New-York tribune., 1921-09-15
Dawes Tells
How He Will
Cut Budget

InaJ Lnefe Is Such reasonable aSSur-
ance that the total reduction of $780,
100000 in ordinary expenditures dur
ing the fiscal year 1922, heretofore de-
termined upon, will be reached, that
your committee may safely consider it
as a fixed amount in the determination
of the legislative taxation program.
Shipping Board Finances
The letter of Director Dawes was ac-
companied by memoranda or letters
from different officials with respect to
reductions. In respect to Shipping
Board reductions, Chairman Lasker of
the Shipping Board, in letter to Di-
rector Dawes on September 13, said:
to get within the Presidents commit
ment of Sl00,000,0o for the Shipping
Board for the present fiscal year.
'We have SO far been given S4S,500,-
900 for operations and S25,0O00 900 for
construction, making total of $73,-
100000. 1t is possible that we will
need S6,000,G00 or more additional for
the vessels now being completed.
(These vessels being the last of the
ships to be constructed for the gov
ernment.)
IF we can make collections amount
ing to $20,000,000 we hope to use the
remaining $4,000 900 unaccounted for
above for the settlement of claims, If
we can get Congress so to vote. If we
cannot make collections to the amount
Indicated, we will then have to use
the $50, ,o00,000 for operations, but in
any event we will keep within the
$100, 100000 the President has agreed
upon. Of course, should we have to
use this amount for operations there
will be nothing left for the payment
of claims this year
"All of this does not take into con-
sideration the sum of $20,000.0o0 due
from the days of the past from the
navy, but when I give the figure s2o.-
100000 | want to make clear that the
amount involved has never been de-
termined between the Shipping Board
and navy, and at an early date we are
going to have a matching of accounts.
Il have always gone on the basis
that we would not be asked to pay this
amount and, in fact, the navy has been
very indulgent. Should the navy re-
quire this sum for its own appro-
priations it will be necessary for US
to go to Congress for a special ap-
sibly me within the funds fixed and meet
the old obligations accrued before the
present board was brought into being
A note from Director Dawes on Mr..
Lasker's letter says:
"Mr. Lasker's statements relative to
the matter of $4,000, 900 adjustme ent
pending before the Shipping Board ard
the navy do rot affect the matter of
net reductions, since the navy in their
estimates do not include this $40 900, 600
in their expected cash receipts. If the
Shipping Board would pay it the navy
could then report it as reduction in
their cash requirements"
A railway administration memoran-
dun explained that it had been possible
to cut the estimates from railroad
administration and the Interstate Com
merce Commission from $545,00O, 900 to
$456 600, 600
R. c. Routsong, budget officer for
the Veterans Bureau, said in a memo
randum to Mr.. Dawes that as the re-
suit CT an intensive study of the war
risk insurance situation it was found
q reduction of more than S37 ,00O, 900
could be made.
War Department Estimate
Among the papers submitted by Mr..
Dawes was a memorandum from Gen
eral H. M. Lord, budget officer for the
War Department.
This shows that under date of Au-
gust l, 1921, the acting Secretary of
War submitted a revised estimate of
expenditures for ohe fiscal year 1922
TO $450,000, coo. The pres
ent memorandum submits a further re-
vised estimate reducing the total to
$500 100000.
Fer the civilian establishment of the
War Department the revised estimate
is the same as the original, S4,750,0
For the military establishment, War
Department. the August | estimate
was $390,250,o00 and the latest esti-
mate is s50,0OO,000 below that. or
$340 0250,0o0. Fer rivers and harbors
the August l estimate was $40 900 .00o
and the latest estimate $30,000,000
For miscellaneous war and civil expen-
d1tures the August 1 estimate and the
latest estimate are the same, SIS, 100000
AT its meeting to-day the Senate
Finance Committee took definite action
ages and pipe lines, and also acted on
the freight and passenger transporta-
ton taxes. The committee was occu-
pied the entire afternoon in considering
various excise, luxury and nuisance
| taxes. In the case of all sporting goods
which the House eliminated from taxa
ton, the Senate com rnittee voted to re-
store them to the tax list. 1t fixed the
rate on such goods at per cent instead
Of 10, as under the present law The
House rate on sporting goods such as
it did not eliminate is 5 per cent.
The House bill did not reduce the
per cent rate on chewing gum. The
Finance Committee decided to reduce
1t to per cent.
The committee adopted the House
provision abolishing the present ar
rangement whereby manufacturer
who does a wholesale and retail bust
ness can compute his retail sales or
the basis of his wholesale selling price
And it also approved the action of the
House in eliminating the license tax or
yachts and motor boats of less than five
net tons and not over thirty-two fee
in length.
Urge Manufacturers Tax
Growing out Of an Informal meetin.
OF manufacturers held in New Yorl
last Friday. large delegation visitee
the Capitol to-day to make a drive il
favor of a manufacturers' tax. The
delegation went to the Senate Offic,
Bull6lng and was heard in Senator
Sroot's office by number of the Re
publicans of the Finance Committee
Senators Snoot, Watson, Dillingham;
Mclean, Curtis and Sutherland wer.
present. j. E. Edgerton, president o.
the National Manufacturers Associa
tion, presided.
Saul Rogers, representing the motor
picture industry, made the principa
/ statement. He said the House tax bill
| ignored the poor mans interest, an<