New-York tribune., 1922-03-08
PresidentO tOpposesSchemc
Without Sales Tax, He
Announces, as Fordncy
Submits Plan to House
Majority Ignores
IntilnatiOn of Veto
Certificate Proposal, With
5 Optional Clauses, Up
for Debate Next Week

From The Trsbune's Washington Barsoo
WASHINGTON. March Al
most simultaneously with the intro
duction in the House to-day of the
new certificate plan soldiers bonus
bill a statement was made at the
White House which showed that
President Harding has not altered
his demand that bonus legislation
either be postponed or that the fund
to pay the soldiers be provided
through sales tax. This was taken
in official circles as a plain intima-
ton that the President would veto
the bill reported to-day.
The Presidents attitude was set
forth in emphatic terms. lie is un-
yielding in his stand that Congress.
must choose one Of the two ways.
Harding Stands Firm
The White House statement said:
"The Executive has expressed
the opinion that a sales tax or
postponement of the legislation
was the only thing he could sug-
gest regarding the bonus. He is
still of the same mind. The Ey-
ecutive's position has not changed,
despite the impression in some
quarters that the Executive
changes his mind to meet shifting
winds.
"The President has no direct or
definite knowledge as to any plans
IN the making. He has nothing to
add to his previous statement and
does not expect to have. This is
official and authoritative and you
can say so. The President does
not recall that the subject of the
bonus was mentioned in the con-
versation with Mr.. Fordney yes
terday."
Chairman Fordney and members o.
the Ways and Means Committee had
not tonight realized that the positive
utterance by the executive branch is
a bombshell. When told that TIC
President stood by his original de-
mand members of the committee de-
clared the statement held no particular
They insist that no veto
shadow threatens the bonus bill so long
as there IS no heavy appropriation re
CURED Of the Treasury ana no levy a
4 general tax program. Both these
points are met in the new bill.
Majority for Early Passage
The temper of the committee and c,
al easy majority of the members OF
the House is declared to be so strongly
for immediate passage of the ner-
bonus bill that there is little possibi'-
ity they will pause in their progra.a
for putting il through as speedily IS
possible. Once the measure leaves the
House and the responsibility IS
shifted to the other end Of the Capito.,
it is conceded that anything is pos
sible"
The committee members apparent
unwillingness TO take in the meaning
of President Hardings statemeu, IS
said to be largely due to the assurance
of approval they saw in his failure -
step in during the period after the dc
tails Of the new plan were announced.
AS late as yesterday afternoon wher
Mr.. Fordney was visitor at the White
House, it was pointed out, nothing g.
Executive disapproval OF the reN
scheme was known even among the
chairman's Immediate conferees. ! ae
White House statement explains this
on the ground the bonus was not dis
cussed.
Representative Fordney introduced
the bonus bill as soon as the House
convened to-day and Immediately left
town. 1t was later learned he had
gone to Peoria, H., and Chicago to FL
speaking engagements.
Other members announced that !.
was their plan TO consider the bill
before the full committee OF both Re
publican and Democratic members on
Saturday and report it favorably at
that time. 1t is the intention of House
leaders to bring it up on the floor for
debate early next week. They expect
opposition to details of some OF the
features, but look for very few votes
against it. The only real fight expected
is on the rate OF interest to be paid
on the certificates. The bill calls fog
41s per cent compounded annually, and
there is a movement on 20 reduce this
to per cent, which would mean q ssY-
ing Of about $500, 100000 to the govern
ment at the end of the twenty-year
period. 81
Many Classes Not Eligible +.
The bill provides a long list Of cisssc.
OF service. men who are not entitled
to the bonus. They include, il addition
to all commissioned officers above thC
grade OF captain in the army or Marine
Corps, lieutenant in the navy, frs
lieutenant in the Coast Guard q
passed assistant surgeon in the puhli'
health service, the following: All civil.
ian officers or employees, contrae'
surgeons, cadets of the Military Acad
einy, midshipmen, cadets of the Goas
Guard. members Of Reserve Officers
Training Corps, the students arm,
training corps, Philippine scouts aa'
guards. Porto Rico regiment. Na5iene
Guard OF Hawai-, members Of the in
sular force Of the navy and the Samoa,
native guard.
no ofl;ccr holding comnlission in II
reCular arm, nayy OF marine co-r
n'.ll get tcrus, ard spce;a, section