Evening star., 1922-05-31
M'CUMbERBONUS
PLAN IS REPORTED
T0SENATE TODAY
Finance Committee Vote
Stands Nine to Four in
Favor of Measure.
FORFEITURE PROVISION
STRICKEN FROM BILL
Committeeman Want Action on
Tariff First-Simmons Sees Little
Real Aid for Soldiers.

The commonly known McCumber
soldier bonus plan was ordered favor
ably reported today by the Senate
finance committee. The vote was
to 1.
The effective date of the bill was
changed. however. from next october
! to January 1. 1923, after Senator
Walsh. democrat. Massachusetts,. told
the majority that 1t would take six
months to get the bonus machinery in
operation.
Forfeiture Cut Out.
The committee before approving
the McCumber plan eliminated the
forfeiture provision as contained ir
the House measure, under which vet
Grams failing to pay loans to banks
or to the government would have for
feited their adjusted service certifi.
Gates.
In such cases the Secretary of the
Treasury would restore the certifi-
Gates to the veteran in whose name
it was issued at any time prior to
its maturity upon receipt from him
of the amount paid by the govern
ment to the bank, plus interest al
the rate of Az per cent. compounded
annually. Under another amendmen,
could make application for adjusted
service compensation at any time
after the passage of the law. The
House measure would have limited
the time to July 1, 1928.
Smoot Plan Defeated.
The smoot plan, providing for paid
In In, of oil OF har
forms of compensation, was defeated
by vote of to 5, the three demo-
Gratis present-Simmons, Walsh and
Gerry-voting against 1t. Repub-
licans supporting the Smoot pro-
posaI were Senators Smoot, Mclean.
Frelinghuysen. Calder and Dilling-
ham. Republicans voting against 1t
were McCumber. Curtis, Watson,
Sutherland and La Toilette.
Senator Mclean broke the tie which
Las existed among the republican
members on the vote to report the
McCumber plan, which Is tie House
bill with some amendments- cluding
elimination of the land settlement or
reclamation project. Senators said
reclamation was not discuS Ssed, al
though House leaders and some Sem
ate supporters of reclamation legis-
lation have urged that the Smith
similar legislation be attached to the
bonus measure.
Want Tariff Action First.
Several of the majority members of
the committee gave notice to Chair
man McCumber that they would op-
pose laying aside the tariff bill for
Senate consideration of the bonus at
IN, he futr ofr-
man McCumber replied that he in
tended to get as prompt consideration
of the bonus bill as could be worked
out, but did not State whether the
tariff measure would be laid aside.
1t was reported that the republican
leaders hoped to work out some plan
by which the bonus measure could be
expedited without delaying seriously
the tariff bin.
Senator Simmons, ranking demo-
cratic member, announced on behalf
of the three democrats present that
they voted to report out the McCum-
Der bill, only to get action promptly
measure. The democratic leader ex-
pressed the belief that the McCumber
bill would be of little benefit to the
former service men and said the
minority reserved the right to offer
a substitute bill in the Senate or
Cash Payment Provided.
The Senate bill, as reported, would
provide for the payment Of cash to
veterans whose adjusted service
credit would not exceed $50 as was
proposed in the House measure, and
would give to other veterans one of
these four options:
Adjusted service certificates hav-
ing a face value of 3.015 times the
amount of the adjusted service credit
computed at the rate OF 81 day for
domestic service and S1.25 for foreign
service. with provisions for loans by
hanks prior to January l. 1925, and
by the government thereafter. These
certificates would mature in twenty
years from the date of issue, or
sooner upon the death of the veteran.
Farm or home aid in an amount
equal to the following percentages
Of veterans adjusted service credit:
100 per cent If payment were made
during 1923, los per cent if pay
ment were made in 1924, 10 per
cent IN 1925. 120 per cent in 1925,
1870 per cent in 1927. and 140 per cent
in 1928 or thereafter. Under the
option would have been the total
Of the adjusted service credit in
! creased by 25 per cent.
Bank Loan Provisions.
Under the bank loan section of the
bill, prior to January /, 1925, any
national bank or any bank or trust
company Incorporated under the laws
of any state. territory, possession or
the District of Columbia, would be
authorized to loan to any veteran
upon his promissory note. secured by
his adjusted service certificate, any
s.nount not in excess of half of the
amount Of his adjusted service credit
plus interest at the rate of Az per
cent from the date of ISSUE The
rate of interest charged by the bank
could not exceed by more than per
cent the rate charged at the date of
the loan for the discount of 80 days
commercial paper by the Federal Re-
serve Bank for the federal reserve
district in which the bank making
the loan is located.
should a veteran fail to pay the
principal and interest Of the loan
within six months after its maturity
the bank would present the> note
10 the Treasury and be paid the
amount of the principal and the
interest. The certificate securing the
note would be held by the Treasury
and would be restored to the veteran
at any time prior to its maturity
Ipon receipt from him Of the amount
paid by the Treasury to the bank
lua interest on such amount at the