Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-11-01
BONUS BILL
| ,]RT PUTS
BACK TAX BILL
Senate I a k e S Four
Hours to Discuss
Amendments
Reed Proposal Would Continue
Excess Profits Tax and Pay
Costs of Five Way Adjusted
Compensation Plan-FOreign
Debt Interest Also Suggested
As Way to Pay Bonus

'oobhhS tcii' ~. a ~
the fight in the Senate for the pas
sage of the Soldiers Bonus bill re-
suited in a further setback today for
the tax revision measure. Republi-
can leaders forced a. night session,
but with the bonus issue still undis-
posed of, there appeared to be doubt
whether the tax bill could be brought
to waite before Saturday, if then.
There was a four hours discussion
today of the Reed amendment pro-
posing to continue the excess profits
tax and to use the proceeds to de-
fray the costs of the five way adj
iIsted compensation plan. This was
followed by the introduction of an
amendment by Senators Simmons of
North Carolina and Walsh of Massa =
chusetts. Democrat members of the
finance committee, proposing pay
ment of the bonus ont of the interest
on the nations foreign debt.
The latter amendment will not be
formally moved for adoption in the
Senate, its authors announced. until
amendment. Meantime. Senator
Reed is delaying formal presentation
of his amendment until there has
been full discussion of the whole
question.
Senator Penrose of Pennsvlva MIA
in charge of the tax bin said today it
was the plan of the ma jority to move
to lay Reed proposal on the table on
the ground that the soldiers bonus
has no place in a tax measure. Ma =
Jorlty leaders had not decided to-
night, however. what would be done
with respect to the simmons Walsh
amendment which the authors de
clared would make the issue clearly
one Of bonus or no bonus without
raising the question Of the condition
o. the public treas uN. which has
been the chief argument presented
by opponents Of the bonus plan"
Senator New. Republican. Indiana,
opened the bonus discussion today
with the declaration that in his
Judgment the Reed amendment
would be in conflict with the consti-
tuition in that it proposed to tax one
class of citizens for he benefit of
another.
The contention was denied hy
Senator Reed. who spoke at length
in support of his amendment. He
was followed by Senators Hefiin Of
Alabama; Stanley of Kentucky and
Watson Of Georgia, Democrats. There
wns no reply from the Republicans.
Senator Reed declared that a vote
to table his amendment would be A
Mellon for recommending delay in
action on the bonus measure. Senator
Reed declared the treasury head was
connected with many oppressive and
powerful financial and Industrial in
stitutions."
The senate was told by Senator
Stanley that. despite an overwhelm-
ing sentiment in congress for the
bonus bill. President Harding had
put his foot on the measure and
ordered the republican congressional
leaders to abandon it, He added that
with Sen. Penrose acting as under
taker and the other republicans as
pail bearers" tn bonus bill was dead.
Getting back to the tax bill. the
senate adopted finance committed
amendment which would exempt from
taxation American corporations and
citizens in the Philippines and Porto
Rico until their income was sent to
stockholders in the United States. 1t
was explained that this would place
America in those islands on the same
footing as traders of other countries.
Before the senate voted on the
amendment. the finance committee
withdrew it's proposal to exempt from
taxation incomes derived from China
by American corporations and citi-
zens 80 per cent. of whose business
was done in that republic. Senator
Smoot of Utah said it had been de-
cided to let this situation be taken
care Of by the pending Dyer bill.
After sharp fight. the senate
adopted. 90 to 80. an amendment to
the capital stock section which would
permit holding companies to deduct
from their capital stock tax the
amount of such taxes paid by their
subsidiaries. Nine republicans Joined
the democrats in opposing the amend J.
ment-Porah. Camper. Jones Of wash
ington, Kenyon. La Toilette, Lenroot,
Sutherland Tnwnsend and Willis