The Washington herald., 1922-03-18
nIMLONDENIES
! mg0MNG RICH
Writes Letter Repndia-
ting Statement Made
In House.
AGAINST NEW TAX
McCurber Says Senate Will
( Pass Bonus by Safe
Margin. ;

Secretary Mellon fails to sec any
connection between the government
order to settle -coneelled war con-
tracts and the soldier bonus.
/. Ina a'letter sent yesterday reply
ing to the denunciatory commun,-
cation OF Representative Frear last
week, Mr. Mellon set aside the
charge that he or the government
showed favoritisn toward men Of
great wealth in the liquidation of
those contracts.
"In the FIRST place. the govern
ment did not pay. as you suggest,
three billion dollars of cancelled
war contracts" the letter read.
''On the contrary, the government
settled war contracts amounting-to
over S3.70o.000. 900 at a total cost
of about .5o3.ooo. 900"
BnI Not Operating.
In answer to Frear's attacks on
the so-called railroad refunding
bill, Secretary Mellon Informed him
"the bill has never become a law.
and In any event would not have
appropriated any money out OF the
Treasury. Its purpose was simply
to finance settlements OF govern
nent obligations arising out of
Federal control through the sale OF
railroad securities already owned
by the government, and it has since
become" UNNECESSARY with the
change in market conditions which
has made it possible to dispose ~
these railroad securities at par and
accrued interest through the in
vestment markets"
Mr. Mellon denied that he had
recommended any particular taxes,
and favored a sales tax because Z
would lift the burden from the
shoulders OF the rich to the should
ers of the poor.
Against Sales Tax.
THE Treasury has not recon-
mended any general sales tax" he
declared. "As a matter Of fact,
am not in favor of general sales
tax II it is to be imposed in addi-
tioh to all existing taxes, unless
made necessary by an emergency in
the revenues, such as would arise
through adoption of the bonus
measure"
The soldier bonus bill. II passed
blythe House. is certain to be ap-
proved by the Senate. according to
Senator McCumber. chairman Of the
Finance Committee.
WIN, Pass senate.
Let the House pass the birl." he
said. We'll see that it goes
through the Senate. Some sort OF
a bonus bill must and will be
passed"
M: McCumber said he knew Of
no movement to delay the bill in
the Senate ana predicted failure for
any such attempt.
His views are OF interest because
Of frequent reports that the bill,
once passed in the House. would be
shefved in the Upper Chamber. The
administration. it was thought.
would exert its influence to delay
the measure.
There is growing opposition in the
House to the attempt to pass the
bonus bill Monday under suspension Of
the rules. which opponents Of the pro-
posal characterize as an attempt to
gag the House
The opposition has gained strength
with the arrival in Washington yes
terday or Speaker Gillett. who has
been with President Harding in
Florida: The Speaker said, as he
been expected. that he would endeavor
to prevent imposition Of the special
rule, which would mean that debate
would be limited to 40 minutes and
that no amendments could be enter
tanned.
May Have Messaee.
He declined to say whether, il lead
ers persisted in their attempt he would
refuse to recognize Chairman Ford
neYg when he proposes the special rule
from the floor Monday. That will
hinge, Gillett said. on the outcome
Of a conference he is to have today
with Fordney. Representative Mondell,
House leader. and others
Nor would Gillett reveal whether
he bore a message from the President.
although 1t was generally believed
Giilett would make known the Presi-
dents position when he confers with
the leaders. The President. Gillett
said. would be able to make known his
own views when he returns Sunday.