Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-08-01
MOrgenthau WithhoIds
Roosevelt View as Har-
riSOn Asks Explanation.
TREASURY HEAD ADMITS
BILL MUST BE FINAL
Brief Statement Warns Agains-
New Expenditures Outside
Budget Limitations.
BY JOHN c. HENRY.

Sharp inquisition of Secretary Nor
genthau by Chairman Harrison of the
Senate Finance Committee failed to-
day to force the Treasury head into
any analysis of the pending tax meas
ure or any committal Of approval OF
the bill as reported to the House.
To persistent questioning by Sen
ator Harrison and several other Demo-
cratic members of the committee. Nor
genthau declined steadfastly to admit
the expected revenue adequate or to
explain why the House Ways and
Means Committee departed from
President Roosevelt's recommendations
Following appearance of the Secre-
tary the committee heard Newton D.
Baker, former Secretary of War. who
was representing number of char
liable organizations in support of ex-
empting corporation gifts to charity
from their taxable income.
Although the House Ways and
Means Committee has agreed to sup
port an amendment to the House tax
measure granting this exemption.
Baker followed his original intention
to solicit Senate favor of the idea also.
President Roosevelt last week an
nounced his opposition to the exemp-
ton and the House bill was reported
Tuesday without it.
Must Accept Bill.
During his questioning by Harriso.-
Morgenthau declined to say wheth-
the House bill disregards Mr.. RooSS-
velt's recommendations. but agree
the Treasury would have to be salts
fed with the measure as enacted o.
Congress.
Earlier he had read a brief pre-
pared statement warning against new
expenditures outside the budget and
expressing hope the revenues from the
tax bill would be applied against the
deficit and the national debt.
Morgenthau was accompanied be-
fore the committee by Robert H Jack
son, counsel o. the Internal Revenue
Bureau, and several other advisers
His testimony, begun with readi-g OF
his prepared statement, followed a
picture taking ceremony in which he
posed with former Secretary of War
Baker.
The bill as introduced by the
House does not conform to the Presi-
dents recommendations, in the opin-
ion of many OF U.S." Chairman Har-
riSon said after the statement was
read. Can you tell us how the House
bill might be considered to conform"
Asks to Dodge Analysis.
Pointing out that each congressional
committee and the Treasury all have
their own experts on taxation, Nor
genthau begged to be excused from an
attempt to analyze the House bill.
Harrison disclaimed any desire to
embarraSs the Secretary, but declared
it unbelievable" that the President
without consulting the Treasury head
Many of us desire to go along COM
pletely with the President, but We find
that the House bill has made major
changes in such matters as the gradu-
ated corporation tax" Harrison added.
At Morgenthau's request for time TO
consult his advisers, Senator King.
Democrat, of Utah interpoSed the
declaration that it was his intention
to pass on this bill at dictates of his
own judgment of fiscal needs, regard
less of presidential or House decisions.
Barley Defends House.
Senator Barley. Democrat, of Ken
lucky entered the discussion to defend
House rights to draw a bill as they
saw fit, similar rights also being vested
in the Senate.
do you approve House changes in
the Presidents desires on the tax
bill?" Harrison asked Morgenthau di-.
rectly.
Il don't consider it my duty to pass
upon House actions" Morgenthau re-
piled in sidestepping the query.
Harrison continued his questioning
py asking whether graduated corpora
ton tax or excess profits tax would
raise greater revenue. To this, Nor
genthau referred the committee TO
one of his technical advisers. but
Harrison turned to another point in
his examination of the Secretary
THE Treasury, as long as I am
Secetary. will not take part in draft
ing income tax BILL" Morgenthau EN-
phasized at this point.
Previous Secretaries have advised
(See TAX, Page 81