New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-30
Committee Cuts House Bill
from Sl,sOO,OOO,oO0 to
81, 50O,OOO,000
~~r Cent Tariff
pian Is Eliminated
';~hting, Phone, Insurance
Leyies Cut; Tobacco
Less Hard Hit

Washington. May % Decisions on
seari. al Important questions IN re-
,.rerrr Che SiSoo.ooo,ocJ war tax
bl Dad boon reached late to-day when
.bc Senate Finance Committee sus-
,,r..f i.s work over The holiday. EN-
,er, for hc liquor and stamp taxes
,ire. in thc measure as It passed the
Hose. the committee has settled the
major principles Of revision, with
view toward reducing the House total
20 about Sl.50c.ooo,oo0.
Tho principal changes to-day we're;
t.,,-i.ef.on a. thc general tariff tax Of
d. .,. cent 1a ta'orcsl on an imports tesn-
-,stas t1 raise 5000. 1lU.VHei. and suhsutu-
zion of cHc'sc or consumption 'A'eS o"
SUGAR. coffee. tea and cocoa.
Reduction of thc House increase ~ taxes
On cigars. cigarettes and all other tobacco
,--l.cfs fror1 about 1000 per cent 10 Ou ~
rent with no estimated reduction IN inc
- c00. oIo designed 90 be brought m I'M
der the House rates.
To Drop Tax on Lighting
e,-..ncr,' electric light and power. gas
anil .ria.0ona bills. estimated by the Rouse
t....r .n an sgn 100000. The committee
brr,.er. proposed 20 retain the tax on le'e-
.t and lon. distance telephone mes
nation Of taxes on AT insurance IN
,o..r. revenue loss Of S',Non.onu.
frltion of % new per pound tax upon
.-....i.nrr,. estimated 20 raise from Slo.-
..... to si,. 100000. % be paid by manu-
r..rr..cn OF taxes on soft drinks ana
...- trrrld.enfS 20 make the total ieNy
sl....t sf- GDn. 600 instead of S2o,oet.oop.
With these phases Of its task de-
eided upon. the committee arranged 10
have Chairman Simmons and Treasury
Department experts make d survey TO-
marrow Of its work 10 date 10 ascer-
tain whether further changes are nee
essarv 10 arrive al q bill roughly TO
tallinc Sl.5OOOOO. 200. Secretary Nc
Adoo to-day urged Senator simmons and
other committee members 90 bring out
a bill levying near the Sl.NOo'ooo,Ooo
total OF the House. Dut committee SEN
,iment was said 20 be virtually unam-
nous against him and in favor OF pro-
viding through short term bonds any
money needed m excess of 81 50o,OOe,oVO
New Excise Tax Plan
The committee dXcd the new excise
tax on sugar at Y cent pound ana
that or cocoa az 3 cents pound, es-
;imatcd 20 yield, respectively, $40 OOo,-
600 and s.. 100000. Coffee and tea
rates were not definitely determined,
but 10 is expected they will remain at
! and cents a pound spcctively, as
liked by the House bill. Taxes on
sugar. cocoa. coffee and tea will be paid
directly by importers or manufacturers.
Slough uli mately probably by the con-
suWcG
The excise taxes were adopted by the
committee as substitute for the gen
efal 10 per cent tariff increase of the
House. n is estimated that the rev
enues would be somewhat less than the
100000 900 estimated from the pro
posed tariff levy and they may reach
only s15O.00O.O00
Senators said to-day that the House
taxes on public utilities, including
those ON pipe lines. transportation,
freight. express and Pullman accom-
modations. probably will be retained.
The opinion was generally expressed
That the committee Will reject the pro-
uosai of Senator Hardwick, Of Geor-
gia. and Postofice Department heads
fora new postal tax upon newspapers,
magazines and other second class pub
LEGATIONS, based upon their proportion
of advertising space. Senator Hard
wick promises TO carry the fight TO the
Senate floor
\ tentative draft OF the proposed
NOW Federal license tax on automobiles,
based on the horsepower, was received
Today but not acted upon. The Treas
Jr, Department submitted estimates
proposing 10 raise S25,000,O00 from the
motor ~chicle licenses upon minimum
of sic. payable BY the vehicles own
crs. and a graduated surtaX Of % cents
per horsepower. Several Senators are
insisting upon increasing the revenue
from this source TO SiO,000,0OO, and be-
lieve the % cent horsepower surtaX
too small. Until another estimate.
based upon the selling cost Of cars, Is
received action is deferred.
In reducing the House rates on soft
drinks and their ingredients the com
mittee, j.. was stated. proceeded with
the idea of levying the bulk Of taxes
upon soda fountain or other beverages
containing carbonic acid gas, and light
ening tax burdens on syrup and eX-
tract manufacturers. The carbonic gas
rate. however, will be reduced from
s to cents a pound, TO be paid by the
purchaser instead Of the manufacturer.
4 reduced rate Of one cent gallon
upon soft drinks bottled by the small
producer was iiXed.
Instead Of the 10 per cent gross sales
tax upon syrups and extracts. the follow
ing rates were agreed upon by the COM
mittee: Three cents gallon upon
those costing less than sl.25 a gallon,
comprising the bulk OF the trade TO
soda fountain and other general pur-
chasers. four cents on those costing
from SIPS to So a gallon; five cents
on those from 81 20 So a gallon; eight
cents on those from 50 20 81 a gallon,
and twelve cents on those costing more
than 81 a gallon.