Arizona republican., 1922-02-25
HOUSE SUBCOMMITTEE
REJECTS SALES TAX To
MEET BONUS PAYMENTS
Republican Members FaUor Reporting Ad-
justed Compensation Bill Without Any
Provisions For Raising Revenue; Proceeds
From Refunding Bonds May Be Used
LRepubllean A. p. Leased wireI


ing, 10 2. a proposition to pay the
soldiers bonus by means of sales
tax, the special sub committee OF Re-
publican members of the house ways
and means committee was, under
stood TO have gone on record today.
to 4, favor of reporting out an
adjusted compensation bill without
any provision for raising the rev.
enue.
The subcommittee reported TO the
entire majority membership OF the
committee later in the day, but de-
cision was deferred. adjournment be-
ing taken until next Tuesday so as
TO give committeeman, not members
OF the subcommittee. time to study
the whole matter. Some OF those pro-
Tossing to have sounded sentiment
among the majority members were
or the opinion that unless there were
unforeseen Developments between now
and Tuesday, the action of the sub
committee probably would be rati-
fled.
Aside from the ballots on { sales
tax and bill without a 'enue
provision, there were said have
been several other votes in sub.
committee. II was learned that a mo-
y
Insurance. provision. was defeated,
S to ..
Both proponents and opponents OF
q sales tax appeared TO be surprised
by the vote on that proposition. Both
sides had apparently expected a close
vote. Representative Longworth OF
ohio and Bachrach OF New Jersey
were said to have been the only mem
bers voting for sales tax. although
representative Watson of PennsylVa-
MIA said he favored such a tax IL
bill carrying other than an insur-
ance feature were voted out.
On the sales tax ballot. however.
Mr.. Watson was said 70 have voted
IN the negative Others reported TO
have voted in the negative We're
Chairman Fordney and Representa-
tive Frear. Wisconsin; Copley, Tlli-
nois; Treadway. Massachusetts,: Tim
neflake. Colorado; and Chandler or
Oklahoma. Mr.. Chandler was absent
but Chairman Fordney voted his
proxy. On the ballot 10 report out A
bill without any revenue prov sion,
the subcommittee was said TO have
divided as follows:
Hint at Postronsmsnt
In favor: Fordney, Frear. Coplev
Timberlake and Chandler.
Against: Longworth, Racharach.
Tready and Watson.
-Four members OF the subcommit-
tee We're reported TO have favored
further postponement OF the bonus
legislation in the belief that in time
the problem OF finance would solve
itself Postponement is opposed. how
ever, by a big majority OF the COM
mittee and also by many members
OF the house. Chairman Fordney re-
iterated that a bonus bill would be
passed al this session and other com
mitteemen expressed the same view.
Some supporters OF a sales tax ex-
pressed the view today that Presl-
dent Harding might again take a
hand in the bonus controversy. They
thought 1t was the present intention
OF the committee to report out legis-
lat on based on the proceeds from the
refund on foreign bonds and said the
President had expressed disapproyal
or such legislation.
Leaders OF the house Republicans.
opposing sales tax, waged a ViEor-
Gus campaign against this form OF
levy before the committee met today
TO resume its Consideration OF the
financing problem. They said the
ranks OF opponents had been swelled
considerably within the past two days
and that whatever doubt there might
have been about the result OF the is
sue in the house had been removed
II became known today that Repre-
sentatives Frear and Dickinson of
Iowa and Woodruff OF Michigan
called on Chairman Fordney late yes
terday and frankly laid before him
the whole situation, placing emphasis
on its political aspects. They were
understood 70 have contended that a
sales tax would cause general dis
satisfaction throughout the country;
would make the soldiers bonus ex-
tremely unpopular with the people
and might result in political upheav-
ais in many normally solid Repub-
hcan districts.
May Use Refund Money
Those favoring the passage OF a
bonus bill without any provision for
raising the revenue said such legiS-
lation could be followed by another
bill giving the secretary OF the treas
ury authority 30 use proceeds from
the refunded bonds in paying the
bonus. They said the expectation
now was that some. at least, Of the
foreign bonds would be in hand by
June or July, and that money could
be realized on them before the cash
payment 10 the former service men
would become due.
Special machinery for paying the
bonus Will have 10 be set up in the
war department, il was said, with 4
large staff of clerks necessary TO cX-
anime the records OF the men to de-
termine the exact amounts that each
is to receive. Because of the magni-
tude OF the task that would confront
the department, some doubt was eS-
pressed today that the cash payments
could be started on next Oct l. the
date fixed in the bonus bill as amend
ed Inquiry as to this Is TO be mads
OF the department before the meas
ure finally is approved.
----O---
Wife OF Eight Men