The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-09-15
OF
G. 0. place.
new CRISIS
Defeat of Penrose on Tax
Repeal Embarrasses
Harding.
BY DAVID LAWRENCE.
Especial to The Argus.)

Washington, sept. ia cTlSlS
has arisen in the leadership of the
Republican party in congress. The
defeat of Senator Penrose, chair
man of the senate finance commit
tee, who tried to put through the
proposal of the Harding admins
tration that excess profits taxes be
repealed as of last January, has
left the executive branch of the
government in an embarrassing po-
sition- Secretary Mellon was not
only turned down by the house but
his proposals have been rejected
by the senate finance committee,
where it was confidently believed
that the wishes of the president
and secretary of the treasury
would be granted.
Business Is Disappointed.
This situation. which naturally
disappoints all the business men
who had been promised by Repub-
lican leaders that the excess profits
taxes would be repealed immedl-
ately is further complicated by the
knowledge that shortly Senator
Lodge, majority leader, will be-
come absorbed in his duties as
member of the American commits
sion to the armament conference,
and that leadership of the party on
foreign affairs as we'll as other
matters will have to be undertaken
by somebody else. 1t is true that
the Democrats will also lose Sena-
tor Oscar Underwood, their elected
leader. but fortunately Senator
Hitchcock of Nebraska, who was
the original choice of a great many
Democrats for leader and who
bore the brunt of the treaty hight
for the Democrats, is available and
is the logical man to lead the mi
nority through the fall and winter.
Senator Pat Harrison of Misslsslp-
nj. a close friend and lieutenant OF
Senator Underwood, and growing
force in the Democratic party, can
also be depended upon to assist
Senator Hitchcock in handling the
Democratic end of the fights that
are sure to develop in the approach
/ ing session of congress.
Lodge HAS troubles.
The Republican problem is not
so easily solved. Mr.. Lodge has
had his troubles from the very day
! he was chosen leader. He has
tried hard to harmonic the ''irrec-
/ concilables" and the reservation
lists" on the treaty fight and he was
able to bring about harmony only
/ h T.
surrender outright to the irrecon'
| cilables. The passing of the treaty
controversy, however, has giveI
other controversies a chance to de
yelop. The fight over a tax pro
gram and the efforts of an agrlcul
turaI bloc TO pass legislation o
special interest to the agriculture
sections of the country have pro
duced kinks which are still IA
from being Strengthened out. TheI
there is another alignment - tn
progressives of old are growing
clannish. They are beginning u
use the phrase stand pat" to de
scribe their conservative brethren
The tax question will afford tn
progressives their first chance I
revive the old line of controversy
Already the progressives say
matters not TO them who is chosel
leader of the Republican senate I
act in place of Senator Lodge. The
insist that they will follow any
one who agrees with their views
They point to the coming electlo
lin New Mexico and characteriz
Senator Bursum as a stand pat
Republican. If he is defeated, th
progressives say their colleague
will take note of the warning. o
the other hand, the conservative
will feel their position strength
ened if Mr.. Bursum is reelected.
President Disturbed.
Meanwhile President Harding
disturbed by tie rise of groups II
side and outside of congress. b
doesn't believe in group power an
can be expected sooner or later
hit hard at that tendency in Amei
lea.
Congress reconvenes within
fortnight and while the recess hs
given the senate finance committf
an opportunity 10 work without il
terruption, the president is col
fronted with a worse situation tha
when congress adjourned NJ
Penrose, his spokesman in the SCI
late finance committee, has been III
able to bet the administration pr
nosal through that body which
once controlled so easily. And
a tax program is rejected, VIII
| fate win befall the administration
| bill to fund the foreign debt, a pr
| bposaI in which business ever
| where is also deeply interested b
| cause of its possible effect on the i
| dustriaI situation in the Unit
| states? Mr.. Harding is away on
F! vacation but when he gets back
| will find the crisis IN the congre