The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1917-09-04
KNOCKING DOWN
ALL AMENDMENTS
(Conulnued from page IL


taxes on the war profits of great in
dustries than are provided in the
finance committee bill. His coat and
collar off and sleeves rolled up, the
: big Californian was found at ms
office - answering correspondence.
From all parts of the country nave
! come letters and kilograms, sympa-
thizing with his fight to have olood
profits pay for the war. But many
are anxious lest his plan result IN
business depression. So Johnsonstook
time of today to explain Just what
his fight means to the average clti-
zen and average business man OF the
country.
1.-TWO hostile and utterly irrecon-
cilable PHILOSOPHERS of war
are fighting for supremacy In the
United States senate Johnson De
gan. "One view voiced and led by
Senator Penrose, Pennsylvania, ~
conjunction with Senators Smoot,
Lodge. Simmons and others repre-
senting apparently an overwhelming
majority insists upon a minimum OF
taxation on war profits; while the
minority group of senators like
Borah, Hollis, Kenyon and McNary
insists on the maximum of taxation
Of war profits. +.
Briefly, the plan Of the morn
which was rejected by ne senate IN
the vote upon my amendment is 10
average the profits OF a business LOT
three years before the war, to de-
duct this full pre-war profits from
profits made during the war and tax
by seventy or eighty percent the re-
mainder. For instance, II In three
years preceding the war a
ton made profits respectively OF 49,
600, $1,000 and Sl25,O0O, the aver
age peace profit would be Sloo,ooo.
If during the val, the same concern
made a profit of 100000 a year from
this war profit would be deducted the
100000 average peace pronts anu
tax would be levied upon h Sleo,-
900 excess war prohtS.
"The group led by Penrose wouio
take of war pronts 81 percent, Inc
group led by Borah and Hollis would
take seventy TO eighty percent. we
who favor high taxes OF war pronls
insist the expenses OF war should De
paid by those who profit Dy war,
that the burden of taxation lies least
heavily upon the great mass or u
people when taxation can De lalu
upon enormous sums coined out or
our misfortune and our natlons
perils; that when the supreme maxi
mum sacrifice is required OF human
ity at least some sacrifice should De
required of the wealth made O OF
humanity's sacrifice; that We should
not be lavish of our blood and tender
of our dollars.
1.-THE answer made by Senator Pen
rose and his followers is that by such
taxes as we propose we injure bust
ness and prevent productivity n
preclude the ordinary hux of indus
try. This we deny. England takes
now so percent OF war profits and
the financial experts of England say
business was never better nor profits
greater.
England took fifty percent Of her
war profits the first year and we
gave our business concerns 100 per-
cent; England took sixty percent of
her war profits the second year and
we gave our people 100 percent;
England took 80 percent and the
/ third year and we tremblingly and
timidly will take 81 percent and give
to those who made literally billions
out of war travail and crises, prac-
tically seventy percent Of this years
war gains.
Every dollar we refuse to take
today from those fabulous wal pro-
fits, profits which gave the pacifists
ground for calling this a corporation
war, must be paid ultimately by the
! small merchant and small property
owner and the average citizen. To-
| day we have a financial reservoir
| upon which to draw-a reservoir Of
! war profits which the people have
created by their patriotic outpouring
OF money to finance democracys
fight. The moment wal ceases. that
moment that reservoir dries. OF
course those making these profits
cry wait, wait, wait
They mean that we shall wait
until they have safely pocketed their
war profits, until the war has ended
with unheard of liabilities and debts
upon us all.
Then the full bill must be paid
by the small merchant and the aver
age property owner and when that
time the merchant, the trades
man. the farmer and the ordinary
property owner, as he sorrowfully
gazes Upon his swollen taxes, will
wonder why he was Indifferent and
supine when the endeavor was made
to tighten his burden and to com pei
those who profted by war to pay a
just part of the expenses of war"
Trounced Twice Today.
WASHINGTON, Sept. 4.-Senators
battling to make riches pay the war
bills were trounced twice today. The
Hollis amendment to the revenue bill
which would establish war profits as
the differences between normal pro-
fits and the total 1917 income was
beaten 81 to II by those favoring
the committee plan. Senator LaFol-
lette's amendment placing a sixty
percent tax on war profits was then
beaten fifty to eighteen.
Kaiser In Spelling Book.
United Press Leased Wire Service.l
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