Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-04-20
FIGHT SALES TAX
FOR SOLDIER BONUS
Move in Congress to Secure
e Necessary Funds From
War Millionaires
G. o. P. INSURGENTS RALLY

Washington, April 20.--The Repub
lican organization in the House faces a
revolt against the method of raising
money for bonus to be paid the ex-
soldiers, that Of a consumption tax.
Other plans are being urged by Repub-
licans as well as Democrats, the chief
of which is that the money be raised
by taxing war made milliouaires.
The consumption tax would not be
popular, and many congressman do not
want to take chances of losing votes by
q sales tax affecting the pOcketbooks of
10000, 900 men and women.
congressman Royal Johnson and
Henry II. Rainey proposed to require
the 3d. men who got richer out of
the war pay the bonus. There was
revolt at once. The insurgents called IA
caucus to override the House Republi-
can leaders and force them to abandon
the consumption tax in favor of the war
profits tax. The caucus. which will be
held tomorrow. promises to upset all
the House organization plans by re-
jecting the sales TAX and providing an
other means of raising the bonus.
May Act by June
House leaders are planning TO pass
the soldiers bonus bill before the
June recess. As virtually agreed on by
members OF the ways aud means COM
mittee, it will give a bonus of 81 day
for each day of service to all soldiers,
sailors and marines who served in the
world war.
As tentatively approved in subcom
rnittee. it is planned to restrict the cash
bonus to enlisted men. or. in the case OF
officers who rose from the ranks, to
that period of their service spent in the
enlisted personnel. If this proposal is
finally adopted. no commissioned officer,
as such. will receive bonus, although
officers will be eligible for participation
In other benefits TO be carried ont by
the legislation now being shaped for
submission to House and Senate.
There ,is fight among RCpubli-
can members of the ways and means
committee to increase the bonus to 81 %
and $1.75 day. Representative
Fordney has proposed a 50 "a day bonus,
the money to be raised by bond issue.
Representative Morgan. of Oklahoma.
IL displeased by the action of the sub
committee in dscarding his plan to aid
those former service men who wish 10
obtain homes or farms.
When the bill will reach the President
for signature is problematiC. Chairman
Joseph W. Fordney. Of the ways and
means committee. hopes to get IL started
in the House by May l. There is every
prospect that il will go through flying
after the usual debate, but it is con
sidered unlikely the Senate will get
around to il until fall. Reports are cur
rent that Republican leaders plan to
hold up the bill somewhere along the
line until shortly before the November
campaign argument while ii is fresh in
the soldiers minds.
Limitation Finds Objections
One of the suggestions being ronsid .
cred by the subcommittee which i
framing the bonus section of the bill
would limit the cash bonus to 81 Il
day to one years service or u maximum
Of 1865 to any individual There ha.
been criticism of this proposal on the
ground that man who served more
than a year is entitled 10 participate
proportionately with the veteran whC
served a shorter period.
Mr.. Rainpy in proposing that th'
money be raised by taxing war profits
points out that the government can eas.
lily raise two or three billions by this
method.
Among relief benefits TO accompany
the bonus is project TO incorporate
a new government loan bank or similar
institution, with a capital Of 800 900.
900 to finance loans to ex service men
Loans would be authorized up to 8
maximum of $1,000. less the amount OF
the cash bonus for the purchase o.
farms, homes or farm equipment, in
cluding livestock. Real estate or Chatte
mortgages would be accepted by the gov.
ernment as security for long term loans
for these purposes.