New-York tribune., 1918-11-26
Senate Republicans Vote
Solidly Against Plan Ac-
cepted by Democrats
Deadlock Seen
At This Session
Chairman Simmons Admits
Filibuster Could Upset Ad-
ministration's Programme
By Theodore M. Knappe

Committee present, that body voted to-
day on straight party line. to accept
the Treasury proposal for $4,000, ,OO0,-
600 tax provision to succeed in 1919-'2O
the $4,000 900 900 measure now being
drafted for 191S-19.
Some of the Democratic members
we're absent, but Chairman Simmons
exercised proxies and voted them all
for the double -barrelled" revenue
legislation. On the other hand, even
La Toilette voted with his Republican
brethren.
This clear-cut decision was accepted
BY both sides of the table as meaning
bitter end parliamentary battle when
the two-year bill is finally reported to
the Senate. Republicans predict that
il means that there will be no revenue
legislation by this Congress and that
especial session of the sixty-sixth Con-
gress will be thereby enforced.
Democratic members of the Finance
Committee seemed to be respondent.
Chairman Simmons practically admit
ted that if the Republicans chose to
fbuster they could prevent the pas
sage Of the bill. He did not seem to
think that the cloture rule would help
much in this sort of struggle.
Compromise Not Expected
The Democratic members of the
committee. or some of them. hope that
some sort of compromise may yet
be agreed upon, but the Republicans
cannot see how they have anything
to gain by compromise, and they con-
slider that their position in opposition
to the adoption of two year taxa
ton programme at this time is so
sound in principle that any sort Of
parliamentary tactics, not forbidden
by the rules of modern political war
fare are justifiable.
The Democrats seek to extract some
consolation from the situation by
arguing that it would be good thing
Tor their party to have it in the rec
ord that the Republicans had deprived
them OF responsibility for post-Dellum
saxation programmes.
lhey think that the Republicans are
100 divided in their councils to be
ape 70 agree to any sort of taxa
uon Dill, with the result that even in
nomlnally Republican Senate the
Democrats will be able to dictate their
and of a bill.
Though La Toilette voted with the
republicans to-day. he is known to be
Ia Iavor OF revenue provisions that
would raise about $4,000 900 900 in
stead of $4,000, 100000, whereas tie
Democrats assume that the Republicans
Viii favor low taxes in the interests of
'he wealthy classes and La Toilette
would like to take the whole of his
sl2oOo,000000 out Of those classes.
The Democrats figure that Hiram
Johnson, Kenyon. Borah and perhaps
other Republicans will not stand for
the kind of revenue bill that they
are pleased to assume Republican n
Finance Committee with Senator Pen
rose IN the chair would turn out.
me Democrats say that the dominat-
ing Republicans desire to have the war
largely paid for in loans, with the reve
nues reduced to the point where thew
Will suffice for the bare expenses of
government and the interest on the
bonds. and so distributed that the
peepuF Will pay the taxes, while the
aolders of great wealth draw the in
tsrest on their bonds from the toiling
masses. They argue that the Penrose
pan is to defeat two-year programme
aow so that larger bond issues will be
Ascessary.
Interests" Discussed Again
With the war won and the future
certain, the big interests. the Demo
sfa1s contend, will eagerly snap up the
bonds, while their friends in the SEN
s'e arrange taxation so that what "the
interests" pay to the government will
from il.
The Republican position is that the
aeSt Congress is the one that will be
able intelligently to shape revenue leg
islation for the fiscal year beginning
aexs July, because not for many months
yet will 1t be possible to get a fairly
accurate idea of the country's fiscal
ss1'uation. They say that the Treasury
lso only been able to guess at the
snatlon this year, in view Of the ter
mlnatlon Of the war, and can't even
make q good guess as to the require
nents for next year.
with that basic contention to go on,
ssaey add that the Congress that has
tust been elected really has a mandate
rom the people to deal with the after
var policies Of readjustment and re-
eonstruction and should be called in
special session anyway Hence, they
.s,eic that every consideration justifies
ssaem in using the club the Democrats
aa'e put in their hands to compel a
special session.
having taken step that appears to
Make even the s6,o00000, 900 section Of
ae propoycd legislation for the cur.
! Tnt hscal year an academic affair, the
smmlttee resumed it's work Of shap-
.g up. II was agreed to exempt
ncividuals and partnerships from the
! ssx excess profits tax, thus returning
!, The House bill. which leaves indi-
,,soais and o-partnerships wholly to
~, personal income tax title Of the
IN this connection it was agreed to
avg. corporations swhose operations
sspend rather on the personal services
~. members than on invested capital
~ sanc as partnerships. Small cor
sspsations = OF capitalistic nature are
ss = oe let off with a maximum war ex-
Mss profits taxation under the bill OF
"a per cent Of their net income, pro
efc~sd the latter is not more than $50
Ss,, year. This section Of the House
~. ~. tSVI? was somewhat more elabo-
sx and provided for a tax limit OF
psr cent Of the net income of cor,
,,ss'asions, ~ With an invested capital OF
go. 49, more than $4,000 and of 40 pei
nt Tor corporations with sn invested
,sWtal Of more than $4,000 and no,
"sfe than $50 600.
vessel Makes Trial Trip
wsssvkTLAND, Ore, Nov. 24.~-The