The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-02-07
CALLS FOR
EV|ES0N
VEAL TIL
Secretary Is Challenged to
Tell How Much His Pro-
posal Would Save Him.
BY George R. Holmes.
International News Service.

A fresh chapter was written today
IN the now famous millionaire tax
correspondence between Secretary OF
the Treasury Mellon and Senator
James Couzens (Rep) of Michigan
two Of the wealthiest men in the
country.
Senator Couzens returned to the
attack on the Mellon bill and accused
the Secretary of the Treasury of
favoring corporations to the detrl-
ment Of the individual taxpayer.
"The greatest loophole for avoid
Ing surtaxes is the formation OF
holding companies" said Couzens in
a letter to Mellon. Will you agree
to the proposal to tax all dividends
and interest these holding COM
panies receive on the same basis
you tax individuals? Is there any
reason why corporations Should not
pay the same income tax on their
receipts from interest on bank bal
ances, dividends and interest on
! bonds as individuals do"
Corporations Favored.
"You are directing no efforts to
get at the corporations, but rather
are playing directly into their
hands
sit is estimated that you have
paid banks over 800, 900 900 in ex.
cessive interest rates and you did
this even though the banks pay no
income or corporation taxes on Gov
eminent securities.
''Your own bank, the Mellon Ma
tional at Pittsburgh, holds nearly
$40,000,000 on which it pays no
taxes whatsoever. The Chase Ma.
ttonal of New York, is reported to
hold nearly $8O,00O,OOO. You know
that individuals holding these Sc
curities would have to pay income
taxes. Why do you not recommend
. remedy for this Discrimination"
Challenged Mellon.
Senator Couzens concluded his
latest epistle by expressing ironical
regrets that Secretary Mellon had
ignored his challenge to make pub
lie the extent of his wealth and
how. much he would save under the
operation of the Mellon tax bill.
1T still hope you will conclude to
Couzens; ut would stop all this
are going to save il Congress-
adopts your plan" r. =
BY a straight party vote Of
Is to II, the Ways and Means Com
mittee today ordered the Mellon
The result of this order created
fotf tn
ranks. Some Republican Congress
men frankly do not want the
Mellon program, but as it has been
made a distinct party issue they
hesitate to run counter to the
White House and their party lead
ers. An election is only nine
months away and Administration
help may be needed.
Ohio G. o. p. in Line.
Ohio Republicans were among the
first to fall into line, with an.
nouncement of support for the
Mellon bill.
Meanwhile the Democrats are
sitting tight, and counting upon
their coalition with the Republican
insurgents to put their own pro-
gram through.
Inc hepuIDlCdn spit was empna"
sized today by a letter Chairman
Green Rep.) of Iowa wrote to Prof.
T. s. Adams at New Haven, Conn.
Green is opposed to the Mellon
maximum surtax of rs per cent, and
believes it should be 35, whereas the
Democrats want it Al per cent. and
the Republican insurgents so per
cent.
"You say the extremely wealthy
will not pay 35 per cent surtax,"
said Green's letter. 1T say the man
with immense wealth who evades
surfaces at 35 per cent will do so
at rs per cent"