The Washington times., 1922-10-29
ENACTMENT0F .
SHIP SUBSIDY,
HARDING 'sA|M
Viii Put Measure at Fore in
Special Message Opening
Short Term. l.
By WILLIAM p. FLYTHE.


list of emergency legislation which !;
President Harding will urge Con-
gress to pass as shortly after the
elections as he can call an extra
session, it was authoritatively |
stated today. -. r.. Il
Other legislation which he will
urge includes: !
Sweeping changes in the
transportation act. .. |
PA bill to tax billions Of dol |
lars in securities that are now tax |
exempt. ......s. ~ |
"a measure to increase army
appropriations so as to care for
the regular peace time forces.
"A modification of the Vol
stead act. to meet international
objections growing out Of the re-
cent Daugberty ruling.
May Meet November 10.
Administration leaders have urged
the President to call the Congress
together as soon as possible and
it would not be surprising to see
members gathering here on Nov
ember 10 instead of November 20.
the date at first selected, 1t was
said.
Meeting at this earlier date, IL was
pointed out, will allow time 10
dispose of at least part of the
Administration program before the
regular session. which convenes
December 4. q
The same Congressman have also
suggested to the President that II
would be advisable for him to sail
the House and Senate leaders into
a conference at the White House,
prior to the session and definitely
agree on a plan to expedite the
legislation desired This probably
will be done. II was learned.
With a definite program and a
hard and fast agreement as to the
order In which the measures are 20
be taken up, Administration forces
claim they will have more than
enough backing to put the program
through.
Confidential information to tha
President from all sections OF the
country is to the effect that the
Ship Subsidy bill should take pre-.
cedence over all other matters.
There has been tremendous
change In sentiment in many quar-.
tiers opposed to the act, II was said,
and there is now every reason to
believe that II will he received with
favor.
The Administration also feels that
every days delay Is an added
burden to the taxpayers and the
COVER nmept as we'll as an expet..
sive hindrance to international
trade. Mr.. Harding will lay these
facts before Congress and ask sup.
port Of the measure as a nationa!
policy rather than n party issue.
lie viii insist, through his friends
at the Capitol, that II he kept
before Congress until II IL disposed
of, II is said.
Transportation Act.
Since the recent railroad shop
strike the President has felt that
1t Is necessary to change materially
the transportation act. He~ has
discussed the question with Senator
Cummins, head Of the Interstate
Commerce Committee. Both agree
that II IL urgent either to abolish
the Railroad Labor Board. or have
II transferred from Chicago to
Washington and modify the terms
under which itsis empowered to fix
wages.
II is not al. all unlikely. II was said.
that the President will ask for the
repeal of the present transportation
act and recommend an entirely new
program. This would put the wage.
adjusting and strike settlement func-
tions under the Department Of Labor
and provide for cooperation with the
Interstate Commerce Commission, so
that wages and rates could keep pace
more closely with the fluctuating
railway earnings.
The President estimates that there
are In existence in the United States
upward Of $4,000, 100000 worth Of
tax.exempt securities and the num-
her of such issues is increasing at an
pace. Persons of wealth
buy these securities and escape the
heavy penalties of the Federal taxa
ton. the Treasury Department re.
ports.
The Administration contends that
il also has the effect Of Restricting
Investment in legitimate ventures
and Is materially retarding progress.
Instead of investing" capital in de-
velopments, there Is, a tendency to
purchase the safe, tax.exempt ponds,
il was said.
Would Ease Tax Burden.
The President has pointed out
that by passing law to tax such
securities II would turn millions
'nto the Treasury and greatly 1'e-
lieve\the burden on other taxpayers.
4, the same time, he believes, such
n law would assis: In bringing about
period OF business prosperity.
The army is in a hopeless muddle
due to insufficient means to main
tain an adequate number of officers
for the enlisted personnel provided
for, the President says. Every day
he-is called upon to release officers
who have splendid records. He
characterizes II as the saddest thing
he has to do and will urge Congress
to take care of the situation i'm.
mediately. .,.rrr ..
The President is not In favor of
modifying the Nolstead act, II was
said. but feels that Il must be more
clearly interpreted as to the foreign
possessions Of the United States and
as TO foreign shipping. He will place
the whole situation before Congress
a ~ Inns dauolnnaA n,