Evening Star Newspaper, August 25, 1935, Page 6

AUGUST 25, -1935—PART ONE. SUNDAY BTAR, WASHINGTON, D. €., b.0.P. S LEADERS rA-% THE CONGRESS ADOPTS newspaper man's version of the incle dent was that he had heen having difficulty in getting information and had suggested the advisability of co- NEAR FIST FIGHT Far Away TAX BILL REPORT $250,000,000 Measure Is Given Final 0. K. as Silver Bloc Gains Deal. BY JOHN C. HENRY. Congress last night completed its enswer to President Roosevelt’s plea of June 19 and dispatched to him s tax bill calculated to enrich the Fed- eral Treasury by $250,000,000 per year, taken from those “best able to The hastily drafted and many times revised legislation met its final tests yesterday with ease as Republicans in the House contented themselves with a short denunciation and with forcing a roll-call vote on the confer- ence report, while Senate opposition vas dissipated by a “deal” through which separate action was extended to legislation sought by the silver bloc. ‘The House vote was 247 to 72, while the Senate accepted the report of the conferees without a record vote. The measure now goes to the President for his signature with no expectation that the slight deviations from his recom- mendations will cause him to reject it. Brought Up at 5 P.M. Held off through the past three days because it was considered a key factor in the adjournment picture, the conference report was brought up in the House immediately after accept- ance of the utility conference report about 5 pm. Following an explana- tion by Representative Hill, Democrat, of Washington, one of the conferees, of Senate changes in the bill and the agreements reached in conference, the | closing attack of its passage was lev- eled against the measure by Repre- sentative Crowther, Republican, of New York, and member of the Ways and Means Committee, which drafted the original bill. Terming the bill as the “nearest thing to a purely political gesture con- sidered during the present session of | Congress,” Crowther pleaded with the | majority to devise a “twin program” in which the entire Federal tax structure would be overhauled and Government expenditures would be curtailed. “There is nothing that would give the people of this country greater con- “than a promise that the Federal bud- get will be balanced within the next four or five years. You couldn't levy taxes today that would balance the budget; they would be completely de- structive. It is going to be a long slow drag and we ought to aim at 1939 or | 1940. “Instead of accepting this principle | now, you have yielded to political ex- pediency, taken refuge in the popular ery of ‘soaking the rich.'” Others Speak Briefly. Others to speak briefly on the meas- ure were Representative Christiansen, | Republican, of Minnesota; Ford of California and McFarlane of Texas, both Democrats, and Resident Com- missioner Delgado of the Philippine Islands, the latter expressing regret at inclusion in the bill of a provision for | 8 compensatory tax on products made chiefly of cocoanut oils. Representative Doughton, Democrat, of North Carolina, and chairman of the Ways and Means Committee and the conferees, closed the debate with & brief defense of the bill, declaring | that it wil! bring in & substantial sum | of added revenue and is a step toward the balancing of the budget. With a return of prosperity, he said, the new rates fixed by the bill would bring in | close to an extra $400,000,000 with its yield in a full year at present business | levels figured at about $250,000.00. Reaching the Senate side within a few minutes of completion of the House vote at 6:15, the report was called up by Senator Harrison, Demo- crat, of Mississippi, and chairman of the Senate Finance Committee and conferees, and was accepted without debate or without a record vote. One Recommendation Lost. In the form thus finally passed, the legislation carries out the presidential recommendations in all but one ma- jor respect, namely: The matter of inheritance taxes asked by the Presi- dent but refused by the Senate. The major provisions of the bill follow: 1. Surtax rates are increased, start- ing with 31 instead of 30 per cent on the $50,000 net income bracket and | yeaching a maximum of 75 instead of 89 per cent on all over $10,000,000. 2. Corporation income taxes are graduated with a 12!, per cent levy on income up to $2,000 and reaching | 45 per cent on all over $40,000. The present rate is 133, per cent for all. 3. The capital stock tax on corpo- | Yations is raised from $1 to $1.40 per | $1,000 of adjusted declared value. 4. Fxcess profits taxes are gradu- ated with a 6 per cent levy on profits between 10 and 15 per cent of de- clared value and 12 per cent above this. The present rate is 5 per cent on all over 12!, per cent profit. A Dew declaration of value is allowed. 5. Ten per cent of the income from intercorporate dividends is made sub- Ject to regular corporation income | reaching 70 per cent on all over $50,- | rate in each bracket. fidence today,” the New Yorker said, | | tain $1 in silver to each $3 in gold, taxes. All such income is now exempt Genuine Optical Sale Exclusive Optics Sale on GLASSES and FRAMES For One Week Only ! —Not a CLEARANCE SALE! our finest quality optical products at a dis- count that means the saving of many dollars! Here Are a Few Examples of the Savings Every one who wears bifocals will appreciate this 50% saving. White seamless lenses ground for reading Oculists’ prescriptions filled. and distance. OCTAGON RIMLESS Engraved white gold filled rimless mountings only, fit- ted to suit your s '.50 individual taste. KRYPTOK $8 value Invisible Bifocal Lenses. One pair to see far and near. $12 value____ Cylindrical or tinted not included. 812 F %. SHAH St. N.W. Congresswomen Buy Tickets Home Three women members of Congress shown yesterday in the ticket office of the Capitol basement as they purchased tickets to their homes which they will not use until tomorrow at least. Rogers, Republican, of Massachusetts; Jenckes, Democrat, of Indiana, and Kahn, Republican, of California, but the President specifically asked that such & tax be levied. 5 Per Cent Allowed Chacity. 8. Corporations may deduct from their taxable income all donations to charity up to 5 per cent of such tax- able income. 7. Estate taxes are raised through- out, starting with & 2 per cent levy against the first taxable $10,000 and 000,000. The present rates run from 1 to 60 per cent but the increases | were made in the Senate as & substi- tute for the inheritance tax schedule approved by the House. At the same time the exemption was decreased from $50,000 to $40,000. 8. Along with the increase in es- tate taxes goes a comparable increase in gift taxes on donors, the new rates being three-quarters of the estate Omitted from the bill as finally ap- proved was an amendment sdopted in the Senate at the insistence of Sena- tor Borah, Idaho Republican, which | would have banned further issuance of | tax-exempt Federal securities. The | amendment was dropped in confer- ence when administration leaders ! raised the objection that it would in- terfere with Government financing. | Silver Concession Made. ’ Also eliminated in conference was the McCarran amendment, repealing certain sections of the silver purchase act of 1934, but the threat of a fli- buster by proponents of this amend- ment was checked by separate action yesterday on a bill embracing the same provisions. | The effective date of the new taxes: | Gifts, January 1, 1936; estate, to es- | tates of all persons who die after the bill is signed by the President; indi- vidual income, corporation income, in- | tercorporate dividends and personal | holding companies, first full taxable | year, in most cases the year beginning | January 1, 1936; excess profits, the first full taxable year ended after June 30, 1936; capital stock, the year end- ing June 30, 1936. | In these provisions rest the majority conception of what the President | meant by taxation “devised to obtain just contributions from those best able to bear it,” those whose “ownership of such wealth or riches represents a great public interest and a great abil- ity to pay.” SILVER MADE ISSUE AT NEXT SESSION By the Associsted Press. Silver was made an early issue be- fore the next Congress through the introduction last night of a resolution | by Sensator Thomas, Democrat, of Oklahoma, calling on the Treasury | to “proceed immediately” with the Government’s silver policy. In presenting the measure, Thomas said he would press for action on it at the next session, beginning January 3, 1936. | His proposal demanded that the Treasury continue the purchase of slver “enthusiastically to the end that our silver monetary stocks all con- or until the price of silver in the world market shall reach $1.29 per | fine ounce.” Once this price is reached the measure provided that the price should be stabilized by the “free sale and purchase of silver” at that figure. The Oklahoma Senator also de- manded in his resolution that the question of making silver s primary and basic monetary metal should be considered in any future conference on monetary or stabilization in which the United States might participate. Exclusive Optics Quality But a sale of Est. 24 OPTICAL CO0. Years Left to right: Representalive —A. P. Photo. Record of Session Major bills passed by this session of Congress up until last night follow: $4,880,000.000 work relief. Wagner labor disputes. Banking credit control. A. A. A, amendments. N. R. A. extension. Nuisance taxes. Connally hot oil. Farm loan liberalization. $38.000,000 military works. $1,750,000,000 home loan bonds. Spanish War veterans, Frazier-Lemke farm mortgage. Rall pension taxes. Extending C. C. C. two years. Extending F. E. R. A. oue year, Ban on gold-clause suits. Ultility holding company. SHP SUBSIDY PLAN 5'L05T N HOUSE Move to Extend Time for Mail Cancellation Is Defeated. By the Associated Press. The administration’s final attempt to salvage something this session out of its ship subsidy program floundered | yesterday in the House. | Despite an effort by Chairman | Bland, Democrat, of Virginia, of the | Merchant Marine Committee, Demo- | crats joined with Republicans in turn- | ing down s Senate resolution which | would extend from October 31 to Merch 31, the time allowed President Roosevelt in which to cancel ocean mail contracts. Bland told the House unfavorable action would constitute “a vote of no confidence.” A standing vote on the resolution | showed 91 for the proposal to 61 against. This was 11 votes less| than the necessary two-thirds ma- Jority required to pass the resolution under the parliamentary procedure used. Then a roll-call vote showed 190 for to 126 against—20 short of the majority vote needed. Representative Wearin, Democrat, of Iows, leading the opposition, con- | | tended Congress itself should have | voted to cancel the contracts. He was supported by Representative Moran, Democrat, of Maine, who declared this country would never have an adequate | Merchant Marine as long as present ship operators were satisfied to main- | tain the status quo. | Holding up his hands, Bland said: | “There is nothing more we can do this session.” | c 7 | | D. C. COUPLE TO WED A marriage license was issued in Reno, Nev., yesterday to J. Garrett Beitzell, 39, and Mrs, Ruth B. Whit- craft, 35, both of Washington ing to Associated Press dispatch. Mrs. Whitcraft recently obtained a divorce in Reno from Ellis E. Whit- craft, an angineer with the Treasury Department. She lives at 5506 Con- necticut avenue. Beitzell, who lives at 1731 Upshur | street, is a real estate agent. Slightly Used Apartment Grand Washington Home of Neutrality. Soclal security. Guffey coal. Rivers and harbors. T. V. A. amendments, R. F. C. extended two years. 1935 crop loans. Baby bonds. Pink slip repeal. Bus and truck regulation. New airmail act, Railroad bankruptey. Rail pensions. Extending rail co-ordinator, Extending P. W. A. two years, Wealth taxes. Liquor control. Roosevelt Lauds Senate in Farewell | Letter to Garner| Says Much Was Accom-! plished by Members in Historic Session. President Roosevelt last night sent | the following letter to Vice President | Garner, bidding good-by to Congress: | “My dear Mr. President: | “If the opportunity presents itseif, | will you be good enough to extend my greetings to the members of the Sen- | ate and to express to them my deep and sincere congratulations upon the work which they have accomplished. “When a calm and fair review of the work of this Congress is made it will be called an histeric session, It| has dealt, in a spirit of statesmanship, with matters of vital interest to the lives of our people. Much has been accomplished for the permanent well- being of the Nation as & whole. “I am grateful for, and happy In, the co-operation between us, and I extend to each and every one of you | my good wishes for a well-earned rest. “Faithfully yours, “FRANKLIN D. ROOSEVELT.” Garner is President of the Senate. BUY QUALITY LUMBER MILLWORK It Costs No More in the End! Kelly quality materials are actually less expensive in the long run. It always pays to buy the best. In your re- modeling and repairing plans, let J. Frank Kelly fill your order for lumber, millwork, paints, hardware, sand, gravel, cement, roofing materials, ete. Any size order delivered promptly at no extra cost. J. FRANK ELLY Lumber & Millwork 2121 Ga. Ave. NOrth 1341 SPLIT IN VOTING Senator - Possibilities for Nomination Balloted en Bloc Only Once. By the Asscciated Press, ‘The records of four Republican Senators mentioned as possibilities for the party’s presidential nomination next year show wide divergence of opinion on measures of major impor- tance acted upon by the Seventy- fourth Congress. Support for New Deal sponsored legislation, or direct support for the President, is shown in the records of Senators Borah of Idaho, Vandenberg of Michigan, Dickinson of Towa and McNary of Oregon. But on seven is- sues they voted en bloc but once. Here s the record: A. A. A, smendments requested by the President to broaden the farm adjustment program: Favoring, Borah and McNary; op- posing, Vandenberg. Dickinson did not vote. Patman Bonus Stand. Patman bonus bill, vigorously op- posed by the President: Favoring, Broah and Dickinson; op- posing, Vandenberg and McNary. All four repeated their votes on the move to override the veto. Wheeler-Rayburn utilities bill, fa- vored by the President: Favoring, Borah and McNary; op- posing, Vandenberg and Dickinson. Social security bill, & New Deal measure: All favored. N. R. A. extension measure: Opposing, Borah, Vandenberg and Dickinson; NicNary did not vote, Record on Guffy Bill. Guffy coal bill, designed by the ad- ministration to set up a little N. R. A. in the soft coal industry: Opposing, Vandenberg and Borah; Dickinson and McNary did not vote. ‘World Court adherence, urged by the administration: Favoring, Vandenberg and McNary; opposing, Borah and Dickinson. On the seven measures listed Borah supported the administration three | | times, opposing four; Vandenberg sup- | ported three times, opposing fo Dickinson supported once, opposed | four times and twice did not vote, and | McNary supported five times, twice abstaining. ‘Membership of labor unions of Eng- land has dropped over 100,000 in the last 12 months. REPRESENTATIVE GASSAWAY. Down, but not out, the cowboy Congressman from Oklahoma is shown at Hot Springs, Ark., ves- terday as he received a soothing massage after & bath, far from the hectic scenes in Washington. He went to Hot Springs to get in shape for a speaking tour of 21 cities.—Copyright, A. P, Wirephoto. ROSS IS CONFIRMED ! near beipg added to the program on SPICES CONGRESS McKellar Swings Fists at| News Man in Room Near Senate. An impromptu boxing match came Capitol Hill yesterday, but it ended almost before it got started, with- out casualties. ‘The principals were Senator McKel- lar, Democrat, of Tennessee, and Rob- ert W. Horton, & newspaper corre- spondent for the Scripps-Howard | Newspaper Alllance. The scene was the reception room just off the Senate floor, where newspaper men interview | Senators. Horton was interviewing McKellar | in _quest of data for & news story of | political interest in Tennessee. The| Why Not Open a Fur Prices Go UP—But | operation in- the giving oyt of news, when the Senator advanced toward him and tock a few swings. Horton had stretched out his arm, however, and no harm was done. Senator Hugo L. Black of Alabama, who was standing nearby, stepped into the breach as peacemaker, and the threatened hostilities were over in a few seconds. Senator McKellar re. turned to the Senate chamber, where the legislative battle toward adjourn- ment was on, and the news gatherer went on to his work. Asked lat.r for a statement, Sena- tor McKellar brushked the incident aside, RESERVE BILL PASSED A bill to permitr training of 1,000 Reserve officers each year with the Regular Army was sent to the White House last night by the House, Fifty of those officers would be al- lowed to receive commissions in the Regular Army. It was estimated the training would cost $1,500,000 an= nually. Charge Account? ot Here! FUR COATS ~—Bought | Senate Approves D. C. 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