Evening star., 1921-10-29
MAY TAKE another
WEEK FOR TAX BILL
Republican Leaders Have No
| Present Hope Of Quick
p Passage in Senate.

hepupIiCdU SENATE leducTS coHSoee"
today that there was no possibility
of passing the tax revision bill this
week. They also indicated that there
was little prospect of maintaining a
quorum for a night session Of the
Senate tonight.
Several majority senator's were alb
sent from Washington today. and. as
the democrats generally were opposed
to night meetings, the plan was to re-
cess late in the day until Monday.
The work on the tax bill is far from
finished, and some leaders on both
sides of the chamoer doubt that a
hnal vote on the measure can be had
much before next Saturday night.
Immediately upon convening the
Senate launched into the capital stock
tax fight. having before it the amend
ment to retain this tax, which the
finance committee proposed to repeal
on next January l; As usual.
few minutes. but Senator Stanley,
democrat. Kentucky. forced roll
call, so as to get absentees back into
the chamber.
Reed Takes Up Amendment.
Senator Reed. democrat. Missouri.
opened discussion, taking up the
Lodge amendment to the compromise
amendment He said the Lodge plan
should be entitled An amendment to
exempt holding companies from the
capital stock tax"
The Missouri senator declared there
We're only two reasons for the or
ganization of holding companies.
'One is he said, ito restrain trade
and control prices. The other is that
those who organize the holding COM
panies expect to make large profits
specializing in it's stock
In the midst of his address Sem
ator Reed was informed by Senators
Curtis of Kansas. the republican
whip. and Watson. republican, In
diana, that Senator Lodge was absent
on account of illness. and it was
agreed that further consideration of
the Lodge amendment should go over
to Monday.
Senator Reed. democrat, Missouri,
today cancelled his engagement to
speak at the American Legion con-
vention at Kansas City next week, be-
cause of being engaged here on the
tax revision bill.
Strike Out Liberty Bond Tax.
The first concrete action of the day
was the adoption of a compromise
amendment striking out the provision
imposing tax of so cents on surety
bonds and on all policies of guaranty
and fidelity insurance. including poll
icies guaranteeing titles to real es-
tate and mortgage guarantee policies.
Senator Calder, republican, New
York, offered an amendment to the
corporation tax section exempting
from the Is per cent corporation tax
corporations "organized exclusively
for cooperative home ownership"
The amendment was urged by New
York representatives of such cor
porations. who conferred today with
republican leaders.
Senator Hefiin, democrat. Alabama
conferred with southern House and
Senate members on the possibility
of raising revenues by imposing a
lax on certain cotton futures contracts
of the New York and New Orleans
exchanges.
"a provision of this kind will ac-
complish one of two good things"
said Senator Hef1in. 1T will either
raise several million dollars of reve-
nue. OF prevent trading in certain
'otton futures contracts that are very
;nsuriouS to the cotton producers of
the United States"
Inspection Of Returns.
Income tax returns made to the
Treasury by corporations and indiyid-
uals would be open to inspection at the
request of either house of Congress un-
der an amendment to the tax revision
bill adopted today by the Senate with
cut record vote.
Senator Reed, democrat, Missouri,
made the fight for the amendment,
pointing out that some corporations
had refused to furnish the Senate
finance committee information as to
their net profits and other phases of
their business regarded by the COM
Intttee as necessary
One Vote Defeats.
BY the narrow margin of one vote
the Senate yesterday defeated the
amendments offered by Senator Walsh
of Massachusetts, democrat, for a
graduated tax on the net incomes of
corporations. 1t then adopted the
committee amendment providing for
II fiat tax of Is per cent on the net
income Of corporations. The present
tax Is 10 per cent.
Senator Walsh. author Of the two
amendments voted down, 33 to 80.
said he had been assured by Senator's
Johnson, republican. California, and
Myers. democrat, Montana, who were
absent at the roll calls. that they
would support his amendment when
next presented. Senator Walsh also
expects to win over some republicans
who voted against him yesterday.
The first proposal of the Massa-
chusetts senator was for a tax Of 10
per cent on the first 100000 of in
come Is per cent on the next $500, 900
and 20 per cent on all over 5000. 900,
with an added provision that corpo-
rations which did not pay an excess
profits tax for the calendar year 1920
ahouiu pay why a. ehe fdIe VI AV per
cent.
After this had been rejected. Sena-
tor Walsh offered it again with
provision that in addition to those
not paying an excess profits tax In
1920, corporations whose net incomes
did not exceed S per cent on the in
vested capital should pay only at the
10 per cent rate.
Eight Republicans Against.
Eight republicans voted against
adoption of the committee amend
r,snt for the Is per cent fiat tax.
They were Calder. Edge, Freling-
huysen, johnson; LaFoiiette. McKin-
ley. McNary and Norris Two demo-
rats, Reed and King. voted for the
Committee proposition.
The fight over estate tax section fol-
lowed. 1t led the Senate into a night
session. and resulted in the adoption,
"a to 15. of the compromise agreement
20 increase the present maximum
rate Of 2b per cent on all that part of
an estate over s15,0o0,O0o to 80 per
cent on all over $100.000.000.
Senator Wadsworth. republican. New
York. opened the fight against the
compromise estate tax plan and was
joined by Senator Lodge and others.
They declared that estates were
sources of income largely relied upon
by the states and that heavy federal
taxes would constitute a tax on capi-
tai.
The Walsh amendment to levy a
special tax on the transfer of tax
rejected without record vote, II
was opposed by several democrats as
we'll as republicans. The principal
argument against it was that it would
interfere with the taxing power of
the states as an indirect levy on state