Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1926-02-13
CONFERENCEON
CHANGES BEGINS
EARLY IN week
Treasury Cannot Stand
New Reductions, Mel
lon Warns; Passage
Follows Hot Quarrel
(By The Associated Press.)

WASHINGTON, d. c., Feb. b.
Standing pat for a reduction Of nearly
half billion dollars in the annual fed
eral tax burdens the. senate passed the
revenue measure last night So to 3.
The cut Of $126,0OO,OOO made by the
senate over the house bill must run
the fire of conference between the two
houses which will begin the first Of
next week with a view to final enact
ment Of the measure in time to make
the reductions effective win the filing
OF first tax returns on March is.
Conferees are warned in advance by
Secretary Mellon that the condition of
the treasury will not permit of the
$456, 900 reduction carried by the
senate bill. President Coolidge is con-
fident the conference committee will
bring the total near enough to the
$33O,O0O,00O proposed by the house bill
to permit him with safety to sign the
measure.
Under present estimates of the treas
ury levies sufficient to yield 100000
900 more than would be provided for BY
the senate must be restored to the bill.
Vote Comes After Row.
Besides accepting all the reductions
proposed by the house, the senate made
these major changes IN the bill:
Repealed the inheritance tax
Struck out the tax on admissions ard
dues.
Eliminated the tax on passenger auto
mobiles.
Repealed the capital stock but in
creased the IL 12 per cent corporation
tax one per cent.
Cut $23,000,000 from the surtaxes on
incomes between $4,000 and 100000.
Reduced further the taxes on cigars.
Final action by the senate came sud-
denly after a bitter row among demo-
Gratis over the compromise made by the
minority members Of the finance com
mittee with republicans by which the
20 per cent maximum surtax rate was
agreed to in return for greater reduce
tions on the surtax rates applying on
the smaller incomes.
Assailing leaders of his party, SEN
ator Reed, democrat, Missouri, declared
they gained nothing by the trade and
had in effect surrendered to Secre-
tary Mellon" This led to vehement re-
plies by Senator'S Simmons, North Caro-
lima, ranking democrat on the finance
committee, and Glass, Virginia, demo
crat secretary of the treasury under
Woodrow Wilson. Describing Mr.. Mel
Ion as merchant" whose interests
had reached "into every avenue Of trade
sand commerce from the manufacture OF
num-" Senator Reed said:
mum" Senator Reed said:
Says Mellon Won
THAT is the man who has won his
fight today, silently, shrewdly, without
intermission of effort, pressing on and
on by insidious process; he seems to
have undermined the conscience of de-
mocracy. He always did own the con.
science of the republicans.
sThe poor old democratic mule IL be-
bill than even the last two revenue
holds the ear
Vigorously defending the compromise
Senator Simmons declared the 20 per
cent rate was fair maximum in view
of the additional cuts made on the lower
rates at the insistence Of the democrats.
"This is more distinctly a democratic
bill han even the last two revenue acts"
acts" Senator Simmons said "The
democrats get everything they asked
for and more"
Congratulating Senator Simmons and
other democrats of the finance COM
mittee, Senator Glass said he did not
think they had surrendered.
II don't think we are cowards," he
declared.