New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-31
Agreement Is Reached
After Threat of
Cloture
War Profits Tax
Causes Contest
Income Levy To Be Acted
Upon September 7; Many
Amendments

WASHINGTON, Aug Soy u ~
nous consent the Senate to-day 'fee'
o. vots on the $1,000, 100000 war rove
rus bill at 4 p. m. Monday septem-
Der 10. 81. Arm
TIL. agreement was made whiie lhe
49,. of a cloture rule WAS hanging
over the heads of obdurate senators.
Tbs withdrawal Of the petition t0'
cloture. which would have come up iOi
voto tomorrow, was included IN tne
,;r,ops consent agreement.
The agreement also sets special oN'eS
sor voting on the war profits tax sec''o"
.rd the income tax section. Inc war
nroet. tax section and all amendment
,,ers.o will be voted on not later Ut Z"
o'clock September 8, and the 'n'O'" :,
..,on not later than 4 o'clock
September z. e,,.
Tor,v IN IN. day Senator Simmons
.ha;rmsn Of the Finance Commit'ee'
sought unanimous consent to vote upC"
49, hur next week, but Senator La Fol-
Ito .tsadfastly refused TO permit any
~ agreement until the war pror's
tax and the income tax provisions ""O
been disposed o.
Many Amendments Offered
Anticipating possible ADOPTION u
,,oture, many amendments were in''o
srced Senators Hollis, Gore ana
prodv snonsored provisions to increase
Tho war profits levy to rates ranging
from 20 to Sc % per cent. and senator
Ia Toilette presented substitute DILL M
designed to raise about s3'5oo'ooo'VoV
-~;no;no,,v from war profits, incomes
and liquor taxation. a ,oroe,,,
To-dav's debate was occupied laseeiy
~ senator Simmons, chairman OF the
y;,ancs Committee. and Senator onaer-
rood former House leader ana rev,
80 exnert. In a three-hour speech
~ latter vigorously criticised uhe
.nn,roittee's war profits plan, ana gen
stnr simmons, with show OF much ieel,
80 Attended the plan and at'acheu
c..or Rankhead's substitute, sup
norted by Mr.. Underwood NIL;
To-morrow Senator Smoot, Repuoh'
member of the Finance Committee
LII resume speech opposing the
panLbead substitute. He is TO pc 1ol'
inn,nd nv Senator La Toilette with an
address advocating much hlgher wal
profits taxation. 49,, c.ro
Denouncing money slackers, Sena.
cor Underwood said the committee wal
nrofts scheme would work many mus
t;ces exempt many large corporations
oarn;ncs and was "full of dark places
Ha on1osed principally the graduateo
Ice and the basis of calculating prof.
Re While the Bankhead substitute
hosed unon actual value of invested
csnital. is estimated TO raise Soo9,uOo''
ooo as compared with Sl,O6O,OOO IRON
The committee plan, as increased py lh'
so-called compromise amendments pre-
scented Yesterday, Senator underwood
ard also Senator Borah declared thei
believed the latter estimate was muci
larger than actual results would sho"
EXEMPTION of Wealth Is Attacked
Senator Simmons attacked the Bank
head substitute as an alleged eNemP
tion of much wealth from taxation III
soid II was an excess rather than
war profts tax plan, while the commit
tee proposals combined both. Admit
ting that the committee, in offering TN
compromise amendments, had aceeds'
70 sentiment in the Senate and OF tn.
public for higher taxation Of war prof
its. he insisted that the Bankhead pla'
was basically wrong and would ylel'
little revenue.
Senator's Smoot and Townsend ais
criticised the Bankhead proposal, tn
latter declaring it would levy on insat
ed Capitalization values and yield"prac
tically no revenue at all
Exemption from taxation Of dlvl
dends declared by banks and trust com
panies of surplus and undivided profit
accumulated or earned prior to Marc
/, 1918, was proposed in an amendmen
by Senator Pomerene. Another b