The New York herald., 1921-10-30
DEMOCRATS BLOCK
PATH OF TAX BILL
Agreement of Final Vote Re-
fused-Passagc Next Week
Likely.

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WASHINGTON, Oct. as.--Pressure be-
hind the tax revision bill eased off per-
ceptibly to-day in the Senate after 1t
had become apparent that there was
small prospect or a final vote before the
middle of next week Little progress
was made to-day on the measure. and
there was no effort to force a night ses-
sion.
Negotiations between the majority and
the minority looking to an agreement
for day for a final vote fell through
Later Democratic leaders estimated that
the bill might be passed by next Wednes-
day or Thursday. Some Senators on the
majority side thought the vote would
come by Tuesday. while there were other
estimates that It might be delayed until
next Saturday.
1--WE have now broken the back OF the
movement to force this bill through
without proper consideration" said SEN
ator Simmons On. CO.. ranking Demo-
erat on the Finance Committee. MEM
bers on both sides apparently have come
to the conclusion. as result OF criti-
cisms. that the bill should be given most
careful scrutiny and consideration"
Only two amendments to the bill were
disposed of during the six hours the
Senate was In session to-day. Under
one change adopted on motion Of Sen
ator Reed (Mo.), Democrat. income tax
lof and tndl-
viduais would be open to inspection by
6iraction of either house of Congress.
Under the existing law these returns arc
opened for inspection only upon orders
of the President.
Explaining the proposal, Senator Reed
said this information should be at the
disposal of Congress. as much OF 1t
would be necessary in writing tax and
tariff laws. He pointed out that repre-
sentatives of interests appearing re-
Gently before the Finance Committee
asking for high tariffs had refused to
give information as to their profits or
salaries.
Before the Senate recessed until Mon
day Senator Reed also launched hiss
fight for the soldiers bonus. which he
has proposed shall be paid out of funds
obtained by continuing the excess prof.
its tax. In vigorous speech he de-
clared that his amendment was de-
signed Ito pay the bonus from the
profits of the war profiteers"
Il am only taking the funds" he said.
turning to the Republicans, THAT you
propose to throw away and leave In
the hands of the profiteers. You can
put this money in the hands of the
soldiers and not adversely affect the
fiscal policy of the Government. That
answers all arguments raised against
the bonus by the Presidents letter."
Reading the message of President
Harding and the letter Of Secretary
Mellon opposing the bonus at the present
time. Senator Reed charged that 1t was
the Republican plan to kill the bonus
hill.
Clearly, Secretary Mellon had hand
in this" said Senator Reed. citing that
Mr. Melons first statement against the
bonus preceded the Presidents by six
days. The Republicans. Senator Reed
continued. proposed to leave millions In
the pockets of the ultra rich, ana
refuse to compensate the former service
men.
Nearly three hours OF the Senate ses-
sion was consumed in q fight against
an amendment offered by Senator Smoot
(Utah), Republican, proposing exernp-
ton from taxation OF the income de-
rived from business done in China by
American corporations 80 per cent of
whose gross income comes from that
country and SO per cent. of whose busi-
ness is done there.
Democrats and Republicans alike op-
posed the provision. asserting that there
was no good reason to make ~uch an
exemption. and that this I'D be an
entering wedge for similar exemptions
to all American corporations engaged in
business abroad. Senators Smoot and
Brandegee Comm. Republican. urged
the proposal on the ground that an
exemption was necessary If American
firms were to compete for trade In China
with British, German and other foreign
companies.
The amendment finally was passed
over. as was that proposing retention of
the capital stock tax. which the Finance
Committee proposed to repeal on next
January /. Senator Lodge (Mass.) the
Republican leader, has offered an
amendment to this section, and because
Of his slight indisposition Republicans
asked that the matter go over until
Monday.