The Topeka state journal., 1921-10-31
Senate Still Has Many Amend
mentS UndispOsed OF.
Corporation Taxes Main OBJ
stacIe to Haste Program.
FIGHT FOR BONUS OPENED
Only PenrOse Believes Final
Vote Possible This Week.
Surtax Rate Expected to De-
velOp Another Fight.

Washington, Oct. 31.-Reed read to
the senate excerpts from Secretary
MELONS letter to congress last sum
mer, urging that the soldier bonus will
be deferred indefinitely. Big bust
ness" didn't want the soldier bonus
bill and, of course, the seer etary of
the treasury could not be expected to
favor it if big business didn't
want it, said Reed
Reeds outburst came during a dis
cussion of his amendment to the pend
ing tax bill which would provide for
the continuance of the excess profits
tax, in order to create a fund for pay
ment of a soldier bonus
'I have no hesitancy in asserting
that the man who votes to table my
amendment casts a towards vote"
Reed declared. He not only votes to
kill the soldiers bonus. but he votes
to take the excess profits tax off the
big corporations and the profiteers." ="
Much Business Ahead.
The senate now has to dispose of
these major proposals before it can
hope to bring the measure to a final
vote:
The corporation capital stock tax
with an amendment by Senator Lodge
proposing to credit holding companies
for the amount of this tax paid by
their subsidiaries.
Excise taxes. many of which are
proposed for repeal under the COM
promise revision bill.
A new method of taxing insurance
companies, other than life.
The Smoot manufacturers sales tax.
The Reed amendment to continue
the excess profits tax with the pro-
ceeds used TO put thru the five way
soldier bonus plan.
The Smoot proposal to exempt from
taxation income received by foreign
trade corporations and foreign traders
from business done in China and the
possession of the United States.
Renew Corporation Tax Fight
In addition there was promised a
renewal of the fight over the -corpor-
alton income tax rate, the inheritance
tax section and several others which
Tentatively have been disposed Of
Senators on both sides were agreed
that this constituted formidable pro-
gram containing elements which might
bring on prolonged debate. but they
hoped that the bill could be put thru
this week. 1t was the plan of the Re
nesday or Thursday at the latest and
they were prepared to resume night
sessions If necessary.
Leaders Not Optimistic.
Senator Penrose, Pennsylvania, in
charge of the tax bill, still is of the
opinion that senate and house con-
ferees can reach an agreement within
two or three days but other majority
leaders do not share this optimism as
the senate already has agreed to sew
eral radical revisions of the bill as ii
passed the house.
There are promises of another fight
in the senate if the bill comes out OF
conference with the maximum income
surtax rate cut to around 40 per cent
There have been predictions that such
a cut would be made as house leaders
are somewhat firm in their demand
for the 80 per cent rate agreed upon
by the house.
Penrose Bitter on Bonus.
While the debate continued, Senator
Penrose of Pennsylvania, in charge of
the tax bill, in a statement declared
the bonus bill had no place in the tax
measure and that it was proposed to
move TO lay it on the table.
He added that the Republicans were
getting very bitter about the delay
and wanted to begin a continuous ses-
sion of the senate to speed up action
on the tax measure.