The sun., 1918-07-12
LEADERS WILLBACK
TAXES ON LUXURIES
Kitchin Ready to Accept Adj
ministratiOn Views on
All Items.
LIQUOR REVENUE SHOWN
Committee Hearing Bares Plot
by Germans to Diminish
Platinum Supply.
REVENUE SHOWN
Special Despdtch TO The SuS,

WASHINGTON, July 1.-THE Injuries
taxes suggested to the Ways and Means
Committee by the Treasury Department
will be advocated by Chairman Kitchin
and other Administration leaders II the
Administration insists that they are war
necessities.
Mr.. Kitchin made II plain to-day that
he was far from agreement with many
OF the taxes and some of the rates sug-
gested, but he said that IL the Secretary
sent to the Capitol in all probability
these taxes would be included in the
bill in that form unless Republicans,
with Democratic aid. succeeded in lower
ing some OF the more radical items.
Just how far the suggested luxury
taxes represent the views of the Secre-
tary OF the Treasury is not known.
Representative Kitchin estimated to-
day that the revenue from whiskey, beer
and wine for the present calendar year
will be fully half billion dollars. In
making this estimate Mr.. Kitchin counted
on Congress making the tax on whiskey
s6.40 a gallon, the tax on beer IS
barrel and the tax on wines 16 cents
gallon. double the present rates, as sug-
gested in the list of luxury taxes sent
from the Treasury Department.
This revenue will be received only on
this year. 1t was pointed out. II the war
time prohibition rider now hanging fire
in the Senate becomes a law. In draw
ing up the new tax law the members or
the Ways and Means Committee cannot
afford to take a chance that the bone
all traf In
at the end OF this year will not be
adopted by Congress. They are thus
confronted with the necessity OF draw
ing a law that will provide sufficient
revenue next year If the liquor taxes go
out.
Tax Work starts Monday.
Actual work on drawing up the new
tax law will not begin until Monday. In
the meantime the Ways and Means
Committee will endeavor to ascer-
! tain exactly how far the Admin
istration intends to Insist on the
| luxury taxes already suggested. Mr..
Ktchn admitted to-day that II some
, Of the taxes suggested were forced into
the bill Il would mean that a large
percentage OF tradesmen would go out
Of business through bankruptcy.
A great deal OF dissatisfaction has
been expressed at the Capitol over sug-
Eestions of placing taxes on clothing for
men and women. shoes and tho like on
account of the large advances In the
prices for these necessities. The hard
est kind of a fight against such items
II they are insisted upon Is certain to be
made.
The Ways and Means Committee to-
day continued with hearings touching
tewelry and platinum in particular A
war emergency measure giving the Gov
eminent complete control Of the plati-
NUN In this country was suggested to
| the committee by DR. Charles II. Herty.
representing the American Chemical So
ciety. and Louis ]. Weinstein OF CO.
I lumhia University.
Chairman kitchin said in effect that
il they would consult with the execu-
tive branch of the Government and
such measure was declared to be n
/ necessity Congress would pass IL in a
day. II the platinum scarcity is really
as acute as it Is reported TO be. Mr.
Kltchin said. II would be foolish TO wait
several months while Congress framed
and passed revenue hill imposing a
prohinitiNe tax on platinum to remedy
/ the situation
/ Mr.. Weinstein said that only 14Oo
Wholesale jewelers. out OF 900 have had
their platinum supplies commandment
! by the Government 81 far. leaving the
remainder of them free to speculate
| with the platinum market
Derelict In Handling Problem,
! Those in charge OF the administration
! Of the platinum situation for the Gov
eminent have been derelict in handling
, the problem, Representative IongwortI,
! fOhio) declared. and Mr.. Weinstein said
that the Bureau of Mines Is to take
over the licensing for the use or pos
| session and sale of platinum now in
| the HANDS OF the War Industries Board
| He aided that German influences are
working to diminish steadily the supply
OF platinum from Colombia, which is al
present about 1000 ounces each month
| One of the principal Government uses
| for platinum IL in making magnetic
! points for gasolene engines. used by the
! Government in motor trucks, airplanes
! and many other war materials.
| Representative Rainey Gll.) said he
| would investigate through the War In
dustries Board the statement that man.
! ufaCturing jewellers continue using
! platinum despite the needs OF the Gov.
eminent, Mr. Rainey pointed out that
the United States had been forced to
| look to England and France for plati-
| mum since the beginning OF the war and
that IL those countries had not been
conserving their platinum supplies the
| United States would have been in a
bad situation.
| Reverting to platinum jewelry. Rep
resentative LonSworth declared: II car
imagine nothing less necessary to prose
cutting the war successfully than jewelry
with the single exception OF artificial
flowers
Probably the last hearing before the
committee will he held tomorrow when
the fight to repeal the second class
postal zone law will be renewed.