The New York herald., 1922-02-17
FORDNEY DECLARES
AGAINST ANY DELAY
Calls Meeting of Committee
to Adopt Some Plan for
Bonus Funds.
SENATOR'S OPPOSED
Many Now Outspoken in
Protest Against Soldier
Payment.
EDGE IS WITH PRESIDENT
Underwood Fights Gratuity, as
Does Pepper-Capper Is
Against Sales Tax.

Special Dispatch to THE NEW York HERALD
New York Herald Bureau.
Washington. ID. c., Feb. 16.
President Harding's letter on the
soldier bonus was the chief subject
discussed to-day in the Senate and the
House.
Those on both sides who committed
themselves for bonus were reluctant
to adopt the suggestion that it be
postponed until conditions are i'm
proved. Those who have opposed the
sales tax clung desperately to pet
theories as to how to raise the money,
the chief sentiment among this group
dorsed by the United States, along
lines already discussed.
II am in favor of action on the
bonus at this session of Congress-"
Representative Fordney, Republican
tMich.), chairman of the Ways and
Means Committee, declared when he
came from meeting of the members
of his committee and the Senate
Finance Committee, at which had been
discussed the Presidents letter. Now
is the time to act. There can be no
delay.
u 1.-THE Republican members of the
Ways and Means Committee will have
a meeting tomorrow morning to try to
adopt a plan which can be put through.
Personally, / do rot see why the bonus
cannot be provided without additional
taxation--I mean through the sale of
foreign bonds.
have been put in force in different coun-
tries I believe that of Canada to be the
best. have obtained some figures
from the Treasury Department showing
what revenues would be derived from
such a. tax.
Favors Canadian Plan.
I'VE are working upon the theory
that the President. in speaking of gen
eral sales tax, had in mind single
tax--that is, a tax on sales at the origi-
nal source, and not on each turnover.
The Canadian sales tax is along this
line, taxing the sales by the producer,
manufacturer and wholesaler, but not
the retailer. In addition to this, certain
items Of foodstuffs are not taxed. I
have studied the different means of tax
alton possible to obtain the money for
! sl.a 4l,ot
sales tax. placing the tax on the pro-
ducer, manufacturer and wholesaler will
be the least burdensome."
Representative Bacharacn (Rep).
New York, author of the sales tax ,dea.
was elated in the belief that Mr.. Har-
dings letter made certain the adoption
of the sales tax policy. He ventured
the opinion that the members of the ag-
ricultural bloc would be won over to
the idea by providing in the law that
| agricultural products should be exempt
! from such taxation.
IL talked with Mr.. Harding at Ma
rion about the sales tax" Mr.. Bacha-
rach said, "and he seemed to be In favor
of It. although he stood for half of 1 per
cent. instead of / per ceit.. as the tax.
/ He knows all about the advantages OF
this tax, therefore. and ii is a victory
TO have the plan indorsed in this way. l
predict that 1t will be accepted by Con-
gress."
Mr.. Bacharach said there was a prob
ability that the cash feature of the bonus
plan might be eliminated. The House
/ for the next few days, he said. would
consider the administrative features or
the bill and then go into the money
raising features.
Underwood Against Bonus.
Members OF the Senate were perticu-
larIy outspoken in their opposition to
the bonus. Senator Underwood (Ala.)
the Democratic leader. declared:
81 am not in favor of bonus and
never have been. / do not believe In
the sales tax. believe II the Repub-
lican party passed bonus bill carrying
any form OF taxation it will have an
nexed one of the most dangerous la
bilites any political party has had to
face for long time.
II think conditions of business and
finance in this country are sich that IL
we want to get back to good old times
we cannot put any additional tax bur-
dens on the people or the Treasury"
Here are other expressions by Senate
! and House leaders:
Senator Norris (Rep., Neb.): II am
opposed TO the sales tax. In my
Judgment there are two methods much
better for raising the bonus--one by a
progressive inheritance tax and the
other by the collection of the interest
on the foreign debt / am opposed to
postponing consideration OF this question
as suggested by the President IL we do
not adopt the sales tax plan. We must
meet the issue now
Senator Fernald (Rep., Me.): 1.-THE
Presidents suggestion for n sales tax
IL an excellent one. but what impressed
mo more was his suggestion to post
pone the whole question until conditions
improve. Business liz now taxed to the
limit without breaking"
Senator Overman (Rep., N CO.: IL
am opposed 20 the sales tax as a means
Of raising the soldiers bonus. I am in
favor OF raising IL by using the interest
on the foreign loan"
Senator Cummins. Republican (Tova)
II am opposed TO any tax revenue fea-
lures to bonus bill. IL is not wise 70
couple any tax law with the bonus bill.
Pepper Against Bonus.
Senator Ransdell. Democrat Uowa) :