The Washington herald., 1921-09-15
Government Expenses for
Year Below Original
Estimate. Z.
FIVE DEPARTMENTS
REDUCE AMOUNTS
M an u ia cturers Urge
Sales Tax i'm Place of
House Bill Levia.

Budget Director Dawes has in
formed the Senate Finance Commit
tee IL can safely rely" on savings
during the current fiscal year OF
$3.50. 200. 900.
That much less will be spent than
was originally estimated. he said.
Dawes explained how the eco
nomics will be effected. in response
10 inquiries from the committee
addressed to Secretary OF the Treas
ury Mellon The information win
be used in putting the revenue bill
into final form. .-..
These reductions in estimates
were listed: War Department, SEQ
100000; Shipping Board, 800, ,0Oo.-
600; Railroad Administration and
Interstate Commerce Commission.
sss.0oO.ooo; Veterans Bureau. ss7.-
100000; miscellaneous. sIS.5o0.0n0.
The total is sSOs. .ooO. 900. The s45.-
100000 unexplained. Dawes SAID.
would come through the Navy De-
partment and through the SAVINGS
in purchases.
CommIttee Not Satisfied.
Committee members were not
wholly satisfied with Dawes' ex-
PLANTATION, and Il was indicated
they will ask him for more details.
They want TO know about the Navy
Department and what the other
branches Of the government are
doing toward making the economy
program a success.
Both the Secretary OF the Treas
ury and myself feel IL is possible 20
state that there is such reasonable
assurance that the total reduction of
s35o. 100000 in ordisnry expenditures
during the fiscal year 1924. hereto
fore determined upon. will be
reached. that your committee NAV
safely consider Il as a fxed amount
in the determination OF teh leEisla-
tive taxation program" Dawes
wrote
Chairman Lasker OF the Ship
ping Board. in a memorandum, said
the board will keep within the slOoy-
0oN. 900 figure set by President Hard
ing. Operations viii require 34s.-
5oo. 200. and construction SIS 600 on0.
with a possible 100000 additional
Lasker said. The remainder will 60
for settlement OF claims or oper-
ations.
Neternns' Bureau Figures Cut
r. c. RoutsonE, budget orncer or
the Veterans Bureau. reported that
since August 10 estimates there ahH
been cut from sass. 600. 900 20 sls5.-
100000 IN war risk claims and vo-
cational education.
The Railroad Administration de-
cided IL will need $50 900. 900 lees
than originally thought. which is
100000 additional cut since Au-
gust 10.
The War Departments chief eco
nomics. according to Brig Gen. II
NJ. Lord. have been in connection
with the military establishment
Later information on contracts
made a lower estimate possible. he
explained.
Transportation Tax Reduced.
The Finance Committee. mean-
time, has decided to retain the
transportation tax at 50 per cent ~
its present rate. the reduction 20
year. and the tax to he repealed en-
tirely January /. 1898
The committee also restored the
taxes on express packages and the
transportation Of oil. and approved
the House prvisions for taxing
cereal and soft drink manufac-
turers. Action on the inheritance
tax was postponed.
The sales tax bobbed up again
when spokesmen for the National
Manufacturers Association, the Ma
tional Association Of the Motion
Picture Industry. and other or
ganiEations. called on Senator
smoot, principal Proponent OF the
tax.
They claimed to represent 100000
firms employing 5.oOO.o 900 pAeons.
and urged the sales tax inSha0e
Of levies proposed in the House
bill.
Other Senators at the meeting
were Watson. OF Indiana: DiIling-
ham. Mclean. Curtis and Suther-
land
Smoot ssid he would endeavor TO
have the sales tax DILL substituted
for the measure to be presented by
the Finance Committee. when taxa
ton is considered on the floor