New Britain herald., 1927-12-06
Democratic Leader From Ar. kansas Fears Flood Measures
 Will Not Suffice
SENATE REPUBLICANS
 DEFY WESTERNERS
All But Hlrl Down Gauntlet to Those Who Demand Legislative Pledges-New Storm Clouds Ap- pearing-S236. .O00 Tax Reduction Bill Presented Joday-AH Is Serene in House.

Washington, Dec. 6 LP-Sew 1 storm clouds gathered over Capitol Hill today as the new congress, in the second day of its session, as sembled to hear the reading of Pres ident Coolidges annual message. Not only did the presidential mes sage disclose q chief executive stand ing pat on those controversial suh- .iects which have been the source of his greatest opposition in senate and house, but the senate itself uncover ed a new element os uncertainty and political controversy in its own ranks.
 Defy to Westerners
 Just before the annual message was received at the capitol by mes senger, senate republicans all. but threw down the gauntlet 10 the group of five western independents who are demanding certain legisla- tive assurances on farm relief and other subjects before they support the republican slate of senate of ticers. The conference. after some plain talk abou, telling the indepen- dents to go as far as they liked, finally did authorize a continuation Of negotiations.
 This development. added 10 the Smith-Nare row, gave promise of plenty of trouble before the senate actually gets down 10 legislative business.
 serene In House
 The house, however. was in q more serene and industrious mood. \ few minutes before arrival Of the presi- dental message, in which the presi- dent stood fo.er square behind Secre- tary Melons tax reduction program. the ways and means committee for mally submitted it's tax bill for early house consideration.
 Nearly all of the secretary's rec concentrations were scrapped by the committe in preparing a bill that would accomplish a reduction Of S236, 000,0 GOO, or s11.000,0o0 more than the president and the treasury consider safe. The fight over that issue probably will begin in the open before the end Of the week. for the leaders plan to clear away the legislative underbrush as quick ly as possible and give tax leeisli- ton the right Of way.
 Included among the proposed rate visions are the following:
 Reduction from 131s 10 11H per cent in the tax rate on corporation incomes and increase from s2,00o to s3,000 in exemptions granted cor pora,ions with incomes not exceed ing s25.000.
 Slicing in half Of the sales tax on and a similar cut in the tax on club dues.
 Increase from .5 cents 10 st.0o the exemption on admission tickets.
 The measure does not provide for carrying out the treasury recom- for repeal Of the federal tax or for any other of the departments alor recom- 
 Farm Relief Fight
 Farm relief also is certain 10 again be storm center, for tue Pre- sident reaffirmed in his message that he could not accept the equal l2ation fee of the McNary- Haugcp till. which a majority of both sen- .te and house approved last session, only to encounter a presidential veto
 Mir. Coolidge proposed instead Of the McNary- Haugen plan inanc- ing arrangement by which a farm board would use a revolving fund 10 promote cooperative associations and help handle surplus crops.
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