Evening star., 1924-03-26
PUTS BONUS COST
AT So, 300, 600, 900
CONTINUED from First -Page.j

CONTINUED from First Page.)
accepted by the House, insisted the
government would not have to lay
this interest if it invested the appro
pTiationS in outstanding government
bonds, thus cutting off the interest
which had to be paid on those securl-
ties.
Regardless of such a procedure,
Mr.. Mccoy said, the government
would have to be paying interest on
the same amount of outstanding Sc
plus existed and there was Il public
debt which had to be cut down. The
prospective surplus, ne argued, would
be eliminated by the proposed tax
| reduction, and If taxes were not re-
vised he predicted there would be
no surplus in two years.
The committee reached no conclu-
sion on the probable cost, and the
hearing of the two government. ac-
tuaries will be continued tomorrow.
Have Substitute Schedule.
Upon completion of the hearings
committee would proceed with con-
sideration of the revenue bill.
There was little indication that. the
democrats would seak 10 have the
income rates section reopened for
further action in committee. resting
on the action of the republicans in
placing the Mellon rates in the bill.
Senator Simmons of North Carolina,
ranking democrat on the committee.
however, continued work on a sub
stitute schedule which he said demo
Gratis would offer for the Mellon rates
when the bill reached the 1loor.
Indirect word was received by some
committee members that Senator Nc
CormiCk of Illinois, republican
member of the committee who was
absent last night and was not voted
by proxy on the question of writing
lin the Mellon rates, was diSpleased
with the committees action. Should
The ask. however to have the schedule
reopened. the vote would have to be
ION substitute plan, Chairman Smoot
said.
Earned Incomes Rate.
Senator Simmons indicated there
was some likelihood that "A move
would be made to reopen the earned
income provision for further discus
sion. This provision allows n % per
which are earned. At was recommend :
led by Secretary Mellon without limi-
tation. The House, however, re-
stricted the amount of income TO
which such a reduction could be ap-
piled to $4,000 and the finance com
mittee last night cut this down TO
$4,000. All incomes under $1,000
were declared earned for purposes of
the reduction by the House, ana TINS
was agreed to.
Attacking the estimates of Mr.. Nc
Coy on the bonus. Chairman Green
said the figures failed 10 take into
account the fact that the first sixty
days could not be counted, even for
those who served more than that time.
The days of average service. 39S fig
ured by Mr. Mccoy. also is wrong. MIR.
Green said. declaring il was taken
from the report attached to the Ford
/ ney bill passed last session, which
was d mistake in calculations. The
correct number of average days of
service of the veterans, he said. is 32S
days. He insisted also that the esti-
mate was much too low on the num-
Der of days to be deducted on account
of service in excess of the limit of
500 day s.
The estimate thta the average cash
credit due each veteran in adjusted
compensation would be 1886. =. was
IAN absurd conclusion" Mr.. Green
argued.
Concluding his attack on the Treas
ury estimates, Senator Walsh said
the methods of the Treasury Depart
ment are becoming known. the gem
eral public does not realize the stu
alton, and many persons are deceived
by the figures issued from the depart
ment.