Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-04-27
LEGION AND SENATE
COMMITTEE STILL
WORKING ON BONUS
BY DAVID LAWRENCE
Ieased Wire Service to The Journal.)
(CoOvripht 1920

(IUpyrlSHI' 1oE%.J-
WASHINGTON, April 26.-Nego-
tiations between the American Lee
gion and the senate finance commit
tee are proceeding satisfactorily, but
the reports of an abandonment Of
the house bonus bill are untrue. The
suggestion of Senator Smoot that
paid-up insurance policy be given
as a substitute for adjusted compen.
sation certificates has been declined
by the legion. It was Mr.. Shoots
own proposal and not that Of the
finance committee.
eve have neither abandoned the
house bill nor agreed upon any sub.
stitute," said Senator McCumber,,
chairman. of the senate finance COM
mittee, to this correspondent today.
Inquiry at American Legion head
quarters disclosed the fact that with
the exception of a few minor details
there is virtually no change in the
position of that organization, which
is insisting that the house bill be
adopted.
New Proposal
- The fundamentals in the new pro-
posal made by the senate finance
committee in its informal talks with
the American Legion are substan-
TALLY these: .,.. ..,
1. The house bill provided that
payments in cash be made in Ocs
tober, 1922, and the senate wants
to make it. three months 1ater-Jan-
uary, 1923. To this there is no OBJ
lection on the part Of the legion.
2. There has been a suggested
limit heretofore on the time the SOL
der could make his application for
any of the five ways Of receiving a
bonus and the senate committee pro-
poses the elimination Of the time
limit, which, of course, satisfies the
legion.
3. The house bill provides that if
the number of days man served en-
titles him, at the rate Of 81 or $1.25
depending upon overseas duty, to a
total of $50, he shall receive cash.
The senate suggested that the total
cash be raised to 500. To this raise
the Legion does not agree, because
the outlay under the house Will
would be about SIS, 100000, while it
might cost s1o0,oOO,OO0 under the SEN
ate plan. The Legion is anxious that
the immediate cash outlay shall not
prove an embarrassment to the gov
eminent, and believes the house bill
is the better.
Other Proposals
4. The senate committee proposes
also that even if the total due an ex-
service man amounts to $500 or less,
he shall be privileged to choose the
adjusted certificate plan. This, OF
course, does not displease the Ameri-
can Legion.
). Aid in the purchase Of home
or farm as covered in the house
bill would enable man with $500
due him to get that sum advanced
toward mortgage. The senate COM
mittee suggests that $500 be the linn
it and that the payments be made In
installments of $500 a year begin
ming January, 1923. The American
Legion feels the total amount should
be advanced at once, so that 1t can
be more useful, as many homes can
be bought by the payment OF $3oe
down.
#. The senate committee has pro.
posed that as an incentive toward
the taking of the certificate plan. 20
per cent be added to the total
amount on the face Of the certificate.
this being the equivalent Of IL per
cent interest compounded in twenty
years. But the American Legion
counters with the suggestion that II
be made 40 per cent, arguing that
this was the original percentage IN
the bill which twice was reported
favorably by the senate finance com
mittee and which passed the house
year ago.
Loans at Banks
z. Under the house bill the loans
upon certificates would be made at
the banks. The senate committee
would permit service man to bor-
ro-r from the government twenty
five per cent the first year, thirty
per cent the second year and thir-
ty-five per cent during the third
year, increasing five per cent each
year until it natures. The borrow
ers would Of course pay four and
a half per cent interest. The Amer
lean Legion hasn't taken sides in
this phase of the matter but it is
apparent that government financing
would mean an administrative ex-
pense while borrowing from the
banks wouldn't add to the govern
ment's cost, so naturally the legion
would probably prefer the borrowing
to be done through the banks as
proposed in the house measure.
While some members of the Amer
lean Legion who come from indus
trial communities not particular
ly interested in land settlement,
there are thousands Of ex-service
men from the west who want it.