The producers news., 1921-08-26

Page Eight
Profiteers Bonus Plan
Defeated By Insurgents
lContinued from First Page)
revenue Mellon estimated in his ire
vised" report, and, if this be true,
hundred million dollars a. the end Of
: by borrowing.
Republicans expect such deficien-
cy, as a matter Of fact, for the reve-
nue. bill itself contains a clause al
lowing the Secretary Of the Treasury
to issued $500, coo, ,0c0 additional GER
tiflcates Of Indebtedness which will be
needed before the end Of the year to
meet tn shortage due to tax reduc-
tons." But few persons will be aware
of this, and, in the meantime the Ad-
ministration will claim credit fer
lowering taxes, when, it actually is
increasing the public debt and delib-
erately deceiving the people.
DYE EMBARGO DEFEATED
The United States Chemical Foun-
dation was organized by a little syn
,dicate which purchased at a forced
sale the patents seized from German
manufacturers under the alien Gus
todian act. Frank Garvin, alien Gus
todian, and four Of his assistants, are
members of the syndicate which pur-
chased these patents at ridiculous
ly low sum. The whole proceeding
was questionable and ought to call
for "a congressional investigation, but
instead of that the Chemical Founda-
ton, not satisfied with the excessive
duties of the Fordney tariff bill, is
asking for an embargo on all foreign
dyestuffs. This would give the Chem
ical Foundation an absolute monopoly
and allow it to charge American con-
sumers exorbitant prices for inferior
goods This outrageous proposal was
voted down by the House Of Repre-
sentatives, many Republicans joining
the Democratic opposition, but Pres
ident Harding recently wrote Nichol-
as Longworth urging that the dye
embargo clause be reinserted in the
tariff bill which is being rewritten by
the Senate finance committee. Thanks
largely to the energetic efforts of
Representative Frear this proposal
has been defeated, temporarily at
least, although it is possible renewed
efforts may be made by the Admin
istration to put it through
GAG RULE IN RAIL RELIEF
Representatives Of laror organiza.
tions were prevented from testifying
before the Senate interstate commerce
committee on the Townsend bill
which allows the Railroad Admins
tration to sell $500, 100000 Of govern
ment securities and $1,000. 0.O00.0 900 of
railroad securities to be turned over
to the transportation companies. The
railroad corporations were given two
months in which to present evidence
showing that they needed relief, but
when organized labor comes to op-
pose this plan to pay out enormous
sums to the carriers. Senators Wat
son of Indiana and Kellogg Of Mime
sofa engineered q bold coupe which
abruptly closed the hearings. The
railroad brotherhoods intended to
prove that the railroads had squan-
dered millions of dollars through re-
pair companies in which railroad Off
Gals were interested and they also
intended to show the hollowness Of
some Of the preerrQsterQus claims
made by railroads against the gov
ernment. William H. Johnston, presi-
dent Of the international Association
of Machinists, denounced the gag rule
as "un-American, tyrranical and auto-
cratic'' and added that "this is only
one more evidence of railroad owner
ship of government as contrasted
with our demand for public owner
ship of railroads." The Townsend
bill will be reported favorably, but
Senator La Toilette has announced he
will fllibuster, il necessary, TO beat it
and the Administration is expected to
ct it go osoyer until after the recess,
although this bit Of high financing is
Harding's ace card in his long over
due return to normalcy."
NEW FARM BLOC FORMED
Seventeen Republican senators from
western agricultural states have form
Ed new farmers bloc" The new
hloc will fight for adequate tariff pro-
lection for farm products. Each SEN
ator will list the farm products from
his state which he thinks require pro-
lection, with the tariff expected, and
this will be scaled down by an execu-
tive committee. When definite sched-
ules are agreed upon, all members of
the bloc are pledged to stand togeth-
er. Senator Ladd is a member of the
bloc, but Senators McCunber Of
North Dakota and Kellogg and Nelson
of Minnesota were not asked to join
because of their strong pro-Adminis-
tration attitude.
The bipartisan bloc, which number
ed almost as many Democrats as Re
publicans, was deliberately disrupted
by the Administration. Harding op-
posed the Norris farm export bill and
wanted to laid the farmers" through
the War Finance Corporation, be-
cause this would enable him to couple
up the farmers with the railroads and
permit the $500, 100000 appropriation