The Washington times., 1924-05-22
TWO BILLS.
LET FOR
FIGHT
Agreement on Taxes Leaves
Only Farm Relief and
Shoals to Settle
BY GEORGE R. HOLMES,
International News Service.

AMCeFm0tAOnAl NEWS SERVICE
After wandering in the wilder
ness Of discord and dissension for
nearly six months, the turbulent
Sixty-eighth Congress emerged to-
day into the sunny open spaces
Of comparative harmony and
pointed toward certain adjourn
nent by June z.
The agreement on the tax bill,
and the promise that 1t will be
signed by President Coolidge, has
magically dispelled nine-tenths Of
the trouble in Washington. Con-
gress can now 60 home and face
the electorate, pointing with
pride" to the sessions accomplish
ments.
All Factions Happy.
Few events since the armistice
has been SO joyousy acclaimed or
received with such a feeling Of re.
lief as the ending Of the long and
bitter struggle over tax reduction.
And by the terms Of the agreement,
every faction in Congress-Repub.
Ncan, Democratic, and insurgent-
can claim q victory. There are no
losers. =:
The Republicans are pleased BE-.
cause they initiated the tax reduc.
ton bill, and expect to realize on
this fact politically. They were sue
ceSSful in enacting all Of the Mellon
administrative features, retaining
the corporation tax Of 1871 per
cent, side.tracking the obnoxious
provision for publicity Of tax re-
turns and enacting the Longworth
rates on estates, gifts and hundreds
OF miscellaneous taxes.
Other Sides Score.
The Democrats are satisfied be.
cause they compelled the adoption
OF the Democratic normal and sur,
tax rates on incomes, and car
claim so per cent authorship Of the
bill. They succeeded, too, In placing
g 12M per cent limit on reductions
Tor capital losses, defeating MFR,
Mellon handily on this point.
Even the insurgents are pleased.
They were principally responsible
Tor the defeat Of the Mellon rates,
particularly on big incomes. and
they won q number Of victories IL
the matter of corporation taxing.
Both Republican and Democratic
leaders predicted today the passage
1Of the completed tax reduction bill
and it's signature by President
Coolidge within ten days.
Il expect the President to sign
the BILL" said Senator Smoot Rep
q Utah, chief Of the Republican
tax cohorts.
Il don't see how he can veto it.
said Senator Simmons Dem) OF
North Carolina, author Of tie new
income rates.
Mellon to Urge Veto.
The confidence that Presiden,
Coolidge will sign the tax bill was
shaken somewhat today when 1,
became known that Secretary Mellor
may recommend q straight out-and
out veto.
The compromise bill, Il was an
. nounced at the Treasury, is ''very
unsatisfactory" to Secretary Mellon
He regards it as ''Mnscientific" ant
utterly destructive CT the safefully
arranged program which he pre
pared six months ago.
whether, however, the President
would care to risk further friction
with Congress by vetoing the bill
with the almost certainty that II
would be passed over his veto---was
regarded as extremely problematical
even though he has a high respec,
Tor MIR. Melons Judgment on fisca.
affairs.
Mellon has not yet put his obtec
lions to the bill on paper. He was
gtudyin git today and told callers
ne would either give Mr.. Coolidge
q memorandum Of disapproval OF
tell him Of its defects in personal
conferences.
Terms Bill MaEeshfft.
In Mr.. Melons opinion, expressed
TO visitors today, the bill contains
no permanent features Of tax re.
FORM, but rather Is q "makeshift''
measure that will serve only for
the time being, and that none too
well. He believed the new law will
divert Investments into non.produc.
tive fields, and thus nullify what
ne considered theS basic feature of
his own plan-the coaxing Of CAPITAL
from its hiding places.
While the Norris provision for
publicity Of income tax. returns. go
Objectionable to Mr.. Mellon, was
stricken out Of the bill, he con.
siders the compromise provision
allowing the publication OF names
OF tax payers and the amount of
tax paid to be scarcely less often
sive.
Melons announced opposition to
the new law, while creating a stir
at the Capitol, made no great i'm.
preston, for the reason that as II
stands the new law IL q Republican.
Democratic compromise and as such
has the united backing Of both
parties. A veto would avail but
little In the face Of such non.
partisan support, i was pointed
Another Of Melons chief objec.
lions to the bill 10 the maintenance
OF high State taxes.
Mellon sees a breaking down OF
estate values" that in the end will
cost the Government heavily. And
undoubtedly, he said, there viii be
NAaAN ~ 1in1Vido N0a,a - 1890. a.. a.