The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-09-07
RAILROAD AID
MAY PRECEDE
LEGISLATION
Administration Considers
Providing Financial Relief
Without Awaiting Congress
sional Action, Indicated.
HARDING HAS POWER
lRy Associated Pressl

Aby ASSOtidltu GItSSJ
WASHINGTON. Sept. THE ad-
ministration is considering the posi-
bility of providing financial relief for
the railroads by beginning the funding
of railroad claims without awaiting
congressional action, it was indicated
today by high government officials
President Harding, it was explained,
has the authority TO fund the railroad
claims without further legislation.
The president, officials declared,
may sell the s380.000, 900 worth of car
trust certificates held by the railroad
administration, whenever market con-
ditions permit of their disposal at par.
He could make the sales, officials
added, either with or without the as
sistance of the War Finance corpora
tion, which under pending legislation
is the agency designed TO handle the
funding operations.
The returns from the sale of the
certificates. amounting in the neigh
borhood of S400,000,000. then would
be available for further railroad
financing
Completing Work
Majority members of the senate fin
ance committee hoped to complete to-
day preliminary consideration OF the
house tax bill and to get under way
the actual drafting of a new measure
after hearing Secretary Mellon tomor-
row.
II is understood that the treasury
secretary will suggest retroactive re-
peal OF the excess profits tax for which
there is said to be a growing senti-
ment in the committee despite the
action of House Republicans in voting
to postpone the effective date until
next January l.
Treasury experts are assisting the
senate committee in it's study of the
House measure and have prepared for
the committees information tables
showing the estimated amounts of
revenues to be derived from the var
ious sources under the house bill in
the calendar years 1922 and 1923, as
compared with the amounts that prob
ably would be realized under the pres
ent law.
For 1922 the return under the house
bill is estimated at $2,960, 100000 as
against 1890, 100000 under the act
OF 1918, while in 1923 the total would
be $2,644,370, 900. compared with S3,-
0,000. 900 under the existing statute.
In 1922 the corporation income and ex-
cess profits tax is estimated at $780,
100000, the same as under the pres
ent law, but in 1928 this would be re-
duced to $56O,000,O00 through repeal
of the profits tax.
Taxes Slashed
Individual income tax returns would
fall off $70000,000 to $780, 100000 in
1922 through increased exemptions tc
heads of families, while in 1923, the
total would be cut $150,000,000 te
$750,00000 as a result of repeal of the
higher income surtax brackets. Col
lections of back taxes next year would
be 100000 under these estimates
and S340, 900 900 in 1928
The house bill would cut miscellane
Gus taxes from $1.340,000, 900 under
the present law to $3.50, 490, 900 in 1922
The changes include:
Repeal of the transportation taxes
1852, 100000.
Repeal of the insurance premium
taxes S19.000000
Reduction in the cereal beveragt
taxes from s19,000,000 to $4,000, 900.
Reduction in the tax on soft drinks
fruit juices, syrups, etc, from SAL,
000, 900 to s12,000.000
Reduction in the levy on sporting
goods from s4,o00.000 to $1,000, 900.
Reduction in the tax on candy from
s220O0.000 to 100000.
Reduction of the tax on fur articles
from $9.200,000 TO S4,690,000.
Repeal of the tax on toilet soaps
etc, $2,100,000.
Reduction in tax on luxuries from
s20,000,000 to $4,000. 600.
Repeal of the levies on perfumery
cosmetics, proprietary medicines, etc
S6,000,00