New-York tribune., 1921-11-06
Senate Rejects
Bonus Proposal
In Tax Bill
Reed Amendment to Enact
Soldier Relief and Retain
Excess Profits to Provide
Funds Beaten. 38 TO %
Tax Measure Is DELAYED
Renewal of Fight Over
Veterans Compensation
Puts Ii Over 10 Monday

WASHINGTON, Nov. BY vote
a ss to IS the Senate rejected to-
,;sht the Reed amendment to the tax
Nil proposing to enact the soldier
sonus bill and retain the excess profits
n Z means of financing adjusted COM
,ensstion fer former service men.
Five Republicans. Capper, Johnson.
Kenyon, Ladd and La Toilette, sup
,ortsd the amendment, and two Demo
eats, Glass and Myers. voted against
l.
The defeat of the Reed amendment
cane after general debate, during
which President Harding was assailed
by Senator Stanley, Democrat, of Ken
tueky for what the Senator described
- the "order given to the Senate" to
recommit the bonus bill.
Kenyon for Bonus
Senator Stanley declared there was
saIy one power on earth that could
have made the President turn his
back" on the 100000 former service
men. That power, he said, was "the
silent insidious and pitiIess power of
Marnmon, that knew what it could do:
that understood its authority.
Senator Jones, Democrat, of New
Mexico, accused the Republicans of at
sempting TO delay the bonus until in
the sweet bye and bye most people will
have forgotten about it"
Senator Kenyon, Republican of Iowa,
announcing that he would support the
Reed amendment or any other reason
sble plan for soldiers bonus, said
that those in the Senate who advocated
= bonus were regarded as demagogues.
those who tried to do anything for the
farmers were regarded as demagorues
thing for labor were regarded as dema-
gogues.
Vote on Tax Bill Delayed
"The way not to be a demagogue, }"
he added. is TO vote to take the tax
of Of golf balls, furs and excess profits.
Do that and YOU Immediately become
: great statesman"
The renewal of the fight over the
bonus delayed consideration of the tax
bill and hope of reaching a vote on it
before Monday was given up early in
the evening.
Debate on the bill to-day was en-
iivened by an attack on Secretar- Mel
ion oy Senator La Toilette, Republi-
can, OF W -sconsin, and a defense of
sae Treasury chief by Senator Watson,
Republican, of Indiana.
I'VE have heard here from dav to
day. said Senator La Toilette. sithat
wealth defes the government, that it
viii not pay its taxes, but the fiscal
head Of this government has laid it
down as proposition-and | am going
to bring it before the country--that we
cannot make wealth pa and that we
might as we'll accept that proposition;
fns@ We have got to establish a system
Of taxation that will make the peonle
pay, that wealth will not bear it's share.
Declares He Should Retire
THAT is the declaration, and it
comes impudently and brazenly from
the head of the fiscal department of
tired from his place for making this
sor+ e Seci-- ration."
Senator Watson took sharp issue
witu -aaator La Follette's interpreta-
ton OF Mr. MELONS tes timony before
the Senate Finance Committee when
the tax bill was being drafted.
THE Secretary" declared Senator
Watson, "did not say and the Serre-
tsry did not mean, and do not think
that any possible con truction placed
upon his testimony in fairness can
lead him to say that he was in favor of
the evasion of taxation by the rich"
Senator La Toilette was arguing for
his amendment, proposing that tax re-
turns be made open to public inspec-
ton. which was rejected 80 to 33. The
Wisconsin Senator reserved the right
to resubmit the amendment when the
bill is reported out of the committee
Of the whole.
The Senate also rejected, SO to %,
another amendment by La Toilette
providing for taxes on estates rang
ing from l per cent on the first $780,
oo0 to sc per cent on estates over
sso00o.000. Another amendment by
the same Senator was accepted. 1t re-
eulres taxpayers in making returns to
list tax-exempt securities held by
them.
May Go to House Thursday
Should the tax bill be passed by
The Senate Monday it would not reach
the House until Wednesday, as that
body adjourned to-day until that time.
Leaders there plan to take it up
Thursday with view of having it sent
TO conference. Meantime, however, a
group Of Republican representatives
IRON, Western states has started a
movement looking to q vote in the
House to instruct the conferees of that
body to accept the SO per cent income
surtax amendment substituted by the
senate for the House maximum of
u per cent.
Six representatives signed q circu-
iar letter to other Republican members
Of the House urging them to vote to
amend the rule which it was stated
was expected to be offered to send
sne bill to conference. The sponsors
oi the movement expect to muster CON
ss'csrable strength for their plan from
ne maj ,rity side of the chamber and
are counting upon the united support
m the Democrats.
IN