The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-03-01
SALES TAX FAILS
IN COMMITTEE
Plan on Foot to Report Ad-
justed Compensation Bill
Without Provision for
Money

Washington, Feb. 24.-Rejecting,
Z to 2. proposition to pay the.
soldiers bonus by means OF sales
TAX, the special subcommittee or
Republican members OF the house
ways and means committee vas ur-
derstood to have gone On record
today, 8 70 4, in favor Of reporting
out an adjusted compensation bill
without any provision for raising
the revenue.
The subcommittee reported TO
the entire majority membership OF
the committee later in the day but
decision was deferred, adjourn-
ment being taken until next Tues
day SO as TO give committeemen
not mem hers Of the subcommittee
time To Gdy the whole matter.
Some OF those processing TO have
sounded sentiment among the ms
jority. members We're OF the opin-
ion that unless there were unfore-
seen developments between now
and Tuesday the action of the
subcommittee probably would be
ratified.
Aside from The ballots on the
sales tax and a bill without & reye-
nue. provision there were said TO
have been several other votes in
the subcommittee. 1t was learned
that q motion TO report bill car
rying only an insurance provision
was defeated, 6 20 q.
Both proponents and opponents
of a sates tax appeared to he SUR
prised by the vote on that propo-
! sition. Both sides had been claim
ing q victory with each seemingly
expecting 4 fairly close vote.
-Four members of the subconlmit-
tee were reported to have favored
further postponement Of bonus
legislation in the belief that in
time the problem OF finance would
solve itself. Postponement is op-
posed, however, by a big majority
: of the. committee and also by
many members of the house. Chair
man Frdney reiterated that a
bonus bill would he passed at this
session and other committeeman
expressed. the same view.
Some supporters CT sales tax
expressed the view today thar
President Harding might again
take Il hand in the bonus conero-
versy.
Ii became known that Eepresen-
1arives Prear and Dickinson OF
Iowa and Woodruff OF Michigan
called on Chairman Fordney yesier-
day and laid before him the whole
situation placing emphasis on its
political aspects. They. W re IN
derst cod 10 have. contendeG that 8
| sales tax would cause general dis
satisfaction throughout the coun-.
Try; would make the soldiers bo-
ms extremely. unpopular. with the
people and might result in po-
li1tcal apheavais in many nornal-
ly2soiid Republican districts.
Those iayoring the passage OF 8
! bonus bil without any. provision
fer. raising the revenue. said such
legislation could be followed by
another bill giving the secretary OF
the, treasury, authority TO use pro-
ceeds from the refunded foreign
bonds in paying the, honus,
) Special machinery for. paying the
bonus4wiA have TO be set up in the
war department. it was said, with
a. large star OF. clerks necessary TO
examine the records Of the service
men, 10 determine the exact amaunT
that each is to receive. Some doubt
was expressed today that the cash
payments could be started on next
October J.. the dare fixed in TIE
bonus bill as amended.
While the house committee was
wrestling with the bonus problem
the subject was brought on the
floor Of, the senate by Senator
Moses tRepubhcan9 Of New Hamp-
shire, who announced his oppo-
sition TO the adjusted compensa-
ton legislation even with a sales
tax attached. The New Hampshire
senarpr's-- position was attacked
from. the Democratic, side with
Senator Heflin of Alabama leading
the assault.