The Whole

The Mellon tax bill--or what was the Mellon tax bill--fell among a medley of parties in the House. For more than a week it was the chief topic of oratory and persiflage. Every day after about ten minutes of other business Representative Green, Chairman of the Ways and Means Committee, would rise and say: "Mr. Speaker, I move that the House resolve itself into Committee of the Whole House on the state of the Union for the further consideration of the bill (H. R. 6715) to reduce and equalize taxation, to provide revenue, and for other purposes." Thereupon the motion would be agreed to without dissent, and Representative William J. Graham would take the chair.

Having resolved itself for convenience and expedition into the Whole, the House then proceeded to hear speeches and votes on amendments to the bill. The most important amendment passed was one substituting in blanket form the Garner (Democratic) surtaxes and normal taxes for the Mellon taxes of the same kind. Under the Garner schedule normal taxes would be 2% up to $5,000, 4% from $5,000 to ), and 6% above $8,000; and surtaxes would be graduated up to 44% at $92,000 and over.

The taking of the votes on the various tax schedules was one of the high points of the session. In the west gal-.ery sat Miss Ailsa Mellon watching the fate of her father's proposal. In the opposite gallery was Mrs. Nicholas Longworth (Alice Roosevelt), wife of the Republican Floor Leader.

To get a separate vote on the Mellon plan, Representative Madden offered a series of surtaxes, hardly differing from it. Said he :

"Mr. Chairman, the amendment I have offered is the Mellon plan complete, except for a change of 1% in the surtax. Anyone here who wishes to follow the President of the United States on the matter of taxation will have an opportunity to do so by voting for this amendment, that is all there is to it. Just vote the Republican ticket-- that is what this is." (Applause from the Republicans.)

The Chairman at once called for "ayes" and "noes" but announced he was in doubt. On a division the amendment was lost 152-244.

The Chairman then called for a vote on the Frear schedule (surtaxes up to 50%). The Chair put the question, but Mr. Frear demanded a division. He lost 46-254.

The Chairman immediately put the question on the Garner plan. A chorus of "ayes." A chorus of "noes." Again the Chair was in doubt. He ordered a division. The Democrats and radicals trouped to the Democratic side, the regular Republicans gathered on the opposite side. The count was taken, "ayes" 213, "noes" 188. Representative Green rose and demanded tellers. Mr. Longworth and Mr. Finis J. Garrett, the two Floor Leaders, were appointed. The members filed by them as they counted. The result was announced: "ayes" 221, "noes" 196. The Democratic schedule was passed. The Democrats cheered as they swept back to their seats.

Other important amendments to the bill that were accepted: P: To tax profits from the sale of stock received as dividends under the regular income schedule instead of as capital gain, 162-112. P: To permit the Ways and Means Committee of the House and the Senate Finance Committee and special committees of Congress to examine individual and corporate tax returns, 158-100.

Other amendments to the bill defeated : P: Amendment to tax bonds now tax

exempt, 140-67.

P:To tax stock dividends, 141-12.

P:To tax undistributed profits, 170-51. P: To levy an excess profits tax, 157-74.

The proceedings of the House in Committee of the Whole were not final, but merely to whip the bill into such shape that it can be passed with only a few roll calls in regular session. The House still would have an opportunity to change the surtax rates, for example, before final passage. After such passage the bill will go to the Senate, which is expected to restore the bill more nearly to its original form. Then it will go into joint conference to be shaped into some sort of a satisfactory compromise before ultimate adoption by both Houses.

P:To increase inheritance taxes from the present maximum of 25% at $10,000,000 and more to a maximum of 40% at the same figure, 190-110.