Monday, Jan. 14, 1929
The Congress
Work Done. Reconvening after the holidays, the House last week: P:Abolished the cloakroom lunch counter, which Commander George W. Calver, U. S. Navy, health-guardian for Representatives, called "the most unsanitary eating place in the District of Columbia." P:Debated credits and refunds on income taxes (see below).
P:Heard Congressman George Holden Tinkham, of Massachusetts, demand investigation of alleged propaganda fund raised to support Kellogg Peace Treaty. Heard a 1930 War Department appropriation of $435,428,415 reported by the Military Affairs Committee. The appropriation provides for a U. S. army of 118,750 enlisted men and 12,000 officers.
Tax Refunds. Large corporations pay large income taxes, sometimes get large refunds back from the government. According to Representative John N. Garner (Dem.) of Texas, the U. S. Treasury has paid $2,000,000,000 in refunds and secret credits to taxpayers, during Andrew W. Mellon's term as Secretary of the Treasury. Congressman Garner called the Treasury Secretary a "Santa Claus" to large corporations, objected particularly to refunds made to the U. S. Aluminum Co., controlled by Mellon interests. Claiming that Aluminum Co. refunds totalled $1,267,426, Congressman Garner said: "Mr. Mellon, this grand Secretary that you hear so much about today, this man who will never perish from the thoughts of the American people when we are gone and forgotten, this man sits on that side of the table as Secretary of the Treasury and if reports are correct that he owns the Aluminum Co., Mr. Mellon, the citizen of Pittsburgh, Pa., sits on this side and determines how much he owes the government."
Angry, Mr. Garner demanded an investigation of tax refunds and credits, wished to find out why there are such large discrepancies between income taxes as first paid by large corporations and as finally paid after deduction of refunds and credits. His resolution will be voted on this week when the Deficiency Bill of which it is a part is passed upon. As the House will presumably divide along partisan lines, it is not likely that Mr. Mellon will find himself investigated.