Omaha daily bee., 1921-08-21
Fireworks Mark
Consideration of
u. S. Tax Bill
Rough and Tumble Narrowly
Averted During Debate on
Proposed Amendments
Before House.

Washington, Aug. 20.-lurbulent
scenes marked consideration OF
amendments to the tax bill on the
floor of the house Friday The con-
troversy between republicans and
democrats over the question as to
whether the Fordney bill lightens the
tax burdens of the rich at the ex-
pense of the masses, reached such
an acute stage that the acting speak
er ordered the sergeant t-at-arms to
preserve order. A rough and tumble
fight in the center aisle was narrow
ly averted.
Representative Fordney started the
fireworks when he referred to a
charge by Representative Byrnes OF
South Carolina at last nights ses-
sion of the house that the tax bill
was framed for the benefit OF the
rich and also to reduce the taxes
of heavy contributors to the repub-
lican campaign fund.
Fordney Starts Row.
Mr.. Fordney referred to the fact
that Mr.. Byrnes had called him a
liar when he told him that he was
telling an untruth and knew it was
untrue when he made such charge.
Mr.. Fordney reiterated that such a
charge was untrue and that Mr..
Byrnes knew it was. The South
Carolina member jumped to his feet
and renewed his charge that the tax
bill is designed to help the rich.
Representative Chandler of Okla
.,homa, republican, started to jump
across the aisle at Byrnes, shouting
"You should not talk to an old man
like that"
Representative Hammer of North
Carolina, democrat, advanced to
meet Chandler, waving his arms and
calling him to come over here
Acting Speaker Walsh ordered
Sergeant-at-Arms Rodgers to rush
to the scene and he arrived just IN
time to keep the combatants on
their own sides of the aisle.
Mr.. Fordney then apologized to
the house for what he had said and
Mr.. Byrnes followed suit md the
matter was dropped.
Amendments Adopted.
The house, in committee of the
whole, adopted about 60 amendments
to the bill, all of them proposed by
the ways and means committee. lhe
chief controversy occurred over a
committee amendment relative to the
definition of foreign trader and a
foreign trade corporation, both OF
whom, under the bill, are exempt
from taxation on the portion OF their
income derived from outside the
United States. The amendment pro-
vided that not only must at least ~
per cent Of the income come from
outside the United States, but also
at least 50 per cent of the total IN
come must come from the active
conduct of a business without the
United States by4a corporation or, in
the case of an individual. from the
active conduct of a business, either
on his own account or as an agent
.ior another. The purpose OF the ~
per cent limitation was to prevent
the exemption from taxation OF any
except those actively engaged in for
eign trade.
Democrats Open Fire.
The democrats took the occasion
to open FIRE on the extension OF tax
exemption to foreign traders and Ior-
eign trade corporations.
Another amendment adopteo'
which caused a controversy, was one
permitting exemption from taxation
OF contributions by corporations tor
religious and charitable purposes,
provided the total contributions did
not aggregate more than 5 per cent
of the corporations net income. Inc
vote on this amendment was o. to -.
The house also approved the COM
mittee amendment eliminating the
proposed $40 annual license tax on
dealers in soft drinks. ..
The ways and means committee
approved an amendment striking OUT
the section imposing tax OF , pc,
cent on manufacturers OF medicinal
articles and another amendment
eliminating tooth paste and tootn
powder from articles taxed similar,
" in another section. The tax would
he imposed only on perfumes, cos
metics. toilet water and similar arti-
cles. The motion striking out the tax
,,,,. ~ the motion OF