Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1921-11-18

Washington, Nov. 17.-Disregarding
the expressed wish of President Harding.
the house voted today. 2O1 to 173, to ac-
cept the senate amendment to the tax
revision bill fixing the maximum income
sur-tax rate at so per cent on incomes
of 100000 or more
Ninety-four republicans. most of them
| from the middle and far west. joined with
the practically solid democratic minority
in supporting the amendment. Announce
/ ment fthe result brought applause from
| both sides Of the chamber.
| Before the vote was taken, the house /
| listened TO the reading Of letter from
| President Harding to Chairman Fordney I
| OF the ways and means committee sug-
| gesting that the house and senate COM |
| promise The executive said he still be- |
| leved the original house rate of 80 per
cent. was nearer TO a just levy and tie
| more promising one in returns TO the
public treasury but that in view of the
legislative situation he thought il
wholly desirable" that there be a COM
promise OF a rate of 40 per cent.
Immediately after it became known
that the president had written Mr.. Ford
ney. spOkesmen for the ''insurgent" re-
nubIicans said the letter would not af-
! feet the result. They had claimed a to-
tai OF 50 republican votes. or one less
than was cast for the amendment. Among
the majority members supporting the
amendment We're Chairman Campbell of
the rules committee, Representative
! Green Of Iowa, ranking republican on the
j ways and means committee. and Chair
man Haughen Of the agriculture commit
| tee,
Representative Fem. republican. Con-
1 nect.cut voted against the senate amend
ment and Representative Freeman. re-
/ publican. Connecticut, was paired against
it.
The vote settled the biggest issue be-
tween the house and senate on the tax
q revision bill and the managers from the
6 two houses will resume their sessions to-
row with the hope Of reaching an agree
ment on the bill by Saturday night. II
. this hope IS realized, the measure prob
q ably Will be sent TO the president before
= the end Of next week.
:. The Intervention of the president ir
- the tax revision fght-the second sine,
the ways and means committee begar
drafting the measure three and hall
i months ago-followed a visit to The
u White House early today of Representa-.
. tive Mondell Of Wyoming. the republican
d leader in the house. The president ther
summoned Chairman Fordney and Rep
resentative Longworth of Ohio Of tn,
Y ways and means committee and express
'e cd his views on the sur-tax These wer,
Is supplemented by letter to Mr. Ford
< ney.
During the three hours debate in tn
house, which was conducted under I spe
n cial rule, the president was attacked 10
&c writing Mr.. Fordney Representative
IN Frear, republican, Wisconsin. said tn
Id presidents intervention at the last min
ute was unfair and unjust and that h
should have made known his views 10 tn
IN / senate when the so per cent. rate wa
If under consideration there.
rd Representative Garner, democrat
ic Texas, declared that IL the president ha
views 10 submit he should have done $
IN person or in message 10 the hous
of rather than in letter TO a member Z
D. the body. Representative Sinnott. reput
of lican. Oregon. declared that he 'rrieve
an because the president had been given ba
advice on this subject"
Supporting The presidents stand. Rel
a., resentatiye Mondell and other republica
1-s spokesmen said the republican party hs
- promised TO reduce taxes and that the
- per cent. rate should not be approved b
the house.
The letter written by President Hari
w. Harding 10 Chairman Fordncy was
IN part as follows:
= My dear Mr.. Fordney:
as In response 10 y1ur inquiry as TO n
wisest course in dealing with the diffe
ence between the two houses OF congre
-. in the matter Of higher sur-tax on IL
- comes, can say only that in view OF OF
earlier conference N tax matters and q
ed ultimate adoption or the higher sur-tz
rate of 50 per cent. ! still believe 4
rate approved by the house 10 be Il
-. nearer TO a Just levy and the more pror
,-nt ising one in returns to the public trea
ius ury.
os- The responsible administrati-n IS a
xious. first of an. 10 lay the neccssa
taxes 10 meet the demands OF the tres
nv ury. There is a moral Obligation. no
mi. ever, in the party in power TO do ever
10 thing possible - keep faith with promi'
the made to the public.
we have been collecting thu hiSh'
sur-taX o nincomcs. levied at this tn
erp in all the world. The effect has been I
to restriction OF the easy iow Of capital
ige. the channels most essential to our nor
The al and very necessary activities. No q
il. challenges the levy OF the higher tax
the stress of war. but now we are strt
ita- Cling for the readjustment Of peace.
cen Where there IS so wide a difference
lble the judgment OF the two houses. / h
and thought it might be possible. and who
ted desirable 10 reach an equitable comp
mise. say a maximum sur-tax levy
80 per cent. This would put the hiEi
who federal tax on income at a total Of
;ted per cent. q am wholly G.
a hdent that the helpful results spread
ore, therefrom 20 every active participant
irty our industrial and econ-nic life fr
management TO wage Garner. would
vastly more advantageous TO our peo
natl than the maintenance OF war time ley
lille as peace time penalties on capital wh
lies are certain 10 hamper the restoration
per- our activities for which we all so m,
)us- hope
Manifestly the prohibitive sur,
tends to divert our available and m,
-uc- needed capital from employment in
gh- every day activities TO investments in
the free SECURITIES. The cords show that
'rk- is making a continued diminution in
80 receipts from income taxes and II
eral making more difficult the normal ina
ing of every sort of essential actiy
and IS emphasizing the tendency to 4
Il a the government for that psternalist re
ded of hpth industry and agriculture wh
lder has no rightful place in a peace time {
ing, icy.
was Il am well convinced that a fair or
With promise between the rates adopted
mill ha e.. - =