The New York herald., 1922-03-14
FORDNEY STALLED AGAIN
BY MELLON STATEMENT

ued downpour of protests from al
classes of people in every section oi
the country. ~
This was established at a conference
held by several Republican members
of the Ways and Means Committee
with the Congressional committee and
the steering committee of the House
this afternoon. After Mr.. Fordney and
Mr.. Mondell Mad publicly expressed
disappointment over Mr.. Melons
scathing denunciation of their latest
bonus project they privately said some
very disagreeable things about every
body who has refused to accept their
word that it is good thing"
No definite decision was reached at
the meeting, but one will be forth
coming tomorrow after the lay of the
land of the Ways and Means Commit
tee has been more fully prospected.
The chances are the Fordney plan for
tanning" the bonus bill through will
then be approved-unless, of course
the dissenting Ways and Means mem
bers head it off. Mr.. Fordney himself
pointed out some inaccuracies" in the
figures sent by Mr.. Mellon regarding
the possible cost of the bonus under
the five way" plan.
Great Asperity Displayed.
Some of the Republican members
the Secretary's letter. They intimated
that he had "butted in" without being
asked. Mr.. Fordney said that he had
not written the Secretary requesting
his opinion of the legislation.
What happened was that the clerk
of the Ways and Means Committee
followed the usual program of send
ing copy of bills to the heads OF
the executive departments directly
concerned. with the usual formal re-
quest for comment"
Secretary Mellon naturally accepted
this as q committee request. His reply
inspired most of the bonus members
Of Congress to take out their lea6
pencils in an attempt to prove he die
not know what he was talking about
The only acknowledgment of his
"gratuitous advice" was made by Rep
resentative Frear, a member OF the
committee and one of the leaders o.
the agricultural bloc. Mr.. Freal
called the attention of the Secretary
to the fact that he (the Secretary,
had objected to every proposal sug
gested to finance the bonus.
"In fact" wrote Mr.. Frear. many
iciclcs Of sympathy and freezing ad
vice are handed out that are in har'
mony with the latest protest agains
frozen credits These hypothecatet
credits would probably never reacf
/ per cent. Of all the loans of th'
banks and trust companies combined
nor will they freeze soldiers half a.
much as the cold reception accorded
them in many quarters. The figures
YOU presen. are not admitted to b'
correct either in fact or effect. 1o'
have left Congress with one alterna
tive--enactment of a general sale
tax. This tax repeatedly has beef
defeated by the Congress during tn
sixty-seventh session"
Mr. Frear's Prediction.
Mr.. Frear, in predicting that tn
sales tax would shift $1,000, 900, 600 o.
more in income taxes paid by wealth
to the shoulders OF the consumer
called Mr.. Melons attention to th'
published statement that Mr. Mellon i
worth $500, 200, 900. He wound up hi
letter to the Secretary by predictin,
that "the bonus bill will be reported
with little opposition and viii pass th
House five to one" also that 1t viii
pass the Senate"
Opposition to the certificate LOAF
scheme among Republican members 0
the Ways and Means Committee be
came especially pronounced to-day
Representative Tilson declared tn
measure contained all the bad feature
of the original cash bonus plan sug
gested and some additional ones.
II consider Secretary MELONS state
ment unanswerable, said Mr.. Tilsor
"and I believe 1t would be very grav
mistake to disregard It. In my judg
ment the pending bill does not fairl,
or squarely meet the issue since II doe
not carry a provision to raise TIL
needed revenue. There is no use 70
us r. shut our eyes to the fact that tn
pending bill would draw large sums o
money from the banks and IL would d
more harm to the country than
would do good to the soldiers"
Representative Treadway, anothe
member OF the committee, made thi
comment on the analysis of Secretar.
Mellon:
mo one can contradict the soun,
logic OF the Secretary's statement, evei
though some CO the statistical informa
ton may not be borne out. 1t is ap
parent that an effort to pass a bonu
bill at this time is futile unless finance'
by a sales tax. The new scheme hav
ing been proved unsound financially
tie advocates Of the bonus, Of whom
Chairman Fordney is leader. ought 4
be satisfied. although unsuccessful. an,
cease their efforts. The President
position Is sound. Either the proposi
ton must be postponed or a sales ia:
adopted. l favor the former plan"
rprr TN TYEATEp ETpE OIrTZ