New Britain herald., 1924-01-14
Fight On To The Finish Sharp Debate Today At Hearing On Mellon $ Tax Revision Plan
Hughes Defends Political Appointments to DiplO- matic POsts-Denby Wig orously Opposes War Navy Merger.

Washington, Jan. 14.-Laying aside all other business. the house today plunged into fight to the finish over rules, with republican insurgents and democrats in combination to upset the republican organizations program.
 The parliamentary skirmish was an outgrowth of the speakership dead lock. After holding out for week against the reelection of Speaker Gil- lett. the insurgents swung to his sup port when assured that the house rules would be liberalized, thirty day truce was agreed upon, during which the rules in effect in the last congress were to prevail. to give the rules committee an opportunity to recommend amendments.
 Both Disappointed
 The month of grace expired today with both the insurgents and demo- crats dissatisfied with the recom- mendations Of the rules committee of which Representative Shell of New York, d regular republican, is chair man.
 Refusal of the committee to repeal the Underwood rule which restricts amendments from the floor to tariff and revenue bills and Its recommends tions that petitions to discharge con- mittees from consideration Of legisla- ton must contain at least i50 sigma lures bore the brunt of the democratic insurgent attack.
 There appeared to be no opposition to the recommendation of the rules committee for the creation of veter- ans committee to handle all legislation affecting world war veterans except the bonus aud pensions.
 Disepss Tr> fSeu
 Hearings of varoius business ..r- ests on proposed tax revision before tlit tous' ways and means committee today brought out sharp division of opinion on reduction of the industrial alcohol tax.
 Drug manufacturers asked that the l tax be maintained, lest its reduction ! force cuts of almost 50 per cent in their inventory yalues and their bust. | ness be endangered Retail druggists asked reduction of elimination of tho | tax.
 Abolishment of taxes on theater ad- missions and yachts and motorboats | was asked by other interests.
 Those who argued for discard of the alcohol tax included Frank A. | Blair of the proprietary association, | and E. c. Brockmeyer of the national | association of retail druggists. The tax Is 4 relic of the day when this product was used principally in beverages, they declared, while not it is medi- cinal and scientific necessity. If the tax is not eliminated. they sskeds that it be reduced to the pre-war figure or half of the present tax.
 W. A. Sailer, representing the Amer ican drug manufacturing association, declared drug manufacturers would suffer loss of almost fifty per cent of their present inventory, "a loss which many of our members could not make up."
 Repeal of the tax on stock sales and transfers 1as urged by Lawrence Tweedy, president of the Consolidated stock exchange of New York.
 This tax" Mir. Tweedy said, yields less than s1o,09o.oo0 from the whole country and 50 per cent of it is col lected in New York city.
 Tn New York. Pennsylvania and other states 1t is a double tax as both the state and federal governments col- feet on it. It Is burden which a small
 (continued on Fifteenth Psge)