Evening star., 1932-03-30
GARNER SUCCEEDS
IN AGAIN DOWNING
TAX OPPOSITION
Speaker Takes Floor in De-
fenSe of Levy on Con-
soIidated Returns.
COMMITTEE APPROVES
FIVE AMENDMENTS
$243, 900, 900 Reduction in Federal
Expenses Is Believed by Ap-
preparations Body.
By the Associated Press.

6y the Associated ETeSS.
Speaker Garner was successful again
today in withering opposition to the
House Ways and Means Committee S
revised tax raising program.
Taking the floor at the first sign of
opposition the Speaker called for re-
lection of an amendment by Represen-
tative Cannon, Democrat, Of Missouri
to strike out provisions which allow
consolidated and affiliated corporate in
come tax returns.
Cannon said they permitted chain
stores to drive independents out Of
business by having the profits from a
paying store take care of the losses on
one competing with independents.
Garner said the committee proposal
levying a Is per cent rate on consoli-
dated returns should be adopted to see
whether corporations with subsidiaries
would continue to use consolidated re-
turns.
He said $4,000, 900 would be returned
by the Ways and Means Committee
amendment.
Amendment Withdrawn.
Cannon withdrew his amendment
after the Speakers opposition. Garner
previously has fought consolidated re-
turns.
The House then resumed its course
of adopting the proposals of the Ways
and Means Committee, accepting one
Ey one amendments adding millions of
dollars to the Governments revenue.
There was marked absence of con-
troversy as the House lowered exemp-
tionS on surtax rates to subject incomes
of more than $4,000 to those levies.
Above $4,000 these rates were gradu-
ated upward.
During this discussion, Speaker
Garner remained on the floor behind
Acting Chairman Crisp of the Ways
and Means Committee, ready to take
further part in the talk on some of
the sections of the committee program
In all, five new revenue suggestions
were brought in by the committee at
the opening of the session. In addi-
ton to corporate incomes, they affected
oil pipe lines. airplanes and gift taxes.
and we're estimated to produce S45.-
0O0. 1000.
s45,000,e00 Estimated.
The committee estimated the pro-
posals would bring in s45,000,000, as
follows:
An increase to 1872 per cent in the
corporate income tax and a similar is
per cent tax on consolidated and afhli-
ated returns, the two boosts to yield
$23, 900 900; a per cent tax on the
manufacturers price of airplanes,
So 900 900; an increase 20 331z per cent
in the maximum gift tax rate, $5000,-
600.
There were indications the House
would reach the dispute ever the 1-cent
raise in first-claSs postage rates during
the day and leaders expected the
measure to be passed before the week
ends
Shortly before the House met,
Speaker Garner said in an interview
he was hopeful Of finishing the bill by
Friday night.
At the same time, Acting Chairman
Crisp explained that the rate on candy.
adopted as 10 per cent yesterday was
in reality per cent, but that its yield
would be s12,0o0,000 as originally es-
timated. This correction was made.
Expenditure Cut Promised.
Earlier in the day assurances that
the Ways and Means Committee could
count on reductions in Federal eXpen-
Vi dlulOcb d AAdl ONA OA a NAAAAOHA
dollars had been given by members OF
the House Appropriations and Expen-
ditures committees. However, this was
questioned by Representative Simmons,
Republican. Of Nebraska, in call at
the White House.
Chairman Byrns of the Appropria-
tionS Committee told newspaper men
a slash of $243,O00, 600 in governmental
expenses was not an extravagant eStl-
mate.
At about the same time. Representa-
tive Williamson of South Dakota,
ranking Republican on the Expendi-
lures Committee, said in a statement
that a program had been outlined by
that committee and the Special Econ
omy Committee which, If enacted
would result in saving Of about
$240, 100000.
Williamson said he expected that
within the week bills would be reported
by both committees which will result
in substantial cuts.
Others will follow" he said. These
bills will cover wide range and re-
suit in either drastic reductions or tota
eliminationS of certain activities con-
sidered by the committee as unneces-
Sary."
Salary Cut Not Abandoned.
The proposed salary cut for Govern.
ment employees has not been abandoned
BY the Economy Committee, he said
but has been laid aside for the time
being to permit of more thorough study
of what economics can be accomplished
in other directions"
The new tax program calls for a saw
ing of S243 900 900 in Government ex-
penses Already about $3.50. 600 900 has
been Topped of Of six appropriation
bills
Byrns based his estimate on a $780,
100000 saving in the annual supply bills
and between $50 900, 900 and $40 900 0o0
in salary reductions, with the remainder
to be Topped of other expenses usually
included in the deficiency appropri-
ations.
This is based wholly on what my
committee viii do on the appropriation
bills" he said. THE Senate has indi-
Gated its determination to cut appro-
priations 10 per cent below the House
mark This easily would account for
a $243, 100000 saving without taking
salaries into account"
Byrns said he believed $50 900 ,00C
could be cut out of the Budget Bureaus
estimate for the Army and Navy with
out injurtng national defense.
Ford Plant to Hire 1900.
LOUISVILLE, KY, March 80 P).-Ac-
tive production OF the new Va Forc