Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-11-18
PRESIDENT IS
DISRECARDED
IN SURTAXV VOTE
House Accepts SO Per Cent
Maximum Income Surtax
BY Majority of % Votes
Both Bodies Of Congress Get
Down to Negotiations on
Revised Bill.

Washington. Nov. f8.~--The hnuse
having settled the big issue in the tax
revision bin by accepting by a vote OF
261 to f7@ tbs senate so per cent
maximum income stirtax rate amend
ffert, senate and bouse conferees re-
surhed their negotiations today with Il
view TO reaching an agreement on the
bfl by tomorrow night.
The margin ny which the house
approved the senate stIrthx rats~~~2S
v6tes-was even larger h had been
expected by the proponents OF the
senate amendment.
The more important issues in the
tax bill noW awaiting settlement are
She corporation income rate SIT 1874
per cent. and by the ssnate at ID per
cent and the senate proposal to tax
gifts OF property NJ persons. the pur-
pose being to prevent evasion Of tnzns
ny the wealthy,
some Of The Votes Cast.
The roll call included:
For the senate amendment! &nder~
son, Ciagdh. Davis. Keller, Schall
steenerson and volstead, Minnesota;
IcCormick. Montana E~urtness. Sin
clair and Young. North Dakota;
Christopherson. johnson and viii
hanson, South Dakota: Beck.
Browne. CItsson, Cooper. F'rsnr. klec-
zka, la ynpert. a. =. Nelson. j. NJ.
Nelson, Stafford and Weight. VISION
sin
Against knutaon. Larson and
Newton. Minnesota.
President httackcd.
During the thrne-hour debate in the
house, conducted under a special rule,
She president was attacked for writ
ing MIR. FUrdneF Representative
t'reur, Eepublinau Wisconsin. said
The presidents Intervention "at the
last minute" was UNFAIR and unjust"
ana that lie should hay" made known
his virWs To the senate when the fifty
per cent rate was under cOnsidsra-
ton there.
REPRESENTATIVE Gardner. Demo
rrat. TEXAS, declared that if tic presi.
dent hnd yieWs to submit, he should
have dottG so in person or in y mcs-
sage to tbs house rather than in a
letter to H. member Of the body. Rep
r~esentatipc @innot. Republican. ore
aon, declared that he "gricved be-
cause the president had been given
bud advice on this subject
Supporting the presidents stand,
Representative MondnlI ana other Re
publican Spokesman. said the Repub-
!ican party hid promised to reduce
taxes and that the 80 per cent rate
should nd be approved by the house.
Prcidcnt's Letter.
The latter written by, President,
Harding TO Chairman Fordney fol-
lows:
MY Dear Mr.. FprdneY.
TN response to you inquiry as to
the Wisest course in 1ea)ing with the
difference between the two houses OF
congress- in the matter Of higher sur
INK on incomes ! can say only that in
ginw Of our earlier COnfcrcncr on tax
- -, ! I. ,I . At ri tt,, ,,ttiyrbst. nfJf,Itt,r, ~
The higher surtax rats Of 81 per cent.
SAL believe the rate approved by
the house 10 bc tho nearer tn 81 just
levy and The more promising one in
returns To the public treasury.
"Thc responsible administration Is
anxious, first of all, to levy the neccs-
surY taxes to meet thu dcrnanda Of the
treasury. There II Il moral obligation.
however. in the party in power to do
everything possible to keep faith with
promises made to tn" public.
"Wc have been collecting the high
est eurtak on incomes levied at thit
time in all the world. The effect hhf
l1Het thesrestriction of an easy flow OF
rattitni in tho channels most eHac ntial
to our normal and very necessary ac.
tivitias. No one challenges the levy
Of the higher tax in The stress Of
wnr. but nov wn are struggling foi
the ACCOMPLISHMENTS Of peace.
Compromise Suggested.
Where there il 80 wide Il differ.
opea iii the judgment Of the two
houses, have thought it might he
possible, ana wholly desirable tc
reach an equitable compromise. soy q
maximum Hurtax levy Of 40 per cent
r'his would pat the higher federal ia,
On Income ut n tOtal or ~ per cent
3tlich would mcasureably meet The
~. -.-.. II 4 49,. - I..... ,i@ ,-u .l..,x
0li else. concerned with the return
Spf hopeful Investment of capital ant
tHDs application Of our capital re
sourtf,s TO profitable productivity.
am wholly confident that the helpful
results spreading thcrefrom to ever,
active participant in our induatria
and economic ltfc. from engagement
10 every wage Garner. would be taatl,
more advantageous to our peopl'
than The maintenance of wartime lev
les ms peace time penalties on capita
which are certain to hamper the re
s%toraiion Of our activities for which
wr Ill so much hope.
'Our experience will afford y con
vincing illustration. In seeking t
hasten the railway settlements, tn
throwing out OF federal control. / au
thorized the director general to in
site tho cooperation of the WA
fina1te corporation to CONVEX sale
able securities into tho cash neede'
for the settlements in process of max
ing. During tho period of public be
lief in II 30 per cent surtax as prov1d
ed by thu houae. the sale of the bill
receivable was progressing in n mos
promising way. Indeed we had con
yertod more than 800. 600. 900 OF rail
way notes into ready cash. The YER
moment the higher Mrtnx became
likely levy, these conversions cease,
entirely
Receipts Diminish.
"Mnnifeat1y the prohibitivn surta
tends to diver t our available an
much needed capital from employ
mont In everyday activities to in