South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-02-25
HOUSE REJECTS
SALES TAX FOR
RAISING BONUS
Committee FavOrs Reporting
Compensation Bill Without
Tax Provisions.
EXPECT EARLY ACTION
Proponents and Opponents
Surprised by Vote on Origi-
nal Proposition.

surprised by vote on OTlgl-
nal Proposition.
EAsHINGTON. Feb. 24.-Reject-
Ing TO 3 a proposition TO pay the
soldiers. bonus by means OF a sales
tax. the special committee of re-
publican members OF the house ways
and means committee was under
stood 20 have gone on record Fri
.av. 70 g. in favor OF reporting
out an adjusted compensation bill
without any provision for raising the
fevenue
The subcommittee reported to the
.utire majority mem bership OF the
Committee later IN the day but =
ecision was deferred. adjournment
uciuE taken until next Tuesday so as
to give committeeman not members
or the subcommittee time to study
Tho whole matter Some OF those
protesting 10 have sounded senti-
ment among the majority members
were Of the opinion that unless there
we're unforeseen developments be-
tween now and Tuesday. the action
of the subcommittee probably would
ratified
Defeat Insurance Bill.
Aside from the ballots on the sales
taN and bill without revenue pro-
.islon. there were said 10 have been
several other votes in the sub-com-
mittee. Il was learned that mo-
ton to report a bill carrying only an
insurance provision was defeated 8
10
Both proponents and opponents of
q sales tax appeared 20 be surprised
by the vote on that proposition.
Both sides have been claiming a vic
tory with each seemingly expecting
q fairly close vote.
-Four members OF the sub-cOmmit~
Tee were reported 10 have favored a
further postponement of bonus legis-
lation i'm the belief that IN time the
problem OF finance would solve it.
self. PostpOnement is opposed. how
ever. by a big majority OF the COM
mittee and also by mem bers Of the
house. Chairman Fordney reiterat-
ed that a bonus bin would be passed
at this session and other committee
men expressed the same view.
Some supporters of a sales tax eX-
pressed the view Friday that Pres't
Iarding might again take hand in
the bonus controversy. They
thought it was the present intention
81 the com nittee 10 report out legis-
alton based on the proceeds from
he refunded foreign bonds and said
Inc president had expressed disap-
rovaI OF such legislation.
Vigorous Campaign.
Leaders OF the house republicans
opposing "a sales tax waged a vigor-
GUS campaign against this form OF
.eVv before the subcommittee. met
Friday 20 resume its consideration
or the financing problem. They said
ne ranks OF opponents had been
welied considerably within the past
Two DAYS and that whatever doubt
here nigh be about the result of the
.sue Iu the house bad been re-
moved.
70 became known Friday that Rep
entatIves T'rear and Dickinson Of
1wa and Woodruff Of Michigan,
allied on Chairman Fordney late
Thursday ana frankly Ibid before
sim the whole situation. placing en-
rasss on its political aspects. They
.cra undcrs- GOD 20 have contended
hat % sales tax would cause general
Issat.Sfactior throughout the coun-
-v. would make the soldiers bonus
Vtremelv unpopular with the people
md might result IN political Upheav-
in many normally sound republic
In districts
Those faror.nS the passage OF a
-rus bill without any provision for
rising the revenue said such legis-
alton could be followed by another
bin giving the secretary of the treas
~ authority 60 use proceeds from
.he refunded foreign bonds in pay
ne the bonus. They said the eN-
.ectatiou now was that some. at
ast. or the foreign bonds would be
hand by June or July and that
.orey could be realized on them
efore the cash payments 10 the for
.er service men would become due.
Special Machinery.
special machinery for paying the
ouus bill viii have 20 be set up IN
.f- wa department. 80 was said, with
q large staff Of clerks necessary 70
xamlne the service records OF the
men 10 determine the tAalA GtAOuLN1
hat each Is TO receive. Because OF
he magnitude Of the task that
would confront the department,
ONE doubt was expressed Friday
hat the cash payments could be
-tarted on next October J. the date
fxed in the bonus bill as amended.
nguirv az TO this r. 70 be made OF
he department before the measure
aally Is approved.
While the house committee was
.~estIing with the bonus problem.
.he subject was brought I'D on the
cor OF the senate BY Sen. Moses. re-
.ubIican. New Hampshire. who an
-ounced his opposition 20 the ad-
1sted compensation legislation even
III a sales tax attached. The New
.Iampshire senator's position was at
seked from the democratic side
n Sen. Helm. democrat, Alabama
ding the assault