New-York tribune., 1917-09-05
Defeats Hollis and La Fol-
lette War Profit
Levies
Proposal for "Flat
Rate" Overwhelmed
Majority Favors Previous
Levy, Taking Third
of Earnings

WASHINGTON, Sept. 4.-In rapid
succession to-day the Senate bowled
over. b. overwhelming majorities, three
more proposals from the group Of SEN
atorS seeking to increase the levies on
war profits in the tax bill.
An amendment by Senator Hollis, of
New Hampshire, 70 tax war profits at
higher rates, but to strike out the
Finance Committees new clause levy
ing S42S 100000 additional on ordinary
excess profits, was rejected. 81 TO -.
Then without debate an amendment by
Senator La Toilette TO fix a fiat rate OF
80 per cent, designed to raise not less
than Sl,sCo,O0O,OO0 on war profits. was
beaten. so 20 IS. The minimum fiat
rate proposal of so per cent, Of the
high-tax group presented by Senator
Hollis. was voted down, % to Is.
With these setbacks the fight TO sub
stitute fat rate for the graduated
system of the excess war profits sec
ton virtually ended and the contest
entered a new stage Before the final
vote on the war profits section, set by
unanimous agreement for late to-mor-
row, the high-tax faction plans an et-
fort to raise the graduated rates now
in the bill.
Opponents in Spirited Tits
To-day's session, shortened by re-
ross 70 hermit Senators to join in the
parade in honor of the District OF CO.
lunbia's drafted men. was marked by
snirited tilts in the last stand of the
HIGH tax advocates to impose a Nat
General rate on war profits. The group
still bopes to increase the tax levy by
raising the graduated rates, but RI
nance Committee leaders are confident
that the bill will stand substantially
as now written-providing for levy
of about one-third on war profits, or
IN increase of s1,O6O,OO0,O0o over the
present revenue of 100000.
Senators Hollis and Kenyon to-day led
the discussion for the high-taXers, with
Senator Smoot leading the defence OF
the Finance Committees draft. In bit
ter terms Senator Kenyon scored the
Senate for voting down the increases
proposed. He spoke cf "treasonaoie
nrofts." and said inadequate conscrip-
tion Of wealth and imposition OF irri-
tating consumption taxes on the masses
Of the people would be responsible for
unpopularity of the bill.
Smoot Attacks Flat Rate
Senator Smoot attacked the Hollis
nIar 70 exempt normal but extremely
large excess profits from taxation, as
sortinp many millions Of ordinary cor
porste earnings would escape taxation
by the proposal
In the three votes to-day the hlSh
.,y fact,on both gained and lost sup
meters Their highest record OF I"cI
-. ,.otes was made Yesterday on the y
nor cent war profits tax proposal ~
senator La Toilette. Division or sen
.;r,ar+ in their own ranks regarding
49, aiier 1at rates and excess proh's
tavation to-day caused slight losses
Senators Chamberlain, Kendrlck, Myers
nd PbeIan we're new members regis
tored in the voting on the side OF those
seeking to amend the bill.
Senators Chamberlain, Myers anu
pboIan voted 70 tax war prohts alone
- higher rates and exempt ofalhaIf
excess profits. Senator kendrlcK sup
portcd the final minimum 90 per cen,
rroposal of Senator Hollis. On 'he
after Senators Borah and IrammeH
voted with the majority because the
hin contained a 90 per cent maximum
provision.
KENYON Attacks Prohteers
Corstor KENYON made the principal
speech of the day. if a limit IN IaAdSion
bos been reached il would be hard 70
convince the American people OF ina
fact he said. especially considering
tho tremendous fortunes corporations
have made and are making The du
Pc, Powder Company, he said, made
in 1918 a profit of s4,5S2,07o, ana IN
io1s made SS2lO7,693, which amountel
% about l26 per cent on its common
stock. A.,
"Do YOU think you arc making the
neoplc believe that you would rum the
Ju Pont Powder Company by leaving
tLem so per cent Of their prohtS on
their common stock" Senator Kenyon
demanded. ,,l
"Oh. how enthusiastic that would
make the people in this country reel
Who are paying taxes on coffee, tea and nd
ergar The President, with great sklll
ma credit, is trying TO take profits out
Of nrofteering. If the du Pont COM
nany with its enormous proHts. can
sav to the people, If you are going TO
Ton MS making these profits we are
ccinp 10 quit business you, have got
nan in the White House who Is gong
10 prevent it I.,;o,.oa
The Senator added that he believed,
horover business would do its duty
-, tbie war. and that he believed some
senators were doing more LOT corpo-
,ations than had been asked OF mem.
81 am merely protesting against, "nae .to
I torn, reasonable profits SAID the
i,wa senator. Reasonable prohts, ano
not reasonable profits, shouid De 'he
rule during the war .,;.Lir, MON
There is no use in the thlhHing iieG
Of this country playing ostrich anu
fooling themselves.