Evening star., 1924-01-10
C. 0. P. CONFERENCE
TO DECIDE PRIORITY
OF BONUS OR TAXES
Soldier Group in House viii
Insist Compensation Bill
Come First.
L0NGWORTH TO FIGHT
FOR REVENUE MEASURE
Leader Will Ask Committee Be
Instructed to Complete
Consideration.
By the Associated Press

'i"eu 4Hto TWO camps, House re
publicans will meet in conference to-
night to determine whether tax legis-
lation or the soldiers bonus is to
nave right of way on the legislative
program.
one group, endeavoring to bring a
Rouse vote of the bonus by the end
Oh the month. is expected to propose
either that the ways and means com
mfttee be instructed to report the
Mckenzie bonus bill ahead of the rev.
enue measure or that the conference
go on record as favoring enactment
of both proposals, without specifying
which should be given priority. The
war veterans comprising this group,
VINO had the conference called, de-
voted their attention today to deter
mining definitely their line of attack
at tonight's conference.
The other faction is led by Represent
ative Longworth, the republican lead
er, who has announced his intention 70
nght any proposal at variance with his
contention that the ways and means
committee should be instructed to com
plete consideration of the tax bill be-
lore taking up the bonus.
Discusses Tax Amendment.
The committee put aside for a while
today consideration of the revenue bill
to discuss the proposal for a constitu-
tional amendment prohibiting the issu-
ance of tax-exempt securities. In it's
consideration of the tax bill the COM
mittee has reached the section which
provides for the creation of a board
of tax appeals-one of the most impor-
tant provisions of the measure.
If the ways and means committee
takes up proposed changes in tax rates
before tackling the bonus, Chairman
Green predicts that the entire bill may
be ready for the House a month from
now several weeks, he says. probably
VIII be required for public hearings.
In support of its argument that the
Mellon plan will loosen up for pro-
ouctive Investment a large residue
OF capital now reposing in vaults in
the form Of tax-exempt certificates
IN ene treasury today made public a
1 total Of $12.30o,ooo, 600 in such Sc
curities was in the hands of the
American people.
Only One Issue Included.
The Treasury figures were said 70
include only one issue. the liberty !.
per cent bond. of the federal govern
ment, but excludes all securities de-
posted with the government and
other circulation bonds. Other issues
Secretary Mellon believes the figure
given underestimates the exact
amount now outstanding.
The treasury experts estimated
that the total would be s14,67O,000, 900
tax-free securities held in the Treas
ury or In sinking or trust funds of
states and municipalities were in
cluded. OF the total of tax-exempt
securities $11,036, 100000 has been is
sued by states, counties or munich
palities, but s1,5o0,000,OOO of this
funds.
The United States government
bonds which are wholly tax EXEMPT
amount to s2,2s4,OO0.O00 and $75$.-
100000 are deposited in the Treasury
as security for circulation
The federal land banks, intermedi
ate credit banks and joint stock land
banks have issued S1,22S, 100000 of
tax exempt obligations, but S1o5,0OO.-
000 of this amount is owned by the
FEDERAL government or held in trust
by 1t for national banks.
lnsular possessions of the United
States have issued s111,0O0,0O0, of
which S3,OOo.000 are deposited in the
Treasury as security for circulation.
VIII Push Bonus Bill.
The soldier group in the House had
intended to offer resolution yester-
day instructing the ways and means
committee to report the Mckenzie
! bonus bill ahead of the tax measure
now under committee consideration,
Announcement by Representative
Longworth, the republican leader,
that he would confer with a proposal
that the committee complete its con-
sideration of the tax bill and report
1t before taking up the bonus uues-
tion and his confidence that he would
have enough votes to approve this
program was followed by the state
| ment by some members of the war
veterans group that they might not
! carry out their original intentions.
Representative Fish of New York,
| one of the leaders in the former serv-
ice men s bloc, is understood to be
prepared to offer q. motion at the
conference tonight that the republi-
can membership of the House record
! itself as believing passage of a bonus
bill would not be incompatible with
| tax reduction and that 1t favors en-
| actment of both tax reduction and
| bonus legislation at this session
Longworth to Fight.
This proposal, however. does not
meet with the approval of Mr.. Ions
| "Ok anu OllCI lSduGTSS VINO Oe-
clared they thought the House re-
publicans should not pledge them
selves to the passage of any legisla-
ton. The republican leader reiter-
ated that he would press his resolu-
tion providing for priority for the
tax bill to a vote in the conference
regardless of proposals offered by
bonus proponents.
In support of the contention of Mr..
Fish that adjusted compensation pay
ments could be financed If tax revis-
ion proposals Of the Treasury were
carried into effect. Representative
Andrew, republican, Massachusetts.
made public a statement last night
(which asserted that estimates of the
Treasury showed that this was pos
sible.
! The ways and means committee
inroceeded with its consideration of
| the tax bills administrative features
Yesterday without making any ma
lieriaI changes in the Treasury draft.
| During the tax debate In the Senate
Yesterday Senator Simmons of North
Carolina, ranking democrat on the
finance committee, advocated repeal OF
the telephone, telegraph and other So
called nuisance taxes, and asserted that
| he did not want to reduce taxes $50