New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-04
Senate Defeats
65Per Cent Tax
On War Profits
Two Amendments Offered
by La F Follette Are Rejected
by Large Majorities
Committees s Plan
Will Be Adopted
Levy To Be About So, 500,-
100000; Corporation
Earnings Are Cited
fstar C0rrcpndencel


votes in the Senate just before ad-
journment tonight made it evident
that the committee plan for taxing war
and excess profits would be approved
without substantial change. One vote
was on Senator La Follette's amend
ment TO tax war profits on the Brit
ish system taxing the difference be-
tween present profits and the three
years average before the war; 10 per
cent. This proposal was rejected, 55
to 20.
This disclosed a gain by the radicals
Of three votes. These three, who did
not vote on the original Johnson
amendment, which would have taxed
war profits 73 per cent, were Senator'S
King, of Utah; Mcclellan, OF Tennessee,
who voted against the Johnson
amendment, and Senator Trsmmell, of
Florida, who was not present when that
vote was taken.
The seventeen radicals who voted for
both amendments were: Ashurst,
Borah, Brady. Gore, Gronna, Hollis,
Husting, Johnson, Of California; John
son, of South Dakota; Jones, OF Wash
ington; Kenyon, Kirby, La Toilette,
McNary, Norris, Thompson and Vards-
man.
On the next test vote, substitute
La Toilette amendment taxing war
profits 90 per cent, the vote was % to
II. This represented no change, three
of tho radicals and two of the conserva-
tves having left the chamber
To Force Vote on Old Plan
Notice was served by Senator Hollis
that he would force 4 -c.e tomorrow
on the war profits plan originally
advocated by the committee, to tax
simply the difference between present
and pre-war profits. The new COM
mittee plan, which seems to be as
sured of success, taxes all profits in
excess of 10 per cent if the profits
were that grea: before the war, and in
excess of 6 per cent if the profits were
less than per cent before the war.
The debate was FEATURED by a clash
between Senator SIM chairman Of
the committee, and La Toilette. The
latter completed a long speech begun
Saturday, attacking the committee for
adopting a plan which would involve
determining the capital on which cor
porations should be allowed profits,
after it had rejected the House plan
for that very reason.
Senator Borah marshalled figures TO
show that after a 90 per cent war
profit had been taken the following
profits, according TO the 1916 figures,
would remain TO these corporations:
Du Pont Powder Company e.. s35.692.3 20
Armour Packing Company. ll.655,glo.QV
Bethlehem Steel Company. 2O.6l l,209.0O
Hercules Powder Company .... L.2l5, o.OV
L. S. Steel Corporation. ...... .l3l .342. VV
Swift & Co.................. l3,l5e,VVVVV
! United Fruit Company ......' ''soo'o5s.VV
The estimates for 1917, Senator
| Borah said, showed that the United
States Steel Corporation would have
profits for that year OF Sl88, ,13O,l9l.
These profits" ne said, are quite
sufficient 70 cause a man enjoying
| them to wish that the war would con
| tnue indefinitely and to assuage any
( grief he might feel for anybody fight
! ing and dying 20 protect the business
I producing those profits
What a pity" he continued, that
/ dollars and cents are not flesh and
/ blood. that we might lay the conscript-
ing grip upon them"
Smoot Defends Committee Plan.
After protecting the business eff
! cheney of the country ne said, Il
would take every dollar OF every IN
| come above $4,000 year"
Senator Smoot, defending the COM
mittee's position, declared that the per-
/ centage of the actual expenditures Of
/ the war which the committee proposed
| 20 raise through taxation was higher
/ than any country Of the world IS
/ raising.
He said the total appropriations to
/ date were s9l24,433, ,l0Ill, including
the $4,000 900 900 authorized TO be sd-
yanced 10 the Allies. There was asked
for in addition, he said, but not yet
appropriated. S9,S9l 100000, making a
! total of sl90O5, $751; ,l071l, which in
cludes $4,000 100000 more for the
Allies.
Deducting the $1,000, ,0O0,0 600 for the
Allies. he pointed out, would leave ST.
OO5 .5s3l 3lOT.ll. from which should fur
ther be deducted 25,000,00O which the
Postoffice Department would collect
and about S62,000,00 for the sinking
fund. This left the total, he said, SILL
62O 900 900, while the receipts from the
committee bill would not fall below
| 81. 500 900 900 and probably would ex-
ceed that figure.
Senator Frelinghuysen denounced the
radicals plan TO take such large per
centage Of so-called war profits.
Defends Munitions Workers
1T is the fashion among certain cen
serious public men, chiefly from the
West and South" he said, Ito rail
against the munition makers OF the
East as coiners of blood money be
cause, forsooth, they have supplied
Weapons to the forces in the old world
who are striving to rid the earth Of
autocracy and militarism.
If the revenues Of Eastern manu-
facturers may properly be denominated
blood money then shall ! insist that
the cotton planters, the mine owners
and the wheat producers OF the South
and West be placed IN the same cate
CORY.
fscate il. Tax the rich, but do not tax
10 death. Tax. but not TO the degree
that the business OF the nation is Grip
pled. lest industrial and financial dis.
sster may eusuA and thsrA be nsthipa Z