Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-08-31
Most of Day Is Taken Up in
Debate Between Simmons
and Underwood on How
Best to Hit Incomes.
EXCESS PROFITS SURE
TO BE CAUGHT HARD
Bankhead's Plan Sharply Crit
sized as Calculated to
Allow Many Guilty Dollars
to Escape.

washington, Aug. 30.--An agree
ment was reached by the senate late
today TO take a final vote on the war
tax bill not later than Monday, Sep.
tember 10, and the cloture petition
filed yesterday was withdrawn.
The agreement also provides for
disposition of the war profits section
not later than Wednesday of next
week and of the income tax provisions
not later than Friday, September Z.
1t provides further for earlier action
If the debate ends sooner than expect
ed. The agreement was reached
after a day of spirited debate between
Senators Simmons and Underwood on
war profits, after much negotiation
over details and after Senator La Fol-
lette had blocked an effort to set next
Monday as the day for vote. If the
debate runs through until September
10 the bill will have been under sem
ate discussion just one month. 1t pass
ed the house May 90.
Cioture Narrowly Ayerted.
Once before at this session, on the
food control bill, cloture was initiat-
ed and dropped by mutual agreement
for final disposition. The cloture Pc
tition on the war tax measure was to
have been voted on tomorrow. It's
proponents were confident today Of
their strength, but overtures for the
voting agreement came from these
leading the fight for higher tax re tes
with all concerned anxious TO avoid
imposition of cloture.
Anticipating possible adoption of
cloture, many amendments Sers IL
troduced late in the day.
Senators Hollis, Gore and Brady
sponsored provisions to increase the
war profits levy to rates ranging from
SO to &C 2-3 per cent, and Senator La
Toilette submitted substitute bill
designed to raise about $500. 900, 900
principally from war profits. incomes
and liquor taxation.
Underwood Attacks Rill.
Today's debate was occupied large
ly by Senator Simmons chairman of
the finance committee, and Senator
Underwood, former house leader, and
revenue expert. In three e-hour
speech the latter vigorously criticised
the committees war profits plan and
Senator Simmons, with show Of much
feeling, defended the plan and attack
ed Senator Bankhead's substitute,
supported by Mr.. Underwood.
Denouncing money slackers," Sem
ator Underwood saidtthe committees
war profits scheme would work many
injustices, exempt many large corpor-
ations' earnings and was full of dark
places" He opposed principally the
graduated rates and the basis of cal
culating profits.
While the Bankhead substitute
based on actual value of invested cap
ital is estimated to raise $3.50, ,000, 900
as compared with $1,060.000, 900 from
the committee plans as increased by
the so-called compromise amend
ments presented yesterday, Senator
Underwood and also Senator Borah
declared they believed the latter esti-
mate was much larger than actual re-
suits would show.
Attacks Bankhead Plan.
Senator Simmons attacked the
Bankhead substitute as an alleged ex-
emption of much wealth from taxa
ton. He said it was an excess rather
than a war profits tax plan, while
the committee proposal comb5neo
both. Admitting that the committee
in offering the compromise amend
ments had acceded to sentiment in
the senate and Of the public for high
er taxation Of war profits, he insisted
that the Bankhead plan Is basically
wrong and would yield little revenue.
Senators Smoot and Townsend also
criticised the Bankhead proposal, the
latter declaring it would levy on in
flated capitalization values and yield
practically no revenue at all"
Exemption from taxation of divi-
dends declared by banks and trust
companies out ofssurplus and undivid-
ed profits accumulated or earned
prior to March 1, 1913, was proposed
in an amendment by Senator Pomer-
enc. Another by Senator Ransdell
would put tax on cigarettes ranging
from cents on IN, Sc retailed for not
more than cents to SO per cent on
those sold at rs cents or more.
Senator Hollis proposed to eliminate
the provision lowering the minimum
incomes to be taxed from $4,000 on
incomes Of married and $4,000 Of un-
married persons to $4,000 and $1,000
respectively.