Evening star., 1933-05-25
One-Year Limit
Placed on
Losses.
GROUP NAMED
TO PROBE LAW
Would
Stop Deductions
Over Long Time.

tIle VdHucllUcIS duIcIluIlcIlC W
the Glass banking bill provid-
ing for the immediate guar
antee of bank deposits.
BY the Associated Press.
In an effort to stop up loop
holes in the income tax law, as
an aftermath of the Senate in
vestigation of J. P. Morgan, a
House Ways and Means Subcom-
mittee today approved an amend
ment to the industrial recovery
public works-~taxation bill to
limit deductions from capital
losses to one year.
This was agreed upon shortly
after the House began debate on
the huge measure with a declara-
ton by Chairman Pou of the Rules
Committee that President Roose-
velt wants this bill enacted as is"
The amendment will be sub
mitted to the House for action to-
morrow before a vote is taken on
the industrial bill.
Meanwhile, Secretary Woodin
disclosed that the Treasury is
seeking an improvement in the
income tax laws to block evasion
of payments. He emphasized that
the study has been under way for
some time. ....
It was made clear by Mr.. Wood
in that a blocking up Of loop
holes has been sought without
regard to the Morgan investiga-
tion.
The step to limit deduction Of capital
losses was agreed upon In the House
wear ago when the billion-dollar reve-
nue. bill was considered, but the amend
ment was stricken out by the Senate.
Under present law, capital losses may
be deducted from income tax payments
over a two-year period.
Principle Approved.
Meanwhile, Representative Cooper.
Democrat of Tennessee. member OF
the Ways and Means Committee, told
the House the full ways and means
group had approved the principle OF
the canital loss amendment in directing
the subcommittee to draft 1t.
Shortly before the House met today,
the Ways and Means Committee had
ordered an investigation into the capltai
gains and loss provisions as result OF
testimony before the Senate Banking
Committee that Morgan had PAID no
income taxes in this country FOR the
last two years.
Cbairman Doughton appointed a sub
committee consisting of Representatives
Ragon. Democrat, of Arkansas: Vlnson,
Democrat, of Kentucky, and Treadway'
Republican, of Massachusetts,, to con-
duct the investigation and to draft the
amendment. III
Ragon said Immediate steps will be
taken to prevent the recurrence OF sucn
conditions which permitted the Morgan
partners to avoid the payment OF IN
come taxes" ,,
First reactions to the Morgan investi-
cation also came today in the Senate,
which resumed the Glass bank Dill
debate. This bill, already partly de-
bated by the Senators and passed by
the House, has reached the stage OF
discussing bank deposit insurance, but
in the light of the Morgan bank prac-
tices and income tax disclosures, all
Senators did not conf1ne themselves TO
the pending issue.
The House Committee expressed great
interest in the Senate testimony. par
ticularly in view of its program to raise
1920, 1000 900 through increases in In
come tax rates and making domestic
corporate dividends subject to them to
finance the $4,000, 900 public works
bond issue.
Doughton said he favored stopping
all the loop holes" that permitted
wealthy men to defeat the purposes and
intent of the income tax law.
The Ways and Means Committee also
decided today upon an amendment 10
transfer the per cent tax on electricity
from the consumer to the producer, as
it did in the gasoline -postage-electricity
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