Evening star., 1914-10-13
GR0NNA ASSA|[S
WAR TAX MEASURE
North Dakota Senator Finds
Real Reason for Levy
With the Democrats,
CALLS EXTRAVAGANCE AND
TARIFF LAW RESPONSIBLE
Says Administration Is Making Mis-
take in Not Using the SIS, ,00O,-
ZOO in National Banks.

WV III NaClOU6l BANKS.
Voting ON items in the war revenue
hill began this afternoon In the Sem
ate. the proposed tax Of $1.75 per bar
rel on beer being agreed to without a
roll call. Discussion of the proposal
to levy a tax of cents a gallon ON
rectified vvhiskey followed this vote.
Senator Gronna Of North Dakota to-
day assailed the war tax bill in the
Senate. declaring that had it not been
for democratic extravaganza and mis-
management there would not now be
any talk of levying additional taxes On
the people. He said that the failure Of
the democratic tariff law also was re-
sponsible for the falling Off in the
customs revenues for this year.
The real reason for levying these
additional taxes" said Senator Gronna,
I'VE find when we consider the appro-
priations for the present session. The
total appropriations for the present fis-
cal year. exclusive of the river and
harbor law, is $1,0S9,000,000. Last year
it was $1,057 100000, or $34,000.000 less
than this year."
oeHdIOT ITOnnd insisted InaG inc
President and his administration were
making a mistake in not using the
$75,000,000 of government funds now
deposited in the national banks instead
Of levying more taxes on the people.
Failed to Live Up to Pledges.
Can it be maintained that conditions
are such that it is necessary for US to
impose additional taxes on ourselves
in order that the banks may have this
money!" asked Senator Gronna I'VE
are not at war; the great struggle in
FL Europe affects us only indirectly. In
the countries that are engaged in this
struggle, l believe. banks are called
upon to aid the government: in this
country we are told that at this juno
ture the government should aid the
banks even if we have to tax ourselves
in order to do So"
Senator Gronna declared that the
democratic party not only had failed
to live up to its pledge to use economy
in government expenditures, but had
failed to live up to other pledges, one
of which was to reduce the cost Of liv-
ing through legislation. The new
banking pan and currency act. he said. was
the President is Insisting, he said, that
a law be enacted for the purchase of
! merchant ships by the government.
Senator Gronna insisted that this did
not go well with the democratic plat
merchant marine should be fostered
but without imposing additional bur-
dens on the people and without boun-
ties or subsidies from the public treas
ury.
Senator HitchcockIs Amendment.
Senator Hitchcock of Nebraska ha,
introduced amendments to the wal
tax bill increasing the proposed take,
| on tobacco as follows: Manufacturer,
of tobacco whose sales exceed 400, ,00t
and do not exceed 100000 pounds an.
nually shall pay $96, and in addition
| thereto surtax of 20 cents for eacf
thousand pounds in excess of 100000
pounds.
Manufacturers whose annual sales
exceed 100000 pounds shall pay s116
and in addition thereto a surtax Of 81
cents for each thousand pounds in ex.
cess of 100000.
Another amendment offered by Sena-
tor Hitchcock proposes that in addition
to the present tax of cents per pound
on all tobacco. a special surtax to
| tobacco in excess of 100000 pounds
manufactured by any manufacturer
during any year.
The amendments offered by Senator
Hitchcock are in line with his night
made during the consideration of the
tariff law last year against monopoly
in the tobacco business.
Tax Wool and Sugar, Says Weeks.
Senator Weeks of Massachusetts, at
tackled the war revenue bill declaring
that it proposed a tax ION consump-
tion," which has always been de-
nunced by democrats. He read from a
speech made by Representative Under
wood against the Spanish war tax
bill in 1898, and asserted that the demo-
Gratis were now proposing a tax along
the lines which they then vigorously
opposed.
Senator Weeks suggested the resto-
ration of the duties on sugar and wool.
Cotton Men Have Amendment.
Following a conference of southern
senators today, Senator rHoke Smith
announced that an amendment to the
war tax bill would be offered. design
ed to aid the cotton farmers, providing
for the issue of $250, 1000, 900 of govern
ment bonds in small denominations,
with which the government shall pur-
chase cotton at not exceeding 10 cents
pound. The bonds are to pay per
cent interest and to run for three
years. The government is not to sell
any Of the cotton SO purchased until
1916.
I'm order that the government shall
run no risk OF losing py the transac-
tion. the amendment will provide for
a tax of one-half q cent or one cent
pound on cotton produced in 1916, 1917
and 1918. to reimburse the government
for any loss 1t might sustain.
I'VE intend that the cotton industry
shall bear the burden and that it shall
not be shifted to the government"
said Senator Smith. II believe that the
amendment will be adopted by the
Senate"
PRESIDENT IS INVITED,