Evening capital and Maryland gazette. (Annapolis, Md.) 1910-1922, 1917-09-18
TO READJUST TAX
ON PROFITS OF WAR
Conferees Effect Compromise on
Graduated Scheme
DOUBLE AUTOMOBILE LEVY
Tariff Increase Stricken Out Cost Of
Army Rifles is Again
Criticised

Out of the veil of secrecy which en-
velops the deliberations of the con-
ferees ON the $2,4O6, $4,000 War Reve-
nue. bill, it developed that a tenta-
tive agreement had been reached on
the most perplexing of all--the war
profits tax The conferees, after de-
batting the feature, practically reach
ed a compromise between the sched-
ule of graduated tax as fixed in the
Senate bill and the levy as originally
framed by the House.
The conferees practically decided
to report a profits tax schedule based
on the House exemption of PER cent
of actual capital invested instead of
the graduated exemption of from 6
to 10 per cent provided in the bill as
it passed the Senate On war profits
above this exemption, the conferees
favored graduated tax following the
line of those adopted by the Senate.
running from IL to so per cent. FL
nal vote on this method of taxation
is to be taken in the conference to-
morrow
Double Exemption.
Under the scheme advanced by the
House, an exemption is allowed on
$4,000 of net income aside from the S
per cent of capital invested This
double exemption has been insisted
upon by the House conferees, and it
was only after it became evident that
the profits tax feature would be held
up indefinitely that the Senate con-
ferees came around to the House
proposal as a compromise.
The difference in revenue to be de-
rived from the House system of ex-
emption, coupled with the Senate sys-
TEN of graduated tax, is estimated by
experts of the Senate Finance Com
mittee to be very slight. The House
contemplated a tax of 16 per cent fiat
on all profits after the exemption of s
per cent. The Senate exemptions,
running as high as 10 per cent, were
held by the House conferees to ex-
clude an appreciable accumulation of
profits. BY co-ordinating the two
methods of tax, it is calculated, the
levy will be in the neighborhood of
the $1,0S6, 100000 apportioned in the
bill passed by the Senate.
For Soldiers Moratorium.
Legislation to protect the civil and
property rights of soldiers and sail
ors-in effect. a moratorium for the
duration of the war in behalf of men
who are serving their country in the
army and navy-may be placed upon
the Administration program for yhis
session of Congress.
The Soldiers and Sailors Civil
Rights bill, TO carry out this purpose,
already has been introd rced in both
Houses, having been framed in the
office of Judge Advocate General
Crowder. Secretary Baker has ui-
der consideration recommendations
that the entire weight of Administra-
ton influence be brought to bear to
obtain early enactment of the meas
ure.
To save soldiers and sailors from
all kinds of legal injustices during
their absence from home, the meas
ure would enjoin the carrying out OF
certain civil court actions until after
the close of the war and establish as
legal excuse for failure TO carry
out certain contracts the fact that
man is in the military service.
1t is proposed that creditors suits
against officers or men may be held
up and judgment by default denied,
the trainers of the bill recognizing
that a man in the army or navy would
have no opportunity to make his de-
fense in person or to arrange for its
proper hearing through counsel.
Rifle Contracts Criticised;
Debate on the War Department con-
tract for a million Enfield rifles at
-plus-10-per cent progt basis was
revived in the House Mr.. Dallinger,
of Massachusetts, declared that un-
der the cost-plus system contractors
were hiring labor at unheard-of wages
and in that way badly disturbing the
labor situation in other factories. He
told of a man in his district receiving
$50 a week as a laborer and doing
nothing but keeping out of the way OF
government inspectors, and of clerk
who had obtained work as carpen-
ter on government job and who, al
though without experience as car
penter, was getting $3.50 each work
day and SIS on Sundays.