Evening star., 1924-01-18
BANKERS, CASTING
POL|T|CSAS|DE,A ASK
TAXB|LL ADOPTION
Financial Representatives of
rs States Acclaim Mellon
Plan at Meeting.
PRESENT VIEWS TODAY
AT COMMITTEE HEARING
democrats Hail Secretary for
"Courage"-Hold Issues
Above Partisanship.

A rising tide Of democratic as well
as republican sentiment for the Mel
lon tax-reductton plan among bank
ers and business men regardless Of
party or section, in at least twenty
six states Of the Union was reported
today with enthusiasm by delegates
meeting here today to present its
argument for that plan before the
House ways and means committee.
In an informal meeting at the Ra-
leigh Hotel today, prior to the hear
ing this afternoon, the Mellon senti-
ment broke out spontaneously when
delegates from all sections of the
country, with democrats voicing
themselves most emphatically OF all,
sentiment for the Mellon plan
Senator Carter Glass. democrat. of
Virginia, former secretary of the
Treasury. spoke in favor OF tax.re-
duction, in favor of the "so-called
surtax. but attacked other features
of the Mellon plan, advocating in
stead the proposed modified plan"
presented by the democrats.
Delegate Hits Partfsanship.
While Senator Glass was accorded
every courtesy by the delegates, he
failed to dampen the ardor of the as
sembly for the Mellon plan, one del
egate rising after Senator Glass
speech to remark: II am a democrat,
but I'm sorry the democrats are try
ing to drag this thing into politics"
J. NJ. B. Petriken of Greeley, Colo,
who said he was a democrat, de-
clared. 81 don't care whe her Mellon
Is a democrat or a republican"
reduction. The psychological effect of
reduction will carry on down the
line, through the government. state,
county and municipalities. During the
war we didn't complain. but now the
time has come when it is possible to
relieve the burdens and ! am in favor
Of doing 1t. II we begin Quibbling over
this or that part Of the plan Wen never
get anywhere. We ought either say
we are not in favor of the plan, or
else adopt it.
Issues TRANSCEND Politics
This is a so-called republican
measure, but the issues involved are
broader than politics We should
take the broader viewpoint that it is
necessary to relieve the people OF
the country of the feeling that the
government is trying to get every
thing out of them" Mr.. Petrikin
said he didn't see a ching to Senator
Couzens' criticism and classed the
Michigan senator with other obstruc-
tionists, whom he charged were try
ing to block tax reduction.
c. c. Nottingham Of Chattanooga,
Tenn. declared the people of Ten
neSsee are going TO support the Mel
Ion bill regardless of politics"
Senator Glass pointed out that Sec
retary Mellon had not been the first
Secretary Of the Treasury to propose
ed 1t himself when Secretary Of the
Treasury in 1920, when he had advo-
Gated reduction Of the national tax
and cutting down of all upper brack-
cts of the surtax."
Senator Glass pointed out that he
had then laid down anew the per
fectly recognized principle that the
surrax could be placed at a figure
which would deprive government Of
revenue and divert capital from pro-
Mellon, had also more emphatically
and more elaborately' presented the
matter of tax reduction in his report
to Congress, the senator said, and the
proposal had also been introduced by
himself. as chairman of the resolu-
convention.
Calls Mellon Plan Old.
Had not Mr. Mellon been SO frank
in his letter to Chairman Green of the
House ways and means committee in
explaining that he was proposing
what similarly had been sent to Con-
gress by two democratic secretaries
of the Treasury, Senator Glass de-
clared, It might have been tempted to
accuse him of plagiarism. because the
language is very similar. L don't say
that for political effect" he added.
"but simply state the facts"
Senator Glass attacked the pro-
posal to deprive states, municipal
tiles and the federal government of
the privilege Of issuing tax-exempt
securities, declaring 1t would never
be possible as an amendment to the
Constitution.
former Treasury Secretary declared
ne was opposed 70 1t from the two
fold reason of economy and senti-
ment, and predicted that 1t would not
be enacted.
Asks Modification.
blind adoption of the Mellon plan
Senator Glass said. might work
hardship on a great number of peo-
ple," explaining that under the pro
posed modification" of the Mellon
plan, which has been presented by
the democrats, many millions of
Americans of moderate income" would
be benefited.
Praises Mellon Bill.
Edward D. Chassell of Chicago.
secretary Of the Farm Mortgage
Bankers Association of America, ia
voring the Mellon tax plan, declared
that the tax exempts had 30 mounted
in volume that they were about to
fill up the market, and that the
amount of tax-exempt securities is
sued annually had risen from SsS,-
100000 in 1892 to more than S1,6O0,-
OOO,000 in 1928.
e. D. Moody of Ohio, said that Mel
lon had reached the heart Of the mat
ter in explaining that taxes should
be laid at the point, to use a rail-
road term, "as much as the traffic
will bear" Education OF the man of
smaller income would be necessary
he said to make that individual un-
derstand that flxatfon of the tax rate
at point where il will be accepted
by the wealthy as allowable for pro-
ductive investment. would eventually
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