Evening star., 1914-10-07
Caucus of Democratic Sena-
tors Abandons Hope of Re-
porting Measure Today.
DEBATE OF AMENDMENTS
IN PROGRESS AT RECESS
Senate Adjourns Until Tomorrow in
Order That Conference May
Be Continued.

All chance of reporting the war tax
bill to the Senate before tomorrow
vanished when the democratic caucus
after meeting for an hour today took
a recess until 1 o'clock this afternoon
without having completed work on the
bill. The caucus had before it the tax
on domestic wines at the time of the re-
cess.
An amendment to the bill offered by
Senator O'Gorman of New York, pro-
viding for graduated tax on the pro-
duction of cigarettes similar to that
on the production of cigars, was adopt
ed by the caucus, The tax ranges from
Sc to 500, according to the volume of
business. The bill as framed by the
finance committee provided merely for
a fiat tax of s24 upon manufacturers
of cigarettes.
The caucus also adopted another
amendment offered by Senator OGor-
man, which provides that the stamp
tax on transfers of real estate shall
apply only to the actual interest in
volved in the. transfer. Senator OGor-
man explained that by his amendment,
if house was sold for $4,000, upon
which there was mortgage OF $1S,0OO,
the tax would be paid only on $4,000.
In order to permit the democrats to
reassemble in caucus the Senate ad-
journed at 1 o'clock until noon tomor-
row.
Beer and Whisky Included.
The caucus of Senate democrats on
the war revenue bill failed to COM
plete its labors last night and recessed
just before midnight. Decisions had
been reached, however, that impose the
bulk of the s100,0O0.00O emergency rev.
enue upon beer and whisky, which will
yield nearly $50. 100000 annually under
eliminated proposed taxes on gasoline
and automobile sales and cut in two
the proposed 81 per thousand tax on
bank capital and surplus.
First action of the caucus was to vote
an increase in the proposed extra tax
on beer from so cents to Is cents a
barrel. to make the total tax $1.15
barrel, with drawback Of per cent
for purchase of revenue stamps in ad-
vance. The amendment, urged by Sen
ator Williams of Mississippi. was car
ried by a vote of 20 to 16 after Senator
Stone had made vigorous speech
against it. A special revenue tax on
rectifiers of distilled spirits of cents
gallon was adopted.
Estimate of Possible Revenue.
Democrats of the finance committee
had agreed to the House tax of $3.50
a barrel on beer. which would yield. at
so cents barrel over the normal tax.
an added revenue of $32. 900 an
nualIy. The further addition of 25
cents a barrel by the Senate democrats
would yield another s16.000,000. With
the per cent discount for prompt pay
ment figured. the least to be derived
from beer would be approximately $46,-
100000
The proposed tax of cents a gallon
on rectified spirits. Treasury experts
estimate, would yield $5,000,000. Thus
would be more than half the anticipat-
ed Treasury deficit caused by the Eu-
ropean war.
When the caucus convened the first
amendment offered was by Senator
Williams, to increase the levy on beer
New Hampshire moved as a substitute
that the tax be made 81 a barrel. This
was voted down after prolonged debate
Two Items Eliminated.
After two-hour discussion the eau
Gus voted. 20 to II, to strike from the
bill the proposed tax on gasoline. The
committee had reduced the House tax
from cents to 1 cent a gallon.
The caucus then took up the proposed
tax OF 30 cents per horsepower on
manufacturers sales of automobiles.
After considerable discussion the eau
"us struck out the automobile sales
tax. which, it was estimated, would
have raised about $1O,0OO,OOO.
The caucus also revised the tax on
anking capital. AS framed by the
levied 81 for every thousand dollars of
banking capital and surplus. This rate
was reduced to 81 per thousand by a
vote of &c to IL.