Evening star., 1923-12-12
COOLIDGE MESSAGE
RAPED BY M'AD00
Calls 1t Counsel of Dor
NANCY" and Dismissal of
Veterans Bonus Claims.
BY the Associated Press.

BY the Associated PresS
Los ANGELES, Calf, December IL
President coolidge's message TO
Congress was called "a counsel OF
dormancy," and his opposition to a
bonus for ex-service men characteriz-
ed as a summary dismissal OF Just
claims for consideration" In an ad-
dress by William Gibbs McAdoo before
the Democratic Luncheon Club and
Women's Democratic League here to-
day. The former director general of
railroads derided the Presidents pro-
posal for a voluntary consolidation Of
these systems OF transportation as a
"seven-year itch for reduced freight
and passenger rates with no assurance
of relief at the end Of the trial." telling
his hearers that what is needed is not
seven years OF delay. but action"
THE Presidents message" said Mr..
McAdoo in part, "is largely a counsel
of dormancy. Nowhere IS there the
stimulating call of progress. The world
is in commotion and vital domestic
problems press upon US for solution, but
no effective program is offered for the
alienation or correction of domestic
vigorating international policies which
will reopen world markets for our sur
plus products, tend to promote economic
stability or encourage peace and tran
quillity between nations.
Approves Tax Cut Plan.
THE most affirmative part of the
Presidents message Is the recon-
mendation of tax reduction. The
whole country favors tax reduction
The democratic party has stood con-
sistently for it since the signing OF
the arrnistice, and should cooperate
without regard to partisan consider
alton. In any effort to ease the tar
burden. This effort should be di-
rected. not alone to a reduction In
the gross sum of taxation. but to an
equitable distribution of the burden
The Presidents Endorsement of the
proposal to put a lighter tax OF
earned incomes, namely. those pro-
duoed by the sweat of the brow and
the toll of the brain, than upon un-
earned incomes, namely those which
come from investments, is conn
mendable.
This proposition was first made
by the democratic Secretary of the
Treasury in 1918. and was offered in
1921 as an amendment to the revenue
bill by Senator Harris Of Georgia.
1t was defeated by a vote Of thirty
six republicans to twenty-one demo
Gratis on the ground. as stated by
Senator Penrose, then chairman OF
the finance committee Of the Senate
that:
1.-The question of earned and un.
earned incomes was most exhaus-
lively considered by the committee
by the Senate and by the Treasury
Department, and the opinion was
nearly unanimous that any such pro-
vision is impossible Of administra-
tion.'
: what has produced this extraor-
binary reversal of opinion on the
part Of the Treasury Department and
the, administration? If this provision
was nearly impossible of administra-
tion in 1921 why is it possible of ad-
ministration in 1923?
Supports Bonus Request.
THE President opposes any increase
in the pay of the soldiers who fought
the war to victory. Although great
reduction in the tax burden can be
made and the reasonable compensa.
ton proposed for the soldiers and
failors can be provided at the same
time, the President is determine et
that Justice shall not be done to the
war veterans.
"Their Just claims for consideration
are summarily dismissed, but the
President Is strong for the main.
tenance OF the FordneyMcCum bel
tariff bin. which gives favored
in restraint of trade a subsidy esti.
mated at more than three billions OF
dollars per annum. or twice as much
as 1t will take to pay the soldiers
bonus in cash. For privilege, every.
thing; for the defenders of the coun.
try: nothing.
more important duty rests on tn,
of sick and disabled veterans, ant
yet there is no word of reprehensior
for the grafters who have disgracet
the Veterans Bureau and have stoler
or misappropriated funds which wert
set aside to take care of the men ant
women who suffered the loss OF
health and became permanently injuret
in the service Of the nation.
tive thought on the railroad problem
perhaps the most important domesti.
problem confronting the nation. HI
generaliZes somewhat vaguely about
the value Of consultations and sug.
gests that the railroads be given au.
thority to voluntarily consolidate"
Mr.. McAdoo declared the conso1ida.
tion proposal Of President Coolidge
gives little promise of relief for thu
farmers particularly, and for the peo'
pie of the country as whole, from
the present excessive cost of railroad
transportation" Reforms proposed
by the Executive to overcome the con
fessed failure of the Esch-Cummin!
bill, Mr.. McAdoo said he inauguratet
in his administration az director
general of the railroads, but that
they were thrown away by the Esch'
Cummins act, which restored every
wasteful and uneconomical practict
which federal control had abolished"