Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-02-19
CONGRESS LEADERS
Reject |NSURGENT
TAX CONF ROM|SE

WASHINGTON, Feb. 17.-Repub-
lican insurgents who hold the bal
ance Of power in the house tax fight,
offered to compromise with or
ganiza ton leaders on q forty per
cent surtax maximum provided nor
NAL income tax rates are cut in
half.
The offer, which remained unac-
cepted after two conferences, was
accompanied by a threat that If
turned down the insurgent bloc
would support the Democratic plat
form for a forty-four per cent sur
tax maximum.
This, leaders agreed, would give
the Garner plan a majority when
A. vote comes next week on the in.
come tax provisions of the Mellon
bill.
Efforts of the Republican organi-
cation to reach a compromise with
the insurgents will be resumed Mon
day, although some of those who
took part in tOday's negotiations see
little prospect of an agreement.
The stumbling block appears to be
the insistence of the insurgents that
the present normal income tax rate
of eight and four per cent be cut in
half, a provision which is carried in
the Garner plan.
Representative Longworth, the
Republican leader, who initiated Sat
urday's parley with the insurgents,
declared later he was flatly opposed
to such a decrease. He contends 1t
would alter fundamental principles
Of the Mellon bill, which calls for
a twenty-five per cent reduction IN
normal rates and a maximum sur
tax of twenty-five per cent.
AS the negotiations between the
two Republican groups proceeded,
the house devoted a third day to
general debate on the revenue bill.
After seven hours discussion,
marked at times by sharp exchanges
between Democrats and Repub-
leans, dinner recess was taken,
after which the house plunged into
a night meeting-the first of the
session.
Bid for Insurgent Aid
Decision of Republican OrganlZa-
ton leaders to bid for insurgent aid
was prompted. it was admitted, by a
realization that without such assist
ancs enough votes might not be mus
tered to insure success Of the thirty
five per cent SurtaX compromise
agreed upon as a substitute for the
Mellon figure, which it is generally
believed, would have no chance in
a house vote.
At the first OF today's conferences,
Representative Frear, of Wisconsin,
an insurgent on the ways and means
committee, who has proposed a tax
plan of his own which provides for
no reduction in surtaXes, was not
present. He attended the second
meeting, however, and advanced the
offer of his group, which several
weeks ago was rejected by the Re
publican members of the ways and
means committee.
Tonight Mr.. Frear issued this
statement:
Mr.. Longworth invited to an in
formal conference several members
Of the Republican group that com
PEELED a modification of the rules
which will now enable us to amend
the tax bill reported by the COM
mittee.
Notwithstanding the last con
greSs repealed the excess profits tax
and reduced the high surtaXes from
| siXty-five per cent to fifty per cent
with an annual reduction Of $780,,
| 1000 largely 10 favored interests
we endeavored to effect compro
mise in rates when the bill was be
fore the committee A proposal to cut
! normal taxes ope-half and to reduce
| surtaXes from fifty per cent to forty
| per cent was then urged by me S q
plan that would help small tax pay
| ers far more than the Mellon plan
and would not deplete the treasury
surplus so as to create a deficit
! That offer was summarily refused by
eleven members of the committee
who then reported the Mellon bill
as submitted by the treasury.
''Ninety-four Republicans OF the
house voted for the fifty per cent
surtaX last session.
Compromise Remains Open
La the interest of compromise
submitted the same plan today as
that offered the committee. Wher
the proposal that was once refused
and is still open is understood 1 an
certain that our action will be sus
tanned by public sentiment.
THE Garner plan, with A pei
cent maximum rates, is the only al
tentative suggested"