Arizona republican., 1917-05-12
EVERY INTEREST MAKES CLAIM J. T WILL FACE RU|NAT|0N WHEN
 BILL |S LAW; LOBBY AT PACKED
[RepubIicsn A. p. Leased WireI

IRepubican A. p. Leased WireI
 WASHINGTON, May 11.-WhiIe the house debated the s1,Soo,ooo,o 900 war tax bill today, the senate finance com mittee heard violent protests from in terests on which the new war fevies would fall
 Manufacturers who would have to pay the increased excess profit tax, distiIIers, brewers, soda fountain inter ests and tobacco companies all told the senate committee that they faced ruin if the bill went through as presented in the house. Nearly every witness de- clared his particular business seemed to be the target for an exorbitant tax.
 In the house, too, many portions of the bill were under fire, but democratic. and republican leaders in charge re- piled that the money must be raised and only high taxes could provide it. Representative Fordney of Michigan, ranking republican on the ways and means committee, made four-hou speech for the measure. He said he agreed with Democratic Leader Kitch- in that the bill had some faults, but that on the whole it was equitable
 Only the excess profits, liquor, beer, soft drinks and tobacco schedules were considered today by the senate com rnittee, which opened hearings before the measure came over from the house in order to hasten final congressional action.
 The income tax increases and the rise in postal rates consumed large part of the time today in the house debate. Some representatives sug- gested that the tax on big incomes was not high enough and others opposed vigorously the proposal to increase the postage rate on second class matter by creation of zone. system.
 Replying to critics of the income tax section, Mr Fordney told the house that there is limit to which the government can go and take from a man his income until he begins to evade the law. There is no law in IL, that compels a corporation to pay dividends The minute you have taxed the corporations to a point where they property, they will pass to surplus their earnings instead of paying it in dividends In making up these income tax rates the committee were mindful of these possibilities
 l Republican Leader Mann asked if it would not be fairer to tax newspaper and ma gazine advertising than to put the proposed additional postage rate i on second class mail matter. Mir l Fordney replied that this would be 2 | tax on volume of business and an unjust tax
 Representative Hull of Iowa also op- posed the increased rates for maga- zines and newspapers and challenged statements that the government now is losing millions annually on this class of business. Representative | Bland of Indiana told the house that the postoffice departmnet had worked 1 out an amendment to provide that no Ta'aries of postmasters shall be in i cres ssed during the war The debate i will be continued tomorrow.
 i IL was a gloomy picture that protes-
 tants against the war tax increases pa ated for the senate committee. Dis ors niZation of industries, closed fac torres, discharged employees, reduced prices to producers and destruction of retailers were among the predictions. Representative of national manu- facturers' and industrial organizations declared the excess profits tax was discriminatory against corporations
 The whole tax load also was criticized
 as too large. and the suggestion was made that the tax burden be distrib
 uted over several decades.
 The greatly increased tax on distilled liquors, the committee was told. would
 decrease production and revenues, as
 well as encourage illicit traffic The
 Continued on Paga Two)