The sun., 1917-09-21
WAR PROFITS HOLD
UP REVENUE BILL
Question Of Rate. Per Cent. Of
Individual Exemption
Proves Snag.
FIGHT OVER "CAPITAL"
Definition Of Word Causes
Row-Excess May Go to
$1,5OO,OOO,OOO.
Special DespdfcA to TIE SuS.

WASHINGTON. Sept. 2o.-Conferees on
the war revenue bill while nearer
solution OF their problem than
twenty-four hours ago are In a tangle
over the war profits section Of the meas
ufe. The question Of the definition of
what shall constitute capital" in the
setting forth Of tho law for the guild
ance OF the bureau OF internal revenue
ana the question OF the rate per cent
OF exemption OF individuals. firms and
corporations as to taxable profits under
the provisions Of the Forthcoming law
are both In controversy.
The House 10 holding out for accept
ance by the Senate Of the Ways and
Means Committees definition The
senators adhere to their own plan.
Meanwhile compromises have been sug-
sested and group Of legislators. not
members Of either committee, have
urged the Incorporation in the present
Dill OF the definition advanced In the
bankhead amendment to the bill intro
duced while the measure was yet before
the Senate.
Plan for Agreement,
At one time to-day the suggestion was
advanced and given serious con.idera-
ton that the conferees work out all their
other points VI conflict, and report back
10 their respective houses q disagree.
ment on the war profits programme.
Inen followed the suggestion that COM
piete agreement was the solution which
the country was expecting on the war
revenue hill and a duty which the con-
Ierees owed. and an agreement to
agree was finally contaminated. This
OLD not bring the agreement much closer
temporarily. but It insured a fight toa
nn!sn and an acceptable finish before
the conference dissolves.
meeting OF the House WAYS and
Means Committee, which drew the Or
ie1nal BILL was called for tomorrow to
discuss the situation. and some Western
ana Southern members OF the committee
announced that they would demand an
increase In the Senate excess war profits
INJURIES from $1,000, 900, 900 to $780,
900, 900.
1t was expla!ne dthat the Ways and
Means Committee would try to induce
the conferees to accept the larger figure,
but shoul dthis fail high tax advocates
declared they would carry the contest
to the floor Of the House. They said that
recent announcements that approx
mateiy $2.500.O00. 900 more money will
be needed this year than provided makes
1t certain that unless a start 10 made
now to further increase taxes, the coun-
try will be swamped with bonds
One Point Holds Up Bill.
Practically the entire bill is now
agreed upon. with the exception OF this
one vital controversial point. The SEN
ate conferees to-day accepted a new
postal rates section which applies at
much lower rates than these provided
either In the House bill or the McKellar
amendment accepted and then defeated
in the Senate. the zone system Of mail
rate circulation for second class matter
Under the terms Of the new agree
n,ent. only q part Of which was disclosed
the rate will be l cent a pound as al
present In a zone of the radius Of csc
miles from the point of publication. The
next zone, the limits of which we're an
nounced. will add one-Quarter Of ! cent
to the pound rate and additional zone:
will increase the rate fractionally to 9
maximum slightly less than cents q
pound
The House has yielded to the Senat,
on the question Of the rate on alcohol,
beverages and tobaccos. On other point.
throughout the bill there Is now agree
ment Whether this will stick" in view
OF the recent storms which have shaker
tho conference 10 questioned even by tn,
| more optimistic of the legislators. Their
Is too much bad blood In evidence, to,
much North Carolina politics being ad
| vanced to undue prominence. 1t Is said
| to justify complete confidence that an.
| agreement will Withstand the shocks o
controversy until the signatures Of tn
managers have been afixed to the con
ference report and the subject matte
| thereof Is on its way to tho two houses
which must accept or reject II.