Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-10-23
EASTERN BLOC
BEHIND MOVE
FOR NEW BILL
Measure Now Before
Senate Is Considered
Only Temporary Bill.
Republican Leaders Are
Reported to Favor Tax
Plan of Utah Solon.
By HARDIN COLFAx
Special Correspondent Of The Tribune

& pyYiglt 1921, by The Tribune.
Washington, Oct. 22.-The new rev.
enue law to be enacted next year to
take the place of the one which con-
gress will soon pass, will contain the
chef provisions of the Smoot bill pro-
viding for manufacturers or sales tax
on commodities.
Agreement to this effect has been
reached among senate leaders OF the
eastern bloc representing the Industrial
sections of the country-sOme OF the
leaders of the agricultural bloc and the
leaders Of the manufacturers bloc who
are strongly supporting the Smoot
measure. In return for this conces-
sion the manufacturers bloc will line
up behind the present bill when it comes
to n vote in the upper house, probably
within the next 10 days.
Until this entAAlt~&he~3a1aN- 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. Ac-
cessions to the ranks of the sales tax
supporters in the senate, however. have
recently strengthened the manufactur-
ers' bloc SO materially that it has be
come a powerful force to deal with:
The present concession on the part OF
agricultural leaders parallels to large
extent. the concessions to those lead
ers themselves a few weeks ago when
the chief provisions of tn bill were
revised at their dictation.
A Temporary Measure
Senator Penrose, chairman of finance
committee, looks upon the present bill
rs a temporary measure, to be replaced
later on. Next to Penrose on the
finance committee. comes McCumber.
proponent of the soldier bonus. MIR.
McC,umber is not satisfied with any
plan that leaves the bonus out of con-
sideration. The third man on the com
mittee is Smoot Of Utah. chief apostle
Of the sales tax. The fourth is LaFol-
iette, whose dissatisfaction with the
present measure took the form Of fore
ing rejection this week of one Of its
chief provisions The four leading Re
publicans of the finance committee are
thus at odds with their own child. the
revenue billie So are the business in
terests Of the east, So to a great ex-
tent are the farmers of the west and
middle west. And at the other end of
PENNSYLVANIA avenue sits General
Dawes, who has much to say as to ex-
penditures.
Back of this entire situation is the
coming arms parley. which furnishes
hope that the military establishments
requirement of funds may be reduced.
Mr. Penrose believes that revenue
legislation can be more scientifically
and equitably devised through the me-
dium of JOINT congressional commit
tee or committee appointed by con-
gress, to make recommendations within
a reasonable time. The followers of
Penrose, the agricultural bloc and the
manufacturers bloc will join in sup
porting the present bin when it comes
before the senate for adoption and the
bill will pass possibly with material
notifications within the next 10 days.
Will Go to Conference.
1t will then go to 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 30 per
forced By the agricultural bloc calls
for so per cent. Leaders in both
houses contemplate adjustment to
about 40 per cent.
But again at 40 per cent the united
business interests Of the east have
raised protesting voices of much |
volume. Through their chief trade or
ganizations, the national association of
manufacturers, the chamber of com
merce Of the United States and other
powerful associations, they have sent
in a protest against the schedules |,
in the bill as it stands today and are
out in strength for the manufacturers
sale tax proposed by Senator Smoot.
It is estimated that more than 80
Republican senators favor the plan;
but because of political and other con-
only fraction of the num-
ber are openly advocating it.