Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-08-28
LEADERS BEGIN PAVING WAY
FOR APPLYING CLOTUItE

w WASHINGTON, august Ei-1cnSiOn
in the Scnate's struggle over tho war
tax bill mounted so high to-day. with
the opening of the third week OF de-
bate, that the leaders began paving
tho way for applying the cloturc rule
to curtail discussioii. and negotiations
were set afoot with the hope of COM
promising the varying opinions over
higher taxation of war profits and in
comes.
The Senate spent the. day in talk.
without action. OIL the pending post
age sections of tho bill, while leaders
earnestly conferred toward compro-
missing disputes and fastening the
dispose of the 1-cent letter postage
visions TOMORROW.
Petitions for cloture. which tonight
had more than nifty Senator's sigma
tures-only a few less than tho neccs-
sary two-thirds TO put cloture into
efrect--were circulated after Senator
Simmons. in charge OF the bill, sought
and failed to secure unanimous con-
sent TO fix date for final voting on
either the entire bill or the war prof Is
section. Several Senators. however.
the cloture rule would not be sought
unless Il filibuster developed. Presen-
tation OF the petition is not planned
by Senator Simmons for several days.
or until after the war profits debate
begins.
FURTHER DEFINITE MOVES
FOR HIGHER TAXATION
Advocates OF higher taxation made
further definite moves just before the
Senate adjourned tonight. Senator
Johnson. of California, introduced an
amendment designed to levy so per
cent on war profits. and Senator La
Toilette offered another substitute for
the income tax section, proposing to
obtain S643.6Jl.000 from incomes. in
stead of the s49o,o0o,OoO provided in
the bill. Senator Johnson proposed to
levy 10 per cent .-dditional on war
profits. estimating the present levy at
per cent.
The majority of the Finance Com
mittec held two meetings and con-
sidcred abandoning the prcwar profits
system of the bill and substituting a
new basis.
Because of criticisms. the majority
committeeman are considering substi-
tuition of the House excess profits
scheme of calculating war profits,
based upon capitalization instead or
net profits, and allowing an exemption
of per cent plus $500. y DEFINITE
decision. however, has not been
reached Such change would secure
more revenue, II has been argued, and
remove many alleged injustices Of the
prewar calculation system of the bill.
URGE ENTIRE ELIMINATION
OF POSTAGE TAXES
In to-day's debate on the postage
taxes Senators Hardwick.. Pomerene
and Mcclellan led the attack on the
bills provisions advocating higher
postal rates for newspapers and maya
zines. Senator's Harding. Smoot. Nc
Cumber and others opposed higher
postage rate, while Senators Borah,
Townsend and. others urged entire
elimination of postage taxes from the
bill. Senator Weeks. of Massachusetts,
expects TO speak tomorrow for his
plan to eliminate the publishers post
age and income tax provisions.
Senator Hardwick advocated a sub
stitute, Endorsed by the Post-Ottice De.
partment, proposing to maintain the
present l cent a pound rate on news
portions OF publications. but increas-
ing. by. graduation from to cents
pound, the second-class rate on por-
tons devoted TO advertising. He cited
that $4,000. 600 annually is lost by the
government in carrying bulky second
class matter. mostly magazines. filled
with advertising at the l cent mail
rate
Senator McKellar's substitute is for
a modified zone increase system. leav-
ing present rates within radius of
zoo miles-the average circulation
range OF newspaDers-to reach maya
zines and other periodicals circulating
usually over wider territory. Repre-
sentatives OF newspaper interests are
giving their support
The cloture movement was Instituted
after conferences between Senators
Simmons. Martin. Harding. Smoot and
others. and was bipartisan.
Senators favoring higher taxation
privately expressed indignation over
the cloture movement. and predicted
its defeat. They said positively that
the necessary two-th!rds vote could
not be secured for its adoption.
Beginning debate the postage
sections. Senator Hardwick moved TO
strike out that lcvying / cent increase
on letters. The proposed increase tax.
he said. is most unfair and unjust"
while publishers rates make postal
deficit.
II would accentuate wrong the
SAID. leaving second-ciass rates, ad :
inittedly grossly unfair, so low and
raising postage paid by the masses Of
the people"
Not only is it my opinion. but also