Evening journal., 1917-09-15
Retroactive TAX
Plan abandoned
Conference Committee Also
Accepts Senate Rates
on Incomes
EXEMPTIONS
ARE LOWERED

WASHINGTON, Sept. l5.-The con-
c,rces on tho war revenue bill, meeting
yesterday to inauguTate the work oil
adjusting the numerous differences be-
tween the measure as it passed the
House late in May and the form IN
which the Scpate finally approved it
on Monday, unanimously voted TO i'm
pose n strict inhibition upon outside
discussion Of their deliberations. After
their lengthy session the ten legislators
dispersed. each declaring that he was
bound not 70 divulge even tho most un-
important item of news OF the matters
they are discussing.
Yesterdays session was confined large
lv 20 the acceptance by one side OF the
other Of points Of minor differences in
Tie two bills upon which it is we'll
realized no controversy can be pro-
voScd and in getting down TO the major
points Of difference. Within the next
week 20 is hoped they will be able %
iron these out TO the satisfaction Of
both houses.
The results Of yesterdays session
were reliably ssid 10 be as follows;
Adoption Of the income tax normal
and surtaN rates virtually ne revised by
the Senate aud designed TO raise SS42, =
100000 additional revenue
Elimination Of the House provision
levying r one-third increase on 1916
taxes, a retroactive assessment from
which SlOs,O0o,ooo in revenue was 20
be raised
Partial approval Of the tobacco sec
ton as revised downward by the
Senate. 10 raise $50 .600OOO ne against
s6s 200 900 proposed by the House.
Adoption Of the intoxicating bever-
ages section virtually as revised upward
nv the Senate TO raise 1907 100000 as
compared with Sl5l00O,O 600 proposed 10y
tho House.
Approval Of practically all Senate
changes in the section taxing public
utilities, including the 3 per cent levy
on freight transportation, the assess
ment on passenger transportation re.
dnced from SIS 100000 TO S37 100000
the taxes on Pullman Accommodation
pipe line transportation, telegraph an1
telephone messages costing over j
cents.
The House conferees also agreed "a
the elimination OF their provisions f2T
b ievying $4,000 900 on electric light
gas and local telephone service and
s5.0O0.0OO on Issuance OF insurance
policies.
The war profits section was passed
over yesterday and WI probably be
the last settled Some members nre
dict IN Increase in its rotal revenuf
provisions Of at least 800 600 600 snd
adoption OF a compromise calculation
plan being framed by the House mem
bers.
When the conferees recessed last
night they had reached the manufac-
turing tex section Of the bill and
planned TO begin with the automo
bile clause today.
The House conferees were said e
be disposed to accede to Senate elm
nation of their plan Of Lowing a
cent tax on certain manufactures, bu
fnvor a slight increase in the motor
vehicle license rates substituted By
tho Senate
In virtually concluding the incom'
tax rates the conferees specifically
wrote into the bill the propose,
doubling OF the present 2 per cent
normal tax and the provision for re
iuction OF EXEMPTIONS from $4,000 and
$4,000 respectively for single and mar
ried persons 70 $1,000 and $1,000
The surtax Mates on incomes abov
$4,000 were said 20 have been ad
justed slightly but no changes wer
made causing any appreciate differ
ence IN the increased revenue yield.
In tho preliminary discussion yes
terday Of the man disputes involve
the pos'oge tax features we're give
special attention. Some Of the Hous
members want to restore. in part a
least. the proposed tax on first elias
mail and 10 make an increase in sec
ond clnss rates There was also DIS
cussion Of a plan TO eliminate ri
postage features. including the STAN
tax on packages sent by parcel poe
Today tho conferees expect IN dis
pose OF many items not In d'sput
and formally approve Senate elimln.
tions OF tho House 10 per cent generi
ad valorem tariff increase which wa
designed TO raise 500. 100000