Evening star., 1932-03-31
STOCK TAX VOTED
OVER TAMMANY
GROUPS OBJECTION
House Then Turns to Other
Proposals to Put Levies
on Bond Transfers.
CRISP EXPECTS DEMAND
FOR 5 SEPARATE VOTES
Attacks Confront Tax on Autos,
Wartime Surtaxes and Coal and
Oil Import LevieS'
BY the Associated Press.
The House today stretched a revenue

BY the Associated Press.
The House today stretched revenue
raising hand toward Wall Street.
Over the opposition of the Tammany
delegation, it voted a tax of one-fourth
of l per cent on the transfer value of
stock sales, and then took up other pro-
posals to put levies on bond transfers
and the sale of produce on exchanges.
The stock sales tax was estimated to
produce $7s,OO0,O0o.
Another vote on it will be had to-
morrow before the final action on the
bill. The amendment does not apply
on original issues.
In accepting it, the House again fol-
lowed the course mapped out for it by
the Ways and Means Committee, but
the original proposal was altered by
the adoption of an amendment by Rep
resentative La Guardia, Republican, OF
New York, under which the tax bill will
be imposed on all orders placed by per-
sons in this country for buying ana
selling stocks on foreign exchanges. He
said it was designed to meet the threat
that traders would transfer their oper-
atoms to Canada.
BIanton Amendment Fails.
The House rejected an amendment to
put / per cent tax on stock trans
fers. This had been proposed by Rep
resentative Blanton, Democrat, OF Tex
as. who said it would produce $780,
100000.
The amendment was adopted while
the committee awaited new estimate
from the Treasury of the income that
might be expected from the reVlslons
of the new revenue bill.
Opposing the Blanton proposal, Rep
resentative Bacon, Republican, New
York, said that since the New YORK
State tax had been imposed the
volume of trading had been decreased
Il prophesy here and now that If
this tax Is imposed, the volume OF
trading will decrease so per cent"
He said a reasonable tax on stock
transfers would return as much revenue
as a high tax. because of the effect it
would have on trading. A decrease In
trading, he said, would result in many
brokerage firms going out of business.
Sees Blow at Short Sales
This is q tax that will destroy"
Representative O'Connor democrat,
New York; said, This is an indirect
attempt to stop short selling on the
market.
1T will destroy the parity with for
eign markets. The exchanges have been
hard hit and this will further burden
them"
Representative Celler Democrat, q,
in this country would be affected by
the tax.
'As soon as you pass this one-quarter
of l per cent tax you will reduce the
value OF stocks in this country by $780,
OOo,O ,OOO," Celler said. Put this tax on,
you prevent investors from coming back
and supporting industry"
He said it would have the effect of
prolonging the existing economic Sit
uation.
Representative Fuller Democrat) Of
Arkansas favored the stock tax and
said, 1T does not affect legitimate busi-
ness in any way"
Auto Levy Faces Fight.
There probably will be separate votes
tomorrow on levieS on automobiles,
wartime surtaxes and estate taxes, coal
and oil import levies and on stock trans
ferS. Acting Chairman crisp said lnol-
cations were five separate votes would
be demanded when the bill comes to the
stage for final passage.
The amendments drafted by the COM
mittee for submission today were calcu-
lated to produce S241 900 900 of revenue
and bring the bills total to 1894 ,500,-
600 Another proposal considered in
addition to these calls for revision of
the depreciation allowances of corpora
tions, so as to bring in $12 900 600 more.
Stock Item First on List.
Savings of S273 900 900 in appropria-
tions and post Office expenses are ex-
pected to round out the program to meet
prospective 81 ,24l 100000 Treasury
deficit in 1888.
Representative Clancy, Republican, OF
Michigan served notice he would de-
mand a separate vote on the 3 per cent
tax on automobiles the per cent levy
on trucks and the l per cent assessment
on accessories, which are expected to
yield $57,000,000.
He charged the levy was diScrimi-
natory and that the automobile indus
try has done more to bring about pres
perity by its courage than has any other
industry"
Mills Sees Hoover.
Majority Leader Rainey said, 1--WE
certainly will have a separate vote on
the Swing amendment re-establiShing
the surtax rates on incomes in excess
of 100000.
The amendment, sponsored by Rep