Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-05-28
SHOWDOWN ASKED
. ON SALES TAX PLAN
Harrison Says "You Haven't
Got the votes"- Charges
"BroWbeating."
Continued From First Page


that statement" he added.
Characterizing the New York Stock
Exchange as "a gambling institution in
which the insiders use marked cards
and loaded dice" Senator Dill. Demo-
crat, Of Washington, shortly before de-
manded restoration of the House tax
OF one-fourth Of per cent on stock
transfers.
The transfer tax was reached by the
Senate as 1t swept through the final
stages Of the revenue bill.
Dill cited the findings of the Senate
Banking Committee in its investigation
the face Of these the argument that
the transfer tax would be burdensome
was mot very impressive"
Since the Finance Committee voted
to eliminate the minimum tax of one
fourth of per cent, Dill said There
have been developments in the Stock
Exchange investigation that justify a
reconsideration"
Declares Cards Are marked"
THE New York and other ex-
changes" Dill said, "have become more
or less gambling institutions wherein a
few men manipulate the markets in
such way as to make tremendous
profits and take from the American
people millions, hundreds of millions
and even billions of dollars
THE investigation has just scratched
the surface SO far, but 1t shows that
the market is a gambling institution
in which the insiders use marked cards
and loaded dice.
Take the story of Walter Sachs that
he paid S23,00000O for a company in
which S1,750000 was invested and that
he received 100000, 900 from the public
by selling stock in the Goldman-Sachs
Trading Corporation at 104 that is to-
day worth IS cents. That was milking
the public out Of s100,0OO00O
THE investigation has showed that
when the promoters indulge in this
business they place publicity men to
become propagandists and boost the
values in the public mind. These pub
licity men get their share of the money.
Warner Case Cited.
ut was argued before the committee
this tax would net bring SITS, 900 900. but
only S32,000,000. Whether 1t brings
SIS 100000 or s30,Ooo,O0O, this is a
place where the Government ought to
lay revenue to act as a deterrent on
this gambling institution
There is much reason to believe tina:
d
of building up and boosting stocks" Dill
said.
Take the case of Mr.. Warner Oh.
M. Warner) Of Warner Brothers, who
sold his own stocks for 100000 then
bought them back at 100000 a clear
profit Of 100000 from the public"
The House provision, he said, even
II it brought in no more money, Is far
more desirable because it is based on
the amount of business done"
This tax won't apply if the stock is
loaned" Dill said. referring to the FL
nancial Committee plan. That means
1t won't apply to short selling. And
even from the White House we've had
attacks on short selling"
Exchange Called Parasite.
The Stock Exchange, Dill said, has
become a parasite so big it has swallow
ed up legitimate business"
1T would be fine thing if this Con-
gress should pass law closing every
stock exchange during this period of
depression" he added.
Senator Trammell Democrat, Of
Florida) interrupted Dill to assert that
as result Of yesterdays market &C
ton and General Electric's failure to
declare dividend I'll bet 80 per cent
Dill asserted loans were a ''promi-
nent method of short selling"
Senator Reed Republican, Of Penn
sylvania), member of the committee
told Dill that in stock transactions
there is just the difference between
borrowing and selling as in any other
commodity"
Borrowed stocks, when delivered to
purchaser, he reminded Dill, carry
the tax"
The bill appeared to be in excellent
shape when the Senate convened
today. The rates approved up to the
time today's voting began were esti-
mated to yield approximately $940. 000,-
600. Thus, If the remainder were ap-
proved unchanged, the bill would be
within 10 million or so of the billion
figure sought.
Almost $500. 900, 900 was put into the
budget balancing legislation in yester-
days nine-hour session. Increases in
the first and second class postal rates,
involving S160, 100000 new revenue, and
the 2-cent check tax, expected to yield
sos, 000, 900, were accepted
More than 1000 900 was saved by a
tie vote-the first of the session-on an
attempt by Senator Howell, Republican,
of Nebraska, to exempt checks of IS
and less from the 2-cent levy.
Vice President Curtis without a
moment Of hesitation announced the
39-to-39 tie and declared the proposal
lost. He did not vote. The Senate
realized the tie had resulted and waited
eagerly for the clerk to hand the roll
call result to the Vice President.
Mail Rate Boost Approved.
Leaders of the fight against the sales
levy opposed the SIS exemption. fearing
the Senate would be driven to the sales
levy to find the additional revenue If
the $40,000,000 were lost.
As result, opponents Of the disputed
sales tax claimed last night the pro-
posal was beaten. The two decisive
votes by the House against it were ex-
pected to have an influence in the Sen
ate vote. Nevertheless, advocates claim
ed bare majority.
The increase in the first-class postal
rate from 2 cents to cents was ap-
proved without a record vote and with
chorus of ayes
The high second class postal rate
schedule of 1921. was restored after a
sharp contest. 43 to 80. Senator Moses.
Republican of New Hampshire, and
Chairman Oddie of the Post ONCE Com
mittee attempted unsuccessfully to beat
this increase
Harrison appealed for final vote
on the bill by tonight as Watson
notified the Senate Of the meeting Mon
day. Watson joined in the hope for
final action today, but expressed doubt
of its coming
As the Senate approached a vote on
the sales tax. statement came from
Representatives La Guardia, Republic
can, of New York and Rankin, Demo-
crat, OF Mississippi saying the House
still was opposed to such a general
levy
The two members, prominent in the
House coalition that defeated the sales
levy, said the statement was issued lin
answer to representations that are be-
ing made to the Senate to the effect