Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-05-15
DOUBT ENSHR0UDS
BONUS LEGISLATION
NEW ISSUES ARISE
Republicans of House Com
mittee Devise Still Another
Scheme of Payment.

The doubt and uncertainty regdT0.
ing legislation for the benefit Of for
mer service men Increased today in
the House ways and means commit
tee, where the republican members
| were endeavoring to draft a substi-
tute bill.
New complications are arising daily.
The republican members now say that
"perhaps'' they will report out the
substitute bill next Wednesday after
q conference with the democratic
members Of the committee and that
call the bill UP in the House next Fri
day.
A tentative KNOCK -out" was given
by the republican members today to
the proposed stock dividend tax. The
republicans think they have devised
proposition in three years. The plan
on which they are working Is to give
a total bonus of not more than 5000
to those who served in this country
and not more than $625 to those who
served abroad. This would be paid 1 IN
July / next. Those receiving less
than $500 would be paid In n1ty-ooiiar
installments.
-Four Taxes Considered.
Four lines Of tax are now under
considerations: One on stock exchange
deals, another on tobacco, third
some small addition to the tax on In
comes above $1,000 and the fourth
a tax on real estate transactions.
The propoganda against the service
bonus is growing each day. One OF
the most troublesome complications
Is that certain prominent members OF
the House who took forward part
in insisting upon some bonus Tor the
service men are now getting a re-
verse sentiment from their home dis
tricts and from the service men in
those districts. They want to reverse
their votes on the bonus proposition,
but the party leaders are pointing
out that they really nagged them into
this LEGISLATION and should not quit
at this time.
Another important influence that
| has developed strongly against the
bonus is from the big business inter-
ests, who point out that there IL great
likelihood Of serious financial stress
| il the bonus Is enacted.
Cincinnati Protest.
An example Of this is seen in a tele-
and syephshs from tss
Cincinnati Stock Exchange. signed by
| its president. John Roberts. This says:
with full recognition of the patri-
| otic service rendered by our soldiers
and sailors in the war, we refuse to
believe that a great majority Of our
Army and Navy are mercenaries. we
beiieye that in their hearts they re-
| sent as an insult to their patriotism
any offer Of payment in money for
their services In defense OF their
country. their homes and all that life
1--WE protest against passage Of the
soldiers bonus bill as detrimental to
the welfare not only OF the proposed
beneficiary. but more especially to
otf nf 1Se
critical period. When the nation is
burdened with unparalleled debt;
when an issue Of government bonds
| to pay the bonus would be practically
unsaleable. except at humiliating
discount: when taxation is already at
| the breaking point; when cost of Iiv-
ing threatens disruption of our eco
| nomic welfare, the imposition Of addi-
| tional tax for soldiers bonus will be
| fraught with grave consequences"
Dividend Tax Opposed.
Strong opposition to the stock divi-
dends tax developed among the re-
publicanA Chairman Fordney being
said to have led the attack on the
proposal.
Legion Meeting Tuesday.
Final approval of the soldier relief
bill as framed by the republicans will
| not be attempted until after the ex-
ecutive committee of the American
Legion meets here next Tuesday, re-
publican committeeman said The
democrats on the committee. 1T was
said, probably will be called into con-
ference on Wednesday.
The disabled mems bureau OF serv-
ice and legislative relief proposed
in letters sent to members of Con-
gress that instead Of cash bonus
| to former service men. Congress enact
q law for the return to soldiers and
sailors of the money deducted from
their service pay as allowances for
their families. Such legislation, the
letter said, would affect 1,661,933 men
and cost &261 4l1234