Evening star., 1924-03-25
ADOPT MELLON RATES.
Senators, to z, Eliminate Long
worth Schedules From Bill.

senators, TO Z, E1mlnare Long
worth Schedules From Bill.
Income tax rates proposed by Secre-
tary Mellon are again in the revenue
bill.
Proceeding with unexpected speed
in its consideration of the bill last
night, the Senate finance committee
launched into the income section and.
by vote OF s to 7. substituted the
Mellon rates for the Longworth COM
promise adopted by the House.
Democrats of the committee, who
have been working on a substitute
for the Longworth rates, were not
ready to offer counter proposal. and
voted solidly against the Mellon
rates. Senator Jones, democrat. New
Mexico. announced later. however, that
they would put forward their pro-
posed substitute either in committee or
on the floor.
Chairman Smoot said a motion to re-
iopen the income schedule for commit
tee action would be decided by the
committee. Since eight of the ten re
publicans OF the committee voted last
night for the Mellon rates. an attempt
TO reopen the question IN committee
would depend on the votes of Senators
Mccormick, Illinois, and La Toilette,
v
and were not represented by proxy Ia
last nights vote. Both are reported
to be against the Mellon rates.
Chairman Smoot, in saying that the
proxies of these two senators had not
been asked for. did not go into the
reasons.
May Report In Two Weeks.
-Four republicans and fve democrats
were present last night. The votes cf
Senators Reed, Missouri, and Gerry,
Rhode Island, the absent democrats,
were cast by proxy against III. Mellon
rates. The votes Of Senators Watson.
Indiana; Ernst. Kentucky: Mclean
iConnecticut, and Elkins, West Viz
einia, absent republicans, were cast
! in the same manner in favor Oh the
Treasury rates.
With a decision reached on this sec
ton. the main controversial subject
of the bill, the committee was given
an opportunity to center its work no"
on the miscellaneous tax scheauless
with prospects of making report 10
; the Senate within two weeks.
The Mellon rates provide LOT
maximum surtax of per cent on ln-
comes in excess of sl0o.ooo ana ISa- p
mai rates oL As&&A S'- -. ,bn,-a that
low $4,000 and y per cent anoFe ia Ia
amount. The Longworth rates Sailea
for a maximum surtaS OF o. H2 per
cant against SO per cent in the pres
emf law. and normal rates ot per
cant on incomes under S4,oOO, per
cent on incomes between S4'ope anu
As. 900 and per cent above that'
Prepare Substitute.
The Treasury rate scheanIe' au-
vanced last fall before the opening
of Congress, was adopted by the
House ways and means committee on
a strict party vote, but was not sup
ported by a large number of repub-
Iicans when the bill was taken UP
on the floor. The democrats were
able to substitute plan proposed by
Representative Garner, democrat,
Texas, providing for a maximum sur
tax of a per cent and lower normal
taxes than proposed. Later, however.
ALI of the republicans in the House
voted for the Longworth compromise.
Little indication has been given of
the stand the republicans in the Sen
ate will take on the rate contest.
The democrats. who have been work
irg on a substitute rate schedule,
held q long meeting yesterday but
failed to reach a decision.