The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-01-25
MAINTAINS
HIS PLAN
RIGHT
Calls Senator's Reasoning
Unique" and Cites Case
as Example.
BY GEORGE r.. HOLMES.
International News Service.


A fresh chapter was written TO-
day in the now famous Mellon
Couzens tax correspondence con-
corning the merits of the tax re-
duction plan which the Secretary
of the Treasury has proposed.
In another letter to Senator
Couzens (Rep.) of Michigan-his
fourth in as many weeks-Mellon
described Senator Couzens' reason
ing processes as unique" and re-
iterated his contention that Amer
lean business is being mulcted and
retarded by the present surtaxes
on big incomes.
Ignores Challenge.
Mellon completely ignored, how
ever, Couzens' recent challenge to
reveal the extent of his personal
wealth and disclose how much he
personally would profit by the re-
duction Of these surfaces he has
proposed.
Mellon concluded by stating
again that the Government is col
Letting less revenue under the SO
per cent surtax than it did under
Is per cent surtax, and reiterated
his arguments against tax-exempt
securities.
Hope for Plan Fades.
Meanwhile at the Capitol today
virtually all hope fled Of any COM
promise between Republicans and
Democrats over the Mellon rates in
the new tax bill.
Congressman Gamer (Dem.) of
Texas, the Democratic leader, served
notice that the coalition of Demo-
Gratis and insurgents, which can
Outvote the Republicans, will never
accept the Is per cent surta&
Mellon demands, and will demand
record vote on the A per cent
surtax. If that fails, Garner said,
they will demand a record vote on
4S per cent Surtax, then AZ, and
so on down the line until agreement
can be had. He expressed. con-
fidence, however, that the A per
cent surtax will stand.
Not even indirectly did Mellon
refer to this demand" Of the Sem
ator, nor to the similar demands
made by Democrats in Congress
that he reveal to the country the
extent of his personal fortune. He
contented himself today with an
swering CouZens' diatribes against
the Mellon plan, and with defend
ing his references to Senator Gou-
zens' own wealth, estimated at be-
tween $35,O00,O00 and $4,000, 900.
"The case against high surtaxcs)
is really too plain for argument"
said Mellon. "All business involves
risk. If business loses the Gov
eminent shares not at all in the
loss; if business is successful the
Government takes more than half
the gain. What can long with
stand these odds?
Sticks to Own Point.
"You may argue your theories
as you please, but neither you nor
any other man once he has gained
wealth cares to take these risks
on these terms. The spirit Of IN
itiative may still be there, but the
unsound system of taxation is driv-
ing it into idleness. We shall be-
come a nation of followers, not
leaders. A tax system having this
inevitable effect must be changed.
"You, certainly as well as any
body, must have appreciated the
killing effect of these high sur
taxes on business initiative. What
possible influence other than these
high surfaces caused you to in
vest so much of your fortune in
tax-exempts?"
Mellon ironically suggested that
his letters to Couzens had been in
vain.
Reasoning Unique"
"By some unique process of rea-
soning," he said, "you announce
have abandoned my propositions that
high surtaxes are becoming less pro-
ductive of revenue and that capital
is not free to go into productive
business. While in my last letter l
did not repeat word for word what I
said in my first-there must be some
progress in correspondence-still,
applied your particular case to these
same propositions and showed how
their correctness was established. If
this to you be abandonment, then
my letters to you are vain."
Senator Couzens has only himself
to blame, Mellon said, for bringing
his own (Couzens) holdings of tax
exempt securities into the discussion
He denied, inferentially, that he had
consulted the secret records of the
Treasury Department to ascertain