The Washington herald., 1921-03-18
Leaders are in Quandary
Over Tax-Tariff
Bill Precedence.
HARDING TO LEND
AID ON PROGRAM
Secretary Mellon Confers
With Tax Experts to
Map Procedure.

Republican members OF the House
Ways and Means Committee in a
conference yesterday reiterated
their belief that tariff legislation
should have precedence over tax
revision. continuing frm in their
position taken early in the week
when thirteen out of fifteen ap-
proved the tentative program to
complete the drafting Of a perman-
ent tariff measure before taking up
the tax bill.
Information reaching members OF
the committee. however. was to the
effect that President Harding -
leaning toward giving precedence TO
tax revision as urged by Republican
Leader MondeIl of the House, Rep
resentative Longworth Of the WAYS
and Means Committee and by a num-
ber of Senators.
To BE After-Dinner subject.
II is understood that the matter
will be finally thrcshed out at a din
ner at the White House early mex;
week attended by all Republican
members of the Senate Finance
Committee and the House Ways and
Means Committee. IL the President
finally decides that tax recession
should go first. the ways and Means
Committee will begin hearings iH
the near future.
II was learned that Secretary Of
the Treasury Mellen is holding con
ferences with the tax experts OF the
Treasury Department TO map out d
program on tax Legislation for rec
Ommendation to Congress. DR.
Thomas :. Adams, professor Of eco
nomics al Yale University. and
chairman Of the advisory tax board
OF the Treasury Department, who
was the chief advisor of the scCre-
tsries of the Treasury during the
Democratic regime Is acting in the
same capacity under the new sd-
ministration. The recommendations
OF Secretary Mellon as to various
administrative changes in the rev
enue law are expected TO be sub
stSntially the same as those OF for
mer Secretary Of the Treasury
Houston. II is expected also that on
various questions Of policy the two
administrations will be in accord
Mr.. Mellon Indicated yesterday that
he had not as Yet made Up,his mind
on the question OF the desirability
OF a sales tax. Dr. Adams Is strong
ly opposed to any general tax on
sales.
Mellon 10 Hurry Plans.
1t is expected that as soon as
either the House Ways and Means
Committee or the Senate Finance
Committee resumes hearings on lax
legislation. Secretary Mellon will
present his views. He Is strongly ot
the opinion that tax legislation
should be taken up at the earliest
possible moment in order that bus
iness interests may know as soon a.
possible what taxes Will apply TO
earnings of the year 1924. He has
offered no objection. however. to thu
plan favored by the ma jority of the
Republican members Of the senate
Finance Committee and the House
Ways and Means Committee. Under
this plan the Senate Finance Com
mittee would begin hearings on tax
legislation in the near future. but
the House Ways and Means Com
mittee. where all revenue measures
must originate. would report oat tho
tariff bill first and then turn to
taxes. According TO those faNorin-
this plan both measures would he
pressed as nearly simultaneously a.
possible following the passage Of
the tariff bill by the House.