New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-19
Check TaxLost,
Senate to Raise
Levy onProfits
Incomes and Liquor Expected
to Bear Increased
War Burdens
Especial Correspondence

WAShlNGlON, aug. lo.-r ollo"lhs
the vote to-day by which the Senate
eliminated all proposed stamp taxes
on bank checks, it was predicted by
Senators that when the revenue bill
passed the Senate it would be limited
to three big classifications of taxes
war profits. incomes and liquor i'm
posts.
If this proves true, and it seems
probable, Senator La Toilette for the
first time will have won big fight on
a revenue bill. Although this would
be getting further away from the idea
Of the House Ways and Means Com
mittee than the present Senate meas:
ure, it is thought that the House lead
ers would he willing to accept the
measure for which the radicals are
fighting.
The showing of strength behind the
move to eliminate the petty consump-
tion taxes, as that on bank checks was
characterized, disturbed some of the
old line leaders, who thought the bill
would pass pretty much in the shape
it came from the committee.
Some Senators Not Displeased
While still protesting a confidence
that the move to increase heavily the
war profits tax would be beaten, the
old line leaders obviously were little
shaken after the adjournment of the
Senate to-day. Some of them secretly
are not dissatisfied with the prospect,
though they intend to stand openly
behind the committee report
There are Senator's on the committee
who have defied big corporations in
their states in imposing heavy war
profits taxes and would shed only
crocodile tears at having radical
programme forced on them. Such
course would have two effects that
would not be displeasing to this group
of Senator'S. In the first place, IT
would demonstrate to the corporations
in question that as a matter of fact
the attending Senators. who in COM
mittee levied such heavy taxes on wax
profits, really we're more benevolent
toward the corporations than their
colvagues. The natural assumption
would be that their friends in the SEN
ate had dealt with the corporations
as kindly as they dared.
Then there is the little outcroppIng
of human nature. These corporations
have dared, in some instances, 10
break with Senators because the Sena-
tors were unwilling to write clauses IN
the bill protecting particular INDUS
tries. Now these corporations Will be
taxed more than their former friends
in the Senate had intended. This
doesn't displease the Senator'S.
Cotton Mill Owners Displeased
The cotton mill owners, particularly
in the Southern States, it is said, have
been disappointed in their failure to
obtain concessions. These mills are
understood to be hit particularly hard
by the Senate plan of taxing war prof
its. as compared with the House plan
of levying on excess profts.
The Senate plan takes as basis the
normal profits of the few years preced-
ing the outbreak of the European war
and levies a tax on the amount by
which present profits exceed them. It
is the system followed by England, and
is more accurately called war prot
its tax"
The grievance Of the cotton mills is
said to be that just before the war
they had a period of very poor earn
ings. Many Of them had just started.
So that the amount of taxes they would
pay under the House plan would be
inconsiderable as compared with the
alice of their earnings the Senate plan
would take.
In disposing of the minor disputes
Of the war tax bin the Senate, by
vote of 38 to %, struck out the pro-
vision for a 1-cent stamp tax on bank
checks, drafts and certificates of de-
post, designed to raise 100000 in
revenue.
Parcel Post Tax Amended
On the first roll call the Senate re-
tanned. % to q, the committees pro-
vision for a 1-cent stamp tax on trans
portation of parcel post packages
amended so as to exempt packages
costing under rs cents. For each addi-
tional 25 cents charged further l cent
tax would be imposed. From the parcel
post tax s2,000.000 in revenue is esti-
mated.
An amendment to prevent eXpending
any money raised from the bill in
transporting men to Europe who have
not volunteered for such service was
introduced by Senator Gore. The Ok
lahoma Senator said his object was to
conserve American man power. He de-
elared that the total number OF men OF
draft ages in all the Allied countries is
nearly equal TO the population Of Ger
many and that there was no desrth in
man power among the European coun-
tries now at war with the Central
Powers.
what we need most is not men. but
munitions, arms, weapons and sup
plies" he said.
The amendment was passed over
without action.
Il