Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-09-04
Wisconsin Pro-German Only
Able to Secure Total of.
Twenty Votes for Confisca-
tory Proposition.
MAKES FERVENT PLEA
TO DRAFT ALL WEALTH
Fears Decentralization Of
Corporations and Sees Enor-
nous Debt on Each Family
of Nation,

icy MORNING JOURNAL snEe'AL LEASED wisEl
Washington, Sept. 3.---Senator la
Folettes highest proposal for war
profits taxation--an amendment to
make the gross levy 20 per eent--was
rejected by tho senate late today, 55
to 90. ..
Senators voting for the La Toilette
amendment were:
Ashurst, Borah, Brady, Gore, Gron-.
ma, Hollis, Hustng, Johnson of Calf
fornia, Johnson of South Dakota,
Jones of Washington, Kenyon, King.
Kirby, La Toilette, McKellar. McNary,
Norris, Thompson, Trammell Varda-
man
The amendment of Senator La Fol-
Tlette for SIS per cent increase in war
profits taxation was rejected 53 to H.
La Toilette on Rampage.
Renewing his attack on the war
profits section, Senator La Toilette
declared the method devised by the
committee for ascertaining the capi-
tai of corporations is unworkable. The
placing of authority on the secretary
of the treasury to ascertain the capi-
tai Of corporations in contested cases,
he insisted, would be tantamount to
accepting the statements of the cor
porations unchallenged, because 1t
would be a physical impossibility TO:
that department to make investiga-
tons in the time this bill would be
effective.
Under the substitute proposition IL
would be possible he declared. foi
corporations, by initiation of values
for trade mark, good will and othei
means, TO reduce the amount of their
profits so as to lower the taxes they
would be called upon to pay He also
said that the United States Steel cor.
! poration,, instead of being compelled
! to pay under the original bill $76, 1885,
| 600 on its war profits. as has been as
certaiped, would pay, according to the
committees financial expert, only
$50, ,904,0 under both the original
| bill and the substitute provision.
Statement Anglers.
| The senator aroused Chairman Sim
mons by declaring it was proposed to
| take the '1ives of our boys, the heads
of our families, and all the people
have got" but leave these money
making corporations their profits,
taking only 70 per cent and leaving
them 2s per cent of the blood profits
to add to the normal peace profits and
their capital unimpaired."
Senator Simmons denied that the
bill would exempt corporations sur
plus from taxation and intimated that
Senator La Toilette was attempting
/ to hoodwink the senate"
Senator Simmons later disputed
Senator La Follettes statement that
the bill as recently amended would
not take more taxes from the United
States Steel corporation than it would
have as originally reported.
Senator Johnson interrupted TO ASK
! Chairman Simmons IL the steel cor
poratlon would be compelled to pay
honly a tax on war profits of about $59,-
! 00G, 900 instead of $16,000,000 as he
had declared previously.
! The North Carolina senator ad-
mitted it was substantially correct
California senator Scores Hit.
! "The statement then is unchal-
| Ienged that under the committees
amendment the steel corporation
would pay s59,000.OO0 in taxes and
that under the original bill the COM
putation of SIC, 600, 900, as stated here,
is erroneous and the corporation
would pay a like tax" said Senator
johnson. II wanted to be sure Of the
fact that $76,Oo0,o 900 was an error
Senator La Toilette said he believed
the California senator had the wrong
idea, adding that he believed the
larger sum was correct, but that un-
i der the revised section the corpora
ton would only pay $59.000,000, thus
saving about $17.000,000. He also
/ charged that the amended bill would
reduce the taxes of corporations and
began the reading of estimates to
| show the amounts various corpora
| tions would pay under the provisions
of the original bill and as amended.
Chairman Simmons asserted the Beth
lehem Steel company would pay $25,-
045, 900 under the original bill, Sena-
tor La Toilette said, while the COM
Fmittee's financial expert estimated it at
| l$21,S35,994, but the amended bill
would only levy $19.72s.060.
! Fears Overcapitalizs.ion.
II maintain the form of amend
ment is a temptation to all corpora
tions to swell their capitalization" the
Wisconsin senator continued. 1T in
vites overcapitalization. / want con-
stantly to remind the senators that
the government is powerless to tell
what is the basis of capitalization, for
there is no time in which to make an
investigation"
i Now is the time for the United
States to show how this war is to be