Arizona republican., 1917-09-04
AaVHai7 3LVLS IN FIGHT ()N WAR TAX
TRepubIican A. p. Leased Wlrei

WASHINGTON, Sept 3.-The senate spent today's holiday in the sharpest clashes of it's fight over war profits taxation and again decisively defeated proposals of the high tax advocates.
 Senator La Follette's maximum amendment for war profits taxes pro posing a flat increase of 70 per cent over existing rates, was rejected, 55 to 20. Another by the Wisconsin senator for 65 per cent increase was defeated, 53 to r.
 The final vote on the war profits section is to be taken Wednesday. The bills provision as now written for an increase of about one third, or $l ,060,- 900, 900, is expected to stand Tomor- row another amendment by Senator La Toilette for 60 per cent gross levy will come up together with a complete substitute proposed by Senator Hollis for the finance committees compro- mise provision.
 But three recruits were gained in to- days voting by the high tax advocates, in addition to the r who voted Satur- day for Senator Johnsons maximum proposal Of an so per cent tax. Sena- tors King, Mcclellan and Trammell voted for both of the La Toilette pro- posals
 A few additions are expected on other pending amendments for various flat taxes down to AS per cent, but Senator Borah said today after the vote on Senator La FOllettes maximum amend ment that the bill probably would go to the president bearing its present total tax levy of s2,500, 100000.
 Many phases of the war situation were discussed during the seven hour debate. Senator La Toilette delivered another vigorous speech for higher rates on what he termed blood profits His remarks caused Senator Simmons, chairman of the finance committee, to suggest that the Wisconsin senator was attempting to "hoodWink' the senate and provoked two hot clashes in which both senators were declared out of order by the presiding officer.
 Senator La Toilette cOntended that the committees new plan would not increase the tax burden of great cor porations, but would exempt their large surpluses. This was vehe.nently denied by Senator Simmons.
 Senator Simmons declared that un- der the bill as it now <-ands at least half the corporations of the country will be taxed more than before, the tax alone of the steel corporation amount ing to $1S3, l34, 900 thIs year. while Ine tax to be paid by the Dupon Powder company Will be ten million more and that of the General -totors $500, 900. The net increase to be paid by twenty leading corporations of the country will amount to s21, 900, he said.
 Senator Frelinghuysen. opposing the La Toilette proposal said it was fraught with great danger to business interests.
 To impose such unfair taxes and i'm pair industry" he said, would prac- tically make certain the victory of Germany"
 Senator Borah addressed the senate at length in favor of a tax of at least sixty per cent.
 Citing the increasing war expense estimates of Secretary McAdoo, Sena- tor Borah said he believed they ulti- mately would reach between s22, 2,000,- = 0OO.O and s23,O00. 100000 and possibly | S25. 5.000, 900, 900 for the first year, in cluding loans to the allies. This bill probably will finally pro- vide s2,5OO. 100000 in taxes" he con- | tinued. There is no record in history of such a shrinking from duty by a l legislative body.
 "Is $2, 00,000,000 in taxes the stand | ard of patriotism that men of wealth are willing to contribute to the war? l 1 do not believe it."
 Senator Borah cited England's 80 per cent levy on war taxes after two years of war and asked: Are we not better able to meet an | 80 per cent tax at the beginning of war l than England after two years of it! | On what theory can it be said that we 1 would break down business or make l the war unpopular if business makes ] twenty per cent more out of war than 1 in peace? What a pity it is that dol | (Continued on Page Two)