The Birmingham age-herald., 1924-01-13
COMP PRO MISE IS INEVITABLE, VIEW
tContinued from Page one)


 latter's surtax proposal and ques- tioned the soundness as well as MT. Mellon's views on tax exempt se- curitics.
 Jealous Of Prerogntives.
 Mr. Longworth. discussing the tax situation. said Congress never had and never would accept, without change, rates suggested by the Sec retary of the Treasury. It is too he declared. adding that 1t would be no reflection on MT. Mellon If changes were made in the rates pro- posed by him as his personality had nothing to do with the situation.
 The republican leader declined to predict what surtax maximum finally would be agreed upon by the re- publcans. although he expressed confidence that the faction insisting on modifications of the treasury than the group opposed to material changes.
 We ought to reduce high sur taxes" said Mir. Longworth "tp a point where the temptation would not be irresistible to a rich man to put all his income in tax exempt securities Whether the Mellon plan proposes the right maximum, l do not know It is apparent, however, that this Congress will not put rates low enough to bring about the result de- sired by the administration in all cases"
 Fears No Veto.
 MT Longwofth said he was certain President Coolidge would not veto a bill which carried higher surtax rates than those proposed by Mir. Mellon. , This observation was made in the face of announcements at the Whre House that the President was op- posed to any changes in principle.
 There were indications today that republican leaders, groping about for q surtax maximum winch would com mand the support of maJorty or the House might suggest 35 per cent as against the s5 per cent limit on incomes in excess of $10,000 proposed in the Mellon bill and the A per cent maximum on incomes exceeding s920O0 favored by the democrats. The present maximum Is 50 per cent on incomes of $2Oo,00o or more.
 Mir. Green declined to give his views on the surtax schedule. all though he is known to believe that The Mellon maximum would not have the support of enough republicans to insure its adoption. and Is inclined to increase it considerably above the treasury figure.
 As to the likelihood of compromise. m fnenTDeFS or the ways anu IledHS committee said that all important legislation was the result of adjust ments. with the tax bill no excep- tion. From the start he said, the committee has intended to write the biil' and it was indicated that efforts would be made to make changes for the purpose of meeting the demands from various groups in the republi- can party in committee rather than permit an inter party fight to de- velop on the floor.
 O O Q
 Modifying Bonus Bill.
 Members of the ways and means committee said today that while no committee discussion had taken place recently on the soldiers bonus oues- tion there had been considerable talk of modifying the Mckenzie bill in an effort to reduce the cash outlay and permit greater tax reduction.
 The Mckenzie draft is substan- tially the same as the bonus bil ve- toed by President Harding. Some House members, 1t was said, have been urging that its options be re- stricted and that the borrowing fea- lures be eliminated.