Evening star., 1924-05-06
GROUP RULE UPSETS
PARTY GOVERNMENT
Defeat of Mellon Tax Bill Dem
onstrates Clearly Power
of Insurgents.
NEW RULES BRING CHANGE
Regulars No Longer Able to
Pigeonhole Measures.
NEW RULES BRING CHANGE
BIZ DAVID LAWRENCE.

BIZ DAVID LAWRENCE.
Group government has replaced
party government. All doubts as to
/ the power of the insurgent Repub-
licans to do about as they please in
the present session or Congress have
been removed. And President Cool
idge. POSSESSED of the Veto power,
stands as the single e-handed champion
of conservative regular Republican
doctrine.
The taxation plan OF the Secretary
of the Treasury, Andrew W. Mellon,
now has been beaten in both House
and the Senate, by a coalition of
Democrats and insurgent Republicans.
The first important test of the
new rules of the House. which delay
ed the organization of the present
session of Congress. has turned out
exactly as expected. No longer can
she measgqe asgqeair in eoRnmfttee naiority
vote can bring IT out according to
| the new rules, and that now has hap
| pened. 1t marks an epoch In the
history of the House OF Repreeentao
tives. 1t means more power 10
| groups than parties.
Two Groups Evident.
The voting of the Simmons tax
I'rates into the Senate bill as proposed
| by the Democrats and the virtual ac-
| ceptance in the House or the Demo
cratic rates proposed by Represents
| tive Garner in what is known as the
| Longworth compromise does not
mean that the Democrats are con-
| trolling Congress. 1t has deeper
meaning than that. 1t reveals thal
| 81 ie~vfy or
| tional legislatures radical, lberai
| or progressive group composed OF IN
! surgent Republicans and most OF the
Democrats, and a conserva'ise, ,nsnsi ana
wholly of Republicans and one or two
On the surface it might seem as IL
| the Democrats are merely IoioS1ns
| the Republican strategy or yeSter-
| years in aiding and abetting ali po-
! litical mischief which works TO tne
! disadvantage of the party IN po"eI.
! but what has been happening IN ths
| last few weeks cannot De dLAiipu'SN
entirely to that cause
Viewed as Discrimination.
| The Democrats would not have op-
nospd the Mellon rates nor Woufd tne
! insurgent Republicans have dalo,
1 erateIy abandoned them If they nald
ed the wealthy too much, and that
the substitute bills gave the man OF
smaller income more of a reduction
/ in his taxes. Similarly, in the house
the support given to the Howeits hts
of union labor in the railway crafts
is significant of a belief that the
| working classes are more numerous
than the employers
! Congress, as a rule, legislates to get
a direct response from the largest
number of people, and. while the rail-
way employers and the persons OF
large income probably would prove
that their proposals are, in the end, OF
economic benefit to more persons than
themselves, the House and Senate, be-
ing politically minded, does not ac-
cept such a view.
Conservatives Are Doomed.
The administration or leadership
which champions the cause OF the So
called conservative business interests
of the country is doomed to defeat
in the present temper of Congress
The tax bill which has been drafted
by the coalition of insurgent Repub-
licans and Democrats is by no me ans
| satisfactory to the conservatives In
either the Republican or Democratic
| parties, but it is a reduction never
| theless, as compared with the pres
ent revenue act. And the mood OF
Congress is to cut taxes a, little bit
at a time Undoubtedly there Will
be efforts to cut taxes further every
year from now on. 1t will always De
a paramount issue. But the radicals
feel that the cuts should not be too
extensive and that the man of smaller
income should receive preference
right along.
Argument Is weakened.
The case for the lower surtax ad-
| vocates has been weakened by several
things. First, the argument has Deen
made that business conditions would
be improved by lower rates, and sec
h,+ nf
not be so popular IL taxable securities
were made more attractive through
lower rates. Congress has not been
convinced that even under the present
surfaces business has been ruined
On the contrary, the Republicans plan
to go into the campaign with cry
of prosperity. Also none of the pro
posals thus far advanced would com
pete seriously with the tax-e1empt
securities in the opinion OF members
of Congress who have been tnstru-
mental in defeating the Mellon rates
business Hurts Own Cause
The action of the House in forcing
to the front the very bill which the
| railway interests have been fighting
is an indica ton that big business
| so to speak. has hurt its own cause
by fighting the inevitable The de-
mand for the Howell-Barkley bill
now has been intensified. Coming
| on the eve of the congressional as
we'll as presidential campaign. union
labor is gathering it's strength once
| more to strike at those in the Re-
| publican or Democratic parties who
| side with the employers It's the
| old story Of blocS This time the
labor bloc in the House is in the
| ascendancy.
Coolidge Might Have Aided.
President Coolidge might have
| saved the tax situation by personal
/ Intervention and an appeal to the
| country for the Mellon rates just as
the bill was being advanced from
one stage to the other. but he was
advised that he could not hope to
change the situation.
There is some doubt about this,
| for the members of the Republican
party are not so ready to commit
| themselves against the President
when they know definitely that he
will veto a specific measure AS it is,
| when they are without knowledge
of his intentions, they go ahead re-
cording their votes, apd when the
time comes for a vote over the veto
it is embarrassing for them to change
their votes.
The Mellon tax rates were heartily
approved by Mr.. Coolidge at the out
set Now he will receive a bill from
Congress which, in the ordinary
course of events, would deserve a
veto il consistency were to be re-
garded as virtue. But the question