South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-09-02
HIGH PROFITS
TAX MEN LOSE
ON FIRST VOTE
Senate Defeats JOhnSOn'S 80
Percent Provision 62-16-
La Toilette Starts Speech
For rs Percent Levy.
Associated Press Service.
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Associated Press Service:
WASHINGTON, Sept. Voting
began today in the senates contest
over war profits taxation in the rev
enue bill and in the initial clash the
So called radicals met decisive de-
feat. The senate rejected, 62 10 10,
the amendment of Sen. Johnson OF
California, leader of the high tax
group. for a maximum levy OF so
percent Of this years war profits,
estimated between three and four
billion dollars. instead of S1,26S,-
600. zoe provided in the bill.
Sen. La Toilette promptly enter
ed the fray with an amendment
proposing a total war profits tax of
IS percent. He made a vigorous
three hours speech in its support
but did not conclude and the senate
recessed until Monday, prepared to
work through the holidays upon the
Wisconsin senator's amendment and
his others for levies ranging down
20 50 percent
Both Sides Plan a Victory.
Both sides tonight claimed vic
tory as a result Of the first test vote
today. which was preceded by spirit
ed speeches by leaders including
Sens. johnson and La Toilette for
the high tax group and Lodge. Sim
mons aRl Penrose OF their OppO-
nents The so-caIled conservatives
were confident the Ia Toilette
amendments and others proposing
higher war tax profits taxation all
will be rejected.
Although determined TO continue
the fight next week for higher rates.
many of the radical group tonight
privately conceded defeat. A few
thought il possible they could carry
an amendment for a fiat tax Of 40
10 so percent but others admitted
the committee provision probably
would stand.
Disappointment at the small vote
for Sen. Johnson's so percent
amendment was privately expressed
by the high tax leaders and some
believed that their maximum
strength would not go above 80 or
40. even for the minimum increase
provisions pending.
JohnsOn's Plea imprisoned.
Sen. johnson opened the fight
with an impassioned plea for in
creasinE tax levies on swollen for
tunes" He advocated taking the
largest percentage possible Of war
profits leaving normal peace time
profits untouched. If not taxed this
year the California senator said
millions would go untaXed.
I'VE do not hesitate to break
hearts. 20 break bodies, he said,
but we hesitate 10 take profits
made out Of our blood and bone.
Sen. La Toilette said at least So.
600 900. 900 Of distinctive war profits
should be taken by the government
citing that the profits of the past
war period would be left undisturb-
ed and normal peace time profits
as well.
Both senators declared that the
finance committee leaders in bring
ing nm their compromise amend
ments TO add S5OO.OOO.OO0 10 the
war profits section. had been driven
and forced" by sentiment i'm the sem
ate and throughout the country for
HIGHER taxation. Chairman Simmons
and Sens. Lodge and Penrose made
spirited explanatory replies, 70 the
effect that the committee had not
changed its provisions for war prof
its taxation but had acceded 10 the
a. sand for increases by providing
further taxation of ordinary eX-
fhluding peace period prof