Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-01-26
COOLIDGE HANDLING
TAX PROBLEM
May Have to Decide Fight to
Get Measure Passed-CoaI
Policy Backed.
BY j. RUSSELL YOUNG.

Anticipating the fight awaiting the
tax reduction legislation when IL
nnaily goes to conference, President
Coolidge had II Republican leaders
in the House as his guests at break,
fast this morning.
The object of this informal CON
ference is understood also to have
been to enable the Executive to have
a clear understanding of the true
sentiment In the House regarding the
anthracite coal strike and the ntti-
tude OF the members toward the yari-
Gus bills and resolutions that have
been introduced with the object OF
settling the strike. Other legislation
Is understood to have been discussed.
but the White House version of the
real purpose of the breakfast confer
ence was that II was merely for the
purpose of an informal exchange OF
views.
Now that the Senate has adopted
he cloture and all concern about the
outcome of the World Court protocol
mas been put aside, the President is
giving his full attention to the tax
revision legislation. He is greatly
disturbed by the delay the bill has
met in the Senate and by the stiff
opposition the bill faces before il
hnaily may be passed.
Fears Tax Delay.
The President has expressed the
tear that with this snag in the Senate
ana the battle awaiting IL when the
conferees meet. the bill may be writ
ten upon the statute books too late for
the law to become effective by March
Is, when the first income tax install
ments of the year fall due
Followfng notice of Chairman Green
OF the House ways and means commit
Tee and other influential members of
mat body that the bill as presented To
the Senate by Senator Smoot, chair
man or the finance committee of that
body, is unsatisfactory and unaccepta-
Bile, Mr.. Coolidge has been advised that
he House leadership is determined 10
tght bitterly for revision until the
total cut resembles very nearly the
House reduction, which is estimated
at 1890, 900 600.
The reduction provided in the Smoot
bill is estimated at 1852 900. 900. accord
ing TO Senator Shoots figures. but
Chairman Green contends that the
Smoot bill will ultimately result in an
annual loss to the Government Of
1857 100000 in revenue, or SI67, 00G, 00U
more than Secretary of the Treasury
Mellon has stated previously could b"
allowed.
Want Inheritance Tax.
Besides describing the Smoot figures
as misleading. Chairman Green and
others in the House are opposed to the
elimination of the inheritance tax As
preliminary step 10 avert a long
drawn-out battle and possible dead
lock President Coolidge is ironing out
differences.
If the conferees show no signs of
coming TO an agreement 1t Will re
main with the President TO say which
figures he considers best. President
Coolidge is not overp eased with the
prospect. He does not fancy making
a decision of this kind, but he is
mindful of the Importance of getting
this bill enacted in time.
1t Is understood President Coolidge
has learned enough Of the attitude OF
the leadership of the House to realize
that that body has no intention OF
embarrassing him in the matter of
coal Legislation. There are number
of bills and resolutions dealing with
the question, but the President has
been given 10 understand that what
ever legislation is passed viii be
diong the INES recommended in his
message to Congress.
Those who were at the breakfast
conference today were Speaker Long
worth. Representative TiIson, Con
necticut, ma lority leader. and Repre-
sentatives Madden of Illinois. chair
man of the appropriations committee:
Green of Iowa. chairman of the ways
and means committee: Parker of New
York. chairman of the interstate and
foreign commerce committee; Sinnott.
Oregon; Magee, New York: barrow
Pennsylvania; Newton, Minnesota;
Denison, Illinois: Treadway, Massa-
chusetts. and Hawley. Oregon. Sec
retary Sanders was present.
Immediately following this confer
ence the President conferred with
Senators Watson and Robinson of In
diana. They said they saw the Presi-
dent regarding patronage