The Union daily times. [volume] (Union, S.C.) 1918-current, 1922-02-25
SALES TAX FOR SOLDIERS BONUS
IS REJECTED BY SUBJ COMMITTEE

washington, Feb. 24.-Rej ejectipg, z
to 2, a proposition to pay the SOL
diers' bonus by means Of sales tax,
the special subcommittee of Repub-
lican members of the house ways and
means committee was understood to
have gone on record today, s to 4, in
favor of reporting out an adjusted
compensation bill without and prOvi-
sion for raising the revenue.
The subcommittee reported to the
entire majority membership of the
committee later in the day but a de-
ciSion was deferred, adjournment be-
ing taken until next Tuesday SO as
to give committeeman not members
of the subcommittee time to study
the whole matter. Some of those
processing to have sounded senti-
mcnt among the majority members
were of the opinion that unless there
were unforeseen developments be-
tween now and Tuesday the action
of the subcommittee probably would
hc ratified.
tax and bill without a revenue pro-
vision there were said to have been
several other votes in the subcom-
mittce. 1t was learned that mo-
tion to report bill carrying c'ly an
insurance provision was defeated, 6
to 2.
Both proponents and opponents Of
sales tax APPEARED to be surprised
by the vote on that proposition. Both
sides had been claiming victory
with each seemingly expecting a
fairly close vote.
Four members of the subcommit-
tee were reported to have favored u
further postponement of bonus legis-
lation in 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 many rre!. bers
of the house. Chairman Fordn>y re
iterated that bonus bill would b.
passed at this session and other COM
mitteemen expressed the same view.
Some supporters of a sales tax ex-
pressed the view today that President
Harding might again take hand in
the bonus controversy.
- 1t became known that Representa-.
tives Frear and Dickinson Of Iowa
and Woodruff of Michigan called on
Chairman Fordney yesterday and
laid before him the whole situation
placing emphasis on its political as
poets. They were understood to have
contendcd that sales tax would cause
general dissatisfaction throughout
the country, would make the soldiers
bonus extremely unpopular with the
people and might result in political
upheavals in many normally solid Re-
publican districts.
Those favoring the passage of
bonus bill without any provision for
raising the revenue said such legiS-
lation could be followed by another
bill giving the secretary of the treas
ury authority to use proceeds from
the refunded foreign bonds in paying
the bonus.
Special machinery for paying the
bonus will have to be set up in the
war department, it was said. with
large staff of clerks necessary to eX-
anime the records of the service men,
to determine the exact amount that
each is to- receive. Some douh; was
expressed today that the cash pay
mcntS could he started on \ " o.,
tohcr the date fixed in tn, boHu-
bill as amended.
While the house COMMITTEES va
wrestling With the bonus rrobirn the
subject was brought on ihc floor OF
the senate by Senator Moses tRc-
puhlicanD of New hampshire, who
announced his opposition to the ac
justcd compensation Legislation even
with a sales tax attached. The NV
Hampshire senator's position was al
tackled from the Democratic side with
Senator Hef1in of Alabama leading
the assault.