Evening star., 1939-06-04
BY JOHN c. HENRY.

Despite minority pressure directed
at broadening the taX-revision pro-
gram into an overhauling of the
entire revenue system, Congress ap-
pears headed for a speed record in
rewriting several major corporate
taxes and extending existing "nuis-
ance' imposts before June 80.
With the problem in the hands of
the House Ways and Means Com
mittee. windup of public hearings
is anticipated tomorrow, when
Undersecretary of the Treasury
John w. Hanes appears to supple
ment the Treasury recommended
tlons outlined week ago by Sec
retary Morgenthau. Generally cred
tied with having been the most
insistent of the pro-revisionists
within the administration inner
financial circle, Mr.. Hanes is ex-
pected to indorse the committee
majority's decision to concentrate at
this time on corporate tax relief.
with a view to enacting legisla ton
before the new fiscal year starts
July l.
Minority threats to seek a broader
program, presumably having princi-
pally in mind the reduction of the
higher individual income surtax
rates, arose yesterday during the
session of the Ways and Means
Committee.
Quorum Questioned.
Questioning whether a quorum of
the 25-man committee had been
present when the decision was made
late Friday to limit current con-
sideration to corporate taxes, Rep
resentative Treadway of Massachu-
setts. ranking minority member,
dissented from the decision and as
serted his own willingness to re-
main in Washington all summer for
the purpose of studying a thorough
overhauling of the revenue struc-
ture.
Mr.. Treadway was immediately
joined in his revolt by Representa-
tive Jenkins. Republican, of Ohio,
who declared there was no question
in his mind that a quorum was not
present Friday and that he intend
ed to test the sentiment of the full
committee by moving at tomorrow's
meeting that all phases of taxation
be considered at this time.
Later, Chairman Doughton de-
clared initiation of such a project
would mean at least three months
work and no bill at all at the present
session. With the majority having
nve-Vote margin in the 1910 di-
vision OF the committee, it is believed
unlikely that the Jenkins motion
will prevail.
Extension Deadline June 30.
We've got to have legislation
before June 30 extending the exist
ing nuisance taxes" Chairman
Doughton explained. "It is my
thought to include in that certain
corporate tax changes. handling the
whole thing as expeditiously as pos
sible. We'd be here until snow flies
if we started to consider the whole
tax problem"
AA eiiiCC udyA VI Ilcdl lIlSS, IIlc
committee has received the "go-
ahead" signal from Secretary Nor
genthau, spokesman for the admin
istration, and comprehensive pro-
grams from the two most potent
voices of industry, the United States
Chamber of Commerce and the Ma
tional Association of Manufacturers.
Overlapping in many respects,
the programs of the two business
groups agree substantially on the
desirability of full repeal Of the un-
distributed corporate profits tax, re-
vised treatment of capital gains and
losses, greater liberality in the
carryover of bushes losses, end of
double taxation through taxing in
tercorporate dividends and includ-
ing dividend payments to individuals
in normal income, repeal of the
capital stock and excess profits taxes
and reduction of the higher indi-
vidual surtax rates.
M. l.. Seidman, chairman of the
(see TAXES, Page A-l70