The producers news., 1921-11-25

IaVdLlg,s lilC iLot@oS
sdas1'ae 5o,5ate arnndnlentt IT, to s,tl: the eta, tH
sa 5sllsSr s1lrtax rat. at 50 per cent
gone % to,,r Republicans; most Of
Nhsts n.y., the middle and far ar, west
p f5oll ;+l, the practically solid De
pd a''1 minority s. in supporting the tn.
aIstic Il lli''0A Announcement OF the
ssrpdrnsnr, s',ol,t applause from both
In broqglig gcI,qr5bag with some of
b: ot,oarsts Of Ii1S breaking. into cheers:
o,esident Writes Chairman
ho,,rs before the vote was was
free n0fa Ionse listened to the
ts4 tilt letter from President
Estng o. :, Chairman G Fordney Of the
Esr5ng - means committee, suggest
srs anu 4Fa ;a house and senate COM
4 that III Tl,a - executive said he still
Eo1lsg5 the - original house rate OF
kjF7ed I'll s.iT was nearer to a just levy
PEI eelS n,ore " promising one IN re-
the !. fjUs' the public treasury" but
ns TO ,;ew ene of the legislative situa. !,
Ed ID stbo,,ol,t tten ut wholly desirable
he lS.,,a sa0i he a compromise at 40
fsns ss;otelv after it became known
l1'13sa1si ! tse president had written Mr..
FI mt Ppnokesman for the "insur-
['rdnebE, d ebE,an,lhlicans, said the letter
|'aI M not NOT affect the result.
,la n.ing the three hours debate IN
DnLns la,,se conducted under a special
g. 4 'Sr tbe president was attacked 10 ior
3 (.sinr W. Mr.. Fordney. Representa- representa-
rluIs p E,ear. Republican, Wisconsin,
e !, fls'r, lle 'nr,resjdent's Intervention "at
7 last minute" was un5;1lf ana ahd
laS as' and that he should have
(Dgs'l " lnown m his views to the senate
e.s sls the the 50 per cent rate was under
Easderation there
SOlons Feel Hurt
,,,resntative Garner, Democrat,
MY mpi declared that if the president
y si's; v;ews to submit, he should have
=, "a in person or in a message to
= y house. NJ rather than in: a letter to
amber l of the body. Representa-
= s'I Sinnott, Republican, Oregon, de-
J, E,,sJ J''t that he "grieved because the
|s;d |.s;dent had been given baf; advice
4 this sabject.'
suDnotiny the presidents stand
E.ans,eessenta.iye ases Mondell and other
(saublican spokesmen said the Re
|5licsn party. had promised to re-
81 |. taxes and that the fifty per
hi M rate should not be approved by
he house.
The letter written by Prssiden:
I,rding to Chairman Fordney fol
rvs:
NY deat Nj. Fordney:
an response ,c your INQUIRY as
! the wisest course in dealing with
h difference between the two houses
/ congress in the matter of higher
utax on incomes, | can say only
Iat in view of our earlier confer
nre on tax matters and the ulti-
pate adoption Of the higher surtaz
ate Of 81 per cent, l still believe
be rate approved by the house near
/ to tn just levies and the more
romising one in returns to the pub
i treasury.
"Tha responsible administration is
nxious, first of all, to: levy the nee
ssary taxes to meet the demands :o1
he treasury. There is a moral obi
alton, however, in the party in pow.
I to do everything possible to keeI
aih with promises made to the pub
+ Capital Opposes Tax
I'VE have been collecting the high
St surtax on incomes levied at thi.
lme in all the world. The effect ha.
cen the restriction Of the easy flow
I capital in the channels most es
entail to our normal and very neces
ay activities. No one challenges
he levy Of the higher tax in tn.
tresS Of war, but now we are strug
Jung for the readiustments of peace
Where there is sos wide a differ
nee in the Judgment of the twt
ouses | have thought it might b.
esslble, and wholly desirable. tt
each an equitable compromise, sa.
!, maximum surtax Of 40 per cen
lls would put the higher federal ta1
|. income at total of As per cen
'heh would lHeasureably meet th'
sspeetatlons \ Of those who are, abov'
else, concerned with the return o
91peful Investment of capital am
@ application Of our capital resour
Is TO profitable productivity.
! am wholly confident that tn
splQl results spreading tl1erefron
! every active participant in our in
sslnal s and economic life, from man
! sFllent to every wage Garner, woul
vastly more advantageous to on
M ssupe than The maintenance Of wal
.rs a leVies as peace time penalties O.
lap''al Which are certain to hampe
i ,S;i ilVSIofaton Of our activities TO
'aeh We all so~ much hope.
Recites Experience
:. VuF experience will afford a cor
msAg .p Illustration. In seeking t
~ a,'el The railway settlements, grow
: IS OaV u OF federal control, | author
I@ Il The director general to invit
~ nv cooperation Of the war finane
n.y.? to convert saleable 81
ets p+lilsS INTO the cash needed for th
no ss"eInent ~ n process of making. .Dul
) 5 ,e aae period OF public belief in
anse per {, cent surtax as provided by tt
gss s, The sale Of the bills receivab'
,av p'ogfeSSlng in a most promisin
Do,. N.Y., :, Indeed, we had converte
,0to. e than Sl00,000,eO0 of railws
s'e INTO ready cash The vnl