Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-09-15
FAILURE Of PENROSE
To FORCE PROGRAM
ON TAXES IS FELT
Executive Branchof Govern
ment Placed in Embarrass-
ing Situation by Senate
Finance Committee
By DAVID LAWRENCE
Geased Wire Service to The Journal.)
(CnnYripht 1921

WASHINGTON, Sept. IA crisis
| has arisen in the leadership of the
Republican party in congress. The
defeat of Senator Penrose, chairman
of the senate finance committee, who
| tried to put thro} the proposal of
the Harding adE ration that ex-
cess profits taxes be repealed as of
branch of the government in an en-
barrassing position. Secretary Mel
len not only was 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 pres
ident and the secretary of the treas
ury would be granted.
This situation which naturally dis
appoints all the business men, who
had been promised by Republican
leaders that the excess profits taxes
would be repealed Immediately, is
further complicated by the knowledge
that shortly Senator Lodge, major
ity leader. will become absorbed in
his duties as member of the Ameri-
can commission to the armament con-
ference and that leadership of the
party on foreign affairs as we'll as
other matters will have to be under
taken by somebody else.
1t is true that the Democrats also
will lose Senator 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 fight
Of the Democrats, is available and is
the logical man to lead the minority
through the fall and winter. Senator
Pat Harrison, of Mississippi, a close
friend and lieutenant of Senator I'm
derwood, and a growing force in the
Democratic party also can be de-
pended upon to ASST Senator Hitch
cock in handling the Democratic end
CT the fights that are sure to develop
in the approaching session of con-
greSs.
Lodge Has His 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 "irreconcila-
bles" aad the "reservationists" on
the treaty fight and he was able
to bring about harmony only by per-
suading his own group TO surrender
outright to the irrecon cilables. The
passing of the treaty controversy,
However, has given other controver-
sizes a chance to develop.
The fight over tax program and
the efforts of an agricultural bloc
to pass legislation of special inter-
est to the agricultural sections of the
country have produced kinks which
still are far from being Strengthened
out. Then there is another alignment
the progressives of old are grow
ing clannish. They are beginning to
use the phrase "standpat' to de-
scribe their conservative brethren.
The tax question will afford the pro-
gressives their first chance to re-
vive the old line of controversy.
Already the progressives say it
matters not to them who is chosen
leader of the Republican senate to
act in place Of Senator Lodge. They
insist that they will follow any one
point to the coming election in New
Mexico and characterize Senator
Bursum as a "standpat' Republican.
If he is defeated, the progressives
say their colleagues will take note
of the warming. On the other hand,
the conservatives will feel their po-
s!tion strengthened if Mr.. Bursum
is reelected.
President Disturbed
Meanwhile President Harding is
disturbed by the rise of groups in
side and outside of congress. He
doesn't believe in group power and
can be expected sooner or later to hit
hard at that tendency in America.
Congress reconVeneS within fort
night, and while the recess has given
the senate finance committee an OPP
portunity to work without Interrupt
ton, the president is confronted with
a worse situation than when congress
adjourned. Mr.. Penrose, his spokes-
man in the senate finance mommittee,
has been unable to get the admins
which he once controlled so easily. |
And if a tax program is rejected, |
what fate will befall the administra- |
tons bill to fund the foreign debt, |
a proposal in which business every
where also is deeply interested, be- |
dustrial situation in the United |
States?
Mr.. Harding is away on vacation, |
but when he gets back he will find |
that the crisis in the congressional |
situation will demand instant atten-