Evening star., 1924-01-22
HIGH SURTAX FACES
VETO BY COOLIDGE
President Firmly Against
Rate Above rs Per Cent
in Mellon Plan.

Indications We're given al the White
House today that President Coolidge
would regard any surtax rate above
25 per cent as q change in the funda-
mental principle of the Mellon tax
bill and as a basis for veto Of any
such bill.
The matter of tax revision legisla-
tion was discussed at today's cabinet
meeting. It was made plain that Mr.
Coolidge stood squarely behind the
Mellon plan in its fundamental prin-
ciples and would agree only to amend
ments designed to perfect il.
Republican members OF the House
ways and means committee conferred
with Chairman'Green today on pro-
gram for consideration OF the new
tax rates schedules while party lead
ers were busy determining the extent
to which they must compromise on
the Mellon plan.
Despite the administration stand
against modification of the Mellon
tax-redrction scheme in its major
principles. the House majority mem
bers declare a compromise, particu-
laTly on surtax rates, is necessary.
This compromise, il has been indi-
Ohio, majority leader, will be sought
in committee in an effort to avoid a
fight on the floor.
Green Sees Coolidge.
Chairman Green discussed the tax
situation with President Coolidge
yesterday, and pointed out difficult
ties confronting adoption of the sur
tax rates proposed by Secretary Mel
lon.
Although Mr.. Green later indicated
no change in the administrations
stand for the major principles of the
Mellon bill, Representative Long
worth, majority leader, who an
nounced he had conferred with c.
Bascom Slemp, secretary to the Presi-
dent and Secretary Mellon, reaffirmed
his belief that a compromise on the
surtax reductions was necessary He
said the basis for such compromise
would be sought in series of IN
formal conferences with republican
members. and indicated that he ia
vored settlement Of this feature in
committee rather than the prospect of
a floor fight against the measure.
Garner Polls Democrats.
Representative Garner, democrat.
Texas, who has proposed cuts in the
present maximum surtax rate from
SO per cent to "A per cent instead of
25 per cent, as suggested by Mr.. Mel
Ion. said a poll of the democrats had
shown them solidly for the lesser re-
duction.
John r. Quinn. national COM
mander of the American Legion.
issued a statement last night, in
which he said Mr. Mellon had not
considered in his estimates of reFe-
nue. approximately $160.00o.0OO annu-
ally accruing as interest on the Brit
ish war debt, and also had failed to
consider estimated savings Of SEQ
0OO, 900 which economies OF national
administration will produce. Hair
Of either sum, he explained, would
more than pay for. a soldiers bonus.
Commander Quinn conferred during
the day with members OF the legion's
national legislative committee which
is assembling here.
The controversy between Secretary
Mellon and Senator Couzens. repub-
lican, Michigan, as to the advisable
ity of cutting surtax rates to a 20
per cent maximum was carried to
the floor of the Senate yesterday by
Senator Reed, republican. Pennsyl-
vania. He asked Mr.. Couzens to dis
close how much taxes he had paid
in each of the last four years. Mr..
Mellon, in one of his letters, said
newspaper accounts had stated the
Michigan senator had invested much
of 10 capital in tax-exempt securt-
ties.