The Birmingham age-herald., 1924-04-09
REPUBLICANS F0RSAKE HOPE
 FOR MELLON TAX McC Cormick Leads In For mation Of Necessary
 Substitute Schedule FIGHT TO CENTER
 ON INCOME LEVY Democratic Minority Re port Expected To Be Made Thursday

WASHINGTON, April S.-A move ment within the ranks of Senate re- publican regulars for compromise on the Mellon income tax plan developed today as the revenue bill, carrying the rates in this plan, was ordered sent to the Senate by the finance committee.
 Senator Mccormick, Illinois, a re- publican member of the finance com mittee, announced he soon would call a conference of some republican leaders, particularly those of the farm bloc, with a view to working out a substitute schedule for the Mellon rates. Pro- ponents of the Mellon plan have ad- mitted, Senator Mccormick said, that it cannot be adopted in the Senate.
 Fight Centers On Income Levy
 The fight on the bill will center on the income tax rates as in the House, where the Mellon plan was rejected in favor of the Longworth compromise. A schedule similar to the Longw0rth plan is predicted by some republicans as the compromise that will be agreed upon.
 The only other contest of consequence looked for now by leaders of both parties will be on the miscellaneous and excise rates, some of which were restored to the bill by the finance com mittee after their repeal had been voted by the House.
 A bitter contest is anticipated on the income schedule, however, and Chair man Shoot of the finance committee predicted today that minimum of three weeks would be required for disposi- tion of the bill. by the Senate. It will be reported to the Senate Thursday, he said, with the majority report on the minority report by the democrats will be submitted by Senator Simmons, North Carolina
 Meanwhile Senator Shoot expects to call the committee Thursday to take up the soldier bonus bill. Not more than two days is expected to be consumed in consideration of this measure and it may come before the Senate before the tax measure actually is taken up.
 The minority report will carry the democrats substitute income rate schedule proposed by Senator Simmons and agreed to by the party members of the finance committee. The democrats will not, however, propose an entire substitute bill, AIr. Simmons said.
 "A tt.ft 4AlSaAEt n eAtHtlt4
 Details of the Substitute have not been completely worked out, but 1t is understood the plan of Senator Sim mons calls for a complete revision of the surtax rates and the brackets to which they would apply with a max imum of 40 per cent applicable to in- comes of $500,000 and over. This would mean lower rates on the small CT incomes than provided in the Mel lon and Longworth plans, about the same rates on incomes between $50, 1000 and $75,O00, and slightly higher on in- comes from $75,000 to $1OO,O00.
 It is understood the democrats will propose the normal rates advanced by Representative Garner, democrat, Texas, whose plan was supported by House democrats, of 2 per cent on in- comes of $5,000 and under per cent on incomes between $5,O00 and $S,0OO, and per cent on incomes above that.
 The maximum surtax rate in the present law of 50 per cent applies to incomes of $200,O00 and over, whereas under the Mellon plan the maximum of 70 per cent applies to incomes of $1OO,- OO0 and over. The Garner surtax schedule carried a maximum of A per cent on incomes of $92, 900 and over.
 The Mellon schedule in the bill calls for reduction of the normal tax to 8
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