Evening star., 1927-11-08
PRESIDENT AGAINST
INHERITANCE LEVY
AS AID TO STATES

| Continued from First Page.)
ness could reply, he continued: I'VE
! know how they are gathered"
Il don't think you do Kirby an
swered, but let's come back to the
merits of this legislation" adding
those present. like himself. always
were ready to applaud patriotic state.
ments.
Chairman Green at the outset of
the meeting today announced he
would be liberal in hearing witnesses
favoring repeal of the inheritance
levy, because he himself was opposed
to such action.
Senator Trammell, Democrat,
Florida. the first witness, said he IA
vored return by Congress to the old
policy of non-interference with the
rights of the States, arguing the 50
per cent rebate clause in the estate
law constitutes such infringement,
and the whole inheritance law should
be repealed.
Representatives Yon. Democrat.
Florida. second 10 he heard, filed a
brief advocating repeal of the tax.
Elimination of the tax then was
urged by Blodgett.
His testimony was Interrupted by
Mr.. Garner, who said that two years
ago 'the crowd" was furnished by
the national bankers committee
which now was extinct. The witnesses,
however. continued without reference
to the statement.
State Issue Cited.
Blodgett held the purpose of taxa
ton was~to raise revenue, but the
estate tax had another p.Irp SO. ap-
parently referring TO the argument Of
those supporting the levy ihat it rre-
vented States from Competing with
each other to attract wealthy citizens.
Garner said that the New England
State once had favored heavy tax on
oleomargarine for the purpose of in
creasing butter consumption and
Rainey said that section also had en-
dorsed a tax on phosphorus matches
to decrease their use fo- reasons OF
health.
Under questioning by Mr.. Garner,
Bodgett said the Council of State
Legislatures was supported financially
through contributions of 500 by each
original member and subsequent SUBJ
scriptions of $40.
Garner then turned the discussion
to a letter written last May 10 by
Lee Satterwhite of Texas, member
of the council. calling a meeting to
consider tax matters. Blodgett re-
piled to Representative Rainey that
he had sent his contribution to Sat.
terwhite.
FavOrs Twilight Zone"
Returning to the estate tax. Blod-
gett argued that there was twilight
zone in taxation where the Federal
Government should stop.
I'm other words" Chairman Green
interrupted, you believe Florida
should be able to enact laws to at
tract wealthy people,
And" broke in Rainey, Connect
cut wants to attract New York mil
lionaires."
Connecticut is doing everything to
attract people, the witness replied.
I'VE are doing everything to make it
the best place to live"
Blodgett said Connecticut had no
personal income tax, but he knew of
no, one who had moved there because
of lat.
AS one reason his State had no such
a levy he gave the belief that be-
cause 1.-THE Federal Government made
a dud of that tax" and destroyed it's
value.
irby the next witness, who had
the tilt with Green, directed his attack
on the Inheritance tax by appealing to
X preventative Garner of TeXc~, rank
ing minority committee member.
John Garner" he said. "how can
you support a law that would take
away part of the estate my wife and
| have built?"
THE history of the world, John, is
the right of child to take the prop
c. - of their fathers
C:-ner "WabbIing" CT 'ged.
The witness said he had always
gone alone with Garner on good Demo
cratic principles until recently, when
! John began to wabble a little
Kirby was questioned closely by
! Representative Rainey concerning
! financing of the National Council of
State Legislatures. but the witness
| could add little to previous testimony
by Blodgett.
| Sltterwi1ite came under the main
! fire Of Mr.. Garner, who insisted on
! knowing whether a Mrs. Darden'
| had given him one check.
| Sattcrwhite. member Of the Ma
| (. lal Council of State Legislatures,
Said the move to obtain repeal of the
| inh critance tax had prompted his in.
! tereSt in the organization.
| Garner asked SatterWhite who had
paid his expenses on past visits to
! Washington.
MY expenses were paid by a fund
! that had been accumulated"
who had charge of that fund
Didn't Mrs. Darden give you a
check"
Mrs. Darden gave me one check
That's ALL" concluded Garner.
Satterwhite then said that HI
fra nkly admitted his expenses bat
been paid from a fund raised by sub
scription from all parts Of the coun
try.
II have done nothing that should
not have been done," Satterwhite de
clared. II feel that if members o
| Congress feel that we have not /; ctet
| properly that they owe 1t to US to pu
MS under oath and let us tell what w
know.
Aided Garner Fight.
"Perhaps the only thing that l hav'
done is once as a member of th'
! Texas Legislature ] helped John Gar
ner to take few Republican counties
out of his district so he could t'
elected to Congress"
When Treasury officials go back he
fore the House ways and means com