Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-08-27
PUBLISHERS TAX
IS Up IN SENATE
Fight Today Centers About
Changes in Second Class
Postage Rates.
PLAN FOR VOTE BALKED

While the leaders prepared for the
contest over war profits taxation. the
Senate today began consideration of the
postage increase sections of the war
tax bill. with debate on the profits dis
pute set for Wednesday. There is little
promise that the bill will be sent to
conference before next week.
War taxation OF newspaper and mag
azine publishers was the principal sub
ject of today's debate. Leaders hope
early Wednesday. together with the
provision for increasing letter postage
l cent.
Senators Hardwick of Georgia and
Mckellar of Tennessee were prominent
in the opening debate on the postage
taxes. Both championed substitutes
providing for a special tax of per
cent on publishers net incomes ex
ceeding $4,000 annually and increase
of second-class mail rates from l to
Il cents n pound.
The committee provision was written
as a substitute for the House zone sys-
TEN increase of second-class rates. de-
nounced by virtually all publishers. Tn
der the committees plan s1.500.00o in
revenue would be obtained from pub
fishers incomes and $1,000 900 from the
one -fourth-cent a pound postage in
crease. From the one-cent increase on
letters S50.000,00o revenue is estimated
Hardwick's Substitute Scheme.
Senator Hardwick advocated a sub
stitute. Endorsed by the Post Office De-
partment, proposing to maintain the
present cent-a-pound rate on news por-
tions of publications. but increasing. by
graduation. from to cents a pound
the second-class rate on proportions de-
voted to advertising. He asserted that
SS0.c0o.00 annually is lost by the gov
class matter. mostly magazines. filled
with advertising, at the one-cent mail
rate.
Senator McKellar's substitute is for a
modified zone increase system. leaving
present rates within a radius of 300
mileS-the average circulation range
of newspapers-to reach magazine and
other periodicals circulating usually
over wider territory. Representatives
of newspaper interests are giving it
their support.
BY the time the postage dispute is
settled, the opposing leaders will be
ready to resume the fight further to in
crease the levies on war profits and in
comes The finance committee met to-
day and discussed measures in behalf
of the matority.s revision. levying
s56e.c60.0 DOC. or about 2B per cent, on
this years war profits.
Leaders in the groups 1gqGe o4Bes
Johnson OF California; Burah,-4G -6oilette.
Kenyon, Hollis. Hustirg, Gore. Norris and
others, also conferred OF their plan of
campaign. Senator La Toilette is pre-
pairing another exhaustive address on the
war profits question. and is expected to
n n m 70 Ia
Of such profits. II rejected, other mem
bers of the group favoring higher taxa
tion will offer amendments for lower
rates. graduated downward. but design
ed to obtain the highest levy possible
Senators La Toilette and Hollis also have
amendments pending for increasing levies
on individual incomes.
Refuse to Fix Time for Vote.
Efforts by Chairman Simmons to OBJ
tain unanimous consent agreement
for final vote on the bill at pm
next Saturday failed. Efforts to fix
time for disposing Of the income and
war profits sections also were unavail-
ing. Objections were made by sena-
tors who did not think such an agree
ment should be made until the prin-
cipal provisions had been disposed of
Senator Simmons withdrew his mo-
tions and announced he would ask that
the war profits section come up for
consideration soon as the postal
rates provisions have been agreed upon
Later a movement was started in be-
half of a cloture resolution to bring
debate to an early close. Senator Hale
circulated a paper for signatures re-
Questing cloture under the rules
Many senators. however though
they favor standing by the bill in its
present form, are said to be unwilling
to risk an attempt at cloture. They
prefer. IL is explained. to let the debat te
run along. feeling that thus they can
best retain the present majority which
the conservatives claim to have over
| the radical element who desire to in
crease the war profits tax to the
amounts suggested by Senator La Fol-
lette.
The conservatives claim that tho ul-
ira radicals have a maximum strength
| of thirty votes. not sufficient to carry
their point.
| Would Favor No-Profit Publications,
Some consideration should he sbo,Yn ,o