New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-10
" hite House Conference
Solves Revenue Problem
by Deciding to Reduce
Expenses and Levies
$50 Million to
Come Off Estimate
Measure Goes TO House ON
Monday; To Be Rushed
hrpugh in Week
+ rom ne Tri6ssneo WASHINGTON Bu5ea


WASHINGTON, Aug. s-Tbe burdsn
Of taxation is TO be iightened to the
extent Of $6oo,ooo,OOo during the next
fiscal year. A conclave Of Concross "a
leaders and Secretary Of the Treasury
Me1on with President Harding at the
mite House late this afternoon COM
pletely cleared up the revenue problem,
and agreed upon plsn which will
make possible the repeal of all obnox-
ious taxes.
With the total amount to be provided
from internal revenue collections re-
duced from Secretary MELONS estim tic
OF ,S3,83o, 100000 TO $3,075, 100000 the
House Committee on Ways and Means
Will report the revenue bill favorablv
next Monday. This assurance was given
the President at the conference by
Chairman Fordney. and Majority Leader
Mondell offered TO put the measure
through the House before the end Of
next week
To-night's successful meeting of The
House leaders with the Executive
ended a successful tirst-day back from
his-vacation for Mr.. Harding. Sey-
cral hours previously ne had ironed out
with Senators Lodge and Curtis the
troubles OF the other end of the
Capitol The net result is the GER
tainty that Congress will take recess
of 1t least thirty days soon after the
end Of this month.
Senate May Recess
Adoption of the revenue bill bv the
House will put behind that body the
heavy part of the Legislative program.
Tor both the major pieces-tariff and
taXation-will have been passed on to
the Senate. The two senator's in
formed the President to-day that it
will be possible for the Senate to to
recess, provided he does no insist on
immediate passage of the railway set
tlement bill. He was advised there
would be long debate over it. It is
probable the measure will go over. de-
spite the Presidents desire for action
President Harding discussed the oues-
ton with his Cabinet this afternoon.
The House leaders. including Chair
man Fordney and all the majority
members Of the Ways and Means Com
mlittee; Speaker Gillett, Majority Lead
er Mondell. Chairman Madden of the
Appropriations Committee and Chair
man Campbell of the Rules Commit
tee conferred with the President and
Secretary OF the Treasury for more
than two hours.
Taking the lead suggested by Secrc-
tary Melon-further drastic cuts in
the government expenditures - they
agreed to lop off s350,0o0,O00 more
from the estimates. This is to be OBJ
tanned by denying $4,000, 900 to the
War Department, $l00,O00OOO to the
navy. Sl00 100000 10 the Shipping
Board. $4,000, GOO TO the Department
OF Agriculture, $50 900 of what it
was expected to appropriate on rail
road claims and $4,000, 600 of gen
eral and miscellaneous appropriations.
Going further $l7O,00O,OO0 estimated
TO be needed against the public debt
is to be deferred. and with further
smaller reductions in other ways the
amount TO be provided from the tarif
and internal revenue combined is cut
to 81 ,O3t 600 900.
Repeat Of Excess Profits Tax
Chairman Fordncy said following
the conference, that the bill to be re-
ported next MOHOdN VIII prONlUc lpr
the repeal of the excess profits tax re
troactivc january !, 1921.
The higher surtaX brackets will bc
reduced TO a maximum Of 81 pcr cent.
plus the normal tax of per cent. as of
January T, 1921, and still further re-
duction to a maximum Of 25 per cent
plus the normal s per cent, on January
!, 1922.
The transportation taxes, both freight
and passenger, Will be reduced by one
half-or about $3.50, 200 0oo-as of Jan
uary / 1929. They viii be entirely
repealed year later.
The tax on wearing apparel WIN be
repealed. This viii mean a saving TO
the taxpayers Of about $4,000 600, it
is estimated. Miscellaneous other
taxes, including those on carbonated
beverages and sodas will also be re-
pealed.
Both the automobile tax of $40 and
upward on all machines recommended
by Secretary Mellon and the proposed
stamp tax on bank checks have been
dropped from considerations
About Sl25 900, 900 of what Will be
lost to the government through the re
peal Of the excess profits tax is to be
Continued on psee four)