Evening capital and Maryland gazette., 1917-09-07
| WAR TAX BILL IS
| SUBJECT OF DEBATE
Senator Wadsworth Declares World
Struggle Will Be Prolonged
GERMAN wARSHIPS ON MOVE
Reported Fleet is Off Gulf Of Finland
Bond Bill is Finally Passed
By House

By House
The war will not end this year
We must provide all the money want
ed to run ii, but We must solemnly
see that we do not smash business
by imposing too much of a strain"
said Senator Wadsworth of New
York in a two-hour speech in the Sem
ate yesterday, urging the passage OF
the War Revenue bill as redrafted by
the Senate Finance Committee.
Senator Wadsworth referred to the
prediction of Senator Lewis of Illi-
nois that the war would end within a
few months, as based upon fallacy.
Who can tell how long the war is
to last?" he demanded "We must
keep on until we have decisive vic
tory over Germany No true Ameri-
can will want it to stop until that
time comes"
Senator Wadsworth favored the i'm
position of the 81, 100000 tax upon
excess war profits adopted, and the
income tax contemplated in the meas
ure as reported BIZ the Finance Com
mittee.
These two taxes go long way to
cover the immediate necessities he
argued. They must appeal to the
country as reasonable and at the
same time sufficient"
The Senate debated the income tax
throughout the day, preparing for the
vote upon that feature of the bill,
which is expected today
In perfecting the surtax rates of
the income tax section, the Finance
Committee presented new estimates
of income tax revenues. AS now
drawn, with addition to the so-called
Gerry and Lenroot amendments, it is
estimated that $S42,000,000 additional
will be secured from incomes-$4S2,
100000 from individuals and 1850, ,000,-
900 from corporations. OF the former
1898, 100000 is expected from surtaxes
on large incomes snd $S9,000,000 from
the new normal rates.
German Fleet Near Finland Gulf.
1t is reported from Helsingfors,
Finland, that German fleet has been
observed at the entrance TO the Gulf
of Finland, says dispatch to the Ex-
change Telegraph Company from
Copenhagen
1t is supposed, the dispatch adds.
that the fleet is preparing for an at
tack on Reval and Kronstadt, the
Russian naval bases.
1t is semi-officially announced that
German fleet has appeared in the
Gulf of Riga.
During the last two days the Riga
front has been broken on a width OF
sixty versts (about forty miles).
Throughout Tuesday the Germans
energetically pursued their offensive,
particularly north of Uxkull in order
to cut the Riga-Venden Railway.
The War Office at Petrograd says:
In the Riga region, north of the
Livonian Aa, we continued our re-
tirement northeastward. crossing the
River Melupe. In the region of the
Pskoy road and the Livonian Aa our
infantry retired to the region of Sege-
void and Ligat, which is twenty-five
versts southwest of Venden.
Our troops operating in the region
east of Riga are continuing to retire
under the@ enemy pressure, reaching
the approximate line of klangsnberg,
Moretzberg, Kestran and Friedrich
stadt.
There were fusillades elsewhere on
the front
House Passes Bond Bill.
Without a dissenting vote the Ad-
ministration's $11 .53S,945,4 ,460 bond
bill was passed by the House yester-
day afternoon, with only one change
from its original form. The modifica-
ton. proposed by Representative Can
non of Illinois, exempts from war
taxes the income derived from the IN
terest on $4,000 or less, par value, ot
any of the securities covered by the
bill which may be held by any one
person. Thus, at per cent, the in
come from this source exempt would
be $500; any income above that
amount would be taxable. Mr. Can
non first proposed exemption on $10,-
600 par value of bonds. that was de-
feated.
The bill authorizes the issuance of
$7.53S, ,945, 400 of convertible four per
cent bonds, subject to supertaxes and
war profits taxes, and to terminate at
the discretion of the Secretary of the
Treasury OF this total s4.000000, 900
is for new Allied loan. $4,000 900 900
to take over three and a half per
cent issue already authorized, and the
remaining S53S.945 to be used for con-
verting certain outstanding bonds, in
cluding the Danish West Indies, Alas
kan Railway, Panama Canal. and ma
val construction issues.
Issuance also is authorized of not
more than $4,000. 100000 each of GER
tificates of Indebtedness and war saw
ings certificates, to run not more than
enc year and five years, respectively.
at rates of interest to be fixed by the
Secretary of the Treasury. These is
sues are to be subject to the same
taxes as the bonds
The bill provides that foreign bonds
taken in exchange for loans shall not
be sold at less than the purchase
price