New-York tribune., 1920-04-30
Two Bolt Row
Over Sales Tax
In Bonus. Bill
Insnrgent Republicans in
House Joined by Young
and Frear, Who Desert
Meeting of Committee
Draft of Bill Complete
G.. 0. p. Members Who Or.
pose Means, but Favor
Relief, Are OIL Record

WASHINGTON, April 29.-Opposi-
ton among House Republicans to sales
tax for raising part of the S1,80o,0O0,-
600 needed for soldier relief legislation
led to-day to an open break at the final
meeting of the Republican members Of
the Ways and Means Committee called
to complete the draft of the measure.
Representatives Young, North Dakota,
and Frear, Wisconsin, boted and joined
in conference with Republican insur-
gents to lay plans for the opposition
hight at their party caucus tomorrow
night. Their withdrawal from the Ways
and Means Committee conference left
the Republicans with majority of but
one in the full committee if the boiling
members vote with the Democrats.
Draft of Bill Completed
Republican committeeman finally COM
pleted the draft of the relief bill to-
day, making few changes in the gen
eral scheme. In adopting the sales tax
OF l per cent on gross monthly bust
ness the Republicans decided this levy
would not apply unless the aggregate
sales exceed $1,000, instead of the pre-
vlously adopted limit of $500 Other
forms of taxation approved by the Re-
OCOCK
Exchange transactions and increased
taxes on incomes, tobacco and real
estate sales.
Taxes, it was decided to-day, would
pc effective next January, with the cash
bonus payments to be made in install,
ments, beginning April /, 1921. For the
other forms of relief, including land
settlement, home purchases, vocational
training and paidup insurance, the Re-
publican committeeman decided to APP
proprate $25,OO0,0O0, to be available
ior' ?3 carrying out these plans when the
Dill is approved by the President.
The sales tax, the Republican COM
mitteemen also decided, should apply to
hotels and restaurants, but by increas-
ing the exemption limit to $1,000 a
month, they pointed out that only the
blg caterers would be subject to this
levy
Sales Tax Opposed
The Republicans decided to call
meeting OF the full committee to-mor-
row to discuss the provisions. A final
favorable report on the measure will
not be sought formally until Saturday,
but the Democrats and boltng Repub-
llcans declare they will oppose the
sales tax provision.
:. The conference of insurgent Repub-
of members from half as many states
voted to place on record all Repub-
llcans objecting to the sales tax but
favorable to the relief bill. To this
end they began the circulation of peti-
tions declaring their attitude, and
claimed that fifty signatures had been
obtained. BY this plan, which they de-
scribed as friendly" they seek to con-
vince party leaders of the impossibility
Of enacting the bill as drafted by the
Republican committeeman.
The insurgents also voted to oppose
separation of the relief and revenue
raising plans into two bills, declaring
that such action would kill all relief
measures in the House.
While the committee was completing
the draft Of the bill Senator Thomas,
Democrat, of Ohio, speaking in the
Senate in opposition to the bonus plan.
charged Congress with being grossly
extravagant.
Flags Riot of Extravaganza
Senator Thomas declared "there wa,
never time when administrative ex-
travagance or legislative carelessness
ran riot as now
"Since the treaty's rejection he con-