Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-02-13
Senator Confers at White
House Over Radical SIashes
Made by Senate.
DECLARES S1OO,OOO,OOO
REVENUE MUST GO BACK
Six Major Changes Made by Up
per House-Measure Going
to Conference.

Senator Smoot Of Utah, chairman az
the finance committee. following q
conference with President Coolidge a.
the White House today, during which
time the tax reduction bill as it was
finally passed by the Senate yesterday
was discussed, stated afterHard that
!, the reduction in taxes provided in
this bill IS 500 600 900 more than the
Government can stand at this time.
Senator Smoot insists that the reduc-
tion should be not more than $3.50
| 600, coo, the amount provided IN the
tax bill as it was originally reported
to the Senate. He also insists thai
the s330,000.0 900 provided in the
House tax bill is too low. He stated
hthat the conferees VIII meet Mon
day at 9 o'clock and he is very hope
full that the reduction bill finally
greed upon will be nearer his fc
ure than the $456.0oo 900 provided III
the bill as passed Yesterday.
Senator Smoot has told the Pres-
dent that he expects the conferees Will
be through with the compromise bill
and have it ready for the Presidents
signature within the next two weeks.
Six Major Changes.
Besides accepting all Of the reduc
tions proposed by the House the Sen
ate made these major changes in the
bill:
Repealed the inheritance tax
Struck out the tax on admissions
and dues.
Eliminated the tax on passenger
automobiles.
Repealed the capital stock tax. but
increased the 1212 per cent corpora
ton tax I per cent.
! Cut S23, 900, 900 from the surtaxeS on
| incomes between $24 900 and 100000
Reduced further the taxes on cigars.
| Final action by the Senate came
/ suddenly after a bitter row among the
! Democrats over the compromise made
! by the minority members or the
| finance committee with Republicans,
| by which the 20 per cent maximum
! Surtax rate was agreed to In return
| for greater reductions on the surtax
rates applying on the smaller incomes.
Assailed by Reed.
Assailing the leaders OF his party.
Senator Reed, Democrat, Missouri,
declared they gained nothing by the
trade, and had in effect Surrendered
to Secretary Mellon"
The declaration of the Missouri
Senator led to Vehement replies by
| Senators Simmons, North Carolina,
! ranking Democrat of the finance com
mittee, and Glass. Virginia, a Demo
cratic Secretary OF the Trea sury un-
Ger Woodrow Wilson.
! Describing Mr.. Mellon as q "mer-
| chant" whose interests had reached
| into every avenue Of trade and com
| merce from the manufacture Of
/ h to ~. of oil
i iuum," Senator Reed said:
THAT is the man who has won his
| fight today, silently, shreWdly. with
out intermission of effort, pressing OF
and on by insidious processes: be
seems to have undermined the con
! science Of democracy. He always did
| own the conscience Of the RepublI
| cans.
| The poor old Democratic mule j.
| being led in by the ear and Mr.. Mel
| ions hand holds the ear
Help From Insurgents.
Senator Reed declared that if the
Democrats had stood by their prin-
ciDIes of two years ago" they would
have received enough support again
| from Republican insurgents 10 have
written this tax bill just as we wrote
| the last two bills He added that
/ there were no towards among the
/ insurgents.
! Vigorously defending the compro-
| mise, Senator Simmons declared the
| 20 per cent rate was a fair maximum.
in view of the additional cuts made
| on the lower rates at the insistence OF
| the Democrats.
| This is more distinctively 4 Demo
cratic bill than even the last two reVe
nue. acts" Senator Simmons said.
! THE Democrats got everything they
asked and more.
| Il have no apologies TO make" he
! shouted. 1.-THE country demands n"
apologies. Neither have / any apollo
| cies to make for not entering an agree
ment with the insurgents on the other
| side of the aisle. Never have nor
nv party achieved such victory as
! in this bill. The public sentiment or
| the country stands by me and ap-
plauds the victory of the Democratic
| party.
Had yielded Views.
| Previously Senator Simmons, in re
| PLYING to a proposal by Senator Nor
ris, Republican, OF Nebraska TO IN
! crease the maximum surtdX rate 10
% per cent, told the senate ne was
! ..impelled" to yield his views on that
subject. .,s
| the statements made to me by the
leader of the Democratic party on this
side of the chamber and by other
members that a. large percentage or
Democratic votes were In faVor ol
not going above 20 per cent
| Concentrating Senator Simmons
and the other Democrats of tho
| finance committee. Senator Glass said
he did not think they had sur
rendered"
II don't think we are towards, he
declared.
The Virginia. Senator said that
some Senators objected to coaliuons
| of one sort because they were not g
| narty to them and yet demanded
coalitions of another kind.
| "The insurgents that tnsursed IN
1924 have returned to the fold, he
continued. Their bark was on the
sea, but it took them into the Coolidge
and Mellon port"
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