Evening star., 1936-04-25

proposed Legislation refusing cor
porate tar structure. This 1Ceek
House Ways and Means Committee
reported out bill assessing undis-
tributed corporation PROFITS and re-
uiSing schedule OF other corporate
leUieS lUith proUiSion that some OF
them Uould be repealed outright in
year or so. Expected to 90 through
House Uithout major change, COM
plicated bill faces probable rewriting
in Senate.
BY the Associated Press.
After two days of warm debate on
the s803. 100000 tax bill. House lead
ers forecast today that it would be ap-
proved by a wide margin at their end
Of the Capitol and sent to the Senate
within week.
The House was in recess today, but
administration chieftains we're speed
ing up the schedule for consideration
of the controversial revenue measure.
hoping to pass it by Thursday night.
On the Senate side, the Finance
Committee held Saturday session
so its members could hear Treasury
experts explain the broad changes
proposed in the House bill for taxes
on corporations.
Chairman Harrison expressed con-
fidence that the measure would sur
vive the threats of opposition from
within his committee. He planned
to open hearings early next week.
Leaders Are Optimistic.
House leaders were optimistic des-
pite a bitter attack on the revenue
bill by Representative Wadsworth, Re-
publican. of New York. On the floor
yesterday he characterized it as
another step in the deliberate plan
of the administration to fasten con-
troll on all industry" He also attacked
President Roosevelt on the ground
he never exhorted the Nation to
thrift"
Representative Cooper. Democrat,
of Tennessee. declared the attacks on
the bill we're meaningless generali.
ties" and said opponents inconsist-
emily argued both that the measure
would not raise any money and that
it would damage business.
The major feature Of the tax meas
ure is levy on corporation net in
come, graduated according to the per-
centage of profits held by the cor
poration instead of being distributed
as dividends.
In the Senate Finance Committee
two major questions have been raised.
One concerns constitutionality of cer-
tain provisions of the measure, the
other its capacity for raising the
revenue demanded by the admins
tration.
Information Requested.
The Treasury was asked to furnish
information on both questions. 1t was
asked to submit opinions on which
it based the view that it would be
constitutional to tax debt-ridden cor
porations differently from others and
to tax corporations owned by cor
porations differently from those owned
by individuals.
The bill provides higher taxes for
of its income from dividends from
other corporations and itself con-
trolled by a corporation than it does
for corporations generally. Treasury
experts said this provision was in
serted to prevent tax evasion.
WadSWorth. sometimes mentioned as
a Republican Presidential possibility,
spoke just before the House concluded
another day of give-and- take argu-
ment on the bill, with only hours
and SO minutes of discussion left for
Monday.
disciplined Democracy" a phrase
coined by Rexford G. Tugwell. Wads-
worth said, is the philosophy underly-
ing long succession of legislative pro-
poSals in the last three years.
Measure Is Assailed.
Earlier, Democrat. Representative
Lamneck of Ohio argued that the
measure would wipe out thousands Of
business concerns, tend to create
monopoly and prevent the accumula-
tion of corporate surpluses for rainy
days"
In the Senate, too, some Democrats
were joining in the criticism. with talk
Of finding other ways to produce more
Federal income Just how far they
might go in attempting to revamp the
bill. when it reaches the Senate, was
uncertain.
The Senate Finance Committee yes
terday heard L. H. Parker, head Of the
Joint Congressional Tax Committee
explain the major feature of the House
legisla sion.