Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-09-11
Measure Is Intended to Raise
Two Billion Four Hundred
Million Dollars, Chiefly From
Incomes,
JONES OF NEW MEXICO
WINS PARTIAL VICTORY
Secures Ten per Cent Levy on
UndiStributed Incomes When
Not Actually Invested or
Employed.
lsY MORNING JOURNAL SPECIAL LEASED wrsrI

lay MORNING JOURNAL SPECIAL LEASED wiRHl
Washington, Sept. 10.-The war
tax bill-the largest single taxation
measure in American history--was
passed tonight by the senate. 1t pro.
vides for a levy somewhat under
$2,4OO, 100000 as compared with
S1,S67,S7O,00O proposed in the bill as
it passed the house May 23.
The vote was SO to 4, Senators La
Toilette, Borah, Gronna and Norris
being recorded in opposition
The senate adopted 40 to "a, SEN
ator Smotts motion to strike out the
McKellar amendment providing
zone increase in second class postage
rates beyond 800 miles and designed
10 secure s12,S00,0O0. The house
zone provision and the finance COM
mittee's special publishers profits
provisions already had been elimi-
mated.
Senator Hardwicks substitute to
provide zone system increasing sec
ond class postage rates on advertising
portions of publications, estimated to
raise SIG, 100000 next year, was re-
jeoted 4S to 20.
The Jones amendment, revised by
the committee to levy a 10 per cent
tax upon corporations undisturbed
surplus, was adopted on q viva voce
vote. A substitute by Senator Jones
to eliminate an exemption in the
committees clause of income actually
invested and employed was defeated,
As to 35.
Four Months WrangIe.
The great bill nearly four months
in the making, will be returned to the
house tomorrow and then goes to
conference with enactment within ten
days or two weeks probable. Senators
Simmons, Stone and Williams, demo-
Gratis, and Penrose and Lodge, repub-
licans, of the finance committee, were
appointed the senate's conferees.
Awaiting the senate in the final
struggle over war fiscal policies is the
s11,500, 100000 credits bill which
passed the house unanimously and
upon which work will be begun to-
morrow by the senate finance COM
mittee.
OF the s2,4OO, 900, 600 new taxes pro-
vided in the tax bill for the duration
of the war, $S42, ,200,0 900 is to be taken
from incomes, corporate and indivd-
ual. and 100000 from war
profits. Most of the remainder is
levied on liquor, tobacco and pulse
In tonight's cleanup the principal
81
were elimination of all provisions for
taxing publishers and increasing sec
ond class periodical postage rates anH
all consumption taxes on sugar, tea.
coffee and cocoa, the latter reducing
the bill $S6 900 The senate also
struck out the clause proposing repeal
of the drawback" or re-export al
lowance given sugar refiners and de-
feated proposals to add inheritance
taxes.
La Toilette Beaten.
In last effort of the high tax
group to. increase taxes, the senate re-
jected, 65 to Is, the La Toilette sub
stitute bill to raise $3,500, 900, 900
more taxes. Those supporting it were:
Borah, Brady, Gore, Gronna, Hard
wick, Hollis, Husting, johnson of CAL
ifornia, Jones of Washington, Kenyon,
La Toilette, McNary, Norris, Reed and
and Bardaman.
Passage of the bill was devoid of the
usual stirring scenes.
A parliamentary snarl and de-
termined fight on the second clats
postage provisions furnished the most
excitement. After the McKellar sub
stitute zone postage provision, ap-
plying to publications sent beyond
800 miles, had been rejected 40 to "a,
Senator Hardwick's substitute zone
plan applicable to advertising portions
only, was beaten 48 to 20. Senator
McKellar attempted to offer another
substitute with a maximum rate Of
cents a pound instead of cents but
Senator Salisbury, presiding, held
that the house zone provision had
never been formally eliminated. Then
the senate made sure of its determi-
nation to eliminate all postage in
creases and special levies on publish
ers by adopting Senator Weeks mo-
ton to strike out the entire hoUte
clause, SO to 9.
The only postage features left in
the bill are provisions for free trans
of letters from American
soldiers abroad and for 1-cent stamp
tax on parcel post packages. raising
about $4.000.000,