The Sentinel=record., 1917-05-12
PREDICT MANY BUSINESSES
 WILL BE CLOSED
The Whole Tax Load Was Criticised as Too Large and the Suggestion Made That the Tax Should Be Dis tributed Over a Longer Period.

Washington, May 1I.--Whne the house debate on the $1.So0.Ooo.oo0 war tax bHl was getting underway today the senate finance committee heard violent protests from big and little interests on whom the new war Ieyies would fall
 Manufacturers who would have to pay the increased excess profits tax. disdllers, brewers and soda fountain interests affected ny inc higher rate on aleoho lc and soft drinks and tobacco companies hit by the tobacco , tax all t-ld the senate committee that they faced ruin if rhe bill went through as presented in the house. Nearly every witness dec Jared his par ticuIar business seemed 10 have been made the target for am uniust and eXorbitant tax.
 In the house. too, many parts of the bill were under fire, but the reply Democratic and Republican leaders in charge was that the money must be raised and only high taxes could pro vide it. Representative Fordney Of Michigan, ranking Republican on the ways and means committee. made a four-hour speech for the measure. He said he agreed with Democratic Leader Kitchin that the bill had some faults, but that on the whole it was equitable and should be passed to meet the war emergency.
 [ Only the excess profits, liquor. beer. soft drinks and tobacco schedules were considered today by the senate com. mittee, which opened hearings before the measure came over from the house in order to hasten final congressional action. The hearings are expected to close Tuesday.
 The income tax increases and the rise in postal rates consumed a large part of the time today in the house debate. Some representatives sue gested that the tax on big incomes was not high enough. and others opposed vigorously the proposal to increase the postage rate on second-calss matter by creation of a zone system.
 Replying to critics of the income tax section. MT. Fordney told the house that there is @ limit to which the government can go and take from man his income unul he begins to evade the law"
 Republican Leader Mann asked if it would not be fairer to tax news paper and magazine advertising than to put the prop sed additional postage rate on second-class mail matter. Mir. Fordney replied that this would be a tax on volume of business and an un. just tax.
 Representative Hull of Iowa also op. posed the increased rates for mlga- zines and newspapers and challenged statements that the government TOW is losing millions annually on this class cf business. Representative
 Bland of Indiana told the house the postoftice department had worked out
 an amendment to provide that nc ! salaries of postmasten5 shall be in-
 creased during the war The debate will be continued tomorrow.
 It was q gloomy picture that pro. testants against the war tax increases
 painted for the senate committee. Dis organzation of industries. closed fac
 tories dischareed employees, reduced prices 10 producer and destruction of
 retailers were among the predictions
 Representatives of national manu- lacturers and industrial examinations ldecared the excess profits tax was