The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1914-09-12
Fight DECLARED
ON Freight TAX
President May Find 1t Neces-
sary to Heal Breach in
House Committee.
CHARGE OF BAD FAITH
Opponents Claim Underwood Told
Wilson Only Half the Story. and
Want a Hearing Themselves.

| Opposition to the freight tax provi
| sion in the administration emergenc!
revenue bill has reached a stage wher'
IT may be necessary for President vii
| son to interpose in an effort to com
pose the differences that divide his part,
colleagues A charge OF bad faith hai
been made against the Underwood lead
ership apropos Of the adoption Of th'
| freight tax
The statement was made yesterday
that President Wilson will be told short
| ly that in the conference that he haC
with Mr.. Underwood, at which Mr.. VII
son gave his approval to the freight
tax, only half the story was told. Those
who want to tell the President th'
other half Of the story insist that wher
the President hears It he will insis
| upon the abandonment of the proposed
| assessment Of s65,ooo,Ooo on the shipping
public.
Disclosures Are Made.
It was disclosed yesterday that the
freight tax was adopted as a result OF
strong pressure exerted by the admins
tration. On the initial vote taken in
committee Thursday the freight tax was
rejected by a vote of seven to four.
Leader Underwood then told his col
leagues that the tax was approved by
the President, and that It was the duty
OF the committee to adopt II as an ad-
ministration proposal. Mr.. Underwood
got the White House on the telephone,
and shortly thereafter another vote was
taken. On this vote the freight tax was
adopted six to five.
Sharp exchanges were passed be-
tween Representatives Underwood and
Kitchin. leaders. respectively, of the
two factions. Mr.. Kitchin said that in
his opinion the President accepted the
freight tax, and then gave IL his in
dorsement without a full understanding
OF the facts. He expressed the hope
that he would be given an opportunity
to tell the President the facts. and
he hazarded the opinion that when the
President heard the facts he would d.
rect that the bill be revised.
Mr.. Kitchin then made a motion that
a Democratic caucus be assembled to
pass on the bill. There were ten mem
bers present. Five voted for the
Kitchin motion and five against 1t. Ac-
cordingly the motion was lost. Repre-
sentative Stanley. of kentucky. a sup
porter of the bill as it now stands.
moved that a rule be recommended that
would prevent the offering OF amend
ments to the bill in the House. This
was adopted.
Strength of RevOIters.
Representative Kitchin has associat-
ed with him in the revolt against the
freight tax four other members of the
Ways and Means Committee. They are
Representatives Garner. OF Texas: Hull.
of Tennessee; Dickinson. of Missouri
and Collier, of Mississippi. 1t is pos
sible for the revolters. even in the
face of the committee vote against,
to have a caucus called on the revenue
bill. This doubtless will be done IN
less the President directs otherwise.
The freight tax is opposed by Repre-
sentative Kitchin and his supporters on
the ground of political expediency. They
argue that an assessment Of SIS. 900 on
the shipping public, which would be laid
upon the consumer. might materially ad-
vance the cost of living. They say that
jobbers and dealers generally would in
crease prices to raise the tax. and that
frequently increases would be made far
beyond the amount Of the assessment.
They regard the imposition Of such a
tax on the eve of an election as a monu-
mental political blunder.
The bill will be offered formally in the
House today. Unless there is another
change Of program. the Republican men,
Oers Of the committee will be invited to
meet with the majority Monday morning.
Mr.. Underwood will ask for an immediate
report. He wants to call up the bill in
the House Tuesday.
Trouble Ahead in Senate.
There is trouble ahead in the Senate
for the war revenue bill. 1t is not con-
fined to the Republican side. Many
Democrats believe that a mistake is
made In attempting to raise revenue byI
taxing freight shipments. There is vio-
lent opposition on the Republican side.
Senator Gallinger is preparing to cali
the Republican Senators in party con-
ference to organize a fight on the bill.
A number Of Democratic Senators, among
them Senator Lewis, of Illinois, Senator
salisbury, and Senator Thomas, OF Colo
RADIO, expressed the opinion that a stamp
tax would be a much more popular
revenue measure than that proposed by
the House leaders.
Chairman Simmons, OF the Financed
Committee, probably will call a meeting
Of his committee next week to consider
rauapnn