Arizona republican., 1921-10-12
COMPROMISE PROGRAM WINS. FIRST SiIIRMISH IN| VOTE ON TAX AMENDMENT
Senate Adopts Compromise Amendment Proposing Repeal of Transportation Taxes Freight and Passenger Rates; Opposition Ready To Attack Other Proposals; Manufacturers Bloc to Fight Surtax Amendment
Surtax Amendment
IRepubIiean A. P. Leased wire1

1Repubiican A. P. Leased Wrel
 WASHINGTON. Oct 1.-The Re- publican tax revision program was program was started on it's way through the senate today with the adoption without a dissenting or rec ord vote of an amendment proposing repeal on next January l of the transportation taxes on freight, pas senger, Pullman accommodations. ex- press packages and oil by pipe line.
 There were increasing evidence, however in the senate and behind tle scenes, that some. other compromise proposals would not find as easy sailing. Relying to an inquiry from the Democratic side, Senator Me- Curnber of North Dakota announced the compromise amendments would not be offered on behalf of the full Republican membership on the finance committee; that he was against. some of tsem, and that he and other committee men reserved the right to oppose them.
 Senators in the so o-called manu- lecturers bloc" supported by house leaders, were set to launch their fight against the 50 per cent maximum income surtax rate amendment After it's introduction there were reports that the provision would be miA erl- ally altered in the conference be- tween the house and senate on the completed bill.
 House leaders were understood to have made it plain they would not recede from the original house max imum rate of 32 per cent, but some senators were of the opinion that the reduction likely to be made by the conferees would not be as great as IS per cent
 Eastern senators were ready to wage war on the compromise asnend- ment to retain the corporation cap- ital stock tax, but sponsors of the new tax program were confident this not only would be put through the senate but would be retained in con- ference as the house bill did not pro- pose repeal of this section of the existing law.
 Democrats generally were expect ed to support the surtax, estate tax, capital stock tax, corporation exemp- tioa repeal and other provisions Of the compromise program. Some lead- CTS on that side thought the minority would vote almost solidly against the completed bill unless provisions were made for increased taxes on corpora tions and reduced taxes on indivld- : uals having incomes of $15,000 a year or less.
 Before adopting the transportation tax repeal amendment. the senate voted down an amendment proposing that the repeal be effective ten days after the passage of the bill. Dis posal of these two amendments con stituted practically all progress made today on u e bill itself. Senator Smoot Republican of Utah, used much of today explaining his pro- posal for a manufacturers sales tax and to a political row over the tax bill between Senators Harrison, Dem- ocrat of Mississippi, and Watson, Re- publican of Indiana.
 Twitling the Republicans on tht finance committee for accepting the compromise program. Senator liar rison said he had never known the ..old guard m the senate to De pu' tn such rout anL surrender without giving battle Ha said it was sin gularly strange that Senator Lodge the Republican leader, attended tht meeting of the agricultural bloc" and assisted in "submarining the finance committed"
 Charging that certain promises were made to the Wall street inter ess" by the Republicans in the las campaign, the Mississippi senator de clared those interests came to Wash ington last May to have the prom ises fulfilled referring to the White House dinner of May 25. attended bl prominent eastern bankers.
 Senator Watson said that in tn compromise plan the senate Repub licans had gone back practically t' inc house bill; that the Democrats m the finance committee had made n' proposais for improving the measur while 1t was before the committed and that there was evidence of filibuster by the Democrats agains fhis and other measures in an effor to force the tariff bill over into mex wear as close 70 election time sa pos