Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-09-02
RADICALS" MEET
DECISIVE DEFEAT
Johnson Amendment for 80 Per
Cent Tax-on War Prof
its Rejected.
VOTE STAN 81 TO II
La Toilette Offers One Propos-
ing rs Per Cent Rate-Both
Sides Claim Victory.
VOTE STAN 81 TO II

WASHINGTON. September 1.--votine
began to-day In the Senate's contest
over war profits taxation in the war
revenue bill. and in the initial clash the
so-called radicals met decisive defeat.
fhe Senate rejected, 81 to II, the
amendment OF Senator Johnson, of Cali
fornia, leader Of the high tax group.
for a maximum levy of 80 per cent of
this years war profits. estimated be-
| tween S3.0oo.000,000 and $4,000. 600, 900.
instead OF 31,268,000,O00 provided In the
bill.
Senator La Toilette promptly offered
an amendment proposing a total war
| profits tax Of 76 per cent. He made a
vigorous three-hour speech in its sup
port, but did not conclude. and the
Senate recessed until Monday. prepared
to work through the holiday upon the
Wisconsin Senator's amcndmept and his
others for levies ranging down to Sc
per cent.
Both sides tonight claimed victory
as result Of the first test vote to-day,
which was preceded by spirited
speeches by leaders, including Senator's
johnson and La Toilette. for the high
tax group. and Lodge. Simmons and
Penrose. OF their opponents. The
so-called conservatives" were conf
| dent the La Toilette amendment and
other proposed higher war profits
taxation would be rejected.
JOHNSON OPENS FIGHT
WITH IMPASsIONED FLEA
Senator Johnson opened the fight
with an impassioned plea for increas-
| ing tax levies on swollen fortunes"
He advocated taking the largest per-
centage possible of war profits. leaving
| normal peace time profits untouched.
| If not taxed this year. the California
| Senator said millions would go un-
| taxed.
Senator La Toilette said at least
| $4,000. 100000 of distinctive war profits
should be taken by the government,
citing that profits OF the past war
period would be left undisturbed and
normal peace time profits.
Both Senators declared that the FL
nance Committee leaders in bringing
insthsiE, SonpFemise, amendments to; add
( jS32sS I'D Dos Is fsthe WIZ profits section
fissst iS tiiss esSats ssnd throurhout vthe
! country for higher taxation. Chairman
Simmons and Senator'S Lodge and PEN
rose made spirited explanatory replies,
to the effect that the committee had not
changed its provisions for war profits
taxation, but had .acceded to the de-
| mand for increased rates.
Senators supporting tho Johnson
amendment were:
Ashurst. Borah. Brady. Gore. Gronna,
| Hollis. Husting. Johnson, of California;;
johnson. of South Dal:.ta; Jones.
Washington; Kenyon. Kirby. La Fol-
lette.. McNary. Norris. Thompson.
Vardaman.
When consideration of the bill was
resumed to-day. Senator Owen ex-
| planned that he favored high tax
| on war profits. but said he would not
support the Johnson amendment levy
! ing a gross tax of 80 per cent be-
cause he did not believe the leaving
of 20 per cent profits in possession Of
some companies would be sufficient for
their Improvement and other expendi-
lures.
JOHNSON CoNGRATULATEs
FINANCE COMMITTEE
In opening his speech in support of
his amendment. Senator Johnson con-
graduated the Finance Committee on
bringing in an amendment to the war
profits section which more nearly con-
formed with the general opinion Of
the Senate.
Senator johnson recalled how, after
two months consideration, the Finance
Committee reported bill which it de-
Tended vigorously, as taxing to the
very limit of safety war profits and
incomes of the country. and then after
1t came under attack presented SUBJ
stitute to add s500,000,000. He recited
this with his argument to Justify still
greater taxes on swollen war profits.
we are not concerned with normal
profitsS normal business. normal pro-
ductivity and Industry he said. but
we would take the very largest pos
sible part of war profits.
Our fundamental difference is that
we would reach out the strong arm OF
the government and take war profits
with the same vigor and virility that
you reached out ard threw the youth
OF the land into the melting pot Of
war. Some Senator'S say. wait, hesi-
tate They ask us to defend these
great war profting concerns who want
us to wait before taking their profits,
until the war is over. Then we will
be unable to touch them. How speci-
GUS is this plea OF 'injuring business.
ENGLAND IS TAKING
80 PER CENT OF PROFITS
oeudtOE Johnson declared England
was now taking 80 per cent of war
profits, and that business was never
better.
"We." he declared. "are so halting,
tender and timid we hesitate to take
81 Per cent. We do not hesitate to
break hearts. to break bodies, but
we do hesitate to take without injury
to anybody and without real sacrifice
the sum Of 81 per cent OF the profits.
III the war is made unpopular"
Senator johnson said to those opposing
tax raises. you will be the ones max
Ing It 30. Let's show that we can
take money power as we'll as man
power. This Is not alone question
OF conscripting wealth. but struggle
between the old individualistic theory
OF democracy, where every man could
take what he could get. and the
philosophy that has come to US out
OF this var in which every man.
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