The Washington times., 1933-06-10
RECOVERY BILL
ACCEPTANCE
DELAYED
Sen. Clark Will Fight to Have
Conference Report Re-
jeCted by Senate

The Senate amendment to re-
move the tax exemption from
all bonds issued by the Federal
Government, the States, and
their political subdivisions was
eliminated from the industrial
recovery bill today by Senate
and House cOnfereeS. Senator
Clark 3D. of Missouri, author
Of the amendment, announced
he would seek to have the con-
ference report rejected and the
bill sent back to conference.
Provisions for full publicity of
income tax returns and Federal
taxation of all public bonds now
tax exempt caused a spirited
struggle today between Senate
and House conferees on the in
dustrial control and $4,000, ,0OO,-
900 public works bill.
The confereeS sought to ad-
lust scores of other differences
between the bill approved last
night by the Senate and the one
the House passed. These includ-
ed rival Senate and House plans
to raise the 1920, ,000,0 900 annual
revenue to finance the public
works program.
The Senate approved the bill
81 to "a after a turbulent 13-
hour session.
Clark Backs Bond Tax
~ The income tax publicity
amendment was offered by Sena-
tor LaFollette (RO of Wisconsin,
as "the greatest weapon against
tax lodging such as the j. P.
Morgan and Co., investigation
has revealed.
The amendment to remove tax
exemptions on all bonds Of the
Federal Government, the States,
and their political subdivisions,
was sponsored by Senator Clark
CD of Missouri, because it would
close a huge break in the in
come tax wall, through which the
wealthy escape income tax pay
ments.
The Senate vote on both these
amendments clearly reflected the
great indignation aroused by
revelations in the Morgan inquiry.
Clark's amendment would apply
retroactively to all tax-eXempt
public bonds now outstanding.
House Vote Looms
House Democratic leaders OBJ
Gained the necessary unanimous
consent to send the bill to confer
ence after Representative Carpen-
ter (DD of Nebraska threatened
to delay the House business until
the controversy over the bang
guarantee bill is settled. Repre-
sentative Smell of New York, Re-
publican leader, declaring that
publicity of tax returns had
proved a failure in the past, de-
manded a House vote if the House
conferees accept the Senate pro-
posal.
Representative McClintic (DO
of Oklahoma, amid applause, de-
manded retention of the LaFol-
lette amendment. He declared
that publicity of tax returns is
4ANNSSDoAJ w OANoh VIC JIdCGlCG O1
huge corporations of paying large
salaries.
Bond Clause to Lose
The House rejected without a
record vote a motion of Repre-
Sell ative Collins CD of Missis-
Sippi instructing conferees to ac-
cept the Borah amendment vir-
tually eliminating provisions of
the bill suspending the antitrust
laws.
The amendment removing the
tax exemption from all bonds
will be knocked out of the bill
by the conferees, Senator Harri-
son CD of Missippi, chairman
OF the Senate Finance Commit
tee, predicted.
Clark declined to estimate the
amount of new revenue that
would flow into the Treasury un-
der his amendment. He declared:
II have sought these figures
from the Treasury Department
but received no satisfactory eSti.
mate. believe it will run into
the hundreds of millions an
nually.'