H. R. 10236, Amended

Looking greyer, gaunter, grimmer than ever, Utah's 70-year-old Senator Reed Smoot arose behind his paper-cluttered aisle desk last week to perform an important function. Bracing his drooping shoulders as if to bear an invisible load, he announced: "Mr. President, from the Committee on Finance I report back favorably with amendments the bill (H. R. 10236) to provide revenue, equalize taxation and for other purposes."

A page in knee breeches fluttered a bundle of papers up to the clerk's desk as the Senator, his voice low and weary, explained to his colleagues that they would have to wait for printed copies. Two days later Senator Smoot presented his committee's report (again apologizing for the delay in supplying members with printed copies). Two days after that he formally opened debate with a painstaking, unexciting speech about his billion-dollar tax bill, supposed to balance the Budget and preserve Public Credit.

The bill's proposed tariffs on oil, coal, lumber and copper spoiled its non-partisan character. Five Democrats of the Finance Committee signed a minority report flaying the log-rolling which put such duties into the measure. Democratic committeemen who did not sign this report were Kentucky's Barkley, proponent of a coal tariff; Texas' Connally and Oklahoma's Gore, proponents of a duty on oil; and Utah's King, copper man.

The principal differences between the tax bill as it passed the House April 1 and as it reached the Senate floor last week were as follows:

House Bill Senate Bill

Normal income tax rates 2%, 4%, 7% 3%, 6%, 9%

Surtaxes 1 % on $6,000 to 40% on $100,000 1 % on $6,000 to 45% on $1,000,000

Dividends Taxed under normal rate Normal tax-free

Corporation Tax 13 1/2% 14%

Furs & Jewelry 10% Tax-free

Automobiles 3% 4%

Trucks 2% 3%

Yachts 10% Tax-free

Toilet Articles 10% Tax-free

Mechanical Refrigerators 5% Tax-free

Sporting goods, cameras, firearms, ammunition 10% Tax-free

Matches 4% per 1,000 Tax-free

Candy 5% Tax-free

Chewing Gum 5% 3%

Telephone 5-c- on 31-c--to-49-c- -messages: 10-c- on all over

10-c- on 30-c--to-$1-messages-15-c- on $1-to-$2; 20-c- on all over.

Telegraph Same as telephone 5%

Admissions 10% over 45% 10% over 10-c- 25% for horse and dog races.

Stock Transfer 4-c- per $100 share but share, not less than 1/4 of 1%. 4-c- per $100 share.

Postage 3-c- first class 3-c- first class with zone increases on second class.

Checks Tax-free 2-c- each

Raw Rubber Duty-free 5-c- per lb.

Senator Borah plunged into the tax debate as follows: "Balancing the budget has been made a slogan. But we delude ourselves if we think we're going to balance the budget by simply passing this tax bill. We must take up the question of stabilizing prices. The gold dollar is no longer an honest dollar. How many suicides must we register, how many insane must we put into asylums, how many farms must go under the hammer before we do something to stabilize our currency?"

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