Evening star., 1933-06-04
Senate Committee Opposes
Proposals to Finance S.
100000, 900 Program.
DECISION is DEFERRED
ON INCOME LEVY BOOST
Democrats Marshal Forces to Re
store Provision for Licensing
of Industries.
BY the Associated Press.


The Senate Finance Committee yes
terday rejected the sales tax and Treas
ury note issue methods of financing the
So, 800, 100000 public works program In
the administrations industrial recovery
bill.
It then deferred until tomorrow a
final decision on the remainder Of the
measure, including Chairman Harri-
sons substitute for the House increases
in normal income levies.
Democratic leaders, meanwhile, began
marshalling all available strength to put
back in the measure the provision au-
thorizing the President to license in
dustries to enforce codes of fair COM
petition, including wages, hours of Ia
Dor and production. This was stricken
out by the committee Friday night.
Senator Reed. Republican, of Penn
sylvania, proposed a general manufac-
turers sales tax of Ia per cent in the
committee late yesterday with exemp-
tions for food, clothing and medicine.
It was defeated 10 to 8.
Senator McAdoo, Democrat, Of Cali
d..
ury. offered Treasury note issue prop
osition with certain limitations to guard
against undue imitation. This was re-
jected II to 5.
Plans Fight on Floor.
Reed indicated he would carry the
sales tax drive to the floor when the bill
comes before the Senate. Harrison
hopes to have it reported out OF COM
mittee tomorrow.
Voting against the sales tax were:
King, George, Barkley, Connally, Cos
tigan, Clark, Byrd and Harrison,
Democrats, and Couzens ana La roi-
lette, Republicans.
For 1t were: Walsh, Bailey and Lon
ergan, Democrats, and Reed, Keyes,
Metcalf, Hastings apd Walcott, Re
publicans.
After representations were laid be-
fore the committee by the State ana
War departments, 1t eliminated the
House provision requiring that only
American-made materials be used In
the construction program.
Harrison said he was working on
revision of his proposal for re-eract-
ment of the levy of one-tenth OF per
cent on the fair value OF capital stock
so as to graduate the tax upward as
the stock enhanced in value and thus
make it conform somewhat to the ex-
cess profits tax.
Estimates Ss0,0o0,0oo Revenue.
He estimated the one-tenth Of l per
cent would raise $4,000, 900 OF the
1920, 100000 needed for interest and
sinking fund in financing the $780,
900 900 construction bond issue. Other
taxes and estimates of revenue In his
substitute are:
Tax on dividends deducted at source,
$70,00O,000
Administrative changes to prevent
private bankers from deducting losses
on stocks and bonds held for two years
or less from ordinary income, and de-
nying members of a partnership the
privilege of charging off distributive
shares of partnership losses, SIS, 900 900:
Gasoline tax increase of one-haH OF
cent a gallon, $62,000,000.
Among amendments added today by
the committee was one to apport1on
the s400, 900 900 road grants to States
on the basis of the present Federal aid
law-one-third each on the basis OF
population, area and existing road
mileage.
This would give greater consideration
to the smaller populated States, as un-
der the House provision the apportlon-
ment would be on the basis OF one
half on population and one-quarter
each on area and mileage.
Accept Gore Amendment.
In place of the administration oil
regulation amendment, which the COM
mittee refused to accept Friday night,
the committee accepted an amendment
bv Gore, Democrat, of Oklahoma, au-
thorizing the President to initiate pro-
ceedings before the Interstate Com
merce Commission to regulate oil pipe
lines and to fix rates for transporta-
ton of oil and its products by the
lines.
Another amendment accepted would
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