Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-09-12
HOUSE HOLDS UP
WAR TAX MEASURE
Revenue Bill to Be Withheld
Pending Return of Presl-
dent to Capital.
FREIGHT TAX CLAUSE
AROUSES ANTAGONISM
Democrats to Hold Caucus on Bill.
"Tax Luxuries, Not Necessities"
Is Slogan.

Because Of a democratic revolt IN the
House against the freight tax proposed
In the war revenue bill Democratic Lead
er Underwood today decided to await the
return of President Wilson to the capital
before introducing the measure.
This followed a conference between Mr..
Underwood, Secretary McAdoo and Post
master General Bur1eson,
It was said at the Capitol this after
noon that Mr.. Underwood's course in
postponing offering the bill in the House
was satisfactory to many democrats, who
felt that such an important measure,
likely to. have such grave bearing upon
party politics, should have the indorse-
ment Of the titular head of the party In
every respect.
Many democrats. it is said. would
hesitate to take the responsibility for
the proposed legislation unless it were
shared by the President.
Radical Changes Possible.
The assumption on the part of many
democrats was that the holding up of
the bill until the Presidents return
opens the possibility of radical changes
in the subjects of taxation. Democrats
have understood all along that the three
items selected were the choice of Presi-
dent Wilson, but before they act upon
them they desire to have further as
surance from the Pres dent as to his
Judgment on the new plan Of taxation.
Representative Garner. one of the prin-
cipal opponents to the freight tax, was
called into the conference with the cabi-
net officials just before 1t closed. Neither
Mr.. Burleson nor Mr. McAdoo would dis
he Cd fY1rfh to
Mr.. Underwood's statement. Later they
went to the Senate. where they talked
over the matter with Senator Simmons,
chairman. and other members of the
financial committee.
Want No Freight Tax.
Democratic representatives who are up
in arms over the freight tax declared
that a caucus would certainly be held.
and that they believed they could defeat
the bill submitted by the majority men,
bers of the ways and means committee
Several southern and western democrats
initiated the action leading to the caucus
petition. The alternative they will pro-
pose fs an increase in the tax on beer
to 81 BARREL which would net an annual
revenue of $65. 100000, and an increase Of
the revenue tax on whisky and other dis
titled liquors.
tax on other luxuries will be sug-
gested. also. probably automobiles. The
slogan Of the fight will be Tax the lux
uries. not the necessities" and it will
be maintained that a freight tax will
AFFECT all the necessities of life, particu-
larly the food products
Underwood Refuses Comment.
Representative Underwood heard of the
revolt among the democrats and of the
nd for i,,o< NET
into conference with Secretary McAdoo
and Postmaster General Burleson to dis
cuss the proposed bill. He would make
no comment on the situation. however.
Caucus Is Certain.
Representative Garner. who is a men,
Der Of the ways and means committee,
said that a caucus on the bill was in
evitable.
I'VE cannot put this freight tax over"
said Mr.. Garner. That is all there is
to it."
Representative Dixon OF Indiana. an
other democratic member of the COM
mittee said that caucus would only
mean delay, that democratic members
would fight out their differences for a
few days and then pass the bill.
Under Three Divisions.
Representative Henry T. Rainey,
member Of the committee, today dis
cussed the three divisions of the pro-
posed tax. as follows:
Observation-Disclosures are very skillful and
all they have to do is to put on a little
more foam and the proprietor will lose
even miss the spoonful of beer he does
not get. Perhaps the tax will be an ad-
vantage even.. for it will give the con-
sumer just SO much less without his
knowing 1t.
"Wines.-Much of the wines made and
consumed in the United States are
made in the middle West-in Illinois.
Missouri and Ohio-out of Concord
grapes. fortified with grape brandy.
Many scientific gentlemen. headed by
wines thus made and sweetened, as
they must be. with sugar. are not
wines at all. but rum. and really in
furious to the public health. The more
these wines cost the less of them the
public consumes and the better 1t is
for the public health, SO the tax on
wines may be considered a public ad-
vantage for the consumer.
"Freight.-This tax will be felt not
at all by the consumer. 1t will be SO
infinitesimally small on a yard of cal
leo or four pounds of sugar that the
dealer cannot pass it along to the con-
sumer The retail business is so prof
liable now that 1t will not hurt the
storekeeper to lose such a small part
Of his profit. especially when it is a
guarantee of the continuance of his
business uninterrupted by the trade
cataclysm that has fallen upon other
countries.
Anticipates Prosperity Era.
Besides under the present. admins
tration the country is coming into an
area Of unprecedented prosperity. This
war revenue bill is the best we could
devise. Any war revenue measure must
be Objectionable. but we have striven to
make this the least Objectionable Of all
1t will be found far less annoying than
the old Spanish war tax.
.The fact that under the present ad-
ministration we are at peace with Mex
leo and all the world and likely to stay
SO should outweigh all other considera-
tions.
''This war tariff will not last long.