The sun., 1918-10-11
SENATORS MODIFY
KITCHIN JEWEL TAX
Committee Talks Of Knocking
Out Entirely the Levy on
Clocks and Watches.
LUXURY ITEMS APPROVED
Thomas Proposes PrOhibitive
Assessment on Campaign
Contributions Over $500.
Special De.patch to TIE Sun.


WASHINGTON, Oct. 10.-The Kitchin
bill received a little more rough treat
ment from the Senate Finance Commit
tee In its one session to-day. To begin
with the committee struck from the
bill tho House provision that IN addi-
ton to the regular tax on jewelry pr
10 per cent. Of its selling price. jewelry
having platinum In its makeup should
be subject to an additional 10 per cent
tax. The committee felt that II 1t be
the desire Of the Government to pre-
vent the sale Of platinum In order to
conserve 1t for war purposes its sale
should be prohibited and the stocks on
hand taken over.
While dealing with the jewelry tax
the committee struck out the provision
eremrtlng from the 10 per cent. tax on
tewelry sales dealers who sell jewelry
as side line with gross sales not ex-
eeding 5000 year. The committee was
unable to see why this provision was a
necessity or why II was put in at all.
The out and out luxury tax schedule
was approved with one exception. The
committee passed over for future con-
sideration the inclusion OF all watches
and clocks, except watches purchased by
officers and men of the army and navy,
under the luxury schedules.
Opposes Tax on Timepieces.
In the discussion Of this part Of the
bill the committee leaned toward leaving
timepieces out of this schedule entirely.
except those costing more than set
amount to be decided upon later.
Senator Thomas tCol) introduced an
amendment designed to levy a prohibit
tive tax on political contributions in
excess of $500. As his amendment is
worded It would place a 100 per cent.
tax on the excess Of any contribution
above $500 to the cause of any candi-
date in either a primary or general
election. This would apply to the con-
tributions Of persons and corporations
as we'll.
The Thomas amendment would require
committees to make returns to the Com
missioner Of Internal Revenue, and all
political committees, county, State and
national. to make full returns Of all con-
tributions made to them within thirty
days after any election Is held.
While the committee was at work Sem
ator Kellogg (Mnn.) on the floor of the
Senate attacked the constitutionality of
the provision in the Kitchin bill for tax
ing the salaries Of State, county and
municipal officials and the income from
the securities issued by States, counties
and municipalities.
Defends State Sovereignty.
"The necessities of the war do not
Justify the Government in laying hands
upon the sovereignty of the States" the
Minnesota Senator said. THE continu-
ance OF our dual form Of government, the
stability. independence and effectiveness
of our State and municipal governments
are of the greatest importance to the
peace and happiness of the nation and
the perpetuity of our institutions.
IT do not believe that there exists
such an exigency in the Federal Govern
ment as to require this dangerous and
doubtful experiment. The Secretary of
the Treasury has stated that 1t will yield
but little revenue. Another thing-the
tax is not levied upon the income OF
bonds hitherto issued-only upon those
issued after this revenue law becomes
effective. In this time of war when of
necessity all Of the powers OF the Fed
eral Government are marshalled let us
not under the euise of war necessity
| undertake to change the very funda-
mental principles upon which the Fed
eral and State governments maintain
| their separate existence"
Senator Kellogg pointed out that while
| there Is no express clause of the Consti.
tuition forbidding such a tax the very
nature of the sovereignty Of the States
must forever prevent such n tax being
construed as legal and constitutional