The sun., 1917-09-12
HOUSE TO YIELD
ON WAR TAX BILL
Senate Measure Probably Will
Be Approved With Few
Changes.
Special Despatch to THr Su>

WASHINGTON, Sept 1l.--House mem
bers Of the conference committee on the
war revenue bill are expected to yield
largely to the Senate members when the
measure is taken up Jointly. With the
exception of a few minor features. the
Senate measure is regarded as big
improvement over the hastily constructed
bill passed by the House. The Senate
war profits tax in particular Is regarded
as an improvement over the excess
profits tax carried in the House measure.
1t is believed the Senate version will
meet the views Of substantial business
interests generally.
Democratic members of the Ways and
Means Committee. including ono mem
her Of the conference committee. made
no secret Of their satisfaction over the
Senate bill. and proposed that confer
ences on the mea sures be comparatively
short. They pointed ou: that the climi-
nation Of the increases in the tariff and
the breakfast table taxes was in strict
accordance with good Democratic policy.
They were also satisfied with the in
creases In the income tax made by the
Senate and with the Senate's action in
eliminating from the bill several specia!
taxes aimed at individual industries
Changes Predicted.
Members of the committee said to-day
that undoubtedly there would be changes
in the graduation OF the tax on war
profits. but they thought that this grad
uation would not AFFECT materially the
revenue to be derived from the Senate
plan which approximates $1,000, 100000
year
Chairman Kitchin. who has pro-
nounced himself in favor OF putting the
taxes on those who will profit from the
| war, IL understood to he in favor Of
raising at least l.o0o. .00o.0 900 from the
war profits tax. but is inclined to favor
the House plan Of assessing and collect
! ing this revenue.
Members Of the House conference
committee also undoubtedly will insist
| en- their plan OF collecting income taxes
| at the source as opposed to the Senate
plan, which would obtain information
! only at the source They say that the
! Senate plan would make possible eva
| sions OF the income tax law while the
! House plan undoubtedly would result in
the collection OF n much larger amount
of revenue
| IT was understood generally that some
/
on the postal rate increases. both OH
! n-st and second class mail matter. As
! the Senate bill stands no increases in
| rates are called for on either class OF
mail bur the first class mail increase
was taken out over the opposition Of
tho Senate Finance Committee. while
| IL wa. understood to-day that Chairman
Simmons moved to strike out the second
class rate increases to have something
to offer az a basis Of compromise in con-
! ference.
Satisfactory Revenue.
BY putting In increases on both classes
! OF mall the conference committee will
bring the bill up to approximately
$4,000. 600. 900 IN revenue. which. II is
understood. would satisfy for the pres
cnt the demands OF the Treasury De-
partment In this respect.
| Republican members OF the confer
ence committee indicated that they
might attempt to have reinserted In the
bill, the horizontal increase In tariff
duties and free list carried in the House
bill Democratic members, on the other
hand. made no secret Of the fact tina
they are elated over the nina ton OF
this section OF the House bill. They were
equally well satisfied with the action OF
the Senate In striking out the taxes on
coffee. tea and sugar as proposed by
the Senate Finance Committee.
Chairman Kitch!n will call up the
revenue bill when the House meets to-
morrow and agree TO tho request for a
conference