Evening star., 1939-07-11
BY ]. A. OIEARY.

The Senate today adopted the
conference agreement on the local
revenue bill, establishing an income
tax and raising the Federal lump
sum payment from 5000, 900 to
$500 900, compromise designed to
break the deadlock holding up Dis
trict appropriations for the current
fiscal year.
The ultimate fate of the agree
ment, however, still hinges on
whether the House will accept it.
A House vote is expected tomorrow,
after a recess today because of the
death of Representative McReynolds
of Tennessee.
Asks Name Be Withdrawn.
Shortly before the Senate action
Senator Overton of Louisiana an
nounced he had received telegram
from Senator McCarran of Nevada
from Reno, in which the Nevada
solon asked that his name be with
drawn from the conference report
because of the income tax provision.
although the compromise faces
its real test in the House tomorrow,
indications from that end of the
Capitol today were that the chances
for its final passage are growing
stronger.
The action of the Senate Foreign
Relations Committee today in post.
poning neutrality legislation also
strengthens the local fiscal settle
ment, because it places Congress
much closer to adjournment.
House supporters Of the confer
ence agreement point out that If
that branch rejects this basis OF
compromise, renewal of the dead
lock over District finances may prove
a threat to adjournment, since Con-
gress would have to reach some
solution before going home.
Use of Name Authorized.
Senator Overton told the Senate
he placed Senator McCarran's name
on the conference agreement only
after receiving message several
days ago from the absent conferee,
giving Chairman Overton general
authority to use his proxy. This
message from the Nevadan to his
office here read:
Advise Overton he has my proxy
for any matter pertaining to District
tax bill. PAT McCARRAN."
After the compromise had been
reached, Senator Overton wired
Senator McCarron the results, as
follows:
Senate and House conferees on
the District of Columbia tax bill
agreed to a $6,500,0O0 annual Fed
eral payment. SITS real estate and
personal property tax, eliminated
tax on intangibles and business
privilege and agreed to a corporate
income tax and very moderate
personal income tax levied only
against individuals domiciled in the
District of Columbia, thereby ex-
cluding all Senator's and Congress-
men and Federal employees whose
domiciles are in the States. The
rates are per cent on first $1,000
of taxable income; IL per cent on
next $1,000; 2 per cent on next
$5OOO; 212 per cent on next IS 900,
and 3 per cent on taxable income
in excess of $4,000. Exemptions
and deductions are the same as
prescribed by Federal statute. It
represents the best compromise that
we could effect. Pursuant to sug-
gestion of your Office I signed your
name to the conference report which
will be submitted tomorrow.
JOHN H. OVERFLOW"
Explains Stand.
In his latest wire from Reno to-
day, Senator McCarren explained
why he does not believe an income
tax in any form should be estab-
lished in the National Capital. His
message read:
Your wire received. Our former
conferences and conversation had
led me to believe that you would
never stand for personal income tax
in any form. On this assumption, I
wired my secretary to authorize you
to act as my proxy in conference
on District of Columbia tax bill I
(Soa n - wCrAY poro AI0