New-York tribune., 1918-09-08
Press and Standard Oil
Head Are Hit in War
Revenue Debate
Senators Hear Some
Pleas and Panaceas
House Nearly Empty as
Chairman Passes Day
E.lucidating Measure
By Theodore NJ. knappen

Niaude Nltchln OF the ways and Means
Committee and Representative Mich.
o,as Longworth, Of Cincinnati, united
n their efforts to-day 10 prove thai
the metropolitan press" has been de
ceiving the country as to the state ot
relations between the committee ane
The Treasury Department. They also
oonsDired TO put A. c. Bedford, presi.
dent of the Standard Oil Company Of
New Jersey, in the "dunce" class. Mr.
kitchin then turned his attention te
Senator Reed Smoot and the latter:
caustic criticism of the revenue bill.
"I would ask the gentleman from
North Carolina" said Mr.. Longwortt
SIS Mr.. Kitchin resumed his exposition
of the $4,000, 900, 900 revenue bill in the
House today, III he has seen. repeated
statements IN the metropolitan press
concerning an alleged violent di.
Vergence of views between the Ways
and Means Committee and the Secre-
'ary Of the Treasury" Mr.. Kitchn re-
p,ied tNat he had read about one hun
dred editorials on that subject.
And is it not true" continued Mr.,
Atot'e, " Vl III, tii%l tilcIG mas D0e0 no
violent divergence of views, and were
not the only differences between the
Secretary and the committee differences
Of opinion regarding the rates Of the
excess profits tax and as to whether
here should be a diiferential in the
normal corporation tax in favor Of in
come distributed as dividends as
against income retained 2"
lew Differences, Says Kitchin
That is not true" answered My
Kitchin. There has apparently been
deliberate attempt by the press to
msrepresent the situation The only
differences between the committee and
the Treasury Department have been
5hose mentioned by the gentleman from
Ohio"
Later Mr.. Longworth, still acting as
. friendly interlocutor, asked Mr..
Ktchn if he had read the interview
with President Bedford in regard to
the effect of the revenue bill on the
activities OF oil we'll wild CATERS. -
MIR. Kitchin said he had and added that
tho interview revealed the Standard Oil
man as suffering from the same igno-
rance as the editors Of the metropolitan
0ress." who had evidently not read the
h.'l they were criticising. Mr.. Bedford
vas reminded that the individuals and
partnerships who do most Of the bene-
fetal wild eating" are expressly ex-
ciuded from the operations Of the war
and excess profits provisions of the bill
which the latter considered to be ruin
Gus 10 the former.
Treasury Suggestons Rejected
In the interests of complete histori-
ton Moore, Of Pennsylvania, brought
out the fact that the Treasury De-
partMent had made many suggestions
which the committee had rejected
These, however Mr.. Kitchn insisted
wero all mere friendly differences of
opinion. Thoreupon Mr.. Longworth ex-
planned that he was referring only to
tho final form Of the bill.
Senator Reed Smoot came in for
criticism when Representative Borland
of Missouri, inquired of Mr.. Kitchin
If he had read the interview in which
the Utah Senator denounced the bill
as designed to get the largest possible
amount of money from the smallest
possible number Of voters.
Mr. kitchln had seen this interview
and had just started on some uncom-
plimentary remarks concerning the
Utah Senator when Representative
Moore made a point of order on the
ground that Senator Shoots remarks
had not been made on the floor Of the
Senate. Mr. kitchin finally admitted
The validity of the point and promised
Mr. Moore that if he would stop press
ing the question he would not name
the Senator.
The amenities having been thus dis
posed of, Mir. kitchin insisted that the
press must have misrepresented the
situation, as he was sure that no Sena-
tor would say that twenty-three Re
publican and Democratic Representa-
nves, in such crisis as now confront
ed the nation, would unanimously y
unite in framing bill for political
ends. He then indulged in an orator.
cal fight, in which he pictured the
meannoss Of any person who would
make such statement.
Ford and Corporation Tax
With Mr. Moore as the friendly
prompter in place of Mr.. Longwortn,
MIR. Kitchin then took up the defence
of the excess profits alternative pro
vision in the corporation clauses of the
bill. Mr.. Moore wanted to know how
the Ford Motor Company would have
stood had there been no excess profit
provision or one with the same rates
as in the present law.
The Ford company" answered Mr.
kitchin, would not have been taxed a,
all, except for the normal tax, hac
there been no excess profits provision
and not cent more under this bill
than under the present law if we had
not increased the rates"
Mr.. Kitchin explained that there
were similar companies, like the East
man Kodak Company, the National
Cash Register Company, the First Ma
tional Bank of New York, the Ameri-
can Tobacco Company, the Standard
Oh Company of Indiana, and some 25,.
900 other concerns that would not have
been reached except through the ex-
cess profits provision. He said that
the committee was unanimous in hold
ing that, in righteousness, justice and
equality, the excess profits rates should
be raised SO as to make these great
companies pay more than in the past
Even so, in consideration Of the fact
that not all of the present profits OF
these companies are war profits, the
committee had let them off more easily
than the corporations that fell under
the war profits provision.
Defends Excess Profit Provision
Mr.. Kitchin defended the excess prof
its provision at length, showing that
without It hundreds Of millions of rev,
enue would have been lost from g
source amply able to contribute It,
The argument against heavy excess
profits rates as stated by Assistant Sec
retary Leffingwell, he said, WAS that
to increase the rates would depreciate
The stocks and bonds OF the companies