Evening star., 1933-06-10

ment making all securities now
tax-exempt subject to taxation.
The conferees decided that the
amendment inserted by the
Senate last night was uncon-
stitutional.
BY the Associated Press.
Chairman Harrison OF the Sen
ate Finance Committee said today
the conference on the industrial
control bill probably would elimi-
nate the Clark amendment remov-
ing exemption from taxation on
all Government, State and nlu-
nicipal securities.
On hearing of, a bond market
decline presumably on account OF
the amendment, Harrison as chief
tain of the Senate and House con-
ferees adjusting differences be-
tween the two branches on the
huge measure expressed his opin-
ion.
Meanwhile, the House rejected
a move to instruct its conferees
on the bill to accept the Borah
anti-monopoly a m n d m e n t.
There was no roll call.
The Clark amendment, to subject to
taxation all outstanding securities which
carry tax exemption clauses, was adopt
ed by the Senate late last night on a
45-to-37 vote. Harrison made his state
mant as the conferees got together.
Predictions also were made that the
amendment of Senator La Toilette. Re
publican, of Wisconsin, for full pub
licity of all income tax returns would
be stricken out in conference.
Split ON Tax Program
Though leaders were sure that the
majority of changes made by the Sen
ate in the sweeping bill would be set
tied by prompt acceptance or rejection
in conferences. a wide gulf on the tax
program and Senate limitations on the
the bill, had to be overcome.
As the measure finally passed last
night by a 57-to-24 vote, the tax Sec
tion, to produce 1920 O,o0o, 900 year fol
funding the $3,300 000,000 public works
bonds issue, was almost entirely diff
ferent fro mthe House schedule, which
was built around an increase In income
taxes. Acceptance of the Senate's plan
designed to be much easier on the small
taxpayer, however, was regarded likely
Publicity for Tax Returns.
In voting to open income tax re-
turns to public inspection, the Senate
adopted, SIS to 81, the amendment by
Senator La Toilette.
He contended this could do more to
correct ABUSES" disclosed in the Bank
ing Committees Morgan and National
City Bank investigations than any other
legislative step.
Does any one believe" he asked
"that Charles E. Mitchell would have
made returns as he did If he knew they
would be opened to public inspection?'
Major troubles, however, were in the
bills industrial section.
The Senate had approved the amend
ment by Senator Borah to prevent any
restraint of trade or price fixing under
the trade practice codes, for which the
bill suspends operation of the antitrust
laws. Industrial opposition to this was
widespread, many firms protesting they
would be able to do nothing under such
q limitation. Vigorous objections also
were brought against provisions inserted
to facilitate the organization of i4bor
Borah insisted his restriction would
stay in.
Two Tax Plans
The tax choice to be made in con-
ference was between the following
two plans:
Voted by the House:
Increased normal income tax from
TO per cent on first $4,000, and from
8 to 10 per cent on all above; increase
of q cent in Federal gasoline tax (noT
/ cent? application of income rates
against corporation dividends.
BY the Senate:
A tax of one-tenth Of / per cent or
corporation net worth, with iiat
g,er cent additional assessment on earn
1ngS above 1872 per cent; fiat pei
cent tax on corporation DIVIDENDS, TX
be deducted at source; an increase o
II cent on the present gasoline tax
three-year extension of corporation con-
solidated return authority, with In
crease of l per cent in income tax ratt
on consolidated returns, instead Of
present q of per cent rate ur.
Both bills extend for one year al
special excise taxes imposed by thu
last Congress which bring in aroune
$400 900 900 year.
Conference Personnel.
The conferees named by the Senate
to compose differences with the Hous!
were Senators Harrison, King ant
George, Democrats, and Reed ane
Keyes, Republicans.
Before reaching the final vote on thu
industrial bill the Senate had rejected
the sales tax as method of financing
the public works program. The vot'
on the sales tax. proposed by Senator
Reed, Republican, of Pennsylvania
walsh, Democrat, Of Massachusetts,, ant
Byrd, Democrat, of Virginia, was s.
to %.
only a short time before this vote
taken as the Senate settled down int
n long-drawn-out night session,
proposal to pay with new money TO
the s., 800, ,0o0, 900 Of public works ais
was rejected
Another amendment that was beatel
back was one by Senator La Toilette
70 give New York State full rights 3
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