Evening star., 1932-03-26
HOUSE TAX BILL
WORK RESUMED IN
HOPE OF BALANCING
Revenue Sources to Replace
Sales Tax Sought Following
Presidents Warning.
BEER ITEM DEFEATED
BY 216-T0.132 BALLOT
Borah Demands Deep Slash in Ex-
penditures-New Wrangle Not
Likely Before Monday.
By the Associated Press.

By the Associated Press
J Looping off and patching on, the
/ House resumed today its almost un.
directed rewriting of the big revenue
bill upon which the Government must
depend for balancing the budget
The members took up where they left
of yesterday upon rejecting an amend
ment to tax legalized 2.75 beer, and ac-
cepting the proffered tax on oil imports.
The beer item was thrown out, 216 to
1872, approximately the same size vote
which bowled over the sales tax the
day before
| As the Ways and Means Committee
set about finding new sources of rev.
enue to replace the sales tax, President
Hoover, in formal statement at the
White House late yesterday, expressed
confidence the Republicans and Demo-
Gratis on Capitol Hill could get together
on a bill to balance the budget. He
warned, however, that unless this is
done the depression would continue in
definitely
Keystone of Recovery"
! The Chief Executive described a bal
anced budget as "the very keystone of
! recovery" and said increased revenues
were necessary to accomplish it. He
| added that further reduction of Gov
ernment expenditures is expected, but
that the potential savings by this means
are not sufficient to avoid heavier taxes.
A demand for a deep slash in ex-
penditures as a means of making up
for revenue that would have come from
the sales tax, was made in a statement
| issued by Senator Borah of Idaho.
We should balance the budget" he
said, and we can do so by cutting ex-
penses. I think the gentlemen who de-
feated the sales tax did a fine piece
of work"
The old tax and several other pro-
visions of the revenue bill were left
more or less hanging in the air today
because rejection Of the sales tax had
removed from the bill the authorizing
language upon which excise taxes must
be pinned. Acting Chairman Crisp of
the Ways and Means Committee drafted
an amendment to put this back in, and
its adoption faced the House on reas-
sembling.
House WrangIe Next Week.
The bills mainstay, the gfoup of ex-
ciSes, stamp taxes transfer taxes and
so on, which will be needed to replace
the general sales tax, was not expected
to face the wrangle of House debate
before next week A subcommittee,
headed by Representative Ragon, DEM
ocrat of Arkansas, was assigned by
Crisp to prepare the substitute 1t is
to report to the full committee prob
ably Monday
The beer amendment, sponsored by
Representative Cullen, Democrat, Of
New York, let loose upon the House
three hours Of furious debate, in which
vets and drys tilted with might and
main. Representative Blanton, Demo-
crat OF Texas, had sought unsuc-
cessfully to head it of with a ruling,
denied by the presiding officer, to hold
the amendment out of order.
The approved oil tax, which had the
Ways and Means Committee sponsor
ship, represented victory in a three
year struggle by the oil-producing
States and independent producers to
obtain a tariff on imports. Strenuous
opposition from the Atlantic Coast
States, which depend upon sea-borne
petroleum, was voted down.
Oil Levy Motion.
The motion to strike out the oil i'm
port tax was made late yesterday by
Representative Mccormack, Democrat,
Massachusetts,, member of the Ways
and Means Committee, who had the
backing of Atlantic Coast delegations.
Representatives from States in the
great Mid-Continent field and the Ohio
Valley coal-producing areas then began
a verbal assault that led to victory.
The Treasury estimated the oil levy
would yield $5,000,000. Opponents con-
tended it would boost the price OF crude
and fuel oil so it would cost the in
dustrial East 100000, 900 more a year,
while advocates said that on the basis
of importations in the last three years
it would put s43,ooo,ooo in the Treas
ury.
The victory was made possible by
the support of the bipartisan group
that defeated the sales tax. Although
the vote was overwhelming, the Crisp
amendment to which it is attached
must be acted upon before the issue is
definitely settled.
Lubricating Oil Tax.
In the meantime, Representative
Soldering Republican, of Ohio, served
notice he would propose striking out Of
the bill the 4-cent-a-gallon tax on lu-
bricating oil on the ground it will place
o $25,000,000 burden on industry.
This may be acted upon soon, along
with a proposal by Representative
Schafer, Republican, of Wisconsin, to
eliminate the excise tax on wort and
malt used in making beer, estimated 70
yield $50, 900.
In his statement yesterday, President
Hoover made a strong appeal to the
people to support and not obstruct Con-
gress in its efforts to bring receipts and
expenditures to level. The Chief Ex-
ecutive asserted that of the $4,l0O,-
900 900 budget, a total of 2,100 900 900
cannot be reduced and the 100000, 900
for Army apd Navy should not be
touched in any manner to impair the
strength of the Nations defense. This
leaves but $1,300,000,0 900, plus Post
CONTINUED on Page 2, Column g.