Evening star., 1936-06-19

leaders planned an overtime session
tonight to act, If possible, on the
tax compromise.
ny the Associated Press
Journeys end for the Seventy
fourth Congress appeared definitely
in sight today.
So confident was Senator Robinson,
the Democratic leader, that Congress
would adjourn tomorrow night that
he packed his suit case to leave Sun
day for Philadelphia, where he will be
permanent chairman of the Demo-
cratic National Convention.
The complete agreement in Sen
ate-House conference on the form of
the new tax bill raised the leaders
hopes several notches Although con-
siderable opposition to the bill is ap-
parent in the Senate, the chieftains
say it will clear both houses by tomor-
row night.
The bill, designed to raise $780,
000, 1000, carries graduated levies Of
to 81 per cent on undistributed profits
Of corporations and makes other ma
jor changes in tax law. 1t goes far to
meet the White House tax demands.
Relief Bill Threat Removed.
The other major bar to quick ad-
journment already had been removed
when Congress handed to President
Roosevelt yesterday the bill carrying
81 ,425 100000 for relief next fiscal
year. This, with unexpended bal
ances and other items, will permit a
S3.271 ,000,00 program of relief and
public works. The sum may spell re-
lief jobs for 100000 on the basis OF
present costs.
Other big money bills were going
through Congress fast. The House
agreed last night to a conference re-
port on the s992, ,524, 900 Treasury-Post
Once supply bill. Senate approval is
slated to send it to President Roose-
welt.
The Senate moved today toward q
vote on bill to enlarge the merchant
marine through direct subsidies, re-
placing the present ocean mail con-
tracts. A similar measure has passed
the House, but whether the two cham
bers could reach complete agreement
before adjournment was uncertain.
Coal Bill Debate Due.
After the ship subsidy vote, the Sem
ate planned to debate the new Guffey-
Vinson coal control act. which already
has passed the House.
While the compromise tax plan
was arousing emphatic dissent among
some Senators today, administration
leaders insisted it would 60 through
Congress by tomorrow night.
They expected President Roosevelt
would welcome the plan, which was
agreed on in Senate-HouSe confer
ence committee last night. 1t goes
far to meet his demands for stiff
taxes to induce corporations to dis
tribute more income to stockholders
and for additional taxation on divi-
dends.
The conference agreement must
now be ratified by both chambers. It
is generally expected to encounter no
serious trouble in the House, but some
Senate foes Of the bill went so far to-
day as to say privately that nearly
half of the membership of that body
already had determined to vote
against it.
No Filibuster Predicted.
No filibuster was predicted, how
ever, and administration leaders hoped
to pass the bill in time to adjourn
Congress late tomorrow.
The tax bill includes:
Normal" taxes on all corporation
net income, ranging from per cent
on the first $4,000 to Is per cent on
all over $4,000. cat present, such
taxes range from 1914 to is per cent?
New graduated taxes on undistri-
buted earnings, ranging from z per
cent on the first 10 per cent Of earn
ings retained, to 27 per cent on all
earnings retained in excess of so per
cent.
A provision giving special treatment
to small corporations by applying the
z per cent tax either to the first 10 pei
cent of undistributed earnings. or to
$4,000 Of such earnings, whichever
Is the larger.
A provision applying the normal in
dividual income tax of per cent. as
well as income surtaxes, to dividends
received by corporation stockholders.
At present, dividends are exempt from
the 4 per cent tax.
A clause cutting the capital stock
tax from $1.40 to 81 per $1,000 Of
stock, but continuing existing excess
profits taxes.
A temporary $s2, 100000 "windfall''
levy on persons described as sun
Justly enriched" because they es-
capped paying the invalidated "A. A.
AS processing levies.
Representative Vinson, Democrat,
of Kentucky, declared the whole bill
should produce more than $500. .000,-
600 to meet the administration call
1see CONGRESS, Page So