Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-09-05
Attempts of La Toilette to
Take Billions by Income Taxi
Are DeciSiyeIy Defeated in
Senate.
UPPER HOUSE NOT TO
BE EASILY STAMPEDED
Kenyon Insists That All Legiti-
mates Profits Should Be Per-
mitted but Treason Should
Be CinChed.

| lBN hoRNiNc IouEHtL SPECIAL LEASED wlsEl
Washington, Sept An rapid sue
cession today the senate bowled over
by overwhelming majorities three
/ more proposals from the group OF
senator's seeking to Increase the lev
les on war profits in the tax bill.
| An amendment by Senator Hollis to
tax war profits only at higher rates
and to strike out the finance commit
tees new clause leving $42S, ,OO0, 900, 900
additional or ordinsry excess profits,
was rejected, 81 to l2. Then with
out debate. one by Senator La Fol-
lette to fix flat rate of so per cent,
designed to raise not less than $1,S00.-
000,0 900 on war profits, was beaten,
SO to IS. The minimum flat rate pro-
posal of so per cent Of the high tax
group, presented by Senator Hills,
was voted down, 5s 70 Is.
Hopes 10 Raise Rate.
With these setbacks. the fight to
substitute a flat rate for the gradual
ed system of the excess profits sec
ton virtually endeo and the contest
entered new stage. Before the
final vote on the war profits section,
set for late tomorrow, the high tax
faction plans an effort to raise the
graduated rates now in the bill To-
days session was marked by spirited
tits in the last stand of the high tax
advocates to impose flat, general
rate on war profits The group still
hopes to increase the tax levy by rails
ing the graduated rates, but finance
committee leaders are confident the
hill will stand substantially as now
written---providing for levy OF
about one-third on war pr. Is, or an
increase of 81 100000 over the
present revenue of $226, 100000.
Hollis and Kenyon Lead.
Senators Hollis and Kenyon led the
discussion for the high takers with
Senator Smoot leading the defense
of the finance committees draft. A
bill totalling S4,voO, 100000 was urged
by senator Hollis, who insisted there
should be a flat levy of at least so
per cent on war profits
Senator Kenyon scored the senate
for voting down the increases pro-
posed. He spoke of ''treasonable prof
it's and said inadequate conscription
OF wealth and imposition of irritating
consumption taNes on the masses of
the people would be responsible for
the unpopularity of the bill
Senator Smoot attacked the Hollis
plan to exempt normal but extremely |
large excess profits from taxation, as
serting many millions of ordinary |
earnings would escape taxa. |
ton by the proposal.
Twenty Votes Mustered.
In the three votes today the high |
tax faction both gained and lost sup
porters. Their highest record of twon- !
ty votes was made yesterday on the !
10 per cent war tax profits proposal |
of Senator La Toilette. Division of !
sentiment in their own ranks regard
ing the smaller flat rates and excess
profits taxation today. caused slight |
losses. Senator's Chamberlain Ken
drick, Myers and Phelan were new
registered, on the side of
ators Chamberlain, Myers and Phelan
voted to tax war profits alone at
higher rates and exempt ordinary ex-
cess profits. Senator Kendrick sup
ported the final minimum so per cent
proposal of Senator Hollis On the
after, Senators Borah and Trammell
voted with the majority because the
bill contained a so per cent maximum
Wealth Is Arrogant
The trouble in this country" con-
inued Senator Kenyon, sis that peo-
pie who are devoted to this country
md who would give their lives to it.
'eel in their hearts that great wealth
IS arrogant and powerful and has too
much to say regarding legislation. If
great wealth would refuse to meet the
public half way and be willing to
nave a tax meted out to them justly,
am afraid trouble will result to
hem. Let us think well before we do
anything that will increase the social
unrest of this country. The opinion
s expressed by the people, although
,neered at in the COAX rooms, that
conscripted men, and can't
Justify itself unless they conscript II
wealth too. The opinion has gotten
,ut that if lives can be conscripted
wealth can, too"
Opens Tax Debate.
In opening today's debate, Senator
la Toilette agreed to withhold tenn
oorarily his amendment for flat in
crease of 60 per cent and discussion
proceeded on a proposal by Senator
Hollis to apply the tax on the pre-war
fandard. because he contended it
would be physically impossible to
make necessary valuations on q ba-