South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-06-12
c. D. P. SIDESTEP
LUXURY TAX ISSUE
Find Presidents ReCommen-
dation of What They Prom
ised People Impractical.
BY JOIN J. CARsON

News-Times Washington Correspondent.
WASHINGTON, June IA stu
alton has arisen in the house which
makes the republican leaders in con
troll afraid 20 bring upon the floor
the resolution which would repeal
the luxury tax provisions Of the reve-
nue. bill Faced by the fact that they
made an absolute promise 20 retail
dealers throughout the country that
the tax would be repealed. and un-
able now 70 get a republican vote
sufficient 20 assure its repeal, the
republicans are in a quandry
The promise that the luxury tax
resolution would be presented again
for consideration has not been full
filled There Is now little possibility
it will he fulfilled for some time
The sentiment in the house has been
coaxed along by alarming speeches
by the republican leaders until the
opposition 20 the repeal is such that
IL cannot be controlled.
With this condition. the repubii-
cans are afraid they will be asked
by retailers and consumers how their
superior ability at financing will not
permit this Onerous tax 20 be with
drawn when the democratic leaders
in the last congress had agreed
unanimously 10 its repeal and would
have abolished il had not the repub-
lican flibuster in the senate pre-
vented action in the last few days
OF the season.
HOodwlnk Retailers.
There is a suspicion now Of an at
tempt 10 allay the unrest Of the re-
tailers and consumers who are op-
posed 10 the luxury tax Rep. J. w
Fordney. chairman Of the house
ways and means committee. insists
he is favOring the repeal Of the tax
as does likewise Rep. Nicholas Long
worth, another member OF the COM
mittee. bat when Fordney urged it's
repeal in his recent speech before
the house. he discussed with much
more emphasis the lack OF income
10 be derived through the revenue
bill. the demand for money and the
possibility OF another loan than he
put or the burdens and iniustices OF
the tax itself. He said the luxury
tax provision would bring 10 the gov
eminent 500, 600 600 a year and
that every cent was needed: that he
did not know where money was TO
be obtained TO meet the demands.
and added that Notwithstanding all
this tax should 20. Many now be
lieve his speech was made for the
purpose OF satisfying the dealers and
consumers 10 whom a promise was
given and at the same time 20 pre-
vent the repeal of the tax.
The suspicion has been given ad-
ditional support in the known atti-
tude OF Sen. Penrose of PennsyIva-
mia, boss in the senate and now
chairman Of the powerful senate IL
nance committee. II is known that
Penrose does not want any action
taken on the repeal at this time
Wat he wants in either house. ne
vii. get His assistants I'm the house
are now clamoring against repeal of
this provision.
Repeal Not BusincSsIikc.
PenrOse asserts that IL would not
be businesslike az this time 10 re-
peal this tax and thus end a source
OF revenue 10 the government Not
until the congress has made some
provision for appropriations and al
so for additional revenues. should
any measure for revenue be repealed
according TO his contention. If the
Penrose viewpoint is endorsed n,
the republicans OF the house. IL will
be long time before congress
reaches any legislation for budget