The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-08-05
MONDELL SAYS
EXPENSE CUTS
ARE POSSIBLE
Republican Leaders Faced
with Task of Slashing Three
Quarters of a Million from
Estimated Expenditures.
TRIM APPROPRIATIONS
cBy Associated Press,

10y AsSocidled PreSsD
WASHINGTON. Aug. 5.-To realize
their expressed hope of reducing the
nations tax bill by half billion dol
lars, Republican leaders of the house
of representatives appear on the ba-
SIS of treasury estimates to be faced
with the task of cutting three-quarters
of billion dollars from estimated
government expenditures for this fis-
cal year or else a huge federal deficit
next July l.
Secretary Mellon, in a statement to
the committee dealing with tax reyi-
sion, has warned that even if more
than $250,000.000 should be Topped off
the estimated expenditures of S4,550.-
100000. the tax yield could not safely
be permitted to fall below s3.570,00o,-
600, the estimated return under the
existing law.
Coupled with this warning is the
declaration that it would be folly
to reduce revenues without the issu-
ance of substantial additional reduc-,
tions in expenditure. Mr. Mellon
added that in seeking to arrive at an
estimate of the cash outgo for the
year, the treasury could not take into
account paper savings or hope for
reductions in expenditures which can
not reasonably be expected to mate
rialize"
Says Cuts Possible
In sta tement published today,
however. Representative Mondell OF
clares that in his judgment it is en-
tirely practical to reduce the total tax
levy by 100000 and still take
care of the essential needs of the gov
ernment
Il realize" he added. that if all
the bureaus, departments and agen-
cies of the government expended the
sums they have heretofore anticipated
spending, and in addition to that we
were called upon in variety of ways
to make large expenditures in the ac-
tual reduction of the SUM total of the
debt, over and above the sinking fund
expenditures, we could not reduce
revenues But neither of these things
should happen"
One of the big tasks before the ways
and means committee it has been ex-
planned is determining where cuts in
expenditures can be made safely and
the amounts.
Propose Rail Cuts.
Some Republicans of the committee
have said that with the $500, 100000
railroad financing plan proposed in
pending legislation it would be posi-
BILE to materialially cut down the $54s,-
100000 estimate made for payments
to the railroads.
At the treasury, however, it Is said
that this estimate is independent of
the financing proposed to be done by
the war finance corporation and rep
resents payments on account of the
transportation Act and Federal con-
troll
The outgo estimate also includes
S2o0000,000 for the shipping board and
some leaders say they are determined
to trim this total. The outlay for the
maintenance of the government mer-
chant fleet is giving many members
of the house concern and there has
been considerable private discussion
lately of some plan to ease the drain
on the treasury from that direction.
Opposition to the new taxes suggest
ed by treasury officers continues to
grow with representative Mondell COM
ing out flatly against any increased
postage and bank check tax. The Re-
publican leader also has said he doubt
ed either the necessity or the advisa-
bility of the automobile levy.
Urges Some Repeats.
He declared for the repeal of the
transportation and soda water taxes,
the excess profits tax and the higher
income surtaxes with additional rev.
enue provided through a five percent
increase in the corporation income
tax.
According to Charles A. Lyman. sec
retary-treasurer of the National board
of farm organizations, the associations
of farmers over the country are pre-
paing to launch determined fight
against repeal of the excess profits
tax.
These organizations also have given
their views on this question to the
ways and means committee and Mr.
Lyman says if the committee reports
bill with repeal proyision~th farm
ers will appeal to the agricultural
bloc" and all other friends in con-
gress to work for its defeat.