The Birmingham age-herald., 1924-01-06
Coolidge Strong For Mellon Plan And Will Insist On Its Original Draft Being Sup-
 ported By Administration
PROGRESSlvES SUPPORT ATTITUDE OF DEMOCRATS
Committee Fight On Heavy Tax On Stock Dividends
 Where Republicans Won By One Vote Shows Weakness
By THOMAS L. STOKES

(Leased Wire To The Age-Herald.)
 WASHINGTON. Jan. 5.-President Coolidge has drawn the line for ad- mjnistration republicans on the Mel lon tax plan. They must let 1t stand or fall as written by Secretary of the Treasury Mellon. as far as its broad. general provisions are oon- cerned.
 By his slogan of mo compromise" the President has set currents stir ring at the capitol which may result plan, which Is already being picked to pieces and attacked by both demo- crats and ultra-progressives.
 For 1t was republican suggestion from the mildly progressive vest ern wing-that began the compro- mise movement. The mild progres- sives, who come from western farm districts, want surtaxes lowered only to 35 per cent maximum. instead of 2b. as Mellon has asked. There has been some pressure upon them from those who think the Mellon plan cuts the rich mans taxes too much.
 Pregressives Are strong.
 The demands of the mild progress sfves cannot be disreg Srded. as they are nearly 90 strong. Their support is absolutely necessary. With She Nelson progressives breaking loose at will, the regular republicans are continually threatened in their slim majority. :, The mild progressives have been sseall@ bslc cR siratos- the. ra9rilart rankG, At the beginning of the session. they held aioof, and Efoonasd their own candidate. Representative Graham of Illinois. for the floor leadership in ohio. At the price of concessions on the steering committee, they came back into the ranks and peace has reigned since. ss7. rE
 In asking the compromise on sur tax rates, they have virtually taken the democratic position on this pro- vision. Some of them have been forced to it. though, because of feel ing among tue people in the farm districts which they represent.
 President Coolidge has come out flatly against any change in the rinciple of the Mellon plan He feels that It represents long and careful study by Secretary Mellon. He whole-heartedly indorsed it in his message to Congress. If comromise began. he feels that the bill might be compromised out of existence" Those to whom the President has talked on this point know that he feels deeply about 1t. ' The fear of any laxity in the stand of republicans for this administra- ton measure grows out of tho op- position 1t has already met from democrats and Nelson progressives, who have declared war on most of its principle provisions. If repub- lican ranks are not solid. there is little chance of getting even portions of the bill through Congress.
 Democrats Begin Fight.
 The democrats have already begun their fight in committee, but were defeated in the first effort to change the bill to suit their views. the at tempt by representative Rainey of Illinois to lav heavy tax on stock dividends. They lost, however. by only one vote, which gives evidence of the power they hold.
 Representative Frear of Wisconsin, tax specialist of the Nelson progress sives. will make speech to the House next week. attacking the Mel lon plan. and laying before the House a plan of his own, which will disagree very materially from that of Mellon.