The Birmingham age-herald., 1924-01-19
MELLON BILL
 ESTORMCENTER
 OF DISCUSSIONS
Tax Measure To EncOun-
 ter Storm On Floors When It's Introduced

WASHINGTON, Jan. 1S.-Secre- tary Melons program for tax reduc- ton was a storm center in legislative and political discussions today.
 While views for and against the pro- posed income tax rates were placed before the House ways and means com mittee at public hearings, the bIu's course in the House was confronted with parliamentary developments which majority leaders admitted threaten its major provisions. At the same time President Coolidge let it be known that he intends to accept no com promise in the man on the secretary's proposals. MT. Coolidge told visitors he believed the Mellon plan is gain ing favor both in and out of Congress, although he reiterated .that he expect ed some changes in the bill.
 Republican leaders admitted that with the rules revision adopted by the House today it was possible the entire rate structure of the Mellon plan might be changed when the measure reaches the floor as result of the elimination of the rule restricting amendment of revenue and tariff measures. In this connection Repre- sentative Oldfield, Arkansas, demo- cratic whip, announced he would offer an amendment when the bill reached the floor to restore the excess profits tax with lower rates, and Representa- tive Frear of Wisconsin, insurgent re- publican member of the ways and means committee, sought support for his proposal to provide revenue for soldiers bonus in the tax bill, in let ter directed to members of the House.
 Admit It Is Open To Attack
 Chairman Shell of the rules commit tee said republicans could not hope to get a special rule to protect the tax bill against amendments when it is brought to the floor, and admitted it was open to attack in all it's major rate pro- visions. He expressed doubt, however, that amendments proposing an excess profits tax or a bonus would be con- sidered germane under provisions of a rule still in effect.
 Representative Garner of Texas, author of the democrats substitute tax proposal, has declared that if he is not successful in the committee in obtain ing normal income tax rates of and 4 per cent in place of the 3 and 6 per cent rates suggested by Secretary Mel lon and higher surtaX rates than those suggested by the treasury secretary, he would seek to amend the bill to this eff feet on the floor.
 The income tax rates of the Mellon plan today received indorsement before the ways and means committee from the American Bankers League and the American Mining Congress, while they were criticised by the American Farm Bureau Federation and the National Grange, the latter proposing higher surtax rates. The surtax rates of the Mellon program at the same time were vigorously defended by Garrard Win ston. under Secretary of the Treasury, in answering questions of committee members as to the probable effect of the plan on future revenue.
 Glass Warnes Against Bill
 Addressing Il meeting of the Bankers League prior to their appearance be- fore the committee, Senator Glass. democrat, Virginia, warned that blind adoption by Congress of the Mellon plan might work hardship on great number of people. While indorsing in principle Mir. Melons proposals for lower surtax rates, he advocated the qualifications proposed by Represen- tative Garner, which he said would benefit many millions of Americans of moderate income.
 Representatives of the league later visited Secretary Mellon and offered to enter a contract to finance productive industry" if Congress adopted the secretary's tax reduction scheme.
 R. F. Fullbright of Houston, Tex, and Charles l.. Dunbar of New Orleans, who said they spoke for the tax payers of their communities, opposed the rec ommendation of Secretary Mellon to tax the person in control of community property as a substitute, present pro- visions permitting the husband and wife to file joint returns on their incomes.
 The proposed amendment to the rev enue laws, they said, was not only in iquitable and unjust, but unconsti- tutional.. It would 'nullify," they de- elared, the laws of Arizona, California, Idaho, New Mexico, Nevada, Texas, Washington and Louisiana.