Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-10-25
MANUF FACTURERS'
TAX SUPPORTERS
ARE INCREASING
New Revenue Law to Be
Enacted Next Year viii
Contain Chief Provisions
of Smoot Bill, Forecast.
BY HARDEN COLFAX,

Copyright 1921 by Albuquerque JournaD
Washington, Oct. 24.-The new
revenue law. to be enacted next
year to take the place Of the one
which congress will soon pass, will
contain the chief provisions of the
Smoot bill providing for manufac-
turers or sales tax on commodities.
Agreement to this effect has
been reached among senate lead
ers of the eastern bloc, represent
ing industrial sections of the coun-
try, some of the leaders of the ag-
ricultural bloc and the leaders of
the manufacturers bloc, who are
strongly supporting the Smoot
measure. In return for this con-
cession the manufacturers bloc
will line up behind the present bill
when 1t comes to a vote in the up
per house, probably within the
next ten days.
Until last week the plan had
been to hold the Smoot measure
in reserve, shelving it this session
for enactment next year, so that
funds, If needed, could be obtained
for a soldier bonus. Accessions TO
the ranks Of the sales tax support
ers in the senate. however, have
recently strengthened the manu-
tacturers' bloc so materially that
It has become powerful force 20
be reckoned with. The present
concession on the part of agricul-
tural leaders parallels, to a large
extent, the concessions to those
leaders themselves few weeks
ago when the chief provisions of
the bill were revised at their die
tation.
McCWmber for n Bonus Bill.
Senator Penrose, chairman OF
the finance committee, looks upon
the present hill as temporary
measure. 10 be replaced later on.
Next to Penrose on the commit
tee comes McCumber, n proponent
of the soldier bonus. McCumber Is
not satisfied with any plan that
leaves the bonus out Of considera-
ton. The third man on the COM
mitteo Is Smoot of Utah. chief
apostle Of tho sales tax. The fourth
Is La Toilette. whose dissatisfac-
ton with the present measure took
the form of forcinr rejection this
week Of one Of its chief provisions
The four leading republicans OF
tho finance committee are thus at
odds with their own child, the rev.
enue bill. SO are the business in
terests of the east. So, TO n great
eXtont. are the farmers OF the west
and middle west. And at the other
end OF Pennsylva avenue sits
General Dawes, who has much to
sav as to expenditures. Back O.
this entire situation IL the coming
arms marley which furnishes n
hope that the military establish
ments reonirements of funds NAV
be reduced.
Mr.. Penrose believes that reve-
mo legislation can he more scien-
tificallv and enuitably devised
through the medium of n Joint
congressional committee or a COM
mission, apnointed hv congrees, to
make recommendations within a
reasonahfa time.
The followers OF Penrose, the
agricultural bloc and the manu-
facturers' bloc will Join in support
inc the present bill when It comes
before the senate for adoption, and !
the hill will nass possibly with ma
terial notifications, within the |
newt ten davs.
IT will then go 10 conference !
where, among the chief items to be |
adjusted Is the wide difference be- |
tween house and senate limitations !
on the surtax. The house set go |
per cent: the present senate revi- |
sion forced by the agricultural |
bloc. calls for so per cent. Leaders /!
In both houses contemplate ad
justment of about 40 per cent
F0yor SpoCt Proposal.
But AGAINST that 40 per cent, the |
united business interests of the
east have raised protesting voices |
OF much volume. Through their |
chief trade organizations. the Ma
tiona1 Association OF Manufacture
ers. the Chamber Of Commerce of |
the United States and other pow-
erful associations, they are almost
a unit In protest against the sched-
uies or the bill as it stands TODAY |
and are out In strength for the !
manufacturers tax proposed by |
Senator Smoot.
The Smoot measure. largely by |
the influential backing thus given
it, has ACQUIRED manv supporters
In the senate since the dog days.
It Is estimated that more than
thirty republican senator's favor
the plan: but, because Of political |
and other considerations only A