Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1916-1918, 1917-08-28
WOULD TAX
IN TEREST ON
WAR BONDS
House M e m b ers Offer
Amendments For Nc
Adoo's Bill To Raise
$11,538,945 600; Senate
Discusses Tax Measure.
PUBLISHERS TOLL
TOPIC OF DEBATE

4 ~ OOAAA11AAZASO AOAA
4. TOPIC OF DEBATE
Washington. D. c.. Aug. 27.-PTo
gress on the 11.53S.945,000 war bond
and certificate bill in the house ways
and means committee was halted
temporarily today by the unavoidable
absence of Secretary McAdoo who was
70 explain the measure. He will ap
pear tomorrow. however, and consid
Grafton of the bill in executive sessions
will follow.
Hope Of reporting the bill to the
house by Wednesday and passing II
this week virtually was abandoned to-
day after brief meeting Of the com
mittee.
REPUBLICANS OPPOSE TAX.
Several members expressed opposi-
tion to hurrying discussion Of the bill
and leaders assured them that the
fullest time would be given for debate.
Opposition to making the bonds and
certificates subject to any tax appear
ed today. Two republican members
led the opposition, holding that to tax
the issue would retard the sale.
The bill is the largest single finan-
cial measure in the history of tho
United States
AS drafted by Secretary McAdoo
and laid before the committee, the
measure would authorize the issuance
Of $7,538,945,000 worth Of bonds to
meet allied loans and $4,000, ,000, 900
worth Of certificates of indebtedness
and war savings certificates, respec-
lively, to discharge other obligations
not designated. All would draw per
cent interest and be subject only to
super-taxes and war profits and excess
profits taxes.
WOULD TAX INTEREST.
Substitute taxation proposals cover
4 wide range, including straight levy
OF per cent on the interest returns
and the fiat income tax. These vary
ing plans repres ent personal opinions
of members without regard to party
affiliations.
Work in the house, which meets
Tuesday for resumption Of regular ses-
sions following period Of three days
recess, will depend largely upon pro-
gress made in the ways and means
committee.
PROFIT DEBATE WEDNESDAY.
While the leaders are preparing 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
dispute set for Wednesday. Increasing
contention gave little promise OF send
ing the bill to conference before next
week.
War taxation of newspaper and mag.
azine publishers was the principal sub
1ect of today's debate. Leaders hope
TO dispose of the section tomorrow or
early Wednesday together with the
provision with the increasing letter
postage ! cent.
Senators Hardwick of Georgia and
McKeller of Tennessee were prominent
IN the opening debate on the postage
taxes Both championed substitutes
for the financial committee amend
ment. providing for special tax OF 5
per cent on publishers net income ex-
ceeding $4,000 annually and increase
second class mail rates from to IN
cents pound.
OPPOSE ZONE SYSTEM.
The committee provision was writ.
ten as substitute for the house zone
system increase of second class rates,
denounced by virtually all publishers.
Under the committees plan s7,500,00O
In revenue would be obtained from
publishers incomes and $3,000OOO
from the one-quarter cent pound
postage increase. From the cent in
crease on letters $5O,000,000 revenue
ID estimated.
Senator Hardwick advocated sub
stitute indorsed by the postoffice de-
partment. proposing to maintain the
present cent pound rate on news
portions OF publications but increasing,
by graduation from to cents a
pound the second class rate on pro-
portions devoted to advertising.
MAGAZINES BOOST EXPENSE.
He cited that $S0,o00,o00 annually is
lost by the government In carrying
bulky second class matter, mostly
magazines, filled with advertising at
the cent mail rate.
Senator McKeller's substitute Is for
a modified zone increase system. main
taining present rates within a radius
OF 300 miles-the average circulation
range OF newspapers-to reach maya.
zines and other periodicals circulating
usually over wider territory. Repre-.
sentatives Of newspaper interests are
giving II their support.
MAY OBTAIN cLoTURE.
4 After Senator Simmons failed to get
an agreement FOR a vote on the bill or
the disputed sections. cloture petitions
were circulated and more than the
sixteen signatures were
secured within few minutes. Sen
ator Simmons was undecided when he
would present cloture measure. hop
Ing an agreement might be reached
and make II unnecessary.
The cloture movement was blparti-
san Senators of the group favoring
higher taxation on war profits pre-
dicted Its defeat