New-York tribune., 1921-11-20
House and Senate Confer
ees Reach Agreement,
but Slashing Changes
Antagonize Opposition
SmoOt Refuses to
Sign New Measure
Debate Expected to Hold
Up Nov. Adjournment;
Leaders Hint at Veto
From The Trioune's Washington Bureau

IRON me lrtbune's Washington Bureau
WASHINGTON, Nov. 19.-House and
Senate conferees reached an agreement
on the tax bill to-day. In finishing
their work, however, such changes
were made in the bill as it passed each
house as to arouse threats of bitter
opposition to the adoption of the con-
ference report.
Antagonism to the report is such
that consideration of the bill may de.
lay the projected adjournment to The
extra session, November %, and may
prevent adjournment until almost the
end of November. Efforts will be made
in both houses to send the bill back
to conference. Tho leaders believe
they can muster the votes to force the
report through, but it is plain that if
they do it will only be after the bill
as it now stands has been raked by a
fire of severe criticism.
Senator Smoot, one of the foremost
Republicans on the conference commit
tee, is deeply dissatisfied with the bill
and refused to sign the report when the
meeting broke up early this afternoon
are urging him to sign. Representative
Longworth, one of the House Republi-
can conferees, at first refused to sign
but eventually did so. Representative
Green, of Iowa, another Republican con-
fierce, strongly protested against some
of the changes.
Trouble Long Brewing
Trouble over the bill has been brew.
0c l,r
division of sentiment among the Re-
the House for the so per cent surtas
rate after the President had sent g
letter opposing sush rate. The sur
tax rate, however, is only one of the
features of controversy.
Senator Smoot went to the White
House this afternoon, but denied he
had gone to discuss the tax bill. Ru-
mors we're current, too, that the Presl-
dent would veto the bill, but these
lacked yerifcation.
Senate conferees receded on the cor
poration income tax amendment and
the rate was fixed at the House figures
1914 per cent, instead of Is per cent
as fixed by the Senate.
The amendment of Senator Walsh, of
Massachusetts. taxing gifts at a rate
Il
cent, was eliminated against the pro-
test of Representative Green, of Iowa
Republican,. The tax on gifts has
strong support among House members
as we'll as among a majority of Sena-
tors.
The liquor tax amendments put on
in the Senate also were eliminated
These amendments provided for $64C
q gallon tax on spirits used incidentally
and also for a wine and beer tax. AS
result of the elimination, the bill goes
back to the House provisions as to
liquor taxes. Present taxes are re-
tanned, except that there is an addi-
tional tax of $420 additional on spirits
withdrawn and diverted to an unlawful
purpose.
The $4,000 exemption from corpora
tion income tax is limited to corpora
tions whose net income is $4,000, as
the conferees agreed to it,
The conferees accepted the Senate
provision as to capital gains and loss
after 1t had been revised and modified
Syrup Tax Accepted
The Senate tax of five cents a gallon
on syrups used in preparing fountain
beverages was accepted.
These constituted the principal fea-
lures acted on to-day. The conierees
were on the point of accepting the
House provision exempting foreign
traders from taxes, but the objection
was raised that tails would cause a loss
CONTINUED on page seven)