HEARINGS

BEFORE THE

SPECIAL COMMITTEE

INVESTIGATING THE MUNITIONS INDUSTRY

UNITED STATES SENATE

SEVENTY-FOURTH CONGRESS

FIRST SESSION

PURSUANT TO

S. Res. 206

(73d Congress)

A RESOLUTION TO MAKE CERTAIN INVESTIGATIONS
CONCERNING THE MANUFACTURE AND SALE
OF ARMS AND OTHER WAR MUNITIONS

PART 22

MARCH 19, 20, 21, 27, 28, AND 29, 1935
LIMITATION OF WAR PROFITS
WARTIME TAXATION AND PRICE CONTROL

Printed for the use of the

Special Committee Investigating the Munitions Industry

83876

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1936

Baruch, Bernard M., former Chairman of the War Industries

Board...

Byrnes, James F., United States Senator from South Carolina__

Flynn, John T., special consultant to the committee__.

6259, 6297, 6347

6295

6179, 6207, 6235

Elimination of war profits-prevention of speculation, financing, and

Difficulty in determining costs of production of steel industry.

6217

Proposals to prevent tax reduction by means of a punitive tax and fixed

formulas of amortization, depreciation, and depletion allowances__.

Post-war deflation----

6219

6226.

Increased profits resulting from a stable price level and increased

production____.

6228

Cooperative movements of wages, salaries, and earnings of certain com-

panies..

6230

Effect of 100-percent tax on individual incomes above $10,000.

Devices of tax evasion_...

623.

6237

Analysis of certain objections to war-profits taxation plan----

Difficulty of administering the tax proposal___.

6242

6247

New plant facilities and the problem of amortization__.

6256

Statement of Mr. Baruch regarding the elimination of war profits and his

personal conduct during the war...

3/27.317

The 45,000,000-pound contract made in connection with the prepared-

ness campaign__.

6283

Non-cooperative actions of producers in negotiating the 231⁄2-cent
price___

Basis upon which fixed price was advanced to 261⁄2 cents.
Tynes of pressure used by producers to gain higher prices__.
Difficulty in ascertaining cost of production information_

Estimate of overcharge resulting from fixed prices....

Evasion of price fixing by means of long-term contracts_

Failure to collect war profits by means of taxes.

Failure of World War excess profits taxes to collect back war profits

of copper industry----

Is connection with contents of this part of hearings see committee's preliminary

port on "Wartime Taxation and Price Control.".