The Birmingham age-herald., 1921-10-20
CONF PROMISE BILL
 ON TAX REVISION
 BITTERLY FOUGHT
Underwood Leads the Attack Against Measure, Calling It Worst Ever Presented
 to Congress
By Associated Press

Washington, october 1e.-The com- promise tax revision bill was assailed today in the Senate by both demo- crats and republicans.
 Senator Underwood of Alabama, the democratic leader. characterized the measure as the worst ever presented to Congress No one understood it, he declared, except few treasury ex- perts who drew it, and he predicted that if the bill became law the courts would be several years in interpret- ing it.
 Charging the republicans with a failure to be candid with the Ameri- can people, the democratic leader said they were trying to have it go out that taxes were to be reduced when, as a matter of fact, they would be increased through the operation of the administrative provisoins of the revenue measure and the pro posed American valorem plan in the tariff bill.
 Senator Moses, republican, New Hampshire, paid his respects to the committee bill and also to the amend ments sponsored by the agricultural bloc, which he termed the "Ken-Cap- Klan," a play on the names of Sen ators Kenyon, Iowa, and Capper of Kansas, leaders in the bloc. Indors- ing the Shoot manufacturers sales tax. Senator Moses declared the com mittee bill plainly was drawn under 4ra ba ell. gan, Soak the rich"
 Supreme court decisions in tax cases got into the debate, Senator, Nelson, republican, Minnesota, com plaining about opinions holding state and municipa. bonds exempt from federal taxatioin, and Senator Wat son, democrat, Georgia, characteriz- ing as perfectly rotten" the recent decision that stock dividends could not be taxed.
 Getting down to cases. the Senate after a technical discussion, voted down, 56 to 12. committee amend ment under which treasury experts had figured the government would receive taxes on about 85 per cent of the earnings of close" corporations accumulated prior to March 1, 1913. Senators Simmons, of North Car olina, and AReed, of Missouri. dem ocrat. and Kellogg, republican, Min nesota, led the fight against the amendment.
 Senator King, democrat, Utah, in troduced an amendment which would authorize the President to invite the different states to appoint repre- sentatives to confer with representa- tives to be appointed by him to dis cuss cooperation between the fed eral and state governments in the levying of taxes, and particularly to recommend means for the elimina- ton of conflict between federal and state inheritance taxes.
 Senator -LaFollette, republican, Wisconsin, renewed his fight against provisions of the bill which would exempt from taxation that part of sthe income of foreign traders and foreign trade corporations derived from sources outside the United States. He declared that the effect would be to invite American capital to seek Investments abroad to escape taxation instead of remaining at home to aid in developing the country and relieving the industrial pres sure.
 Senator McCunber, republican. North Dakota, again defended the provisions on behalf of the finance Committee, contending that they were necessary in order that American concerns might do business abroad on an equal footing with foreign cor porations.
 Senator .LaFollette denied that British or foreign companies were exempted at home on the portion of their income derived from sources outside of their home countries.
 The fight over these sections will be resumed tomorrow.