Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-02-02
HOOVER AND SMOOT.
TO DISCUSS TAXES
Fear of Heavy ,Appropria-
tionS Seen as Motive for
Sunday ParIey.
BY CARTER FIELD.

Special Dispatch to The Star.
BELLE ISLE, Fla, February 2-De-
sire for further tax reduction and fear
Of heavy appropriations, added to a
possible cut in revenue, due to increas-
ing tariff duties in the coming extra
session to such an extent that they
will reduce imports. constitute the rea-
son for calling of Senator Reed Smoot
of Utah to visit President-elect Hoover
here tomorrow.
The one phase of the Coolidge poll
cies which Mr.. Hoover Is most eager to
continue is tat of pairing the Govern
ment expenses and making occasional
tar reductions possible. OF course, he
realizes that 1t is good politics, and he
would like to justify the business men
of the country in their opinion Of him
as sound executive. He realizes that
this contributed far more to the sweep
ing Republican victory last November
than is generally realized.
Concerned by Spending Orgy.
But aside from politics, the Presi-
dent-elect is worried over the obvious
tendency Of Congress to ignore the
pressure for economy from the White
House. It piled up extra appropria-
tions. many of them meritorious, but
nevertheless costly. especially for in
land waterways, flood relief and Army
housing. There also is the certainty of
additional large appropriations for
farm relief, Boulder Dam and other
projects, all of which will prove a
heavy drain on the Federal Treasury.
Even more important, so far as the
prosperity Of the country is concerned,
Is the revision of the tariff planned for
the extra session. Every schedule In
contemplation for change means one
more line OF business into which the
element OF uncertainty has been in
jected.
Mr.. Hoover is familiar with the plan
Of House leaders to limit the range of
tariff modification and make changes
by amendments to the existing law
rather than by rewriting the tariff bill
as whole, but he is also aware of the
fact that it Is not as easy to impose
limit on the Senate as it is on the
House, and that when the bill gets to
the upper House 1t is open to any sort
Of amendment upon which any indi-
vidual Senator may care to force a
fight. He is eager to learn what the
prospects of this situation are, and
what MIR. Smoot, as chairman of the
Senate finance committee, which will
handle the measure, thinks can be done
in the direction Of making the whole
performance as little unSettling to busi-
ness. especially manufacturing and pro-
duction generally, as possible.
Considers Revenue Phase.
But there also is the phase of what
the tariff changes may do 10 the Fed
eral revenue. There are some drastic
changes proposed which would not af-
| feet the revenue at all, at least not
directly. These include tariff on ce-
ment, on shoes, on pig iron and on
cast iron pipe. These are now on the
free list. If prohibitive tariff were
put on them, and all imports of these
| commodities cut OF, obviously there
would be no change. So far as Treas
tariff on shoes actually would increase
the revenue by a small amount, as a
| limited number of persons who buy
very fine imported shoes would con-
tinue to do so. On the other COM
modities mentioned the desire of Ameri-
| can manufacturers Is to make a tariff
wall high enough to force all the busi-
ness to American producers.
Such reduction of the Federal rev.
| enue, with the obvious intent of Con-
| gress to increase appropriations ma
| terially, makes serious threat at any
hope for further tax reduction IN the
near future.
incidentally, Senator Smoot is ex-
pected to take the opportunity to make
another plea for Louis S. Gates, general
manager of the Utah Copper Co., his
| candidate for Secretary of the Interior.
| AS a matter Of fact, Mr.. Gates has
more political backing for the place
than any one who has been mentioned
| for 1t. Since his Endorsement by Clar-
ence G. Hamlin, original Hoover man
and Republican national committeeman
from Colorado, Senator Smoot. who saw
the President t-elect In his behalf while
I he was in Washington, and Senator
Tasker l.. Oddie of Nevada, there has
been very little mention of other can
didateS.
It was about that time that Mrs. A.
4 T. Hert, who originally was backed fol
this cabinet place by DR.. Hubert Work
chairman of the Republican national
committee, gave out statement taking
herself out OF the picture.