The Washington times., 1914-09-16
BEGIN WRITING WAR
REVENUE MEASURE
Democrats Decide on Stamp
Tax and Duties on GasoIene
and AIcohoIs.

The Democratic members of the ways
and Means Committee began the writ
ing of the caucus bill TO raise $4,000, ,oOI
in revenue to supply Treasury def
ciencies during the European war.
When reported the bill will be the
third offered by the committee mem
bers, the President having rejected the
principal provision of the first tenta-
tive bill. and the caucus last night
indicating its unalterable opposition to
the freight tax proposed in the sec
ond bill drawn.
Following the action of the caucus
last night, Majority Leader Underwood
said today that the work cut out for
Democrats of the Ways and Means
Committee is largely mechanical. The
caucus directed a tax on beer, wines,
gasolene, dealers and manufacturers IN
tobacco, and borrowed Scheduie a, -, OF
the old Spanish war tax of 1898. This
means a revival of the stamp tax on
all commercial paper, such as drafts.
checks, deeds, bills of lading, tele-
grams, and certificates, and also That
bankers and brokers will pay a speclal
internal revenue tax graded according
TO the size of their business. A tax
win also be placed on the proprietors
of theaters and bowling alleys.
Tax On Beer.
The tax on beer will be so cents bar
rel, bringing an estimated revenue OF
s22 5cO 900; there will be Il cents per
gallon tax on dry wines, and 20 cents
on sweet wines, producing about ss'V"'-
90: a cents per gallon tax on gaso-
lene is counted upon to bring In Szo'V"'-
600 a year, and the re-enactment OF
schedule A of the old Spanish war tax
is estimated to produce about sio,eOO.ce.
"Th caucus fixed definitely the rates
on beer, wines and gasolene, said MI
Underwood. 'and then directed the COM
mittee to produce the remainder OF the
revenue needed by a tax substantially
the same as was levied in schedule A OF
the SPANS war tax.
The committee has discretion under
its instructions not to include some of
the items in the Spanish war tax and
to vary the rates, but they will be sub
stantially the same and there will be
a tax imposed on commercial paper,
bankers, brokers, proprietors of amuse-
ment places and dealers and manufac-
-urers handling tobaccos.
1T will take two or three days for
the Democrats of the Ways and Means
Committee to whip the bill into shape.
The provisions taxing beer, wines and
gasolene are easily written but more
time will be required for the writing
of the sections relating to a stamp tax.
The bill should be ready for introduc-
tion by Saturday"
Prepared To Revolt.
When the caucus convened last night
Congressman Page of North Carolina
moved that the Ways and Means Com
mittee be instructed to abandon its pro-
posed tax on freight shipments. Loud
cheers greeted the motion, indicating
that the Democrats were violently op-
posed to the freight tax and were pre-
pared to revolt. as had been demon
strated for several days.
Mr. Underwood obtained the floor and
began the making OF a conciliatory
speech. He said that this was not time
for party disruption and that neither he
nor the President wanted a break with
the House rank and file. Mr.. Under
wood frankly said that he had induced
the President to support the tax on
freight because IL was believed eXpedi-
ent and easy of collection. Secretary
McAdoo, he said. also wanted the
freight tax.
Having sensed the opposition, how
ever. Mr.. Underwood said he would
offer q counter-proposie-on which had
the approval Of the President The I'm
derwood harmony speech was ap-
pleuded,, and when he announced the
abandonment Of the freight tax, which
had stirred up so much trouble, the
caucus became a get-together gather
ing. The adoption Of the substitute bill
for a revival Of the old Spanish war
tax was accomplished after many men,
bers had offered their own pet taxation
projects which. in the majority Of in
stances, were hooted down.
Congressmen ShackeEord and Hohson
advocated delay until the regular ses-
sion, but their suggestions met little
progress, because the majority leader
said the President was convinced that
the emergency revenue bill ought to
20 through now.
More than 200 Democrats attended the
caucus, and for a time il promised to be
a riotous affair. When the freight tax
was chucked overheard, however, the
Democratic legislative ship righted
itself and sailed along smoothly.
Decision 10 abandon the freight tax |
will by no means remove opposition to |
war taxation.
In the Senate there promises to be a /
prolonged fight. Republicans say that |
war taxes are not needed, and that the |
Is intended to cover up what /
would have been a deficit in the treas
ury without any war II is also intend
I'd. they hold. TO make il possible to put
through the pork barrel river and |
harbor bill: and. further. to enable tn"
treasury to keep large Government de
posits in the banks.
The war tax developments max" the I
lime Of ending the session extremely 4
uncertain. Many preui lotions were cur
rent today that the present session VIII !,