Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-03-18
MELLON LOADS
BONUS BURDEN
ON CONGRESS
Secretary of Treasury Says He
Is Neutral Toward eX-
YankS' Bill.
NOT ARGUING MERITS

WASHINGTON, March 1S.-RespOnsi-
bility for a soldier bonus" has been put
squarely up to Congress by Secretary of
the Treasury Mellon in a letter to Rep
resentative James A. Frear Of Wisconsin,
replying TO the recent bitter personal at
tack on him By the Congressman for al
legged criticism of the bonus"
Secretary Mellon declared, in all his
communications with the House Ways
and Means Committee, he had not at
tempted to argue the merits of the "bo-
aus" but merely had indicated the
Treasury's view of its cost and financial
consequences. He also took occasion to
deny he has recommended any general
sales tax or any particular taxes to pay
the bonus"
Referring to Frear's ironical insinua-
ton the Treasury did not object to pay
ing out $3OO0,O 100000 to settle cancelled
war contracts or the so-called railroad
funding bill, Mr.. Mellon said. Neither
question was in any way analogous to
the bonus" He added the Government
did not pay S3,O00,OO0,O00 for cancelled
war contracts, as Frear suggested, but
on the contrary, war contracts amounting
to more than 50, 100 100000 were settled
at total cost Of approximately
SJOOOOOOGO.
SAYS BONUS" IS
UP TO CONGRESS.
Whether or not there is to be sol
diers' bonus is a question for which
Congress will assume responsibility" de-
clared Mr.. Mellon. For the Treasury 1
have attempted to point out the neces-
sity Of meeting by taxation the cost OF
whatever bonus may be adopted and tbs
dangers of attempting &c provide for
bonus by borrowing or by makeshift
measures.
As I think it was made clear to the
committee and the country, 1 have not
recommended any particular taxes,
Cough l have, at the request of the com
mlteee, suggested several possible sources
of additional revenue that would be
available if Congress should decide to
grant a soldiers 'bOnus,' and, in the
connection, have given the Treasury's es-
Inmates as to the yield Of such addi-
tional taxes.
4 gather from your letter you are
under some misrepresentation also as to
the Treasury's position with respect to
sales tax. The Treasury has not recon,
mended any general sales tax. AS mat
ter Of fact, am not in favor OF a general
sales tax If It IS to be imposed in ad-
ditiOn to all existing taxes, unless made
necessary by an emergency in the re-
venues, such as would arise through
adoption OF the bonus measure"
SHOWS WAR DEBTS
PAID BY COMPROMISE.
In connection with the settleme II OF
cancelled war contracts, Mr.. Mellon cited
a letter recently received from Acting
Secretary Of War Wainwright in which
it was pointed out the War Department
had settled for about 10 cents on the
dollar.
From this it appears that the pay
ments which were actually made on ac-
count of cancelled war contracts repre-
scented, for the most part reimbursement
to contractors for actual expenditures in
cured in reliance upon war contracts"
Mr.. Mellon added.
THE so-called railroad funding bill
has never become a law" he continued.
"and in any event would not have ap
prOpriated any money out Of the Treas
ury. Its purpose was simply to finance
settlement Of Government obligations
arising out of Federal control through
the sale Of railroad securities already
owned By the Government, and it since
become unnecessary with the change in
market conditions which has made it
possible to dispose OF these railroad Sc
eurities at par and accrued interest
through the investment markets"
Secretary Mellon ignored the personal
reference made to him by Representative
Frear, combining his letter to correcting
statements concerning his position on
the "bonus."-Copyright 1922, by Public
Ledge Company.