The sun., 1917-09-02
Johnson's Proposal Goes to
Defeat Amid Cheers
in Senate.
FIRST TEST OF STRENGTH
Belief Is That Other Plans Of
Radicals Will Fail This
Week.

day. and the conservatives won when
Senator Hiram Johnson's proposed
amendment for a maximum levy Of so
per cent. on war profits was defeated by
a vote Of 81 TO II. Senator Johnson's
amendment would have stricken from
the bill the Finance Committees Sec
tion providing for raising $l.2Ss.ooo..
900 and substituting a levy estimated
to be between o0o.o0o.0oo and
$4,000. 900 900.
So convincing was the vote that the
Finance Committee. which has been con-
sidering just what further concession
they would be compelled to make in
servatism in the formulation OF the
war revenue bill, at once took heart.
The chairman and his collaborators, Sem
ators Penrose, Lodge, Smoot and Nc
Cumber. were cheered. They now feel
complete assurance that following upon
the demolishment of Senator Johnsons
amendment the series Of eight
amendments which Senator La Fol-
! lette has offered scaling down the fiat
rate OF taxation from rs per cent. to
IS per cent, which will be successively
voted upon on Monday. and the sue
ceeding amendments Of other Senators
who have been affiliated with the La
Toilette movement. including Senator
Hollis's suggestion OF SO per cent. and
Senator Cores suggestion of 66 20 per
cent. will meet similar treatment.
The committee members fully realize
that the minority vote will be larger on
some Of these subsequent amendments
than upon the Johnson amendment.
which marked the extreme limit Of the
wealth conscriptonists' " ambition, but
, they realize also that under no circum-
stances can the radicals corral suf-
ficient number Of votes hereafter to
| place their bill further in jeopardy.
| Analysis Of Vote.
! Analysis Of the test vote Of the jobs
son amendment disclosed the following
party alignment:
! Republicans voting In the affirmative:
| Borah. Brady. Gronna. Johnson Cali
fornia). Jones CWashington). Kenyon,
| La Toilette, McNary and Norris-9.
! Democrats voting in the affirmative:
Ashurst. Gore. Hollis, Hunt. Husting,
johnson (South Dakota). Kirby. Thomp-
son and Vardaman-S.
Total alternatives II.
Republicans voting the negative:
Brandegee. Calder, Colt Curtis. Dilling-
ham, Fall. Fernald. France. Freling-
huysen, Hale. Harding. Kellogg, Knox,
+ Lodge. McCumber. Nelson, New. Page.
( Penrose. PondeXter Sherman. Smoot,
! Sterling, Townsend. Wadsworth, Wat
son and Weeks-27.
Democrats voting the negative: Bank
head, Beckham. Broussard, Chamber
lain, Culberson. Fletcher. Gary, Hitch
cock, James. Jones (New Mexico). Ken
drick. King. Lewis. McKellar. Martin.
n,.or Gu,n
Phelan. Pittman. Pomerene. Ransdell.
Robinson. salisbury. Shafroth. Shep-
perd. Shields Simmons, Smith (Georgia).
Smith (Maryland), Smith (South Caro-
lina), Stone, Underwood and Williams
-35.
Total negative votes CO.
I Senator Johnson in his speech sup
porting his amendment took the extreme
ground that conscription OF every dol
! lar OF excess profit Of corporations.
firms and individuals which was attrb-
| utable TO industrial conditions engen-
! dered by the war was justihable and
that his own amendment was compara-
lively moderate conscription.
johnson Recalls Incident.
Senator Johnson recalled how, after
two months consideration the Finance
Committee reported bill which it de-
| Tended vigorously, as taxing 10 the very
limit OF safety war profits and incomes
Of the country. and then after it came
under attack presented substitute to
add a half billion dollars. He recited
this with his argument to justify stlll
| greater taxes on war profits.
1--WE are not concerned with normal
profits, normal business. normal produc-
tivity and industry" he said, ''but we
would take the very largest possible part
Of war profits. Our fundamental differ
ence 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 and threw
the youth of the land into the melting
pot Of war. Some Senators say Wait
hesitate! They ask US to defend these
great war profting concerns who want
us to wait before taking their profits
until the wa- is over. Then we will be
unable to touch them. How specious Is
this plea Of '.njuring business"
Senator Johnson said England was
now taking 30 per cent. of war profits
and that business was never better
We" he continued, "are so hating
tender and tmid we hesitate to take 81
per cent. We do not hesitate to break
hearts, to break bodies. but we do hesi-
tate to take without injury to anybody
and without real sacrifice the sum of 81
per cent. OF the profits.
Let us show that we can take money
power as well rs man power"
Senator lodge Replies.
Senator Lodge In reply to Senator
Johnson said:
II think 1t is wise to tax small busi-
ness to a moderate extent and that II Is
wise to take go per cent, of the profits
of the business interests. I want to
keep business active and productive. II
we don't we will imperil our credit and
ruin our sources Of revenue. / don't
want to do that and find ourselves en-
barrassed and forced to levy higher con-
sumption taxes, I think we have gone
far enough, II we don't keep the credit
Of the United States safe we will en-
danger our chances in the war. In levy
Ing income and profits taxes they have
gone to the limit of safety. not to busi-
ness, but to the Government OF the
lUnited States that Is raising the taxes
That Is the only safety that interests
Continued on Fourth Page.