Arizona republican., 1922-02-21
Bonus Finance Question
Referred To Special Tax
Sub Committee OF House
TRepubIican A. p. leased WIre1

WASHINGTON, Feb. 20-The
question of financing the soldiers
bonus was referred back today TO the
special tax sub committee by the ma
jority members of the house ways
and means committee and 1t was an
nounced the sub committee would at
tack the problem again late tomor-
row.
The trend of thought in cloak
rooms and corridors was that some
sort of a manufacturers or whole
salers' tax plan would be drafted in
accordance with President Harding's
suggestion that the financing be done
by a sales tax. Whether approval of
such a tax by the entire committee,
Republicans and Democrats. could
be obtained appeared TO be moot
question.
In an effort to block the sales tax
within the committee, % Republicans.
opponents OF this kind of levy. met
and framed petitions which we're free
ly circulated and signed before the
house adjourned for the day. Repre-
sentative Dickinson of Iowa, who
called the meeting. said IL was the
hope to obtain sufficient signatures
to convince the majority committee
members that it would be impossible
to put sales tax provision through
the house.
The petition declared in favor Of
adjusted compensation. but in oppo-
sition to the financing OF IL by a sales
or manufacturers tax, and sets forth
that it's signers win oppose any rule
for the adjusted compensation that
does not permit a separate vote on
any sales or manufacturers tax pro-
vision therein"
While the ways and means COM
mittee was discussing the bonus
question 1t was made known at the
White House that President Harding
had received many communications
opposing the enactment of the bonus
legislation for the present. At the
same time the American Legion s
legislative committee made public a
telegram from Hanford MacNider, the
legion's national commander, oppos-
ing any further delay in the bonus
legislation.
Opposition Increases
IL was said that the communica-
tions reaching Mr.. Harding in oppo-
sition 10 immediate enactment of the
bonus outnumbered those favoring
action at this time. but II was added
that many of those opposing the bill
showed a similarity.
Much of the informal bonus dis
cussion at the capitol today conferred
around the question of whether a
sales tax provision could be voted
out of the ways and means commit
tee. Representative Garner Of Texas,
the ranking Democrat of the commit
tee, said the eight minority members
would vote solidly against such a
tax. On this basis, five Republican
votes would defeat the proposal and
it was understood that present esti-
mates were that four of the II Re-
publicans would be against it, with
two other probably doubtful.
Representative Dickinson reiterat-
ed that If the agricultural bloc was
in its efforts to block
the sales tax in committee it would
make a determined stand in the RE-
publican conference which is to be
called to consider the bill. He seemed
confident of victory there but pro-
ponents of the sales tax believed that
they could win in the conference and
were understood TO be counting on
administration influence. as embodied
in President Harding's letter TO swing
votes to their side.
Submit Bonus Bill Separate
Should the committee fail to report
out sales tax it seemed to be a
somewhat general opinion that the
house would get a bill without any
specific provision for financing the
adjuted compensa ton. A bill in this
form is favored by some leaders Of
the agricultural bloc and also by
some of the leaders of the majority
party.
In arguing against this form OF bill,
advocates of the sales tax assert that
it would not be acceptable to the
president.
Besides referring the question of
finances to the sub committee. the
ways and means committee majority
discussed the bonus bill itself as fl
nally approved by a special sub
committee.
There were conflicting reports as
to whether the draft had been for
ally approved by the entire majority
but it appeared that in any event
no marked changes in any of the
five way" plans were contemplated !
One administrative change agreed |
upon today is designed to protect !
former service men borrowing money
on the proposed insurance certih- /
Gates.
Under the amendment those ad
vancing money to the men. and ac-
cepting the certificates as collateral,
would be required to surrender the
certificates when the principal and
interest OF the loans had been paid.