Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-05-21
Various Depart
ments B e gin Pre-
parations to Carry
Out Provisions Of the
Law--Tax Bill Con-
ferees Plan to Mould
Measure with Bonus
in View Chairman
Smo0t Sees Treasury
Deficit in Any Event

washington, May 20.-Onicial WASH
,ngton Joined hands today in a move to
.d,ust the government to the soldier
bonus bill.
rongress. which forced the bill into
law over the presidents veto, showed
willingness to cooperate in adjusting
"a far as possible the pending tax re-
auction bill to conform to the added
cost Of the bonus.
The various executive departments
charged with administration Of the boz
! Nh, law hurriedly began to assemble
,hsir forces. The administrative 4ues-
zion was taken up at the cabinet meet
,ne and it was determined that up
yard of 5000 additional employees would
hs required Immediately for the work
Of circulating application blanks and
assembling necessary data.
While President Coolfdge's attitude
a. 10 the possibility Of tax reduction
h AZ proposed in the revenue Dill now IN
conference in Congress remained unde-
fined, the conferees after two three
hour sessions Indicated every effort
would be made to mould the measure
an as satisfactory a basis as possible.
i
snancs committee and Chairman Green
of the House ways and means commit
tee expressed the belief that the con-
ferees would decide on a bill by tomor-
\ row which would be acceptable to the
Administration.
There is no chance, however, Mr..
smoot said, Of pruning down the pro-
\ nosed cuts in taxes to prevent a treas
ury deficit under present estimates OF
revenue for the next fiscal year.
While the estimated expense or $l50,-
900 600 for the next fiscal year on ac-
count of the bonus cannot be provided
for In the pending tax bill, which ex-
n merits say will more than eliminate the
estimated surplus over the necessary
government expenditures. administra-
ton leaders in Congress expressed the
opnion today that the bill would De
signed because OF the stimulus In Will
afford to business.
Senator Smoot declared he would
recommend acceptance by President
Coolidge of the ak bill on the ground
that any deficit which might occur
next year would be offset in later
years by increased returns as a re-
suit Of tho beneficial effect on busl-
ness OF q tax cut now.
The American Red Cross Joined
the government departments today
In the work OF distributing TO veter-
ans application blanks and full In
structions on the provisions Of the
bonus bill and 1t Is planned to have
this well under way within a few
days
The war department today submit
fed an estimate of $4,500,000 to the
budget bureau as the amount neces-
sary to meet administration expense
during the next fiscal year. This
Contemplates the employment or
more than $500 additional clerks and
the certification of records of about
100000 world war veterans.
Similar work must be undertaken
by the navy department although on
q somewhat smaller scale. The vet
erans' bureau, in which Is vested ac-
tual control Of administration Of the
law Will require additional appro-
priations.
On the question Of the probable
result Of the bonus bill on govern
ment finances, President Coolidge
was represented today as believing
the effect will be felt more in years
TO come than Immediately. The law
covers a period OF 20 years at the
S"u vi NlilCu Tie SCA eAh
Gates will be payable. 1t Is estt-
mated that the average annual cost
over this period will amount to about
Nl5000,000. @
Chairman Madden. of the house
appropriations committee, in assert
Ing before the house ways and means
committee recently that such
amounts could be taken care Of by
the government pointed out that
appropriations amounting to more
than sl00,000GG3 annually now for
vocational training Of veterans would
De eliminated within a few years.
The estimated government surplus
Tor the next fiscal year has been an
nounced by the treasury at about
sSs5.oO0,000 under the present tax
laws. The pending revenue bill has
provided for reduction in taxes of
more than $400,000,000.