New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-03
House Cool to
MELONS Plan
For New Taxes
Members Contend Efforts
Should Be Directed To-
ward Reducing Burden
Instead of Adding to 1t
Levy ON Autos Criticized
Committee Calls In Meyer
and Davis to Report ON
Financing of Railroads

WASHINGTON, Aug. .. - Sugres-
tons for new taxes, made by Treasury
Secretary Mellon. apparently found
little support to-day among members
Of the House Ways and Means Com
mittee. Some committeeman were
mainly outspoken, while others, with
out entering into the arguments ad-
vanced for or against the proposals,
said it was their judgment that the
committees efforts should be directed
toward easing the existing burden.
With this end in view, it was ex
nlained, the Republican members OF
the committee had before them to-day
Chairman Madden, of the Appropria-
t;ors Committee; Eugene Meyer jr.,
director of the War Finance Corpora
4;on. and Director General Davis, of
,he Railroad Administration. Mr..
Never and Mr.. Davis were called in
70 discuss railroad financing and the
chairman OF the Interstate Commerce
Commission probably will be ques-
t;oned later on the same subject.
Chairman Fordney said the purpose
was 10 ret specific information as to
+be financial needs of the government
and then to determine just where cuts
.onld be made. He said Mr.. Meyer
had told the committee that under the
nlan recently submitted to Congress
Nv President Harding the railroad
financing could be taken care of with
out more than temporary assistance
from the Treasury until the securities
nroposed to be issued could be mar
keted.
Reduced Estimate Possible
Should this prove the case, it was
said. material cut could be made in
the Treasury estimate of s4,675,000-
GOO needed for the government nexo
year, as that included s545,ooo'oo for
the railroads. 1t was recognized, the
chairman explained, that the Treasury
had taken into account maximum eX
penditures, and he added that assess
INC all the information now before
the committee he was of the opinion
that large reductions could be made
in the estimates
Chairman Fordney also explained
that the new tax law would be designed
to run for number of years, and that
the rates should not be fixed for such
length of time on conditions believed
now to be only temporary. He thought
there should be immediate reductions
of s50O00O,000 or more in taxes, even
thought that brought about deficit at
the end of next year. This could be
wiped out, he added, by revenues after
expenditures had been returned to
somethinr more like normal
Representative Longworth, Republi-
can, Of Ohio aaid, although there might
be good arguments both for and against
the new taxes suggested by Mr.. Mel
Ion, he thought the time had come to
reduce taxes rather than to seek out
new sources.
Autos Chief Contributors
The new taxes suggested by Mr.. Mel
lon are designed, it became known to-
day, to yield total of approximately
s24O,0O0,OO0, of which $500 100000 would
come from automobiles, $4,000, 900
from the stamp tax on bank checks
and about S70,000,000 from the three
cent first class postage rate. The
Treasury Secretary's memorandum as
presented to the committee may be
made public tomorrow.
Discussing Mr.. Melons proposals
IN detail, Representative bacnaracn,
Republican, of New Jersey, in a state
ment declared he was opposed to the
elimination of all or any part of the
transportation taxes and to the pro-
posed tax of $40 on all automobiles.
He also declared that he was not
in favor of the proposed tax on bank
checks, but that, of course, he did
favor the repeal of the tax on soda
water and ice cream.
Mr.. Bacharach and other members
of the committee declared it would
be unjust to tax all automobiles the
same amount, and it was fairly evident
that If it was found necessary to i'm
pose license tax on automobiles it
would be graduated either as to original
cost of the cars or horsepower.
fight against any license tax on
cars was launched by the American
Automobile Association. In a letter
to Chairman Fordney the association
said the Federal sale tax on machines
and the state and municipal taxes of
all forms now totaled 1916, 720,878 an
nually, or $34.67 per car, and that any
increase would add to the already
excessive burden charged against the
automobile user"