Evening star., 1936-02-27
ROOSEVELT CALLS
CHIEFS TO PARLEY
| ON NEW FARM TAX
Morgenthau, Garner, BTns
and Key Committee Mem.
bers Summoned.
HOUSE APPROVES A. A. A.
SUBSTITUTE AGREEMENT
Administration Leaders Silent on
Whether Program Will Help
Raise Bonus Funds.
BACKGROUND

BACKGROUND
Inualidation of A. A. A. with its
processing tar reDenue and passage
of bill authorizing cash settlement
of bonus obligations after June IS
added to financing problems OF dd-
mtniStrdtion. NeD farm program
is expected to cost nearly $500, ,000.-
900 for first year, NTH substitute
for processing tares believed GER
tain OF enactment. Whether reue-
nue. for bonus and other extra OBJ
legations Uiu be sought through
tares has not been reUealed.
Approach OF November elections
makes tar legislation unpopular
among those seeking to hold Office.
BY the Associated Press
Congressional and Treasury leaders
were summoned to the White House
tonight for general discussion of tax
legislation to finance the $780, 900 900
farm program.
The House speedily approved by voice
vote the agreement reached in con-
ference on a final draft of the subsidy
bill. Only Senate action was needed
to send the measure to Mr.. Roosevelts S
desk.
Those invited by President Roose-
welt to the tax parley were Vice Presi-
dent Garner, Speaker Byrns. Secretary
Morgenthau, Senator Barkley. Demo-
crat, of Kentucky; Senator Harrison.
Democrat, of Mississippi, chairman of
the Senate Finance Committee; Rep
resentative Doughton, Democrat, OF
North Carolina, chairman of the House
Ways and Means Committee; Repre-
sentative Bankhead of Alabama, the
Democratic leader. and Herman Oil
phant of the Treasury counsel.
Stephen T. Early, the secretary to
the President, described both meetings
as of general nature.
Silent on Scope.
On Capitol Hill none of the leader
ship was willing to hazard a guess as
to whether the administration tax
recommendations might embrace any
schedules beyond those needed to
finance the new farm program, for
which President Roosevelt has said
$500 100000 would be needed.
Into all speculation, however, there
entered the Chief Executives warm
ing that new taxes would be required
for appropriations which are not
covered in the budget estimates.
This raised the question of whether
q fort hrNN1irc S,,
clude provision for levies to cover
at least portion of the more than
s2,o00000,000 which must be paid
out for the soldiers bonus, ordered
by Congress over the Pres ident's veto.
Veto Reiterates Tax Views.
The President reiterated some tax
Views in his veto yesterday of the bill
to provide s50,000,ooo for seed loans.
He objected that the measure had
been approved in Congress without
making provision for any revenue
to cover such loans"
In the Senate. Chairman Smith
of the Agriculture Committee served
notice he would move Monday to
override the Presidents veto of the
$50 900, 900 seed loan bill.
While preparations went ahead for
the conference, suggested last week by
the President, Representative Taber,
Republican. of New York declared
there was an absolute necessity" for
raising taxes, and that never in all
history has there been a situation
where the President has so failed
10 meet his responsibilities"
Many of the leaders recalled reports
several weeks ago. however, which
suggested that the President was con-
sidering additional taxes designed to
provide funds for the bonus.