Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-05-11
WAR REVENUE BILL
FACES HARD FIGHT
R Republican Committee
Leader Asks Support Of
81, ,S00,OOO,OOO Measure
SENATE TO REWRITE IT
WASHINGTON. May H..

WNSHlNtiToN, May ".
representative Forduey, Of Michigan,
ranking Republican member of the House
ways and Means Committee today spoke
IN defense Of the 81 500 O0O. 600 revenue bill.
Mr.. Fordney. one of tho financial wizards
OF the House. gave the bill the same whole
hearted support az his political opponent.
Majority Leader kitchin did yesterday in
opening the general debate.
Leaders on the Ways and Means commits
tee, regardless of political ailliaton. sc-
cepted the dictum Of kitchin that the Gov
ernment must have the money Republic
can ana Democratic chieftains alike are
therefore urging their partisans to bury
old-time revenue differences and fall in
an unbroken line to fill up the war chest.
while supreme effort Is being made
line up the House behind the measure.
scores Of interrupting inquiries about spe.
enc taxes and provisions in the bill fore
cast san exciting time when the bill Is
thrown open to amendment
FEAR SECTIONALlsM
An effort will be made to close the gem
eral debate by tomorrow night--or Monday
AT the latest Then 1t Is feared that the
sectionalsm against which Kitchin has cried
out viii assert itself
The sectionalism aGanst which kitchin
warns is not the outgrowth of feeling en-
sendered by the war between the States
put is the erer-present tariff and tax sec,
ttonalism. 1t is certain. however tina.
the operation of the tariff increases and
the excess profits ta.cs. The income tas
feature of the bill has go swamped mem
bers in an srthemitcal maze that few yet
understand except in a general way the
exact manner in which this provision will
work out. There was much speculation as
to the extent to which the Senate viii
modify the bill which the House will send
to II next week.
SENATE STARTS HEARINGS
Hearings on the war revenue bill were
begun this morning before the Senate
Finance Committee. Todays session was
devoted to hearing the views of the repre-
sentatives Of large corporations on the ex-
cess profits tax provision The committee
hoped to complete the hearings early next
week and II will then be able to make an
early report to the Senate
Paul u. cravath. representing stock
holders of the Bethlehem Steel Company,
urged the committee to recommend amend
ment to the stock dividend taxation feature
of the bill, He declared he had been in
structed by his clients to oppose no fairly
distributed taxation. no matter how heavy"
but he insisted the levy on stock dividends
would result in unequal taxation He also
are vitally concerned will protest against
scores Of Representatives whose districts
questioned the Consttutionality cf the pro-
vision.
II believe that ii is good governmental
policy to encourage stock div'iends,' said
Mr., cravath. This provision Is very un-
fortunate. 1t will make II vh tually impos-
sible for large corporations to increase their
permanent capital by the issuance of stock
dividends"
j. A. kratz. representing the Lack
awanna Steel Company. told the committee
that the bill. unless amended would result
in double taxation in many cases by inn
posing levies on subsidiary concerns as well
on the parent concerns.