Evening star., 1932-05-09
SENATORS REPORT
new REVENUE BILL
Measure With Treasury
Compromise Expected to
Pass Within Two Weeks.
.fcontinued From First Page)

: The advocates of speedy action on the
- compromise tax bill on Friday sue
= ceeded in obtaining from Senator David
A, Reed of Pennsylvania an agreement
not to offer his manufacturers sales tax
amendment. However, Senator Walsh
/ of Massachusetts is planning to make
that hght. Senator Hull Of Tennessee
), win lead the movement to strike from
the bill the tariff taxes.
Oddie Hits Cut Order.
Meanwhile, in the Senate, Senator
Oddie, Republican, of Nevada, appealed
for repeal of the order for a 10 per
cent cut in the 81 ,059 0000 Treasury
Post Office appropriation bill.
After 80 minutes of debate on the
general subject of how to bring about
economy, it was agreed to refer the
Oddie resolution to the Appropriations
Committee.
Earlier in the day a subcommittee of
the Senate Appropriations Committee,
headed by Chairman Jones, began
marking up the changes it will recon-
mend in the independent Offices appro
priation bill, which came from the
House with a total of more than
$685. 900 900 for the various independent
Adjustments. the largest part of which
is for the veterans administration. The
subcommittee will resume work this
afternoon.
Senator Bailey, Democrat, Of North
Carolina introduced the joint resolution
to. create a committee, composed OF
representatives of the House, Senate
and the President, to work out COM
urehensive program for reducing gov
ernmeftal expenditures by at least
$500, 900 900.
The resolution declares in favor Of
reducing salaries rather than dismiss
ing employees The committee would
consist of the President, or his repre-
sentative; two Senators, named by the
vice President, and two members OF
the House, named by the Speaker.
Leaders Support Plan.
Shortly after the Senate met the
question of designating a special sub
committee to deal with the entire prob
lem of economy, bringing together the
various separate phases of it, came up
for discussion and was supported by
both party floor leaders.
Senator Robinson, the Democratic
leader, said he was wondering If an
arrangement could be effected to have
a subcommittee appointed with author
ity to go into the entire economy
problem.
OcndtOI WdJSVL, ISCpQDuCdU uOOI
leader, arose Immediately and declared
that if subcommittee could be ap-
pointed to work toward a non-partisan
economy goal, that would be "the best
way to deal with the problem at this
time"
Senator Borah joined the discussion
by asserting that much Of this econ
or1y program so far adopted is q mere
postponement Of the day Of appropria-
tiens."
McKeIlar Attacks Oddie.
Turning his attention to the Cddie
motion TO rescind the 10 per cent cut
order, Senator McKellar, who was au-
thor Of the 10 per cent proposal origi-
naily, declared that Oddie, who Is
chairman of the subcommittee In charge
of the Treasury-Post once bill, refuses
tor call the subcommittee in session for
the purpose OF considering the matter. :"
Oddie replied that he has not called
the subcommittee together because these
10 per cent cuts cannot be made with
out dismissing large number Of en-
ppyes.
Raises Income Levies.
THE tax bill raises the income tax and
corporation rates above the increases
voted by the House. 1t repeals many of
the special excise levies provided by the
House and offsets this loss in revenue
with a rubber import duty, higher auto
= mobile levies and greater admission
taxes.
FoQr other tariff items, oil, coal, COP
per and lumber, remain in the bill.
The income tax rates as reported are
3 per. cent on the first 1000 income, 6
per cent on the next $4,000 and per
cent above So 600 The present rates
are IL, 8 and 5, respectively, while the
House voted rates of 2, 4 and per cent.
respectively. maximum surtax of As
per cent on incomes over 81 600 900 is
provided.
aAt the insistence of Senator Couzens
the committee agreed to meet later in
the day to hear representatives Of the
r1bber industry on the 5-cent-a-pound
tariff on rubber provided.
The committee clung stubbornly to
the compromise rates in the face Of
protests by automobile manufacturers
against the per cent sales levy on
their product. The protest was fled
With the committee this morning in
kilograms from the leaders in the au-
tomotive industry.
News that the committee had voted
the tax, the messages said, "is a dis
tinct shock" coming when practically
al Of the automotive business is oper-
ating at loss"
:Signers Of the protest were:
Alfred P. Sloan, jr.. president. Gen.
etal Motors Corporation; Edsel B. Ford,
president, Ford Motor Co.; Walter P.
Chrysler, president. Chrysler Corpora
ttpn; Alvan Macauley, president, Pack
ard Motor Car Co.; A. r. Erskine, presi-
dent, Studebaker Corporation; c. W..
Nash, chairman Of the board, Nash
Motors Co.; Roy D. Chaplin. chairman,
Hudson Motor Co, and r. P. Page, jr.,
Of the Autocar Co.
Two Conferences Held.
eToday's action by the committee came
quickly after second dramatic eve
ming conference last night, in which
President Hoover again pressed upon
the Senate Appropriations Committee
the need for speed in the taxes economy
program.
with Secretary Mills at his elbow,
- Mr. Hoover went over the national
fiscal situation. He directed particular
emphasis to the economy proposals
nbw in the hands of the Senate Appro-
ptiations Committee.
Mr. Mills was the spokesman Of the
meeting He said:
we QBCuSSeu the UtSG netIiouS vi
assuring cooperation in putting
through the economy program and the
revenue bill. The effort has got to be
TO maintain all-around cooperation"
fBoth Saturday nights surprise con-
ference, attended by members Of the
Finance Committee, and last nights
included only Republicans.
If the compromise revenue bill
reported by the Senate Finance Com
nlittee is to make the 1888 Government
l,isdnat halance there must be savings