Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-17
INSURGENTS OFFER
TO COMPROMISE ON
SURTAX AT 40 PCT.
0ne-HaIf Cut in Normal In.
come Rates Also Demanded
of G. O. P. Leaders.
PROPOSALS REJECTED,
BUT WILL CONFER AGAIN
Frear Sees Public Support of Sub
stitute for Mellon Plan-Night
Session Held.

Session Held.
Republican insurgents, who hold
the balance of power in the House
tax fight, offered yesterday to COM
promise with organization leaders on
40 per cent surtax maximum pro-
vided normal income tax rates are
cut in half.
The offer, which remained unac-
cepted after two conferences. was ac-
companied by threat that If turned
down the insurgent bloc would sup
port the democratic platform for a.
per cent surtax maximum.
This, leaders agreed. would give the
Garner plan a majority wnen a vote
comes this week on the income tax
provisions of the Mellon DILL.
Renew Efforts Tomorrow.
Efforts of the republican organiza-
ton to reach a compromise with the
insurgents will be resumed tomor-
row. although some of those who
took part in yesterdays negotiations
see little prospect Of an agreement.
The STUN bling block appears to be
the insistence of the insurgents that
the present normal income tax rate
of and 4 per cent be cut in half. q
provision also carried in. the Garner
plan.
Representative Longworth. the re-
publican leader, who initiated yester-
days get-together with the insur-
gents, declared later he was fatty
opposed to such a decrease. He con-
tended 1t would alter fundamental
principles Of the Mellon bill, which
calls for 25 per cent reduction in
normal rates and maximum surtax
OF 25 per cent
Debate Revenue Bill.
AS the negotiations between the
two republican groups proceeded the
House devoted a third day to gen.
eral debate on the revenue bill. After
seven hours discussion, marked at
times by sharp exchanges between
democrats and republicans, g dinner
recess was taken. after which the
House plunged into a night meeting
the first of the session.
Decision of republican organization
leaders to bid for insurgent aid was
ization that without such assistance
enough votes might not be mustered
to insure success of the 35 per cent
surtax compromise agreed upon as
substitute for the Mellon figure.
which, it is generally believed. would
have no chance in House vote.
At the first of the conferences
Representative Frear of Wisconsin,
an insurgent on the ways and means
who has proposed a tax
plan of his own, which provides for
no reduction in surtaxes, was not
present He attended the second
meeting, however, and advanced the
offer of his group. which several
weeks ago was rejected by the re-
publican members of the ways and
means committee.
Frear Issues Statement.
Last night Mr. Frear issued this
statement:
"Mr. Longworth invited to an in
formal conference several members
of the republican group that COM
PEELED a modification of the rules
which will now enable US to amend
the tax bill reported by the COM
mittee.
Notwithstanding the last Congress
repealed the excess profits tax and
reduced the high surfaces from IS
per cent 10 so per cent, with an
annual reduction of $500.0o0.00
largely to favored interests. wa en-
deavored to effect a compromise in
tax rates when the bill was before
the committee. A proposal to cut
normal taxes one-half and to reduce
surtaxes from SO per cent to 40 per
cent was then urged by me as plan
that would help small taxpayers far
more than the Mellon plan and would
not deplete the Treasury surplus SO
as to create q deficit That offer
was summarily refused by eleven
members of the committee, who then
reported the Mellon bill as submitted
by the Treasury.
Expects Public Approval.
"Ninety-four republicans Of the
House voted for the so per cent sur
tax last session. In the interest of
compromise 1 submitted the same
plan today as that offered the COM
(Continued on Page 2, Column g.