Evening star., 1933-05-26
HOUSE COMMITTEE
TOCUT DEDUCTIONS
Proposed Amendment t
Limit Credits for Losses
to One Year.
fContinued From First Page. J

Continued From First Pagel
power by the tight limits it puts on
private banking houses.
In both Houses, too. had burst out
speeches demanding the designations OF
Secretary of the Treasury Woodin. OF
Norman H. Davis. the Ambassador at
Large managing the European end OF
the Roosevelt foreign policy. and oil
Dean Acheson, new Assistant Secretary
of the Treasury The names of Woodln
and Davis were among the many on
the Morgan favored lists of men sold
stocks below the public price. and Ache
sens name has also figured in the in
Quiry because of his previous business
! Affiliations.
Stands Pat on Taxes.
The administration appeared resolved
to ride out this tide, determined to keep
its valued officials, and it stood pat on
the new high income taxes to finance
the $4,000, 100000 public works bond
issue.
But it interposed no objection to the
plan of the House Ways and Means
Committee Chairman Representative
Doughton tDemocrat), North Caro-
lima, to study a thorough overhauling
of the tax laws for next session. A
study by the committee after the Spe-
cial session adjourns is due.
The biggest hazard to the public
works bill in the House was the Re-
publican move to throw the whole thing
back into committee to put in a sales
tax The income tax furor was count
ed on by engineers of this move to help
them. Especially since the rule for
six hours debate and no floor amend
mentS was voted on yesterday by the
narrow 213 to 1874 margin. This threw
such a scare into the Democratic lead
ers that they fastened to the White
House for help in forcing objectors into
line today.
The only other amendments to get a
vote are: The capital losses plug-up,
one transferring the present 3 per cent
electric tax from consumer to producer
"a bill for this already has passed but
and one to allocate $400, 100000 of the
public works money to the States for
highway construction, to be distributed
on an apportionment in which popula-
ton will count for so per cent. area OF
the State and length of its post roads
rs per cent each.
The first voice raised against Secre-
tary Woodin and Norman H. Davis as a
result of the Morgan revelations was
that of Senator Robinson, Republican,
of Indiana. He demended to know
whether Davis was representing the
House of Morgan or the United States
in Europe, and said Woodin had out
lived his usefulness as Secretary of the
Treasury.
designations Demanded.
In the House. Representative Britten,
Republican. of Illinois, protesting
,et ha 20 i,,n~ far
low incomes, pointed to the Morgan in
vestigation and said Davis, Woodin and
Acheson should resign.
Testimony in the Morgan investiga-
tion has shown Davis borrowed money
from the Morgan firm several years ago,
most of which he has paid back. There
also was reference yesterday to the
possibility that member of a law firm
with which Acheson once was associated
had received preferred stock treatment
from the Morgan company.
Britten said the tax program was
"merely an addition to what has been
transpiring on Capitol Hill in the last
two days when a man worth almost
half billion dollars has the effrontery
to say that in the last four years he
has not paid a single dollar in taxes"
do you realize that this is going to
shatter confidence in your Govern
ment?" he asked.
II say that Notwithstanding the in
tegrity, the honesty of purpose of your
Secretary of Treasury, he should resign.
The Assistant Secretary Of Treasury,
Mr.. Acheson, should resign; Norman H.
Davis, on the other side, another Nor
gan butterfly, should resign and come
home. The country has no confidence
in them"
Senator Tydings, Democrat of Mary
land. who promptly answered Robin
sons outburst against Davis. contended
that going to Europe in 1888 is more
calculated in my opinion to keep us out
of war" than to get this Nation into
conflict and continued:
Il think that Mr. Davis, whether he
made or did not make loan from j.
P. Morgan &, Coz, has shown a stature
of craftsmanship for which this world
IS hungry.
The man who attacks an Ambassa-
dor abroad when that Ambassador is
accomplishing signal success is attack
ing humanity. He is sowing the seed
OF international hate and ill-will on
which wars thrive.
I'VE sent Mr.. Davis abroad to nego-
tiate disarmament treaty and he has
been the most efficient representative
of any government on the face of the
earth"
81 Democrats BoIted.
Eighty-two Democrats sloughed away
from the majority yesterday to join lot
Republicans and five Farmer -Laborites
in opposition to the 2l3 Democrats who
voted for the rule limiting debate on
the bill
Before the vote was announced by
Speaker Rainey, who also voted AYE"
Representatives Bailey Of Texas, Kelly
of Illinois, Musselwhite of Ohio, and
Maloney and Koppleman. both of Con-
necticut, Democrats. changed their votes
from mo" to AYE"
The amendments agreed upo2 by the
Ways and Means Committee before the
House convened helped administration
followers to put over the rule.
Representative Bacharach declined
last night to disclose full details of his
sales tax plans.
Il am confident the sales tax will be
adopted" Bacharach said. He added
that many opponents of the increased
gasoline and income taxes were sup
porting the sales levy
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