New-York tribune., 1921-11-01
Soldier Bonus
Fight Resumed
In the Senate
Simmons Offers Amend
naent to Tax Bill to Use
Interest on Foreign Debt
as Fund to Aid Veterans
Debate on Reed Proposal
Graduated Corporation Cap
ital Stock Tax Adopted;
Levy on Calm Repealed

Levy On Calm Repealed
Il WASHINGTON, Oct. Sl.-A new ef-
fort to provide soldiers bonus was
made IN the Senate to-day by Senator
simmons, ranking Democratic member
OF the Finance Committee, who pre-
sented another amendment to the tax
bill emhodying the McCumber plan,
with provision for creation CT a fund
to meet the cost out Of interest on the
\ foreign debt. Senator Walsh, of Mas
n sachusetts, supported the amendment.
i Introduction of this proposal, along
with the fact that Senator Reed has 81
Il bonus amendment pending which he is
il pressing vigorously, means that the
II bonus question will be much threshed
4 over before the tax bill is passed, SEN
II ators Simmons and Walsh in state
Il ment indicated they would not press
4 their amendment until the Reed amend
4 ment had been acted on. They pointed
u out that their amendment was not omen
q to the objection raised against the Reed
D amendment of involving the levying of
i the excess profits tax which the Senate
u has voted down. and expressed belief
!. the fund could be raised without
{ hardship on the Treasury by utilizing
I the interest on the foreign debt.
I With the World War veterans meet
ling at Kansas City, the Democrats arc
1utiilzlng the opportunity to force the
Y bonus proposition to the front to the
utmost; On the other hand, the Repub-
4 iican leaders, according to Senator
Il Penrose, are determined to block the
bonus amendments to the tax bill.
/ Filibuster on Bill. Charge
Soldiers bonus legislation has no
more place in the tax bill than the
4 Dill to fund the foreign Indebtedness
4 OF the country" said Senator Penrose.
After long fight on the bonus. the
Senate got down to work on the tax
d measure and voted to retain S75, 900 600
i OF taxes on corporations which had
y off q number of the excise levies now
Il in force. -'0"
] The first important action was the
4adoptlon of an amendment proposing.
& graduated corporation capital stock
tax at rates of 81 on each $1,000 of
] stock between $4,000 and $4,000 900
and 80 per $1,000 on all over So 900 900.
HOLDING companies in paying this tax
4 would be credited with the amount of
the same tax paid by their subsidiaries.
/ Reconsidering its former action in
approving the present per cent tax
on pianos and other musical instru-
Iments, the Senate without roll call
repealed this tax.
| The section proposing 5 per cent
| levy on sporting goods was next elm
i mated, compromise amendment strik-
| ing out this section being adopted,
1 81 to so.
| Repeal Chewing Gum Tax
/ The Senate got stuck for time on
j frp CnpwI n frI1pe h,,+
4yoted, 80 to "a, to appeal this tax,
FINE existing rate of which is 3 per
cent, and that proposed in the bill,
liz per cent.
The Senate rejected an amendment
by Senator Wadsworth, Republican,
New York, TO repeal the 10 per cent
Eta1 on cameras weighing less than
cameras. 1t then rejected a motion
by the same Senator to reduce the
tax from 10 to per cent.
l The Senate adopted a Finance Com
mittee amendment which would exempt
from taxation American corporations
and citizens in the Philippines and
Porto Rico unless their income was
4 sent to stockholders in the United
States. 1t was explained that this
would place Americans in those islands
on the same footing as traders of other
countries.
Before the Senate voted on the
amendment the Finance Committee
Withdrew us proposal to exempt from
taXatioTA i've comes derived from China
by American corporations and citizens
30 per cent of whose business was
done in that republic. Senator Smoot
of Utah., said it had been decided to
let this situation be taken care of by
the pending Dyer bill
Prolon0ed dahata on the Pad hop,e
amendment to-day served to delay
progress on the tax bill and this with
out any vote on bombs. Inasmuch as
Senators Reed and Stanley, both of
whom are opposed to the beer bill,
spoke at length, drys advanced the view
that there was a movement on to fill
buster against the beer bill by debate
on the tax measure. Senator Penrose,
concerned over delay on the tax bill,
forced late night session. Gossip
about the cloakrooms was that the tax
bin would not be passed before the end
OF this week and perhaps later.
Senator New, of Indiana, started the
discussion of the soldiers bonus ques-
tion by asserting the Reed amendment
was unconstitutional, inasmuch asa it
proposed to tax one class for the bene-
tit of another.
Senator Reed maintained the amend
ment was clearly constitutional.
He pictured Secretary Mellon as Que
of the wealthiest men in. the govern
ment, connected with large business
enterprises, and quoted from Mr.. Mel
Ions letter against the bonus on the
ground it would depress the market
for government securities.
big business" said Senator Reed,
did not want the soldiers bonus, and,
of course, the Secretary of the Treas
tiry could not be expected to favor it
If big business did not want it,"
Senator'S Heflin and Stanley followed
with speeches for the bonus, which
were surcharged with politics.
president Harding" said Senator
Stanley, "was the undertaken for the
soldiers bonus and the Republican
Senators the palbearers."