New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-28
War Profits ak
Va ats on Contest
OF Senate Strategy
Delay Causes Confusion in Ad-
ministrations Plans
for War
By c. w. Gilbert

WASHINGTON. Aug. 27.-The prog
ress which the Administration is max
ing toward getting into the war efec-
lively breaks down in the most dlsap'
pointing way in the most unexpected
places. The Senate is approaching
vote upon the question Of taxes upon
excess profits. This is the biggest
issue of war preparation since the pas
sage of the conscription. Enormous
consequences depend upon how 1t is
settled.
Yet to-day all was confusion. No
wnere was the guiding hand of the
Administration TO be seen. The result
is thus ia left to a mere contest OF
strength and parliamentary skill be-
tween the conservatives and radicals.
As the thing stands, unless the Ad-
ministrstion makes up its mind and
causes its wishes to be known before
the war revenue bill gets through the
Senate and out OF conference, ques-
ton of taxation that vitality affects
every one in this country, and one that
ought 70 be correlated TO all the Ad-
ministration's war policies will be lett
TO the chance determination OF legis-
lative compromise.
To-day was devoted to mannuvre,
mostly planned in committee and CLOAK
rooms to gain advantage for one side
or the other in the steps that Will
lead uo 10 the compromise, for neither
side expects an out and out victory.
The rates 10 b. adopted finally will
be higher than those in the pending
bill, much higher probably. The chief
effort Of the conservatives was dl-
rccted toward erecting the application
of cloture, something never success
fully invoked in the Senate. and pro-
posed this time, as Senator borsn
sharply said, only to cut of debate on
war profits taxes.
Conservatives Fear Delay
There is evident fear that II public
attention is held upon this question
long enough an advanced pollcy oI
taXation will result Outside OF this
there was a conference late IN the
evening of the conservatives, Whien
accomplished nothing. The result VIII
probably be similar TO that IN the case
Of the income tax rates. where the CON
servativcs. yielding 10 radical pressure
finally framed the provision IN the
Gerry amendments.
The only question is just how strong
the radical sentiment is and just no"
high il will force the rates.
The fault with any such chance ad-
iustmcnt OF this vital question is that
taxes on excess profits should be a
part OF the governments prIce-nXihg
nrorramme. Every one who has had
hand in framing that programme mas
felt that the inequalities which would
result from fixing single price Tor
each commodity, instead of paying cost
plus a percentage of profit to each pro-
ducer. should be corrected by an eX-
cess profits tax. The line OF price-hxlng
on which the Administration has set
calls for a we'll considered tax policy.
And there is not one.
The bill as it now stands provides
for an average tax of 81 per cent on
excess war profits That percentage
will not bring about an equality be-
tween the favored and the ill-placed
producer upon whose product the gov
eminent, to avoid the costly and COM
nIicated mechanism necessary for a
cost-plus policy, fixes one and the same
price.
Enormous Profits Made.