Evening star., 1935-07-20
NEW DEAL PUSHES
BILLS TO BAR SUITS
+ON TAX AND GOLD
Amendment to Allow Action
by Actual Losers
Wins.
PRESIDENT UPH0LDS
PRINCIPLE OF BANS
Senate Amendment to A.A.A. Bill
Would Outlaw Court Moves
by Some Professors.
BY the Associated Press.

BY the Associated Press.
Despite a partial setback and threats
of more trouble to come. the Roosevelt
administration drove ahead today with
its attempts to prohibit certain suits
against the Government.
As suits to recover processing taxes
piled up In the courts to the number
of 359, the Senate adopted yesterday
compromise amendment on the
A. A. A. bill permitting legal steps
against the United States by professors
who bore the tax burden themselves,
instead Of passing it on TO consumers.
Passing up its Saturday holiday. the
Senate today struggled on with other
A. A. A. amendments, delayed by long
debate.
The Senate today Overwhelmingly
reaffirmed its decision against i'm
posing a compensatory tax on rayon
and other competitors Of cotton by
rejecting, 81 to IS, a motion to re-
consider the question.
Opponents of the rayon tax had
denounced it variously as unjust"
and as a surrender to the silk in
dustry" Senator Wagner. Democrat,
/ of New York argued that silk is a
| stronger competitor to rayOn than
| rayon is to cotton.
Senator Russell, Democrat, OF Geor-
gia made the motion to reconsider
the vote by which the Senate Thurs
day rejected the A. A A. amendment
applying a tax on rayon equal to 125
per cent of the processing tax on
cotton.
Majority Leader Robinson said
vote on the bill would not come until
next week He discounted a report
that possible motion from some un-
announced source would send the
measure back to committee
ROOseyelts Views.
Regarding litigation against the
/ Government President Roosevelt at
his Semi-weekly press conference yes
terday declared every Government in
I the world exercises the right of sover-
/ eighty to determine whether it will be
sued.
He was speaking specifically about
| the pending bill to ban litigation
against the Government as a result of
dollar devaluation.
The Senate A A A compromise.
| adopted 81 to %, made a major
change in the amendments the admin
| istration is backing. The original A.
A. A. proposal would have barred suits
both by professors who could prove
they bore the taxes themselves, and by
those who passed them on. The al
tered measure now merely prohibits
suits by the latter class.
This was an indicat on to some OBJ
servers of what the Senate attitude
may be on the gold clause question.
The Supreme Court already has indi-
Gated the door &c SLts in the gold
securities cases was closed to those
who could not show damages
There are indications that the Sen
ate Banking Committee is almost
evenly divided On the President S
recommendation fer LEGISLATION TO ban
the gold clause suits.
Republican members, together with
a powerful Democratic faction led by
Senators Glass, Deinoc'at, of Virginia
and McAdoo, Democrat, of California,
former Treasury Secretaries, bitterly
opposed the legislation. describing it
as "repudiation."
Leaders Are Hopeful.
Leaders of the administration. while
still hopeful, were not encouraged
by the Senate vote OF the processing
taxes.
The tax compromise was denounced
(See SUITS, Page A.