The Birmingham age-herald., 1924-01-20
POLITICAL E !, hIELLON'SFLllG
 ATGARNER PLAN
Secretary Of Treasury Fires BrOadside Into
 Democratic Proposal

WASHINGTON, Jan. 1S,--Scre. tary Mellon fired a broadside into the democratic tax plan tonight as the House ways. and mesns committee con cluded its public hearings on tax re- vision and prepared to start work Monday on new rate schedules. The secretary branded the plan advanced for the democrats by Representative NGarner of Texas as a substitue for own program of tax reduction as ''po- litical and nothling else"
 At the same time house democrats served notice that they would accept no compromise on their plan in the committee and would carry the fight to the floor where republicans have because of recent changes in House rules.
 Speaking of the proposals for higher surtaxes and lower normal rates than those cArried in the treasury bill, Mir. Mellon said high surtaxes are war taxes - and such taxation should cease" He charged that continuation of the higher surtaxes meant retention of high war living coasts, (Which ev- eryope pays"
 Plan Called Makeshift
 In comparison of Mir. GArner's program with the treasury's plan, the secretary said, "his is a makeshift; !; the treasury plan is the result of experi- ence and study"
 The Garner plan," Mir. Mellon con- tinued, seeks popularity by, offering a direct small saving to the most tax payers; the treasufy is fair to all tax payers. The treasury bill is designed to free capital and to benefit not all those who pay taxes directly, but ev- cry person in the country who must say those taxes in every purchase. It is dare between a political method of handling tax reduction and busi- ness method" ,.
 Renewed Fight Indicated .Ss
 Meanwhile, lines were formed in the Senate which indicated renewed fight on the surtax rates of the treasury secretary. While Senator Couzins, re- publican, Michigan, renewed his cam paign against Mir. Melons surtax rate proposals in another letter to the secretary, Senator Glass, democrat, Virginia and former secretary of the treasury predicted that Congress would accept the principle of the Mellon plan, as to a maximum surtax rate of ;2S
  was altogether unreasonable to inaqine that Congress will feel obliged to &C., cept a treasury plan of taxation with out any change wha atsoever."
 Senator Couzens challenged Mir. Mel lon to inform the country how much he would benefit personally from the re- duction of income surtaxes which he has, proposed in his plan.
 "So long as you have entered into the record of my securities" Senator Cou- zens wrote, twill you tell us what your securities are and how much you own of each?'
 The Michigan senator denied that all of his capital was in tax-exempt secur- ities, explaining he had millions of dol lars invested in buildings. real estate and building operations. He asked If this were not more productive than money invested in distilleries and brew cries."
 Argument Marks Hearing Conclusion of the hearings before the House ways and means committee was marked by an argument between com mittee members. and Edwin E. Gore. representing the American Institute of Accountants relative to Mir. Melons recommendation for board of tax ap- peals. Benjamin c. Marsh, speaking for the Peoples Reconstruction League, urged retention of the present surtax rates in the higher brackets, increased estate taxes, progressive tax on undis- puted profit taxes and on the so-called nuisance taxes.
 The statement of Secretary Mellon follows:
 Representative Garner. the ranking \