effect on taxes under the old-age pension program of the security law. These levies now are being paid, proceeds are going into an old-age reserve account from which the Social Security Board will authorize pension payments. Labor (Continued From First Page.) fons was one George Lichtenberger, whose success at breaking up machine ists’ Jocals in the Fall River-New Bed- ford area was detailed in correspond- ence and affidavits. 8ince the committee’s findings have uncovered the union sabotaging ac- tivities of several of the association’s agents, their names have been fur- Tells of Spies HOMER D. SAYRE, Ezrecutive officer of the Metal Trades Association, told Sen- ate investigators his organiza- tion operated a spy system to “get information” on labor conditions in plants of mem- ber firms. —A. P. Photo. of any misrepresentation. We discharge any man who does that.” Admits Records Destroyed. Questioned about the system of pay- ing and being paid for undercover operatives, the witnesses admitted that bookkeeping records on this mat- ter had been destroyed last August 20. Such payments now are made through a “petty cash” set-up with no records. “Isn’t it & fact that you changed the bookkeeping system because of this investigation?” La Follette asked. “No,” Sayre answered, *“our only desire was to protect our men. We wanted to help the committee.” “But we can't get those records| now, can we?” the Senator inquired. “No,” Sayre admitted. “Strike Preventian.” Some of the facts developed about the association yesterday afternoon follow: That memberships are solicited largely for such services as “strike prevention, strike insurance and strike protection.” These include the fur- nishing of strike breakers, spies and guards, with strike strategy complete- ly controlled by the association and settlement by the individual companies forbidden unless approved by the as- sociation. nished to the local headquarters of the International Machinists' Union for | circulation to all locals. | Although the witnesses denied that the association maintains a “black list” for employment purposes, Chair- man La Follette introduced into the record several lists of workers who had been known to belong to unions and to have engaged in strikes. The lists were included in correspondence pass- ing between the association and em- ployer members. The association officials on the stand today were Homer D. Sayre, chief executive officer; O. R. Abbott, employment manager, and L. A. Stringham, Eastern representative. Turning to the association’s activi- *ties in connection with legislation, La Follette gained admission that they opposed the Wagner labor relations act and the social security act. Bulletin Sent Workers. In the case of the latter law, an as- sociation bulletin to workers stated | that the taxes collected for the act are | to be used for general purposes of gov- ernment. Senator La Follette directed his first questioning at Abbott, the employment manager, who testified that only six undercover men are on the associa- tion’s pay roll at present, although 38 were listed when committee subpoenas were served several weeks ago. The agents are known as special contract operatives. “Is it the job of some of these agents to investigate the attitude of workers toward joining unions?” La Follette asked. “Yes,” Abbott replied. “How many of these 38 operatives ‘were members of labor unions?” “Possibly 12,” Abbott answered. “Were any of them officers of local unions?” “Possibly.” Abbott then identified an applica- tion form such as those filled out by persons seeking strike-breaking jobs. La Follette then read to the wit- nesses the affidavit of Eckhardt, re- lating how he had answered an ad- vertisement in the New York Ameri- can and had been asked to appear a! the New York office of the association, ‘where a “Capt. Joseph Holman,” rep- resenting himself as an officer of the Government, had sent him to a job with the Pratt-Whitoey Aircraft Corp. of Hartford. Subsequently, he had been sent to the Bostor. Gear Co. plant, “Capt. Holman" claiming throughout that the Government was interested 1in sabotage in those plants. At the Boston plant, however, Eck- hardt said he was ordered to join the Machinists’ Union. “It was then that I learned for the first time that the N. M. T. A. was nothing but a spy agency used for the purpose of breaking up unions,” Eck- hardt's affidavit stated. He then quit the Boston job and returned to his New York home. | In addition to refusing to pay him, | Eckhardt wrote, Holman started visit- | ing his home to urge him to return to work. | “He then became very unpleasant,” | Eckhardt wrote, “and warned me not | to say anything about what had tran- | spired between the association and ' myself. | “He threatened me and told me| that if I did not keep secret what had | happened I had better watch out. He called several times when I was not st home and spoke to my wife and also warned her.” H “Do you have an employe named | Joseph Holub?” La TFollette asked ! Stringham. “Yes,” the witness answered. *Is that the Capt. Holman?” i “Yes, the same man,” Stringham | admitted. i At this point, Sayre interjected. i “This is the first time I ever heard. ATLANTIC CITY, N, J. ; HOTEL DENNTS ATLANTIC €ITY Winter weeks and we lightful ot the ‘Shore . . . doubly so at Hotel Dennis. Attractive Amen- can Plan Rates. C STEAMSHIPS, DITEREANEAN and all Eurepe—De Luxe service on famous express liners via ith Route. gg'.ll:floflfl_‘tl.lfig‘.l Q;;gb‘l_ ve., New York. R R &:"’fm“ and 19 d: $210 and up. FRUIT CO. New York. er your 3. North River, | 1 Agent. | expressed disapproval of a statement That a “defense fund” of more than | $200,000 is on hand for strike pur-| poses, with the income of the asso- ciation for these purposes not subject | to income tax laws. | That many of the guards furnished, {16 out of 42 in one instance, have police and prison records. Those in- | cluded in the group of 42, furnished to the Black & Decker Electric Co. of Kent, Ohio, during a strike, had been | involved in such varied activities as | robbery, shooting, rape, inciting to riot, vagrancy, counterfeiting and | mayhem. Records Held Destroyed. That many records of the associa- | tion have been destroyed since the | Senate investigation began was charg- | ed, although witnesses denled any con- nection. Included in the record, how- ever was a letter dated before the in- quiry began in which one official asked another for records in order that they | might be kept as long as 50 years. He admitted yesterday that they are no longer preserving records for 50 years. That members of the association have been advised by counsel of the association that the labor relations law *“does not apply to manufacturers.” Formed in 1899, the association ad- mits preservation of the open shop principle to be its main objective. It has 950 members directly affiliated, with influence admitted over the bulk of the automobile, machine tool and | other metal manufacturing industries. | Strike (Continued From First Png&) Chief Executive personally would take & hand in the situation. Lewis withheld, for the time being | at least, comment on the President's | statement. Secretary Perkins like- | wise had no immediate comment. Peace negotiations outwardly ap- peared at a standstill. Secretary Perkins' final effort to bring about a peace agreement broke down late last night, wnen Sloan by Lewis that there would be half-baked compromise.” “We found it useless at this time to discuss further any ideas we might have,” said Sloan before ieaving for New York. “Any time the President sends for us, we'll be here.” Cites Labor Aid to President. Lewis, who declared his campaign to organize Ford and Chrysler work- ers would follow settlement of this walkor as asked if he believed time s EISEMAN’S SEVENTH Th will | Match Your 0dd Coats THE EVENING STAR, WASHINGTON, D. C., FRIDAY, for White House intervention had arrived “That's up to the President,” he sald, “but labor intervened for him.” He referred to the support which he and many other labor leaders gave Mr. Roosevelt in the 1036 presi- dential campaign. Gov. Frank Murphy of Michigan, who has devoted virtually all his time to seeking a basis for negotiations since his recent Inauguration re- mained here for further meetings with Miss Perkins and her uides. ‘The Labor Secretary, looking ex- tremely fatigued after prolonged con- ferences all week, talked alternately yesterday with Sloan and other Gen- eral Motors executives and Lewis and his lleutenants. She appeared hopeful in mid- afternoon, but Lewis shortly after- ward strode from her oak-paneled office with an assertion the sit-down strikers would stay in the Fisher body plants in Flint, Mich. Lewis expressed a willingness to try to reach a strike agreement at any time, but declared withdrawal of the sit-down forces would “disarm la- bor.” Firm Still Armed, He Says. General Motors, he declared, still was “armed with John Doe warrants, munitions, tear gas, pistols and rifles.” Lewls declared a “united front” of financial and industrial interests sought to crush him and his com- mittee’s drive te organize workers of sach industry into one big union, but Sloan denied this. “There is no such concerted action at all” he said. In General Motors, we operate independently. We run our business as we think it should be done. Of course, we ask advice, but our decisions are our own decisions.” When asked to what General Mo- tors paritcularly objected in Lewis' statement, Sloan made an answer |and then withdrew it as “off the rec- ord.” The General Motors head, who came here Wednesday, said he had proposed at his final conference with Miss Perkins that the plants be opened, negotiations begun and workers be' given retroactively any resulting ben- efits. He declared, however, possible strikers. “Isn’'t this common sense?” he asked. “If I own a house, do you have a right to come into fit, sit down in it and prevent me from oc- { cupying it?” Millions in Wages “Lost.” A million dollars & day in wages was being lost because of the strike, he said, and the company would be 160,000 cars behind its production schedule on February 1. | “We'll deal with any group tha at all representative of our employes,” he said, denying the corporation had violated the Wagner labor relations act. ‘The breakdown in negotiations was | the second within a week. Las: Fri- |day a truce to discuss peace pro- | posals was reached, but William 8. | Knudsen .the corporation’s executive | vice president, agreed to confer with | the Flint Alliance, a group opposed | | to_the strike. | The United Auto Workers charged | General Motors with breaking faith and refused to take its sit-down | strikers out of the Flint factories. The corporation denounced this action, pointing out their removal was part of the agreement. Lewis said the union would not it was im- to megotiate with sit-down s LUMBER PRICES . GOING UP need lumber. expected to be much h Spring. We anticipated a price increase and Iy of first quality ry need. Get our low J. FRANK ELLY: SUDDEN SERVICE Lumber and Millwork 2121 Ga. Ave. 'NOrth 1341 ~ Avoid Intestinal Fatigue Many people suffering from In- testinal glfl[fl!, commonly called Constipation, do not know what it is to feel good. One or twe E-Z Tablets for a day or two are L\m what these people need. They lron “pep step livelier ng, constipa disappear. on, makes a difference. See for your- self. You get 60 little E-Z Tablets fas 255 At all good deug stases. & F STS. We're headquarters for special trousers. If you need trousers for work, dress, school, or for match- ing odd coats, come here. Largest and best selection in town. For Trousers Go to Eiseman’s JANUARY 22, 1937. In Auto Strike Limeliglit Secretary of Labor Perkins and Gov. Frank Murphy of Michigan were in another confer- ence yesterday with labor leaders in an effort to settle the auto strike. This picture, made before the meeting got under way, shows, left to right, Homer L. Martin of the Automobile Workers’ Union, Gov. Murphy and John L. Lewis, head of the C. I. O. again agree to that truce, which he called “one of the most stupendous double-crosses in industrial history.” SLOAN SEES HOPE. NEW YORK, January 22.—Alfred P. Sloan, jr., president of General Motors Corp., returned today from Washington conferences on the sit- down strike in General Motors plants with the statement: “There is hope. It's so terribly important. We've got to do something. The situation must be solved.” Sloan, William S. Knudsen, execu- tive vice president, and other officials EVERY mile you travel by Pennsylvania Railroad is a bargain. A bargain in safety. . . millions spent to surround you with every safeguard. A bargain in speed . . over a highway of steel kept in peak condition. A bargain in 1 can say that.| who were in Washington for the con- ferences, will meet today for & fur- ther discussion, Sloan said, and ‘prob- ably will issue a statement then. Asked if he had said it was “use- less” to continue the conferences in Washington because of John L. Lewis’ demand that President Roosevelt in- tervene in behalf of the strikers, Sloan | sald: “That was not the reason we left | Washington, I did not make that statement.” He declined to answer a question as to whether General Motors would See comfort . . . on the largest fleet of air-conditioned trains in the world. No other form of travel 'gives so much for so little SPEED COMIORT (RIENDLINESS —Harris-Ewing Photo. attempt to reopen its plants without STRIKE CENTERS QUIET. DETROIT, January 22 (#).—The apparent failure of Washington con= ferences to break the deadlock be- tween General Motors Corp. and the | United Automobile Workers of Amer- lca had no noticeable effect on the strike centers today. Most of the members of the U. A.| W. A. Board of Strategy were in| Washington, and there was no com- | | ment at the union headquarters here. | | At Flint, Mich, where “sit-down” | strikers have occupied two General | further negotiations with the strikers, | FARES ARE LOW Go anywhere...anytime for 2 o mile In coaches...3c a mile in Pullmans. how little it costs fo typical Points on the Pennsylvania Rallroad s From WASHINGTON InCoaches *InPullmans $ 455 . 1545 18.10 *Plus Pullman Fare For reservations call District 1424 PENNSYLVANIA RAILRDAD COMMON COLDS often turn to more serious ail- ments. A heavy toll of time, health snd money is taken every year by the so-called “common™ eolds . . . because they are not treated promptly. MILBURN'S CAPSULES relieve amasingly quick. They start work immedistely + + » make you feel better right pyretic action tend to reduce fever. They curb nasty symptoms of a cold quickly and often stop away. By anti- colds in a few hours if taken as directed. MILBURN'S CAPSULES are not a cure-all, but were developed especially for the treatment of colds. Don't waste time with makeshift, half-way meas- ures. Get a package of MILBURN'S CAPSULES now and start taking them at once. MILBURN'S CAPSULES ON SALE AT PEOPLES DRUG STORES. AND OTHER GOOD DRUGGISTS FIGHT COLDS AND COUGHS WITH THIS 3-WAY TREATMENT 1. Relieve common ecolds with MILBURN'S CAPSULES....35¢ 2. Relieve coughs due to colds with HALL'S EXPECTORANT...35¢ 3. Relieve nasal congestion with KEYS NOSE DROPS....35¢ fomtes. sq 4 Druggls Motors plants since December 30, Robert Bavis, union organizer, sald: “The situation is unchanged.” George E. Boysen, who organized the Flint Alliance to oppose strike sentiment, said he had no comment, at least at present. Petitions Are Claimed. A statement by General Motors that 79 per cent of the employes in 43 plants have protested against the interruption of work and signed pe- titlons stating that they were satis- fled with conditions of employment brought reactions in several union quarters. “One hundred per cent want to go back to work—but under different conditions,” asserted Travis. Adolph Germer, representing ths Committee for Industrial Organiza- tion, charged that the signatures claimed by the corporation “were collected by the management through coercion, intimidation and the threat of loss of jobs if employes did not sign.” The union, he added, ir- structed workers in several planis to sign “to protect their jobs.” At San Francisco the U. A. W. A. filed a complaint with the Na‘ional Labor Relations Board charging that | employes of two divisions in Oaklanz Calif. were coerced into signing the petitions. TOMORROW A sale that will interest every man who spends $30 or more for Ts, o ALL THREE So tomorrow mo seeker with thou and oxford grays. sport models...n tive man. half-yearly sale stores tomorrow. 916 F Street 721 14th St. 941 Pa. Ave. his clothing! verc oats - BELL STORES OPEN ‘TIL 9 SATURDAY NITE Bell prices are standard throughout the year except June and January. rning we offer a challenge to every far-sighted value sands of fine all- wool garments in every new, de- sirable weave and color . . . includ- ing hundreds of staple blue serges Single and double breasteds in English drapes and ot forgetting styles and models for the more conserva- Remember, gentlemen, Bell has NEVER tailored a garment to sell for as little as $16.85—the price at all Bell BELL CUSTOMIZED SUITS Reduced in our half-yearly sale $l 9'85