Evening star., 1935-08-15

.
silver transactions. The bloc of "sil-
yer Senator'S may join in pressing
this fight.
Bonus Exemption Asked.
An amendment to the excess profits
tax section, by which corporations
would be given credit for bonuses to
their employees whose annual income
Is less than $4,000. has been submit
ted by Senator Bankhead, Democrat,
Of Alabama.
There may be an attempt also on
the part of Senator Connally, Demo-
crat, of Texas to amend the excess
profits section to provide for as high
as 40 per cent rate on profits over
20 per cent of invested capital. A
schedule comparable to this was ef-
fective during a few postwar years.
Using invested capital for the base
rather than an adjusted declared
value as at present, Connally has
maintained that such a schedule
would raise considerably greater
revenue.
Other modifying proposals are ex-
pected, although only those acceptable
to the majority leaders are expected
to receive favorable action. In this
classification there may be a success
full attempt to restore an inheritance
tax provision to the BILL although
probably at lower rates than in the
House measure.
The bill as it now stands is esti-
mated to raise $254,000, 900 in addi-
tional revenue in full year Of opera
ton. 1t calls for increases in estate
taxes, capital stock taxes, excess profits
taxes, gift taxes and surtaxes 1t also
provides for graduation of corpora
tion income taxes and taxes inter-
company dividends.
Eight Democrats Join Foes.
Yesterdays test vote on the VAN
denberg motion to recommit found
only eight Democrats departing from
the path of party regularity to cast
their ballots against enactment of the
legislation at this time. The eight,
joined by II Republicans, were Burke
OF Nebraska, Byrd of Virginia. Cope
land of New York, Glass of Virginia.
Lonergan Of Connecticut, Moore of
New Jersey, Tydings of Maryland and
Walsh Of Massachusetts,. To offset
their party irregularity, however, were
seven members of the so-called lib
eral group of Republicans who voted
for immediate consideration, along
Rrvtf nnr4NnrAte DrNrr
. Farmer-Laborite.
The vote followed a continuous as
sault on the bill during the last half
Of the afternoon. the fireworks being
touched off by Senator Vandenberg.
who was followed in turn by Senator
Copeland, Democrat, of New York;
Senator Hastings, Republican, of
Delaware, and Senator Steiwer, Re-
publican, of Oregon. Along with their
eeneralized attacks upon the legisla-
tion went q stinging minority report
in denunciation of the bill filed by
Senator Hastings and Senator Metcalf,
Republican, of Rhode Island, both
members Of the Finance Committee.
In their minority report, Senators
3AoSoAASo 0h0 1SACbSdAA
"Q Adjourn Congress Immediately.
"t2) Leave business alone.
"t3) Eliminate extravaganza and
waste in Government expenditures.
80 Give adequate study to opera
tion Of present revenue laws.
Outline Sound" Measure.
"C5) Enact sound and compre-
hensive revenue measure based upon
the foregoing studies"
The summary of their objections to
the pending legislation follows:
"O The bill is not revenue meas
tire for the following reasons:
"(a) The only argument advanced
In support of the bill Is that the Presi-
dent wants it.
"(b) The bill avowedly is based
solely upon share the wealth. and
social control fantasies, and the rais-
ing OF revenues, If any revenue will be
raised, u admittedly incidental.
"(c) The enactment of the bill is
directly contrary to the Presidents
recommendations in his annual bud
get, and no budget estimates have