Evening star., 1937-06-16
BY JAMES f. CHM.

The House District Committee paved
the way for House consideration of the
troublesome Kennedy omnibus tax bill
by eliminating this afternoon the con-
troversial income tax plan and sub
stituting a 20-cent increase in the
real estate tax levy.
Action was taken at a hurriedly-
called special meeting-the second in
two days-as the Rules Committee
stood by to grant a special rule that
will guarantee consideration of the
measure in the House tomorrow.
Scrapping of the income tax plan
was done in obedience to House lead
ers who refused to let the Kennedy
bill come up in the House under a
special rule unless it was done
The Rules Committee shortly was
expected to issue the rule under which
the bill will be considered.
$4,000 Limit Beaten.
The income tax plan was eliminated
and the real estate tax increase sub
stituted on motion of Representative
Nichols. Democrat, of Oklahoma, a
member of the special subcommittee
of the District Committee that drafted
the bill.
The committee, however, first de-
ieated, by a record vote of to /, a
motion of Representative Sacks, Dem
Dcrat. Of Pennsylvania, to substitute
for the income tax Sl70 levy on
real estate having an assessed value
under $4,000. Under his plan, prop
erty under $4,000 would continue to
pay the present $3.50 levy.
AS soon as the committee took its
action, Nichols and Representative
Kennedy. Democrat, of Maryland,
chairman of the Special Tax Subcom-
mittee, rushed from the House Office
Building to the Capitol to inform
Chairman O'Connor of the Rules
Committee of the result.
Dirksen Plans Amendment.
Representative Dirksen, Republican,
OF Illinois, who championed the in
come tax plan, was the only one to
express regret that the committee
eliminated it from the bill simply to
get the measure up in the House for
consideration. He served notice, how
ever, he would attempt to have 1t re-
stored by amendment on the floor.
Earlier in the day the Rules Com
snittee had declared action on the
District groups plea for rule.
Chairman O'Connor asked the Dis
trict Committee that before con-
sideration of the request is resumed,
1t had better hold another special
meeting and eliminate the contro-
versial income tax.
That's impossible" chorused Rep
recentatives Kennedy and Nichols.
They Call Committee, However.
However, they lost no time in ar
ranging for another special meeting,
starting at o'clock, to consider the
proposal.
Immediately after the Rules Com
mittee adjourned without passing on
the request Cor a rule, O'Connor re-
ported to Speaker Bankhead the Dis
trict Committee had failed to carry out
the program for altering the bill under
which the leaders agreed to permit its
consideration in the House.
Wants Some Bill Passed.
Bankhead appeared to be disap-
pointed.
Il am very anxious for the District
bill to be brought up tomorrow" he
said Il feel the House should pass
some sort of bill to alleviate the Dis
trict's financial situation"
Bankhead announced if the rule is
not granted the House would take ur
Its previously scheduled program to-
morrow-consideratio of the judi.
ciary good behavior bill
The appeal of Kennedy and Nichols
for rule precipitated prolonged dis
Cussion among members of the Rules
Committee, and one, Representative
Cox, Democrat, of Georgia served
notice he would not vote for it,
Cox was vehement in his denuncia.
ton OF the attempt of the District tt
get rule for consideration of the bill
Another Defeat Promised.
Turning to Kennedy, he said:
The action of the House the Other
day in refusing to consider the bill
evidently did not impress you, ever
though the vote was as large as il
was. II you come before the House
with that bill you're going to take 6
licking like you did the other day"
Cox also declared there is bitter
resentment" in the House against the
District which "is fully justified"
That feeling he added, cant bt
changed overnight"
Understanding" Cited.
O'Connor opened the discussion by
pointing out that House leaders hao
set aside tomorrow to consider the
tax bill, in view Of the alleged seri-
Gus financial crisis facing the District
government in the coming fiscal year
(See TAXES, Page AID