New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14
Southern Senator's Force
Change in Charge on
Munition Makers.
p,G CORPORATIONS
ARE LEVIED UPON
4, ou,is Sees Danger in Huge APP
oropriations and Would
Issue Bonds.

From The Tribune Bureau
Wellington. Aug. 1S.-Fear that
~ might be taxed as one OF the
s.,.,onent parts" Of war munitions
- hurried realignment in the
o.-,o,rstic caucus to-day. The com
,;.,,;on Of many Of the cotton states
s...,ors led by Underwood, Of Ala
-. who also represents the Biz
-:.chsm iron and steel district
~ che Western copper" Senators,
.ov,s TOO strong for the Senators
'rr,or.ing the committee. led by SIM
IN. A compromise was effected
-,,-.bv the tax on component parts
N he 8 per cent on the profits, IN
tad Of 10 per cent. The tax on mu-
,;,ions remains at 10 per cent Of the
profits. ,,na.r
.,os faction. who fought on for the
.rri,s,ion Of the entire section tax
:, component parts" A vote on this
,o.sl was finally had, and the tax
!, component parts was retained. 20
ol5. .. .,.h..o
..,;,,l totals more than 100000 was
.,,,oved by the caucus. This is
lew # so cents on each thousand dol
,,r. Of capital. surplus and undivided
rros,s after the first 100000, which
I. EXEMPT. The Senators figured that
,bis would WELD about S2O'OOO'oVO an
rusllv and would more than make up
~ TIE cut in the munitions TAX ana
siso for further cuts IN the stamp
taxes.
Stamp Tax Cut Down.
While the stamp taxes were not en-
-. rsroved. the caucus decided 70
eliminate those on express, 1relghI
,s,onIone and telegraph. The tax on
p,Iirosn tickets will be retained, but
= viii be one cent, the tax imposed
in me present war revenue law, ana
20, TWO cents. as it has figured so lar
in the pending bill
Resides striking out many OF the
s.amp taxes the caucus also raised the
.eysmption from the tax on conveyances
from 500 TO $500.
proposal that bonds be issued 70
run the government, instead OF levy
ing the heavy imposts proposed IN the
nendinr bill. which, he pointed out,
we're likely to have dire political re-
suits. was made by Senator Lewis, OF
Illinois, and greatly disturbed the
c.ucus. Discussion of the Lewis pro-
possl consumed most OF the days SEES
sion OF the caucus and was finally
sidetracked on the suggestion of Sen
ator Swanson, Of Virginia, that as
the proposal was virtually a substi-
tute for the entire bill the items OF
the bill should be perfected first. This
Was approved, and means that the vote
on Senator Lewis's motion will not be
taken until the entire bill has been
thrsshed out by the caucus. Besides
Nr. Lewis, Senators MARITIME, Chiffon
Hardwick and Underwood advocated
the PROPOSAL in speeches, while Sena-
tors Simmons, Williams, Thomas and
Smith. Of Georgia, opposed 1t.
Mr. Lewis said thereswere plenty OF
Panama Canal bonds to meet all the
fiscal needs of the government unit.
January I. Congress, he urged, vii
meet early in December, and could
then. with the election safely over
levy such imposts as might be neces'
sary 10 supplement the revenue pro-
duced By existing law. BY this course
he urged, the political dangers Of the
additional taxes would be avoided.
Appropriations Beat Record.
With the passage this week of the
S50O00O00 ship purchase bill and the
probable approval by the House Of the
Senate naval bill, the appropriations OF
the Sixty-fourth Congress will have
exceeded the previous high record by at
least half q billion dollars. While eX--
act figures cannot be computed until
the gavel has fallen on the last supply
bill Of the session, the aggregate appro-
prations by Congress for all purposes
probably will approximate Sl,7OO,OOO,-
900. as against S1,114,000,000 for the
SIxty-third Congress.
Besides regular supply bills, which
totsl as they now stand Sl,3oI .2O6,5eO,
Congress will have added, when the
shipping bill is approved, more than
S90,00O000 for special purposes. There
also have been contract authorizations
amounting % about SPOT 100000, all Of
which would bring the grand aggregate
70 Sl,6S5O00,O 600, with the uncertain
general deficiency appropriation bill,
still in the making, to be added at the
end Of the session.
Some Of the Big Items.
Special appropriations include 800
100000 for a government nitrate plant,
S6,O00000 for good roads, S15,0O0,OOO
Tor rural credits and $50, 10000 for the
government shipping project.
General supply bills that enter into
he sessions total are as follows: Post
ONCE, S322.326,579; navy. yet TO be APP
proved, S315,S26,843: army, 1851 $751;
700; pensions, s15S,060,0O0; sundry
evil. Sl2s,396,445: rivers and harbors,
A9SS6OS5: legislative, executive and
judicial. $37,925,690; army and navy
md other urgent deficiencies, S31,Ol2,-
vs.: agricultural. S27000,000; fortiiii-
cations, S25,740O5O; District Of Column