The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1921-10-13
Republican Compromise as
Amended Passes Senate
Without Dissent.
TAKES EFFECT JAN. I
Manufacturers Will Fight $50
Per Cent Surtax Amend,
ment-House Stands Pat.


lican compromise tax revision pro
gram was started on its way through.
the senate today with the adoption
without dissenting or record Mete
of an amendment proposing repeal on
January / of the transportation tax
on freight, passenger, Pullman accom-
modations, express packages and oil
by pipe line.
There were increasing evidences,
however, in the senate and behind
the scenes that some other compro
mise proposals would not find such
easy sailing. Replying to an inquiry
from the democratic side, Senator
McCumber, North Dakota, announced
the compromise adopted was not of.
fered on behalf of the republican
membership of the finance commit
tee; that he was against some of
them and that he and other commit
teemen reserved the right to oppose
them. 81
Fight Surtax Raise.
Senators in the so-called manufac-
turers' "bloc' supported by house
leaders, were set to launch their fight
against the per cent maximum In
come usrtax rate amendment after its
introduction There were reports that
this provision would be materially
altered in the conference between the
hnxrCn ta -.
bill.
House leaders were understood tu
have made it plain that they would
not recede from the original house
maximum rate of 80 per cent, but
some senators were of the opinion that
the reduction likely to be made by the
conferees would not be as great as
1S per cent
Eastern senator's were ready to
wage war on the compromise amend
ment to retain the corporation capital
stock tax, but sponsors of the new
tax program were confident this not
only would be put through the senate
but would be ratified in conference,
as the house bill did not propose re
peal Of this section of the existing law.
Democrats generally were expected
to support the surtax, estate tax, cap.
ital stock tax, corporation exemption
repeal and other provisions Of the
compromise program. Some leaders
on that side thought the minority
would vote lmost solidly against the
completed bill unless provisions were
made for increased taxes on corpora
tions and reduced taxes ON individuals
having incomes of $4,000 a year or
less.
Before adopting the transportation
tax repeal amendment, the senate
voted down an mendment proposing
that the repeal be effective 10 days
after the passage of the bill. Dis
posal Of these two amendments con-
stituted practically all progress made
today on the bill itself Senator Smoot
used much of today explaining his
proposal for manufacturers sales
tax and to a political row over the
tax bill between Senators Harrison,
democrat, Mississippi and Watson. re-
publican, Indiana.
Harrison Charges Laxness.
Twitting the republicans on the fl
nance committee for accepting the
compromise program, Senator Harri-
son said he had never known the "old
guard" in the senate to be put to such
utter rout and surrendering without
giving battle. He said 1t was singu-
larly strange that Senator Lodge. the
republican leader, attended the meet
ing of the agricultural "bloc'' and as
sisted sin summarizing the finance
committed"
Charging that certain promises"
were made to the "wall street inter
ests" by the republicans in the last
campaign, the Mississippi senator de
clared those interests came to- Wash
ington last May to have the prom