Evening star., 1922-01-26
MAYTAX TOBACCO
OGETBON)SFUND
Secretary Mellon Holds Levy
on Necessities Would Be
InadvisabIe.

imposition of taxes on necessities
as means Of raising funds for pay
ment OF a soldier bonus is considered
'nadvfsable by Secretary Mellon. II
was indicated today at the Treasury
Mr. Mellon. in letter recently sent
to Chairman Fordney of the House
ways and means committee. reiter-
ated his opposition to a bonus, but
stated that ii it was. decided upon, it
should be provided through addi-
tional taxes -
The Treasury. it was explained TO-
DAY. Will not. until requested. send
speclnc recommendations as to sources
OF revenue for this purpose to Con-
gress. but the belief was Expressed
mat any additional taxes on such
,,'a,,Is ne1Tssities as tea. coffee or sugar
"ouid be regarded as inadvisable.
Some attention to possible further
AKA IaAa tlon on tobacco may be given, IL
was lndicated, although the Treasury
was Understood to believe that this
STnHoolty comes almost within the
ciassincation OF a necessity.
Hearings Next Week.
Brief hearings probably will start
early next week on the so-called
soldiers bonus BILL" or adjusted
compensation. Chairman Fordney of
the ways and means committee an
nounced last night.
Opportunity will be afforded repre-
sentatives of the Treasury and Of
veterans organizations. such as the
American Legion, to present their
views. hut it is unlikely, Representa-
tive Fordney said. that any attempt
Will be made to obtain the opinions Of
| others.
Mr.. Fordney said a bill would be
reported to the House within two or
| three weeks" and would carry a pro-
vision Tor the raising OF necessary
1 revenue.
Announcements of the committees
plans came after q conference be-
tween republican leaders of the SEN
! ate and House at which 1t was agreed
that bonus bill should be framed
| in the House, with the determinat ton
! Of way to provide revenue left en-
1 mittee.
Decision Of the committee to take ac-
! tlon also came on the eve of q caucus
of House republicans tonight. at which
members who were in the military serv-
Ice during the war are expected to de-
mand prompt enactment OF a bonus
| bill
! Talk Of snles Tax.
! Insistence Of Secretary Mellon, ex-
pressed in letter to Mr.. Fordney, that
! the country's finances were SO critical
| that bonus was inadvisable. especial
! ly II linked up with the foreign debt.
has tendency to increase talk among
House members in favor Of some sort
| of a sales tax
Chairman Fordney refused to COM
! ment on Mr.. MELONS, letter, declaring
he had not read 1t. He reiterated the
| belief. however, that some revenue for
a bonus might be obtainable from the
foreign debt repayment without dis
:. turbing finances of the country.
Committee members. however, gen.
| orally were agreed that sales tax
| would have to furnish the bulk, II not
| all. of the revenue for a bonus
| Declaring that the committee had in
| no way agreed as to what kind of q
| tax should be levied. Mr.. Fordney
| said he was emphatically opposed to
| a tax on gasoline, as proposed by Rep
resentative Bacharach of New Jersey
The Bacharach bill proposing a pro-
ducers' tax of 3 cents a gallon il
! pending before the committee. /
| would produce $500, 1000. 900 annually
; according to Mr.. Fordney, who con
/ tended,' however. that it would be
! grave mistake to levy such a tax.
! The committee chairman is said T.
have decided not to hold lengthy hear
| ings on the bonus question becaus,
7 of the belief that the committee 1.
/, preparing the new internal revenut
bill heard. sufficient testimony from
| various individuals as to the effect OF
different kinds of taxes.