The Birmingham age-herald., 1924-03-20
LINES FORM FOR SENATE BONUSFIGHT Bill To Replace Tax Reduction For Con-
 sideration DEMOCRATS TO SEEK FULL CASH OPTION G. o. P. Split Over Form Of Insurance Pro-
 vision
 CHAIRMAN SHOOT
 OFFERS NEW PLAN Cost Of Measure Is Estimated At Five Billions, Payable In
 . Sixty-Four Years
CHAIRMAN SHOOT OFFERS NEW PLAN

WASHINGTON, March 19. = Al lines formed in the Senate today for the fight on the soldier bonus bill, reported from the House, sentiment indicated the measure would displace the tax reduc- tion bill for immediate consideration in the finance committee. The paid-up in surance bill passed by the House met with general favor among republicans but democrats were apparently ready to carry on the fight of their group in the House for a full cash payment option Senator Simmons of North Carolina, ranking democrat on the finance com mittee, declared in favor of such a pro- posal.
 :, Although agreed generally on q straight insurance bill with an option for cash payments to veterans not en- titled to more than $50, as provided in the House measure, republicans were split over the form of the insurance provision.
 Shoot Offers New Bill
 Chairman Shoot of the finance com mittee introduced a bill providing for insurance policies payable only at death and announced he would not support the House provision for 2O-year endow- ment policies carrying loan privileges.
 Senator Curtis of Kansas, a repub- lican member of the committee, how ever, has introduced a bill carrying an insurance clause similar to that ap- proved by the House.
 The cost of the bill introduced by Mir. Shoot was estimated at $5,O07 ,422,- 442, of which $16, ,0O0,O0 would be used in immediate payments to those entitled to $50 or less. MT. Shoot explained that the cost calculation was as accu- rate as possible, being based on the American experience tables of mortality. The total cost would be spread over GA years, this being the presumptive period before the death of all veterans insured. The total cost of the House bill was estimated at $2. 2.119,OO0,0 900.
 Cost Would Rise Yearly
 The cost of the insurance under the Shoot hil alsla "a 2nlsA &a2 &ze ean in the first year, it was estimated, the figure gradually increasing each year to a maximum of $147, ,5S5, ,360 in 22 years, after which it would sharply re- cede. The cost was estimated on the basis that 4,O58, ,199 veterans would be eligible for the bonus, based on ad- justed compensation on the basis of $1 day for home service and $1.25 a day for overseas service, exclusive of the first GO days, and with maximums of $500 and $625, respectively. Twenty five per cent of the total of adjusted compensation due would be added, and the insurance given would be the amount this total credit would buy at Az per cent interest compounded an- nually. As the House bill allowed only 4 per cent interest, the Shoot bill would allow slightly larger amounts.
 The face value of the policy would be about 3,015 times the amount of ad- justed compensation and credit due, Mir. Shoot said, whereas the value of poll cies voted by the House would be about 2517 times the amount of such credit.
 MT. Shoot emphasized that his chief objection to the House measure was it's loan feature.
 'In few years," he said, i've would see these policies in the hands of the loan sharks, whereas under this new provision the government would be able to adequately take care of dependents of those men who fought for it,''