Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-11-28
SURTAX TURN
DOWN SEEN AS
HARDING SLAP
SAbrupt Manner of Rejection of
3 Incomes Proposal by House
Rather Startling.
NEWBERRY CASE GOSSIP
By RICHARD LINTHICUM.


WASHINGTON, Nov. 2S.-The severest
personal defeat for President Harding
since the beginning of his administra-
ton. which was also a rebuke for his OBJ
structive interference with legislation, was
that administered in the House by Demo
Gratis and Western Republicans In adopt
ing the maximum surtax Of 90 per cent
after President Harding had written a
long letter to Chairman FOrdney of the
Ways and Means Committee, attempting
to Justify the 81 per cent maximum sur
tax as fixed by the House and suggesting
a compromise of ~ per cent IS between
that and the Senate amendment for 80
per cent.
An outstanding incident % this rebuff
TO President Harding was tie resentment
shown by the Western Republicans
toward John 7. Adams, Chairman or the
Republican National Committee, who
rushed TO the Capitol anu Ot1ciously lob
bied among the members for the sug-
gested compromise.
The action OF the House in this mat
ter was in striking contrast TO that OF
the Senate when President Harding ap-
peared before that body and Obstructed
the otherwise certain passage OF the SOL
der bonus bill. The Republican Sena-
tors, who were committed TO the bill not
only by their party's pledges but by their
own utterances on the floor OF the Senate,
Ameekly surrendered at the Presidents die
@tation voted TO recommit and thus kill
the bill they had been advocating. The
Presidents Obtrusiye interference in this
matter, amounting in the views Of some
- hn eli NJ
widely criticized in the press.
II was recalled that President Wilson,
who had been criticized for cOnstructively
advising and suggesting the passage Of
legislation, which was his constitutional
right and duty, had never attempted to
obstruct legislation in either House.
IN addition 10 being a defeat and re-
buke Of President Harding's obstructive
Interference the House vote was a de-
cisive Democratic victory. as the 90 per
cent maximum surtax amendment or1gi-
mated with the Democrats in the Senate
who fixed the amendment at % per cent.
and presented on the floor Of the Sen
ate with other helpful and constructive
amendments by Senator Simmons Of
North Carolina, ranking minority member
Of the Senate Finance Committee and
former chairman-an amendment modified
to 80 per cent by a Progressive Republic
an caucus and its acceptance forced upon
the Old Guard reactionary Republican
members Of the Finance Committee and
Of the Senate.
The forecast made IN this cOrrespon-
dence some time ago that the fiscal policy
Of the Administrations il can be called
a pOIicy-was the rock upon which the
Republicans would split has been veri-
huv m
tanned the Democratic policy OF taxation
OF placing taxes on those best able to
bear them, equitably distributed. and In
the advocacy Of this policy they have had
the sympathy and support of many
Western Progressive Republicans the two
together rejecting the real sentiment OF
the country without reference to politics
on the other hand, the % per cent
maximum surtax. for which Mr.. Harding
pleaded in his letter. was the Republican
reactionary policy OF tax reduction for
the very rich, for the higher surfaces
do not effect any one except multi
miUionaires and prOflteers. 1t was for
these classes that President Harding
pleaded at such length
In order, as he said, to keep the party
promises, he was willing TO accept a com
promise which would even reduce by 10
by Democrats and progressive Repub-
licans.
It may be said too that in the present
tax revision bill, carrying SS3 Senate
amendments. mostly in its administrative
features, which nobody pretends to IN
derstand except the Treasury experts who
drew them, the only improvements made
IN the interest OF the smaller taxpayer
and the equitable distribution OF taxes.
the only constructive features in the bill,
are those contained In the amendments
proposed by and forced through by
Democrats aided by Progressive he
publicans.
As an Indication OF public feeling Oh
the matter OF taxation, it may be pointed
ont that the Republican members who
Joined with the Democrats include Rep
sentatives in practically every State in
the West. This public feeling was also