New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-13
Host of Business Men
Protest to Senate
Committee
Hearings Extended
Until Wednesday
House Members Suggest
Modification OF
Measure

Washington. May 12.-The wartime
tax schedules of the Sl.S000OO,OOO rev
enue bill we're attacked as threatening
the life Of many industries by score
Of witnesses to-day before the Senate
Finance Committee. and were defended
bv House leaders during debate on the
other side Of the Capitol as absolutely
necessary to preserve the life Of the
nation.
Manufacturers. jobbers and retailers
in many lines touched by the new levIes
hoeked to the Senate Committee hear
ings to protest. Among them were high
officials Of some Of the country's lead
ing industrial concerns. Almost with
out exception they condemned the
House bill as unjust. discriminatory
and likely 10 result in the suspension
Of many Of the smaller business houses
and severe losses to the others.
The third day Of debate in the House
brought further protests from members
and many suggestions that the heavier
increases be modified and other levies
substituted. There was dwindlng
attendance and an apparent lessening
of interest. however. and Democratic
Leader Kitchin said tonight he hoped
- close general debate Monday night
and bring the bin 20 vote not later
than Thursday.
Raincy Defends Measure
Representative Rainey, Of Illinois.
ranking Democratic member Of the
Ways and Means Committee, took up
most of the time to-day defending the
measure. The increases in second class
postage rates were attacked from many
quarters, and Mr.. Rainey said the COM
mittee simply was trying TO get back
part Of the annual loss which the gov
eminent sustains through carrying
newspapers and periodicals through
the mails at l cent a pound
Those Of Us who drew this bill knew
that the life of the nation is in dan
ger" said Mr.. Rainey.
Representative Wood, Republican, Of
Indiana. declared that there are many
inequalities in the bill. and suggested
tax Of SO a head on ali business men.
Under the present provisions, he said,
100000 independent business men
would contribute nothing toward the
enormous total to be raised.
Representative Dyer, Republican. OF
Missouri, also attacked the measure,
saying that many of the things to be
taxed on the theory that they are lux
uries are in reality necessities.
Most Of the Senate committee wit
nesses expressed desire to "do their
bit" in paying war taxes. but declared
the House provisions distinctly unfair.
Those who protested included concerns
interested in the taxes proposed for
public utilities, coffee. tea. advertising,
insurance, automobiles, musical instru
ments, the moving picture industry,
jewelry and drugs. Because Of the
great number who have asked to be
heard, the committee decided to con
tinue its hearings one day longer than
intended and close them Wednesday
night.
Parcels Post Tax Urged
Taxation Of parcel post packages was
urged by representatives Of railroads
and express companies, who contended
IL would only be fair to tax packages
sent by parcels post which completes /
with the express companies.
The cent-a-pound tax and higher |
duty on coffee was assailed by Frank /
r. Seelye. Of Chicago president Of the /
National Coffee ROasters' Association. /.
He suggested a fat two-cent tax in /.
stead, and declared many large retail 1
he 20
Lower retail coffee prices. because Of I
a prospective large crop, probably the |
greatest ia the worlds history, were I
predicted by Seelye
Representing interurban electric /
roads. Arthur W. Brady. of Anderson, /
Ind. said the proposed taxes discrim- |
mate in favor of automobile lines hav- /
ing established routes competing with /
electric roads. The proposed tax on /
electric power was opposed by Z. V. /
Taylor, OF the Indiana Public Utilities /
Company.
The advertising tax were attacked !.
by +. A. Frost. OF Chicago, as discrim- |
mating against poster and outdoor ad- |
vertising interests.
Mr.. Brady said the actors get the /
largest returns In the moving picture /,
industry. Only two large producing !
companies, he declared. made money !
last year. He argued that film pictures 4
are fast becoming an educational fac /
tor, supplanting textbooks.
III manufacturing generally is TO be !
taxed, representatives of the jewelry |
trade said the jewelry manufacturers, |
jobbers and retailers are willing TO pay |
the per cent jewelry tax proposed.
Perfur.ery manufacturers said their |
profits are narrow. and the increased |
| alcohol tax would stop manufacture OF |
cheap grades Few manufacturers, IL 1
i Was said, made 10 per cent last year.
A plea for careful consideration Of !,
the sporting goods section was made |
by II. Boardman Spalding. The per
cent tax proposed. he said. could prob !
ably be borne without inconvenience by !
The ultimate consumer. jobber and !
manufacturer. lie said sporting goods /
men will stake their medicine"
Proposed taxes on patent medicines !
were said 10 be unjust and discrim- /
inatory By II. r. Thompson, Of the |
Proprietary Association. comprising
two hundred manufacturers. Chain |
drug store interests suggested that |
instead OF the per cent tax on med |
icines, the Canadian system Of per |
cent tax on every quarters worth pur-
chased be adopted.
Auto Men Pessimistic
Anything ~. an optimistic view OF .
the automobile industry was presented |
by Alfred Reeves. general manager OF
the National Automobile Chamber Of
Commerce. who characterized the per
rerr manufacturers tax as "a menace