Evening Star Newspaper, May 23, 1937, Page 5

SENATE MAY KILL D.C. BILL CHANGES House Transfers of Certain Activities Likely to Be Eliminated. BACKGROUND— Numerous l€gislative “riders” at- tached to the District appropria- tion act, as it was passed by the House, stirred controversies among both civic and oficial groups. The total of the bill as it now atands is $1,282,000 less than rec- ommended by the Budget Bureau. During past week Senate Appropri- ations Subcommittee listened to testimony by District officials. BY J. A. O'LEARY. As Senate hearings on the 1938 Dis- #rict supply bill enter the second week, indications are that the Appro- priations Subcommittee probably will eliminate most of the House provisions that would transfer or reorganize cer- tain municipal activities. Although decisions on these ques- tions will not be reached until the hearings end, there are signs of a feeling in the subcommittee that such changes in the basic functions of va- rious departments should be consid- ered separately, rather than as riders or provisos in the appropriation bull The House itself struck out or modi- fled some of the riders written into the original draft of the bill, but as 1t came to the Senate it still detained some of these changes, in whole or 1n part. Provisions Awaiting Consideration. Among the provisions still awaiting Benate subcommittee consideration are the following: Money for running public hospitals, transferred from Public Welfare to the Health Depart- ment; funds for the Welfare Board's permit office, transferred to Health Department; funds for operation of 15 playgrounds, transferred from Playgrounds Department to Commun- ity Center office; proposal to abandon Children’s Receiving Home on July 1, with a requirement that the children be placed in boarding homes: proviso that would deprive per diem workers of leave, ‘The subcommittee, presided over by Chairman Elmer Thomas of Okla- homa, hopes to complete the testi- mony of District officials tomorrow, and begin Tuesday heariflg the more than one hundred individuals and spokesmen for civic and trade bodies that have asked to be heard. During the hearings for civic groups, # large delegation is scheduled to ap- pear in support of a request for an additional $1,000,000 in the unem- ployment relief fund to prevent hard- ehip in the families of employables who cannot find work. Revision of Figures. It probably will be a week from to- morrow before the Thomas subcom- mittee revises the figures in the ap- oropriation bill. Another day or two would elapse before the Senate could &ct on the bill. If by that time sepa- rate tax bills are making steady progress through the regular legisla- tive channels, tax amendments on the appropriation bill probably would not be deemed necessary. When the appropriation hearings are resumed at 10 a.m. tomorrow the last group of department heads to be heard will include those of National Capital Parks, the Highway Division, Traffic and Water Departments. Although the House knocked out a rider that sought to transfer the cost of traffic administration from the general fund to the gas tax fund, it failed to put back in the bill ap- proximately $76,000 for the salaries of the traffic office personnel. The Benate is expected to correct this. Recommendation Turned Down. ‘The House also turned down the recommendation of its committee that administration of public hospitals be transferred from the Weifare Board to the Health Department. However, while it retained the authority with the Welfare Board, the House left the money to run the hospitals embodied in the Health Department's appropri- stion, Present indications are the Senate will restore the funds to the welfare agency. The permit office also is likely to be returned to the Welfare Board. ‘There are other innovations in the FHouse bill awaiting Senate subcom- mitee consideration this week, such as the school rider restricting the amount of clerical work that may be performed by teachers; authority for the appointment of a fire insursnce rate expert in the insurance depart- ment, and added personnel to enable the corporation counsel's office to establish a municipal bonding service as & means of giving the city a new source of revenue. The House pro- vided the funds for the bonding serv- ice in anticipation of the passage of the necessary bill to authorize such a service, which has not yet passed. Message (Continued From First Page.) e and flexible, designed to avoid the ob- vious errors of the N. R. A. on one side and the dangers of a strait-jacket on the other. It is set up behind triple or quadruple legal defenses, so that if the courts should shatter the outer lines, inner fortifications will re- main. The bill is designed to reinforce, not to supplant, collsctive bargaining. This is made clear by the wording of the bill and also by the express stipula- tions that the Labor Standards Board | shall not set any minimum in excess of 80 cents an hour or create a na- tional income of more than $1,200 a year and that it shall not reduce hours below 35 a week. In general it is au- thorized to intervene only in the ab- sence of effective collective bargaining between employers and employes. Farm Families Not Affected. ‘The bill will define as substandard goodx produced by persons under the age of 16 or where employes work more than 40 hours a week or receive less than 40 cents an hour. It will not affect the work of children at home or on family-sised farms. The Labor Standards Board—to eonsist of either three or five persons appointed by the President with the oconsent of the Senate—may allow wvariations from the standard under a large number of conditions. It may program. THE SUNDAY STAR, WASHINGTON, D. C, MAY 23, 1937—PART ONE Co-Author of Labor Bill CHAIRMAN CONNERY Of the House Labor Committee, with emphatic gestures, told reporters as he left the White House yesterday of plans to push his bill for the President’s minimum wage-mazximum hour —A. P. Photo. and the section setting up the Labor Standards Board. Certain conditions are defined as “oppressive”—wages below 40 cents an hour, a work week of longer than 40 hours, the employment of children younger than 16, and the use of strike breakers, except to preserve essential public service, and the use of spies to discover the union affiliations or political or economic views of workers. Defines Proof of Violation. The bill will prescribe that proof of the existence of substandard con- ditions in an establishment within 90 days preceding the removal of the goods shall constitute prima facie evi- dence of a violation of the act. The Labor Standards Board may revise upward or downward the stan- dard wage and hour provisions of the act, provided the board does not de- press the levels below those consistent with the standard of living necessary for the preservation of health and efficiency. It may vary the standards to avoid throwing persons out of work or interfering with new opportunities for employment. It may make excep- tions to meet unusual situations. In fixing wages the board will be instructed to take account of the cost of living, the reasonable value of the services rendered, wages for comparable work fixed by collective labor agreements, and wages for com- parable work paid voluntarily by fair employers elsewhere in the country. Factors in Fixing Hours. In fixing hours, some of the factors the board will be required to con- sider are: The health of the workers, the number of persons available for employment in the occupation, with which the board is dealing, and hours lective bargaining fixed voluntarily by elsewhere. The board would be allowed to make exceptions for smaller employers, for learners and apprentices serving under conditions prescribed by the board, the employment of physically handicapped or aged persons, overtime during seasonal rushes, or during emergencies, and in other special cases. The third part of the bill prohibits the transportation or sale in inter- state commerce of any goods pro- duced under substandard labor con- ditions. This revives the legal prin- ciple of the first child labor act, enacted by Congress in 1916 and invalidated by the Supreme Court in 1918 by a 5-4 decision in Hammer vs. Dagenhart. Administration law- yers believe that even as presently constituted, the Supreme Court might overrule this decision, just as it recently overruled its previous 5-3 and 5-4 decisions on State minimum wage laws for women. Provides Labor Standards. The. fourth part of the bill, which overlaps the other parts to some ex- tent, provides for the maintenance of fair labor standards in particular situations directly affecting interstate commerce. This is in reality the second line of legal defense, designed to enable the Labor Standards Board to function if the court should refuse to overrule its 5-4 decision of 1918. Labor experts assert that this alterna- tive might help to protect existing standards but probably would be in- effectual in reaching many situations where low wages and.long hours are notorious. ‘The last part of the bill deals with Zeneral administrative provisions. The Labor Standards Board is given broad powers to subpoena witnesses and records, to prescribe records for em- ployers to keep. It is authorized to order employers to cease sub-standard Ppractices, and to enjoin in the Federal courts the shipment of goods in inter- state commerce. It is authorized to classify employes by the type of work done or by industries, and to make allowances for geographical and loca! differences, and to appoint advisory committees. In investigating condi- tions in particular industries, it is instructed to use, so far as possible, the facilitles of the Department of Labor. The penalties have not been deter- mined, according to Connery. agreements or ““Arthritis Stiffens My Joints!” the letter says ... “for I am suffering the torments of prescribe special standards for spe- cial industries. The board is author- ized to appoint advisory boards for particular industries, on which em- ployers, employes and the public will be represented. These advisory boards may recommend suitable minimum ‘wages and maximum hours for their respective industries. acidity.” Don’t allow aches and pains to settle in your very bones. Drink the natural, alka- line water that doctors have prescribed for 75 years. Let us send you a case. Telephone MEt. 1062. MOUNTAIN VALLEY The bill consists of five parts. The first part contains the declaration of legislative intent, dfimfimdw MINERAL WATER Frem HOT SPRINGS, ARK. 1408 K St. N.' MEt. 1082 for comparable work fixed by col- | fair employers | Taxes (Continued From First Page.) ceeds the receipts from tre State in- come taxes for 1935. “Let’s try the sales tax for a year and see what it produces,” said Mrs. Norton. “It should be marw as low as | possible, and food, low-pr¥®ed clothes | and drugs should be exempt. | “A sales tax would be more equit- | able than an incoine tax in the Dis- | trict in view of the conditions here | which would permit so many exemp- tions. Moreover, I believe an income tax would be difficult of enforcement.” Arnold said he preferred a sales tax | to an income tax, particularly in view of the questions raised as to its valid- | ity in the District. “A sales tax would not cause any hardships,” he said, “but I believe there should be no ex- emptions—not even food or clothing.” Nichols, who strongly favors a sales tax, also believes there should be no exemptions. Incidentally, he has drafted a bill which the tax subcom- mittee has under consideration pro- viding for a one-half per cent general sales tax which he estimates will yield $4,500,000 in additional revenue each year. 2 Per Cent Levy Planned. In supporting the sales tax, Ran- dolph pointed out that when his native State of West Virginia adopted | the plan it was met with “bitter” op- position, but now he believed 90 per cent of the people favored it. "I be- lieve it has been a rather good tax,” he declared, “and I feel its adoption in the District might be a partial so- lution of the present tax problem.” Randolph explained the West Vir- ginia tax amounted to 2 per cent on | all commodities having e retail price of 10 cents or more. The Commis- sioners’ program calls for a 2 per cent tax. McGehee likewise favors a sales tax without any exemptions, and expressad | the belief it would be ‘“easier to col- | lect” than an income tax. The sales | tax, he explained, can be collected immediately and since the District is in such dire need of additional revenue, it would be preferable to an income tax which could not be col- lected for some time. While Allen has indicated a pref- erence for an income tax, he believes that the sales tax as well as an income tax will eventually have to be adopted to produce the revenue needed to keep the District out of arrears. Delaware, which Allen alone represents in the | House, does not have a sales tax. l Dirksen, leading the fight for an' income tax, argued that it would Rug ing problem: cleaner. ment ¥ * ¥ Our most We ing rugs. cleaners. We use only pure soaps. “reach those most able to pay.” “An income tax,” he declared, “taxes according to the public's ability to pay. A sales tax reaches everybody, regardless of their ability to pay. I fear, too, a sales tax would set prece- dent and run away with itself. When- ever additional revenues are needed the sales tax would be increased.” Dirksen’s own State of Illinois, how- ever, has a general sales tax, which is yielding a large part of the revenue from taxation. Treasury Department figures show the revenue from the sales tax in Illinois jumped from $32,- 571,000 in 1934 to $64,089,000 in 1936. The State has no income tax. Indiana also had a general sales tax, but its two members on the Dis- trict Committee—Mrs. Jenckes and Schulte—are opposed to its adoption in the District. Indiana, according to Treasury figures, raised $10,388,000 from & sales tax in 1934 and $16,- 548,000 in 1936. Abandoned in Indiana. “I am opposed to a sales tax and will fight it with all the power at my command,” Schulte declared. “It is unfair and unjust. It hits the little fellow who hasn't the ability to pay. Let those who are able to pay bear the burden.” Schulte, incidentally, has a bill be- fore the Tax Subcommittee providing for & tax on chaln stores, which he declared would give the District some of the additional revenue it needs if adopted. He already has appealed to the Tax Subcommittee to approve it. If the measure is ignored in the sub- committee’s tax program, Schulte said, he would urge the full District Committee to indorse it. Mrs. Jenckes pointed out that In- drana abandoned the sales tax after a “fair trial” because it was found to be unsatisfactory, and a gross income tax adopted as a substitute. An income tax in Washington, she said, “would work & hardship on the Government employes in the lower salary brackets.” Hits “Little Fellow.” Eates sald he is opposed to a sales tax because it would place a burden on the person least able to pay it. “It is the least desirable of all taxes,” he declared. “Other potential fields of taxation should be explored before & sales tax is adopted. The principle of good taxes is to tax those best able to pay.” A sales tax, according to Hull, would “hit the average man,” when there is available for taxation *‘the larger incomes of those better able to bear the tax.” ® Bigelow threatened to oppose both he sales tax and the income tax and advocate adoption of his own pian, now before the subcommittee, to make land bear the entire burden of the real estate tax in the District. A bill which he has introduced would remove the tax on improvements. “If my plan is approved and the tax rate raised from $1.50 to $2.50 on $100 of assessed valuation,” Bige- low said, “the District could raise $4.830,000 in additional revenue each year. “An income and a sales tax serves to tax the people on money earned, whereas a land tax is a tax on some- thing that is owned.” Bigelow also expiained the “ad- vantage” of the adoption of his plan is that it would not cost an addi- tional cent to administer because the tax collection machinery is al- ready set up. MAN DIES OF WOUND RECEIVED DURING HUNT Shot through the stomach when he stumbled over his gun, Walter Wyn- coop, 63, of Colvin Run, Va, died yesterday in Georgetown Hospital here. The victim had said he was shoot- ing birds near his home last Thursday | when he tripped over his small bore | rifle. The gun fired a bullet ranging | & upward through his adbomen to lodge near his heart. " Specializing in Perfect DIAMONDS Also complete line of stand- ard and all-American made watches. Shop at the friendly store—. youre always greeted with & ‘smile—with no obligation to bagy. Charge Accounts Invited M. Wurtzburger Co. 801 G St. N.W, OVER 40 YEARS' EXPERIENCE SPECIAL|ING IN Cleanin The cleaning of rugs, whether thes be inexpensive or costly, should not be attempted by amateurs. S The Institute of Carpet Manufacturers of America, Inc., recommend taking your clean- s to a professional, responsible rug They say “* * * the cleaning should be entrusted to the hands of an expert who is provided wi th adequate ond modern equip- plant is equipped with the modern apparatus for clean- ‘We employ only expert guorantee results. Can we say more? Get Our - Saniary Carpet PHONES.! ouim 3291—NAH. 3257—NAH LOW _ Summer Storage Rates Cleaning There Are NO Short Cuts In The Making Of “"Murco” Store Hours Monday through Friday, 7 A. M. to § P. M. Saturday, TA M tolP M There are no “substitufes” for the time honored formula of Pure White Lead, Pure Lineseed Oil, Pure Tur- pentine and Japan Dryer. “MURCO” Lifelong Paint has always been made that way. It is the best formula known for paint making . . . that is why “MURCO?” is always 100% Pure. “MURCO” gives you more durability «+ . more beauty . . . at no extra cost. E. J. MURPHY CO. INC. 710 12th St. N. W. NAH. 2477 TAX PLAN FREES 00D, MEDICINES But Set-Up Approved by City Heads Does Not Exempt Clothing. Food and medicine will be the only products specifically exempted from the application of the 2 per cent sales tax, advocated by the Commis- sioners as the major element of their “stop-gap,” budget-balancing reve- nue program, District officials revealed yesterday as they completed the rough draft of the bill. The measure does not provide for exemption of clothing and defini- tions are to be inserted to provide that food products would not be taken to mean candy, soft drinks or other confections, nor any alcoholic bever- ages. The bill will provide, also, that the sales tax be paid on food sold at restaurants, hotels and lunch coun- ters, or otherwise served for a con- sideration, it was explained by Cor- poration Counsel Elwood H. Seal. He indicated, however, there might be a change to permit an exemption for food bought at eating establish- ings, up to a certain nominal amount, perhaps 50 cents. This point may be determined tomorrow when Seal and Richard B. Keech, vice chairman of the Public Utilities Commission, and Vernon E. West, assistant corporation counsel, meet to place finishing touches on the bill. $8,900,000 Estimated. Meanwhile, a recalculation of the estimates of revenues under the Com- missioners’ five-point program, showed the grand total receipts would be some $8,900,000, although but $7.- 800,000 would go into the District's “general fund.” The remainder, or $1,100,000, to be raised from a 1-cent boost in the gasoline tax levy, would 80 into the special fund earmarked exclusively for highway improve- ments While the deficit in the “general fund” is calculated at $6.,146,000, under the 1938 District budget as passed by the House and measured against estimates of revenues from the existing tax levies, District officials anticipate the deficit total may go to $7.800,000 as the budget comes finally out of the congressional mill, the deficit would go far higher. The House in its action on the budget lopped items totaling $1,282,000 off the supply bill as approved by the Budget Bureau. The Commissioners are seeking to have these cuts re- stored and for this reason are plan- ning the tax program to produce additional revenue exceeding $6,146,000 figure. Also, it is explained, the District must have a “cushion” to allow for increases in budget which may be inserted as a result of Senate action. District officials, therefore, do not believe they have departed from their promise not to seek any greater reve- | nues than needed to meet the deficit. The proposed gas tax boost is designed to provide more adequately for high- Way needs. Several costly traffic en- gineering projects are held necessary, in addition to street widening and an enlarged general program. Adopt Committee Report. ‘The Commissioners yesterday gave It 41,000,000 is added to the relief item | gaged in business may be required to the | | exemption on gross by Maj. Daniel and budget officer. This program Proposes: 1. Weight tax on motor vehicles, to raise $1,500,000, which would go into the general fund, not into the special fund for highway purposes. 2. Estate and inheritance tax, esti- mated to raise $800,000. 3. Insurance premium tax, to be raised from 15 to 2 per cent on net premium receipts, estimated to bring in $200,000 additional. This levy would be applied to the mutual fire and the fraternal insurance companies, now exempt from the present levy. 4. Gasoline tax, to be increased from 2 to 3 cents a gallon, to raise an additional $1,100,000, the receipts o go into the special highway fund. 5. Bales tax, estimated to produce $5,300,000, this estimate being $300,- 000 higher than earlier estimates of the effect of a sales tax. As to the sales tax, which the Com- missioners urge in lieu of the suggest- ed District income tax, because of the doubts as to the constitutionality of that measure, the committee of Dis- rict officials said: “The prineipal objection to this form of taxation is that the poor man pays equally with the rich in the pur- chase of necessities. This objection, however, is obviated by exempting food from the operation of this tax, which exemption this committee recom- mends. The purchase of other com- modities is in a fair proportion to in- come and ability to pay. “The committee is informed that during the last calendar year, retail sales in the District amounted to $335,000,000, of which $70,000,000 rep- resented sales of food. This Jeaves ap- proximately $265,000,000 upon which a 2-cent tax could be levied, and would produce approximately $5,300,000. Many States have enacted sales tax laws, one of the most successful being California. That law was approved on July 1, 1933, and the committee un- derstands it is working satisfactorily. In the opinion of the committee the burden of collecting and paying the tax should be placed upon the re- tailer.” Favor D. C. Tax Survey. ‘The Commissioners emphasized they will seek an appropriation of $15,000 for a survey of the entire tax structure of the District, to be made during the recess of Congress, in order to pre- pare a permanent program. They de- clared taxation to be a highly technical field and agreed that the imposition of one new tax without the lifting of others might result in ‘“substantial” inequities. Reporting that they had not aban- doned the idea of a business privilege | tax, nor an income tax, they insisted that these should not be incorporated in the hastily drawn emergency pro- gram, Their committee declared, in fact, that the gross receipts or busi- ness privilege tax ‘“may well be the medium by which those locally en- pay their property costs of “govern- ment” and added that by such a tax | “ways and means may be devised by | which certain inequities now done | to local businesses through taxes, as | compared with the lack of. or in-| | consequential assessment against for- | eign businesses or types of operations, 1 may be properly changed.” | As to the income tax, the committee declared “the need for certainty in result, plus the time limitation, have | made such proposal impracticable at this juncture.” Seal announced that the sales tax | bill would include two general exemp- tions which must be inserted as a precaution against voiding of the act. One of these would provide receipts Irom' formal approval to their five point|sales of tangible personal property program in adopting as their own the | which the District is prohibited from report of their Tax Committee, headed | taxing under the Constitution and the e s e e e e e This Amazing Value in Automatic OIL HEAT! Before you buy next Winter's coal — before you buy ANY il burner, you owe it to yourself to investisate this outstanding value in eil burners, AMERICAN OIL BURNER At this price, The Amer- ican Oil Burner is the GREATEST value in automatic oil heat ever offered Washington homeowners. The price includes the American Oil Burner, a 275-gal. fuel storage tank, Min- neapolis Honeywell con- trols—installed and ready to operate for *230 The American Oil Burner is backed by a reliable and responsible organization and is fully guaranteed. Be- cause of our market connections and ONE PRICE TO ALL POLICY, you are able to obtain this remarkable value. See American . . . 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Officials of the Board of Trade have arranged a conference with the Commissioners for tomorrow morning | on the tax program, | . Hull (Continued From First Page.) instead a readjustment of interna- tional relationships based on friendli- ness, co-operation and fair deaMng. Mentions No Countries. The address, in which he mentioned | no specific countries, was delivered | exactly one week after Premier Musso- | lini announced in Rome that Italy would pursue energetically its goal of economic self-sufficiency. State Department officials, explain- ing that Hull began preparation of his broadcast long before the Italian premier's speech, said it was not in- tended as a direct reply to Mussolini. Hull compared a nation following a policy of isolated self-sufficiency to a family of individuals who seek to live & “hermit existence, without a friend in the community, self-contained, hos- tile toward its neighbors, withdrawing itself from all the communal interests that make lives of individuals fuller and richer.” “Domestic strife, clash among fac- | tions and groups, lack among the citi- zens of mutual respect and regard and of a spirit of co-operation—all these are terrible things which, in the end, destroy nations,” he said. Points to Dangers. “And the danger that these condi- | tions may spring into existence and spread is far greater in a nation which attempts to isolate itself from the rest of the world than in a nation which, on the contrary, seeks to live on friendly terms with other nations. “No country today possesses within its own frontiers sufficient resources, in terms of either natural endowment of human wisdom and skill, for its population to be prosperous and con- tented without a large measure of eco- | Supreme tonal beauty—instant | & father and grar nomic and cultural intercourse with the rest of the world.” “Unles a nation is content to sink intc abject degradation,” he said, “the spiritual impoverishment which is the inevitable accompaniment of national self-containment and iso= lation, sooner or later leads to Rrowse ing dissatisfaction among its people, to domestic strife and frequently to a breakdown of orderly democratic gove ernment. May Lead to Strife. “A Nation falling into this une happy state can easily be misled into threatening to wrest from others by force of arms what it could have ob= tained much more satisfactorily by peaceful means were it to follow & policy of co-operation rather than one of hostile isolation.” Maritime day, set by presidential proclamation for May 22 each year, also was observed with a program on “The Shipping Industry,” broadcast over a Nation-wide hook-up of the Columbia Broadcasting System under auspices of the Commerce Depart~ ment. The department each Satur- day from 2:30 to 2:45 p.m. conducts a radio program devoted to Amer- ican indust The radio stom of the Nation's shipping industry opened with the voyage 118 years ago of the 100-foot steamer Savannah from the Georgia city to England to become the first steamship ever to cross the Atlantic, Grandsire and Father at 38. UTICA, N. 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