Evening star., 1924-02-24
Proposed Amendment Voted
Down, 157 to ~, After
Lengthy Debate.
FINAL ACTION DELAYED
BY PROLONGED BATTLE
Mellon Declares None of Rates
Proposed Will Allow Funds
to Pay Bonus.

The revenue bill withstood success
fully all assaults in the House yester-
day, the most determined attack In
a restoration of the excess profits tax
being defeated 157 to "a.
A stubborn fight for the amendment
which would have re-enacted the law
repealed In 1921. with slightly differ
ent rates so prolonged consideration
Of the measure that leaders predicted
final vote on 1t could not now be
expected before the latter part of
next week.
Representative Frear, republican.
insurgent, Wisconsin, submitted the
amendment and was supported in de-
bate by Representative Oldfield. DEM
ocrat, Arkansas. Democrats, however,
divided on the question. only about
half of those present voting with the
republican insurgents for II.
The estate tax section was then
taken up, but with another fight i'm
pending for increase of these rates,
final consideration Of it was put over
until tomorrow.
Issue fs Complicated.
Plans of republican organization
leaders for an attempt they contem-
plate to throw out the democratic In
come rate schedules in the bill when
it comes up for final vote were fur
ther complicated yesterday, by de-
velopment which 1t was feared might
lessen the probabilities of several in
surgent republicans joining at that
time with the party organization on
the vote for a compromise between
the Mellon and Garner plans.
Representative La Guardia, repub-
lican insurgent, of New York, who
had asked Secretary Mellon for his
views on a compromise schedule pro-
viding for 40 per cent surtax and a
normal rate of per cent on incomes
above $4,000 instead OF s per cent, as
carried In the organization measure.
was informed by the Secretary that
this plan would not provide sufficient
revenue for bonus. Mr. LaGuardia,
who voted for the democratic income
rates, has been counted among those
expected by the organization to sup
port compromise.
Not Enough for Bonus.
However, Mr.. Mellon declared also
that neither the Garner schedule now
in the bill, the original rates or those
including miscellaneous tax changes,
reported by the ways and means COM
mittee, would raise sufficient revenue
for a bonus.
Meanwhile Mr.. Longworth said
negotiations had been held up on the
fight against income schedules as a
result of delay in consideration of
the bill.
Several minor amendments, none Of
which were passed, proposing to al
low taxpayers more time in which to
correct returns questioned by the
Treasury, were defeated in short
skirmishes prior to the fight on the
excess profits tax.
Raise Point OF Order.
The Frear amendment was subject
ed at the outset to point of order
by the republicans. who claimed 1t
was not germane to the bill. Repre-
sentative Graham, republican, Illi-
nois. presiding officer, left settlement
of this issue to the House, which had
overruIed him Thursday when he de-
clared a proposed amendment seeking
to tax undistributed profits was not
in order. Again the democrats Joined
with the insurgents and voted such
an amendment in order, 14s to Ill.
Republicans, led by Representative
Longworth and Chairman Green of
the ways and means committee, then
attacked the proposal which provided
for a tax of 10 per cent on the first
20 per cent of corporation profits
above certain exemptions, the same
allowed in the old law. and so per
cent on profits over that amount.