River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1921-08-11
Our Weekly Letter
From Washington
BY James A. Frear M. c.

The Ways and Means Committee
consists of 25 members of whom II
are Republicans and Democrats.
In the preparation Of the Tariff bill
the Republicans prepared the bill and
TIE same will be true of the revenue
bill on the theory that the last cleo
tion decided that Republicans must
take the responsibility for both bills.
A justification was found in the tar
iff bill because it is a square issue of
principle between the parties but in
the revenue bill not much difference
exists. Frequent statements to witness
ses at open hearings by the Democrat
ic leader that his party wished to re-
peal an attempt to get together on the
revenue bill.
Secretary McVon of the Treasury,
Eugene Meyer, Chairman of the War
Finance Board, Director General
Davis of Railroads, Dr.. Thomas
Adams the leading Treasury tax ex-
pert, Estimator Mccoy Of the same
Department and others were before
the committee in executive session last
week. Secretary Mellon made sever
al radical proposals to the committee
in which he was supported by Mr..
Meyer. BY a coincidence the Wash
ington press generally approves his
recommendation and criticises all OPP
position as political. The average
member Of Congress is expected to
represent all interests without preju-
dice, but the publishers of Washington
papers are all rated at several millions
while Secretary Mellon is worth more
than all combined. This is stated in
order that his recommendations may
be better understood He recommends
a repeal of the excess profits tax
which does not affect any net profits
under SO but he substitutes an in
crease on the flat tax of So and re-
peal of the $1,000 exemption allowance
on small corporations. This would
make a double burden on over one
half Of the small corporations of the
country it is estimated in order to
permit the larger companies to make
unlimited profits and would affect
many small newspaper corporations
that pay no profits taxes under exist
ing laws.
Those who give the matter super
ficial study and are affected by news
paper propaganda do not analyze COM
parative methods, but tax experts
show it would be out of the frying
pan into. the fire for the average
smaller corporation. Mr.. Mellon said
in answer to my question regarding
increase of postage from 2 to 3 cents
that he had talked over the matter
with Postmaster General Hays and
both were agreed it would not create
much hardship or opposition. In view
of the fact that first class postage is
paying more than it's share for carry
ing that class of mail today, it is in
excusable to raise the rate 500 in
order to relieve certain other tax lev
les. Again Mr.. Mellon said to the
committee that bank check stamp
would not be hardship or particul-
arly Objectionable and he asked that
it be passed, in addition to the post
age increase. Reasoning from the
position of large banking interests
he does not understand that vigorous
objection would come from many
small bankers whose business would
be affected by the tax on small de-
positors. No nuisance" tax could
be devised that would be more OBJ
jectionable to small business men and
small interests than some of the Sec
retary's proposals for it must be re-
membered that the country depends
on small business men as well as
large.
Mr.. Mccoy the Treasury estimator,
told me that cause for business de-
preston comes from retailers who
hold up prices in an effort to exact
profits based on past purchases. Of
course transportation rates are lead
ing factor but Chairman Meyer and
Director General Davis both give COM
forting assurances that transporSa-
+;or ohoYoaS wou1d soon he rndlIcpd
and if so that it will give needed boom
to business. When treasury experts
were asking for removal of the SO
freight tax as a starter of business