Evening star., 1932-05-31
Plan Is Rejected
by Committee.
IL to 8.
REVENUE BILL
DRIVE STARTS
Excise Levy Is Now
Believed to Be
Defeated.
BY b. GOULD LINCOLN.

A drive to pass the revenue bill
before adjournment tonight is un-
der way in the Senate this after
noon.
Determination of the Senate
leaders to put through the revenue
bill to balance the budget was
manifested after President Hoo
yer had made a surprise visit to
the Senate and delivered, in per-
son, a message urging speedy
action to balance the budget, in
order to meet an economic crisis.
In his message to the Senate,
President Hoover declared himself
in favor of a general manutactur-
erS' excise tax as a means OF ralS-
ing additional revenue required to
balance the budget.
At a meeting of the Senate
Finance Committee Immediately
following the Presidents address
to the Senate, that committee
voted, u to 8, against the general
manufacturers excise tax.
The committee then adopted a
substitute program, including a
tax of l cent a gallon on gasoline
and a tax of per cent on domes-
tic gas and electricity. These
taxes, plus the Connally amend
ment increasing income tax
rates. Chairman Smoot an
nounced, would balance the bud
get.
Harrison Urges Passage.
Senator Harrison of Mississippi
Democratic leader on revenue meas
ures, rose in the Senate and suggested
that the Senate remain in session until
the revenue bill should be passed.
Senator Reed, Republican, OF Penn
sylvania, agreeing that prompt action
should be taken on the revenue bill,
asked Senator Harrison to request the
abrogation of the order under which
the Senate was to sit until 7:30 pm
Senator Harrison adopted the Reed
suggestion, and the order was abrogated,
leaving it possible for the Senate to
complete passage of the tax bill be-
fore 7:30 or at a later hour tonight,
provided there is no filibuster or undue
amount of debate.
The general manufacturers excise
tax apparently is dead although Sen
ator Walsh of Massachusetts,, who is
sponsoring the amendment for that
tax, said he proposed to get vote on IT..
The Presidents recommendation was
made in the face of the publication
last night of round robin signed by
SIS Senators declaring their purpose to
vote against a general manufacturers
excise or sales tax
I have not and do not favor a gen.
eral sales tax" the President told the
Senate. 1T has not been proposed by
the Treasury. This is not, however, to
be confused with an extension of the
special manufacturers excise taxes to
general manufacturers excise tax, with
exemptions Of food and clothing. This
is an entirely different tax froma So
called sales tax and cannot be pyra-
mlded"
The Committee Vote.
For the tax-Watson, Indiana; Reed
Pennsylvania; Shortridge. California;
Keyes, New Hampshire; Bingham, Con-
necticut; Metcalf, Rhode Island, and
Smoot, Utah, Republicans, and Walsh,
Massachusetts, Democrat. Total, 8.
Against-Couzens Michigan; La Fol-
lette, Wisconsin; Thomas, Idaho; Jones,
Washington, Republicans. and Harrison,
Mississippi King, Utah; George,
Georgia; Barkley Kentucky; Connally,
Texas; Gore. Oklahoma; Costigan. Colo
RADIO and Hull, Tennessee, Democrats.
Total, II.
The President said the general manu-
facturers excise tax had not been pro-
posed by the Treasury although such
tax was unanimously recommended
by the House Ways and Means Com
mittee.
In order, however" said the Presi-
dent, ito solve our problem and give
assurance to the country and the world
that we are ready to meet our emerg-
encies at any sacrifice. I now favor an
extension for limited period of many
(Continued on Page 2. Column A.