Indianapolis Times, Volume 34, Number 171, Indianapolis, Marion County, 28 November 1921 — Page 3

SURTAX TURN DOWN SEEN AS HARDING SLAP Manner of Rejection of Incomes Proposal by House Rather Startling. NEWBERRY CASE GOSSIP By RICHARD LINTHICtM. WASHINGTON, Nov. 23.—The severest personal defeat for President Harding since the beginning of his administration, which was also a rebuke for his obstructive interference with legislation, was that administered in the House by Democrats and Western Republicans in adopting the maximum surtax of 50 per cent after President Harding had written a long letter to Chairman Fordney of the Ways and Alt-au* Committee, attempting to justify the 52 per cent maximum surtax as tied by the House and suggesting a compromise of 40 per C2Ui s between that and the Senate amendment for 50 per centAn outstanding incident of this rebuff to President Harding was tie resentment shown by the Western Republicans toward John T. Adams, chairman of the Republican National Committee, who rushed to the Capitol anu officiously lobbied among the members for the suggested compromise. The action of the House in this matter was in striking contrast to that of the Senate when President iiard.ng appeared before that body and obstructed the otherwise certain passage of the soldier bonus bill. The Republican Senators, who were committed to the bill not only by their party's pledges but by their own utterances on the floor of the Senate, kmeekly surrendered at the President's dictation voted to recommit and thus kill the bill they had been advocating. The President's obtrusive interference in this matter, amounting in the views of some to a violation of the Constitution, was widely criticized press. It was recalled that President Wilson, who had been criticized for constructively advising and suggesting the passage of legislation, which was his constitutioual right and duty, had never attempted to obstruct legislation in either House. In addition to being a defeat and rebuke of President Harding’s obstructive intereference. the House vote was a decisive Democratic victory, as the 50 per cent maximum surtax amendment originated with the Democrats in the Senate who fixed the amendment at 52 per cent, and presented on the floor of the Senate witfi other helpful and constructive amendments by Senator Simmons of North Carolina, ranking minority member of the Senate Finance Committee and former chairman—an amendment modified to 50 per cent by a Progressive Republican caucus and its acceptance forced upon the Old Guard reactionary Republican members of the Finance Committee and of the Senate. The forecast made In this correspondence some time ago that the fiscal policy of the Administration —if it can be called a policy—was the rock upon which the Republicans would split has been verified. The Democrats have steadily maintained the Democratic policy or taxation of placing taxes on those best able to bear them, equitably distributed, and In the advocacy of this policy they have had the sympathy and support of many Western Progressive Republicans, the two together reflecting the real sentiment of the country without reference to politics. | On the other hand, the 32 per cent maximum surtax, for which Mr. Harding pleaded in his letter, was the Republican reactionary policy of tax reduction for the very rich, tor the higher surtaxes do not effect ar.y one except multimillionaires and profiteers. It was for these classes that President Harding pleaded at such length. In order, as he said, to keep the party promises, he was willing to accept a compromise which would even reduce by 10 per cent the Just amount Insisted upon by Democrats and progressive Republicans. It may be said too that in the present tax revision bill, carrying 833 Senate amendments, mostly in its administrative features, which nobody pretends to understand except the Treasury experts who drew them, the only improvements made In the Interest of the smaller taxpayer and the equitable distribution of taxes, the only constructive features in the bill, are those contained In the amendments proposed by and forced through by Democrats aided by Progressive Republicans. As an Indication of public feeling on the matter of taxation, it may be pointed out that the Republican members who Joined with the Democrats include Repsen tatives in practically every State In the West. This public feeling was also

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DRAMATIC ORDER KNIGHTS OF KHORASSAN TO CONDUCT CEREMONIAL

Thirty-seven men dressed in the gaudy costume of brigands comprize the patrol and bugle-drum corps of Shambah Temple, Dramatic Order Knights ot Khorassan. They will nave charge of the ceremonial given by the Temple l>ec. 2, when over 100 members of the Pythian

given vocal expression by many members in resenting the President's obstructive interference. • • • Using the conference on the limitation of armaments as a smoke screen to minimize publicity, the Republicans have brought up the notorious Newberry case In the Senate and have forced it to a hearing on the report of the Committee on Privileges and Elections within two days of the time when Senator Tomerene (Democrat, Ohio), who has charge of the case for his side. Is scheduled to sail for Haiti on Government business. Despite these methods of smothering publicity and the refusal to postpone action until the return of the Senator from Ohio, Senator Pomerene’s masterful presentation of this case will reach the putlie through many channels and will be a fruitful topic of political discussion long after the conference has adjourned. Senator Newberry will gain nothing by the methods his supporters have nsed in Jamming the case through at this time. The fact that Senator Pomerene on the opening day was talking mostly to emtpy seats on the Republican side would

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Order in this city will be initiated. The ceremony will be held in Castle Hall and will be preceded with a .big parade. The patrol is made np of young men, many of whom were soldiers in the world war. Shambah Temple was organized last September with 150 members. During

seem to bear out the belief frequently heard that the Republican reactionaries feel sure of passing the majority report, whitewashing Senator Newberry and giving him his seat. Senator Pomerene's review of the case Included every one of the vital points made against Newberry—the amouut of money expended, the failure to itemize the account of expenses, the obvious violation of the State law, the 5 to 1 decision of the Supreme Court, which saved Newberry from a prison sentence, Newberry’s failure to testify in his own behalf, etc. Among other things. Senator Pomerene, quoting a Mr. Hayden as saying to Newberry, ‘‘Why, you were not known in Michigan,” added: “Think of that—a lieutenant commander, a man of such distinguished naval service, who had his picture taken on a wooden battleship, in Central Park, and scattered it throughout the State of Michigan to show his wonderful patriotic services.” • • • Persons who recall tho Lorlmor case and Lorimer's expulsion from the Sen-

INDIANA DAILY TIMES, MONDAY, NOVEMBER 28,1921.

the grand lodge convention In October another large class was added. Another ceremoriy will be held early In the new year when the membership will reach over 500. The meeting next Friday night and the one early in the year will confer the degree upon Pythlans largely

ate will find by comparison that the Eorimer scandal was a minor one compared with the Newberry case now before the Senate. In Its largest aspect it is not Newberry, but the Senate that is on trial. It is for the Senate itself to determine what measure of confidence and respect It shall command from the people, by admitting Newberry to membership as desired by tho Administration forces or rejecting him as the evidence Justified and the public verdict demands. POORLY CLAD EAST SUFFERS Famine Victims in Grip of Cold Given Garments by Relief Body. . . NEW YORK, Nov. 2S.—Cold weather is causing intense suffering throughout the

living outside Indianapolis. The D. U. K. K. is known as the “playground of Pytliianisin.” Besides the temple in this city the.-: Is one at Evansville. The organization is a part of the Knights of Pythias order and has a membership of over 100,000 in the United States.

Near East, whero It has caught vast armies of refugees ill-clad, hungry, and without adequate shelter, workers of the Near East Relief from various areas overseas reported to New York headquarters today. “Conditions among the refuges moved here from Isrnldt and other towns on the l'eulsula are pitiful,” reports an American worker in Thrace. “Most of them escaped at the time of the Greek evacuation with little more than the rugged garments they wore. When cold weather came within twenty-four hours this week, relief headquarters was be sieged by a large crowd of humanity. Little children with kinly one tattered cotton garment nhook ns with the ague lu the cold wind arid sleet. During four days wo clothed 1,799 persons.” Russian and Armenian refugees in the camps of Constantinople are reported to be even worse off. Tho Near East Relief warehouse at Derlndje reports that appeals for clothing are being sent in by American relief agents in almost every area of the activities of tho Near Eilst Relief, from the Caucasus Mountains in Russia to the Aegean Sea.

URGES DEFEAT OF PANAMA FREE TOLLS MEASURE Indianapolis C. of C. Passes Resolution on Senate Bill 665. INDIANA IS CONCERNED Indiana Congressmen and Senators are receiving today copies of resolution passed by the board of directors of the Indianapolis Chamber of Commerce on Nov. 25, with a letter urging that the Senate bill 665 be defeated. This bill provides for free tolls for American ships through the Panama Canal. In the resolution and in the letter accompanying the resolution it is pointed out by John B. Reynolds, general secretary of the Indianapolis Chamber of Commerce, that this law would be in direct violation of the pledged word or the country to England, as expressed in the Ilay-Pauuce-foote treaty. The principal reason for the passing of the resolution by the Chamber of Commerce was that by allowing free tolls for American ships industries in the Middle West practically would be shut out of trade on the western coast in competition with eastern coast factories which could ship their goods* at low water rates, while the middle western industries would be forced to continue to ship across the continent at higher railroad rates. The resolution is as follows: “Whereas, article 3, clause 1, of the ilay-I’nuneefoote Treaty with Great Britain provides: “The canal shall be free and open to the vessels of commerce and of war of all nations observing these rules, on terms of entire equality, so that there shall be no discrimination against any such na-

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tion, or its citizeps, in respect of the conditions or charges of traffic, or otherwise. Such conditions and charges of traffic shall be just and equitable; and • “Whereas, we, as a nation, cannot afford to subject ourselves to the criticisms which would be justly visited upon us for | such a flagrant disregard for treaty rights of other nations if the Senate Bill 065, introduced by Senator Borah. ; which provides for free tolls for America jon coastwise ships which pass through : the Panama Canal, is enacted Into law: and ‘‘Whereas, the Inducements to the inferior of the United States to subscribe to the building of the Canal was that the Canal would be a regulator of freight 1 rates from coast to coast and that these, I in turn, would regulate rates to the in terior; and ; “Whereas, this automatic regulation : cannot occur until revised interstate eoin- ! merce laws provide a rigid, and not an optional, long and short haul law: and 1 “Whereas, any legislation that has the effect of enabling coastwise steamships to reduce rates, automatically diverts tonnage from the railroads that is essential to the restoration of the proper financial status of the railroads of this country; and “Whereas, the passage o's the proposed bill would not only mean substantial ln-

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crease of taxation of the interior for the benefit of consumers, manufacturers and merchants on the Atlantic seaboard and Pacific Coast, but would, as well, place the manufacturer and merchants of the Atlantic seaboard and Pacific Coast and contiguous districts in a more advantageous position to compete with merchants and manufacturers of the interior, to the extent that reduced coastwise rates would reduce the cost of merchandise; now, therefore, be it. "Resolved, that the boaul of directors of the Indianapolis Chansber of Commerce is opposed to the free passage of any traffic through the Canal and to the reduction of any toils until such time as the revenue from the Canal tolls equals the cost of operation and maintenance, plus interest on the bonds issued to cover the cost of construction of said Canal and provision for amortization of said bonds, and that we are unalterably opposed, at any time, to the enactment of a law that will give free passage to American ships, or reduced rates to American ships, in violation of our pledged word as expressed In the Hay-Paunce-foote Treaty; and be it further “Resolved, that a copy of this resolution be sent to the President, the Senators and Congressmen or this State and others interested in this vitally Important matter.”

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