Douglas daily dispatch., 1927-11-09
INHERITANCE
TAX REPEAL
IS ADVOCATED
Committee Inquiries Source
of Expense Money of
Witnesses.
IS PROPER TAX
President Feels It Is Legit-
innate Levy But Will Sign
Repeal.


WASHINGTON, Nov. 8, P-Ef-
forts of house ways and means COM
mittee members to- trace the source
of money used to defray expenses
OF witnesses advocating repeal of the
federal inheritance tax were met to-
day with request from witnesses
themselves that if anything appeared
wrong an investigation under oath
be ordered
While this was developing at the
capitol, the advisability of retaining
the levy came in for discussion at
both the white house and treasury.
At the executive offices it was said
President Coolidge felt the estate tax
was. a legitimate levy, but that he. wa,
prepared to sign a bill for, its repeal
The treasury also. took occasion to
reiterate its arguments in favor Of
repeal of the tax and, in addition,
Under Secretary Mills again warned
that proposed total tax reduction
should not exceed $225, 100000. He said
the department.. in setting this limit
had been liberal in it's estimates and
that a compromise cut of $325,000,-
600, as suggested in some quarters,
undoubtedly would be felt in deficit
The meeting of the house committee
with the inheritance tax question up
for discussion developed into stormy
session. At one point Chairman
Green banged for order, declaring
proponents of repeal of the Inherit
ance levy had packed" the COM
mittee room.
The witness at that time, John
H. Kirby, of Houston, Texas, presi-
dent of the National Council OF
State legislatures, had just concluded
a defense of the rights of states to
levy estate taxes.
'"This room has been packed by
your organization" remarked Green.
1--WE know how they are gathered. !"
AS the session proceeded, each wit
ness was questioned closely as to
the source of money defraying his
expenses, with Representative Rainey,
Democrat, Illinois, taking the lead
in the quizzing.
He examined William H. Blodgett,
tax commissioner for Connecticut,
as to who paid for his breakfast and
the taxicab he used in reaching the
capitol.
Blodgett replied he did not know
who had paid the bill but hoped the
national council of state legislatures
had footed it.
Another witness, Lee Satterwhite,
former speaker of the Texas House
of Representatives, testified that af-
ter the legislature in that state had
adopted a resolution authorizing him
to act as it's representative at any
meeting looking to repeal of the fed
eral inheritance levy, he had called
one.
He said his expenses in this. con-
nection had been paid by popular
subscription, adding:
'I have done nothing that should
not have been done. I believe that
if congress feels that we have not
acted properly that it owes it to us
to put us under oath and let us
tell what we know"
Governor Sorlie of North Dakota,
told the committee the secretary OF
the greater North Dakota association
had requested him to appear to
urge repeal of the levy. He said he
had not been offered any of the
money the committee referred to, al
though II have found out that it was
raised by collection"
When the governor asked Chairman
Green if it was wrong to receive
money for his expenses to Washing
ton, Representative Garner of Tex
as, ranking democratic member, re-
marked that in his IA years OF SER
vice on the committee the usual pro-
cedure was for it to summon wit
nesses and pay their expenses out
of the federal treasury 1t, seems ex-
ceptional, he added, that an organi-
zation should raise funds for that
purpose.
Garner declared that what he
sought to develop was that the ma
tional council of state legislatures
had received funds from the Arneri-
Continued on Page Eight)