The New York herald., 1922-02-12
FARMERS TO START
NATIONWIDE DRIVE
TO DEFEAT BONUS
National Grange Protests
to Fordney, Attacking
House Program.
MOTOR MEN FIGHT IL
Agricultural Interests De-
mand Restoration of EX-
cess Profits Tax.
CONFEREES IN DEADLOCK
CONFEREES IN DEADLOCK
Sub Committees Fail to Make
Headway on Virtually
All Points.
Special Dispatch to TIE New YonK HERALD.
New York Herald Bureau,
Washingt0n, ID. C.. Feb. Ill =

Special Dispatch to THE New YonK HERALD.
New York Herald Bureau
Washington, ID. c., Feb. II.
The Senate and House conferees
locked horns to-day over the eight
point plan of taxation to raise the
s350,0O0,000 needed yearly to finance a
soldier bonus, as outlined in THE NEW
YORK HERALD yesterday, and although
the question was referred to a sub
committee of both houses no head
way was made.
Members of the Senate directed their
attack on the House program of taxa
tion, specifically against the proposals
to tax stock and bond transfers one
tenth of ! per cent and to tax un-
divided profits 21a per cent.
When it was found in the morning
that the full Senate Finance Commit
tee and the House Ways and Means
Committee, meeting jointly. were dead
locked On those proposals, the whole
question was referred to a subcom-
mittee consisting Of Senator'S Nc
Cumber and Smoot and Chairman
Fordney OF the House Ways and
Means Committee and Representatives
Longworth (Ohio) and Copley Qll).
No Progress Reported.
At the end of long session of the
sub-committees Senator Smoot declared.
''The whole matter stands as 1t did"
Representative Longworth made a SIM
liar observation. A.
Chairman Fordney said that while the
House members are disposed to make
Some concessions for the most part. he
feels the House program will be
adopted.
Senator Smoot declared: mo power
on earth can stop the bonus BILL. bur
added that he was dissatisfied over the
plan proposed to raise the needed funds.
He repeated that IL the tax suggested
by the House committee is allowed to
be imposed on undivided profits and on
the sales of stocks. tonds and real
estate. It will have a most hurtful ef-
feet upon the business world.
AS one alternate plan some of the SEN
ators proposed to add an extra cent to
the first class postage rate, which would
however. by the House members.
Chairman Fordney declared that 1T
will be impossible from present indica-
tions to reach an agreement with the
Senators for several days." and for that
reason the bonus program in the House
will have to be revised. 1t was planneJ
to report the bill to the House early
next week and to hold caucus OF the
Republican members to outline a plan
af IN
sage.
Scnnte's COursc Explained.
1t was learned from authoritative
spokesmen that so far the Senate
Finance COMMITTEES has not put i.s
stamp of approval upon any of the
items enumerated in the House bill.
although the committee has not re-
jected any of them with the exception
of the proposed tax on the transfer of
stock and bonds and on undivided
profits.
Those struggling with the bonus ques-
tion say II is the most harassing and
exasperating one before Congress, the
people of the country expect and are
people of the country expect, and are.
prepared for revision of the tariff
schedules but they are bitterly opposed
to more direct taxation. On the other
hand the soldiers demand a bonus,
members OF Congress point out. and
there is no other source of revenue In
sight than direct taxation.
Floods of protests against the pro-
posed taxes to raise the bonus con-
tinue to be filled with members of
Congress. The farmers OF the country
are thoroughly aroused over the ques-
ton and they are vigorously opposing
several of the items. They point out
that three OF the proposals apply dl-
rectiy to them and IL enacted they will
be forced to contribute more to the bonus
than any other class The items affect
ing the farmers are the taxes on gaso-
line. automobiles and the increase in
the parcel post rates.
The National Grange, representing a
million farmer taxpayers. in a letter to
rn.ttnuaH nm paua Etro