Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-08-16
SENATE-CHANGED
TAX BILL HEADED
FOR CONFERENCE
Upper Chamber Votes to
Insist on Amendments
After Passage, 57-22.
LITTLE HOPE IS SEEN
FOR TWO MAJOR ISSUES
Fight Expected on Ban on Tax
Exempt U. S, Bonds and Repeal
of Sections of Silver Act.
BY JOHN c. HENRY.

Lavishly decorated with last-minute
amendments. most of which were &C.
cepted without debate in order to
expedite passage of the legislation in
the Senate, the S254,000 900 soak the
rich" administration tax bill today
was headed for conference between
House and Senate.
After passing the measure late yes
terday afternoon by roll call vote Of
81 to %, the Senate Immediately voted
to insist upon its amendments and
!. the following conferees we're named ::
Senators Harrison Of Mississippi, King
Of Utah and George of Georgia. Demo-
Gratis, and La Toilette. Progressive, OF
Wisconsin, and Metcalf, Republican,
of Rhode Island.
The House conferees were appointed
this afternoon. On the basis of
seniority as members of the Ways and
Means Committee. the following were
selected: Representative Doughton of
North Carolina, Hill of Washington
and Cullen of New York. Democrats,
and Treadway of Massachusetts and
Bachrach of New Jersey, Republicans.
Major Issues Inserted.
In the form approved by the Senate
several major issues loom ahead of
conferees on the legislation. Two OF
these were injected into the bill late
yesterday as the Senate. by a narrow
vote of 40 TO 80. accepted a proposal
by Senator Borah, Republican, OF
Idaho to ban all future issuance OF
tax-eXempt Federal securities. The
second was acceptance of an amend
ment by Senator McCarran, Demo-
crat, of Nevada by which certain Sec
tons of the silver purchase act of 1884
would be repealed.
The Borah amendment, dealing
only with Federal securities, would
make the income from future Federal
obligations part of the taxable income
of the owner. Although the charge
frequently has been made by admins
tration officials that investment in
such securities has been a widely
practiced method Of tax evasion, the
fear that removal of this premium on
ownership of Government securities
would handicap future Government
financing operations brought a pro-
test against passage of the Borah
amendment. In his tax message to
Congress on June 10 President Roose-
welt suggested efforts to have a con-
stitutional amendment ratified by
which Federal, State and local issu-
ance of such securities would be
banned.
Time to Clean House.
To the argument that action against
Federal securities only would leave the
Government at disadvantage as COM
pared with States and subdivisions,
Senator Borah replied that the local
units never would approve a consti-
tutional amendment and that it is
time for the Federal Government ito
clean its own house"
In the roll call on this amendment
Senator Borah drew support from 20
Democrats, ID Republicans, l Farm
er-Laborite and l Progressive. Op-
position to the amendment, with ad-
ministration leaders voting this way,
found SO Democrats and ! Repub-
lican against adoption.
In the case of the silver amendment.
Senator Harrison agreed to accept the
proposal Of Senator McCarran with
out debate and without a record vote.
By its terms the sections levying a so
per cent tax on speculative profits in
silver, providing for naturalization Of
See TAXES. Page q