Evening star., 1924-05-22
TAX BILL VETO PLEA
|. BY MELLON H|NTED
BY AIDES
Views Measure as Most Un-
fortunate Piece of Legis-
Iation, Officials Say.
SEES BUSINESS HURT
AND REVENUE SLUMP
Doubts Returns Will Increase and
Warns Deficit Will Have
Ill Effects.

Strong Indications were given al th.
Treasury today that Secretary Mellon
will recommend a veto of the tax bin
by the President when the measure is
submitted to the Treasury for consiG-
Grafton and review.
High officials declared the bill to b
very unsatisfactory to Mr.. Meio
and the statement was made that h
viewed it as a most unfortunate piece
of legislation" He believes all of the
provisions for reform of the tax sys-
TEN have been omitted and finds L."
justification for inclusion of such pro
visions as increased estate tax rates.
Sees Harm in Publicity.
The Secretary also feels that the
sections making income tax returns
available to certain committees Of
Congress and opening to the public
the proceedings of the board of taX
review will have harmful effects on
business, working to injure credit and
divulge trade secrets to competitors
The estate tax rates as now car
ried by the bill are expected BY
Treasury experts to result in lowered
production of revenue instead of an
increase. They base this belief or
indications that large fortunes will
be distributed by their owners in ad-
vance of death and the government
therefore, will obtain little if any taN
on that part of the estate remaininp
intact.
Sees New Program Needed.
nf
Treasury forsees under the measure
the Secretary takes the position that
the reduced income would require an
entirely new fiscal program for the
Treasury. New funding arrange
ments for the present outstanding
debt would be required in his opin-
ion. as we'll as increased issues Of
securities TO take care of current re-
quirements when receipts begin to
come in under provisions of the bill
Enactment of a law that would re
suit in a Treasury deficit even for
one year is held by Mr.. Mellon TO be
a reversal of a well established ma
tional policy, certain TO produce i'll
effects on future fiscal programs.
sI3c,OOOOOO for Bonus.
1t is plainly evident at the Treasury
and in the bureau of the budget that
there is strong feeling against the
treatment accorded the administra
tion's policy of economy and efficiency
a the hands of Congress.
Dumping the combined weight Of
the costly soldiers bonus and the tax
cutting revenue bill upon the Treas
ury without providing sufficient
means for raising the money, Con
gress has placed the administration
in a predicament, from which the
proper means OF extrication cannot at
present be calculated by the wisest
experts, it was pointed out today.
The bonus would cost S132.000, 900
the next fiscal year, according to total
estimates from the Veterans Bureau
War and Navy departments. submit
ted to the bureau of the budget.
The new tax bill, according TO
Senator Smoot, chairman of the Sen
ate finance committee, will fall JUS
s1oo,oOOooo short of meeting the
governments expenses for the next
year, leaving the bonus out of the
picture altogether.
Thus. according to the Treasury
and its proponents at the capital
there would be roughly a deficit of
shortage, totaling about s2S2,300, 900,
for the Treasury to meet next year
What will be done about it can
only be determined after the present
roughly with the Coolidge Mellon
fiscal recommendations. has adjourn
ed No one can predict with any
certainty, il was said today. how
much more of an additional load Con
gress may throw on the already
overburdened Treasury before it ad-
journS.
The estimated Treasury surplus
formerly placed at s395.00 900, as Il
result of stringent economy with
efficiency" on the part of the admin
istration, has gone a-glimmering un-
der present prospects, and instead
the Treasury now faces IA deficit nf
portions, if further appropriations
should be forthcoming.
Millions of dollars worth of legis-
lation is pending at the Capitol. some
of which. il is predicted. both by the
sition, will be passed. How much
none is willing to predict. This fur
ther darkens the prospect.
The tax-reduction bill faced wei
come from almost every quarter except
the Treasury today.
The report on adjustment of differ
ences between the Senate and House
unanimously adopted yesterday By
the con1ereeS representing the two
chambers. went through the process
of formal drafting today and Chair
man Smoot Of the Senate finance com
mittee expected to present it to the
Senate without delay. 1t was not
considered likely, however, that the
report would be taken up before to-
morrow.
Early action in the Senate is ey-
pected to make agreement by the
House possible Saturday, after which
the bill will be sent to the President
Calls Measure Fair.
Senator Smoot, chairman of the
confeFees. who conferred with Presi-
dent Coolidge early in the week, de-
scribed the measure as it emerged
from conference as fair bill, and
expressed the hope it would be accept
ed by the President
Senator Simmons, ranking Demo
crat on the finance committee and
one of the conferees. indorsed the
measure as finally drawn. and. while
taking credit for the income rate
schedule, declared "the bill contains
several important and very beneficial
administrative changes recommended
by Secretary Mellon"
Similar approval was given by Rep
resentative Longworth, Repub blican
floor leader; Representative Garner,
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