Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1914-09-10
President Disapproves Sug-
gestion to Amend Law So
as to Make Up Part of the
Deficit in Treasury from
This Source.
LATER SCHEME
NOW PROPOSED
Abandonment of Rivers and
Harbors Bill Which Advo-
Gates Say Would Make
War Tax Unnecessary =
Other Propositions.
ASSOCIATED PRESS DIsPATcH1


WASHINGTON, Sept. 9.-The presi-
dents disapproval of the proposal to
increase the income tax as a means of
raising revenue to offset the treasury
deficit caused by the European war, set
the democratic members of the ways
and means committee to revising their
plans. They will renew their effort to
draft a war revenue bill tomorrow. The
president made his attitude known at
q conference with the democratic lead
ers in congress.
Preliminary steps were also taken
by the democratic senators to readjuSt
the pending $53,000,000 rivers and har-
bors appropriation bill against which
the republican senators conducted a
filibuster on the contention that the
500, 100000 war revenue bill will be
unnecessary if the new projects pro-
posed in the bill be abandoned.
Senators Burton. Gallinger, Borall
and others insisted that the bill in us
present form should not be passed, par
ticularly in view of the financial emer-
gency now presented. The senators
who champion the bill asked the war
department for revised estimates on
the amounts absolutely necessary to
carry on the existing river and harbor
works and the most urgent new pro-
jects in anticipation of pruning the bill.
1t was reported tonight that a con-
ference between the republican sena-
tors opposing the bill and democratic
leaders was held at which suggestions
were made for a compromise. paving
the way for an early adjournment and
removing much of the senate opposi-
ton to the war revenue tax.
The democratic members of the ways
and means committee conferred infOr-
mally today. They were not all disap
pointed by the presidents disapproval
of their decision to increase the income
tax of one half of one per cent, to de
crease exemption. The presidents
principal objection is said to be that
such d tax was Immediately available
and therefore undesirable.
Chairman Underwood. discussed the
subject with the president. He is In
: clined to agree with this view and It
is probable that an income tax
amendment will be proposed
Cigarettes will probably be added to
! the list of taxable commodities already
agreed to. such as beer. wines and rec
titled spirits. A plan is also under
! consideration to make the tax, on beer
one dollar a barrel which will yield
S65, 1000 900. That amount together with
, SO, 100000 from wines. s9,000.000 from
| rectified spirits and probably s. 600, 900
from cigarettes and probable taxes on
railroad freight. gasoline. automobiles.
some proprietary articles and soft
drinks. it is estimated will yield all the
revenue necessary. particularly If it is
determined not to appropriate all of the
$4,000, 600 proposed for rivers and har-
Dor work.
Representative Oglesby of New York.
N q letter to the committee suggested
a tax Of 80 cents a horsepower on au-
| tomobiles. not engaged in commerce
and a tax on golf balls. He estimated
that s25. 100000 would be realized from
an automobile tax. Official estimates
however, are that s15,oOo,0OO would be
raised on motor cars.
The proposal to put a general tax
on railroad freight is the main ques
ton now before the committee The
real issue is said to be whether to make
UP the necessary balance of revenue
by tax on freight traffic or by diffus-
ing the tax among many lines of bust
ness. a levy on freight. it is estimat-
ed would easily produce s40.000.0OO rev
enue but there is considerable oppo-
sition in both houses This question
will be decided tomorrow.