The Ontario Argus. (Ontario, Or.) 1???-1947, 1916-03-02
TAX ON SMALLER
INCOMES UNLIKELY
Democratic Leaders in House
Decide to Put Defense Levy
on Sums Above $4,000.

Washington--The proposal to amend
me income tax law TO as to include
smaller incomes virtually is certain
TO be abandoned i'm favor of an in.
creased rate on those already taxed,
It was declared by democratic house
leaders.
Sentiment against lowering the ex-
emption limit on the order TO provide
additional revenue for the prepared
ness program crystalized, Il was said,
In the democratic caucus when Demo.
cratic Leader fitchin declared against
changing the present minimum OF 49,.
600. Since then protestants against
all reduction plans have become more
Outspoken daily.
Leaders declared that virtually the
entire preparedness revenue burden
would be met with income taxes. Ten.
tative bills looking to raising $780,.
100000 solely by an increased income
tax rate are being discussed and will
be offered soon in committee.
Although neither the naval nor mill.
tary affairs committees has indicated
what amount OF money will be needed
TO meet the expenses OF preparedness,
Il generally is understood that for the
first year II will be close to s03,0O0..
600. Tentative plans, II is said, will
proceed therefore on the theory that
about SlOOOOO,OOO will be needed.
Harvester Company In sisal Probe.
The investigation OF charges that
American financiors have attempted
TO monopolze the sisal crop OF Yuon.
tan. Mexico. was broadened TO include
An inquiry into whether the lnterna.
tional Harvester company sought by
lntimldating American bankers 10 pre-.
vent sisal planters from obtaining
money TO market their crops.
The agriculture committee OF the
house conducting the investigation de.
cided to call as witnesses President
Mccormick aud other officials OF the
harvester company aud Arthur Roy.
nolds. vice president OF the ContInon.
tai a. Commercial National bank. OF
Chicago. and TO ask the bank to sub.
init a record OF the balance maintained
thoro by the company during the last
three years. Officials OF the National
City bank. OF New York. viii be- asked
10 testify. too. regarding charges that
the harvester company also oxcrtod
Influence en- that institution.
Outline Of Berlin Reply Is Forecast.
Germany response 10 the latest re.
qIp., ui the United states for assur
aac,s hat submarine warfare viii be-
conducted n accordance with cstab,
liah.I principles OF international law
Is expected ."fe 90 Do a flat statement
that uErur.gops previously given In
the Lusluu'g and Arabic cases had 10
do only y... ma.mgd ,,ssols. and
that the German government must
feel certain that its submarines which
warn "a merchant ship viii not be- at
tackled. Furthermore, the Berlin for
oign office probably viii nsk the Unit,
cd states for i;s definition OF dofon-
siyo armament
Indications OF whaf 'Hn German re-,
ply may be are ul uld 10 have
been given IN infor mycraauons
between state den yt officials
and Teutonlc dip. since Ger
many and Austria 20 their In,
tention OF sinkIns ned enemy
merchantmen after ',.r.ay 20.
Niearaguan Tres'y Ratifled.
Tho senate hy a ,. II 90 10 IS,
ratified the lonsp, ana persist
entity opposed Mic cra m treaty,
whereby the United EHts would ac.
Quire a 9ayear option oa the Near
aguan canal route aui a naval base
in the Gulf OF Foncsca for S3,OOOOOO
Included In the ratification resolu
tion was a provision declaring that the
United States, Boa obtaining the naval
base, does not intend TO violate any
existing rights in the government Of
Costa Rive, Honduras ana Salvador.
which had protested against the pro-
posed requirement.
Five democratic senators voted
against the treaty They were Cham,
berlain, MARITIME, Clarke of Arkansas,
and Vardaman. Republicans
who voted against the ratification
were Borah, Clapp Cummins. Gronna,
Jones. KENYON. La Toilette, McCum-
ber, Nelson, Norris, Smith of Michi-
gan, Smoot and Warren. Fifteen re.
publican senators joined the admins
iration forces in support of the treaty
They were Brandegoe Colt. Dillng.
ham, Dupont, Fall, Gallinger, Hard,
Ing, Lippit Lodge, Mclean, Page,
PoindeXter, Sutherland, Wadsworth,
and Weeks.
Great Britain's Delay Vexes U. S.