The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1921-11-24
NEWS SUMMARY
OF THE CAPITAL
Agreement Reached by Senate and
House Placing Income Tax OF l2R
Per Cent on Corporations.
MEDICINAL BEER DOOMED
Henry Ford to Get Muscle Shoals
Nitrate Plant and Probably
Strapped Battleships.

reached by the senate and house con-
ferees on the revenue bill. The con-
ferees approved the rate as provided
in the bill originally passed by the
house, instead of the Is per cent rate
proposed in the senate bill. The 12A
per cent flat tax will be substitute
for the 10 per cent normal tax and ex-
cess profits tax provided under the
present law. 1t will mean considera-
BILE reduction in taxation for corpora
tons with large earnings which have
been subject to the excess profits tax,
but an increase for those which have
not had earnings sufficiently large to
be subject to this tax.
The days of medicinal beer" were
considered numbered when the senate,
by a vote of Sc to %, finally adopted
the conference report on the anti-beer
bill. With legislative action conclud-
ed, the bill, fought over for months,
has gone to the president, who is ex-
pected to give it his approval within
the Today period in which he can act.
It was thought possible, however, that
there might be- a few days delay while
an opinion as to the constitutionality
of the measure was received from the
attorney general.
Major details of Henry Ford's offer
to buy the great Muscle Shoals project
were agreed upon at a conference be-
tween Ford and Secretary of War j.
w. Weeks. Thomas A. Edison was
selected to go with Ford to Muscle
Shoals and make a final estimate of
the cost of completing the. Wilson
power dam. Mr.. Ford has also offered
to purchase the warships doomed to
be scrapped. :
A sweeping increase in all commodi-
ty freight rates in the Mississippi val
ley, from the Ohio river south to
New Orleans, was ordered by the in
terstate commerce commission. The
increases in existing rates will aver
age Is per cent or more. In some
cases they will amount to 60 per cent.
This decision on commodity rates was
designed to readjust them on a parity
with the arrangement of "class rates. :"
Labor leaders do not regard with
dismay the proposed scrapping of the
navy building program. The govern:
tment will find the unions giving full
support to the program and convinced
that cessation of warship construction
will only divert funds for pcace-time
pursuits, Samuel Gompers, president
of the federation of labor, asserted
The carrying out of Mr.. Hughes pro.
gram, of which and many other labor
officials approve" said Mr.. Gompers
twill mean that instead Of being en-.
gagged in labor for the advancement
of the work of destruction, workers
will be doing something constructive.
A resolution, which, if adopted
would seat neither Truman H. New
berry or Henry Ford as senator from
Michigan, was introduced by Senator
T. S. Walsh, as the senate went int
the fourth day of it's consideration o:
the Michigan senatorial election con
test.
Informal negotiations between thu
United States and Mexico regarding
the Oregon government have reached
deadlock. Oregon fatty refused t.
sign the agreement pledging protec
ton to American lives and property
which Secretary C. E. Hughes insists
upon and the state department shows
no intention of abandoning this de-
mand as condition of recognition.
Extension of a years credit to live
stock owners in the payment of graz
ing fees for use Of national forests
due December l, would be authorized
by bill introduced by Senator Nc
Nary. Interest at 6 per cent from
December l would be charged on sucl
deferred payments. The measure il
designed, Mr.. McNary said, as an ad
ditional relief for the owners of herd
and flocks who are DESTROYS of holdin@
on to their livestock, but are "agains
the WALL" for further cash outlay.
There are breakers ahead for Ger
tain officers of the navy who are de
clared in official quarters to have beel
seeking to decry the efforts of thi
government to effect real Limitation
Of naval ornaments. Naval officer
are declared involved and there is tall
of calling them to account through
reprimands or other appropriate &C
ton unless there is prompt cessation
of their activities. What amounts al
most to propaganda is being conduct
ed against the proposed reduction
though the plan was worked out O.
recommendations from the genera
board Of the navy and with Admire
Coontz, chief Of naval operations.
President Harding was rebuffed b.
the house, which refused to heed hi
suggestion for 40 per cent maximum
surtax and instructed conferees on tn
revenue bill to agree to a so per cen
sEs.E5N% 4l.sT