Evening star., 1918-08-15
N|ENNARJAlRllN
|. |. \ !! COMMITTEE 0 ! / / ! III
Both Mr.. :Kitchin and. Nj. Nc
'..Adoo. Predict Agresment
= [ '.s-'~s"H ~ .Vs,c i'tsv @a''
!. 81 :, Z. . ~ronMeasWe.
EXPERTS BEING HEARD

.Adoo, WREN hs/AppAAFec before the
ways and. means eSMmittee, is under
.copsidsraticN in executive session to-
day. Thia Afternoon further..yiews of
the Treasury Department, are being
COMMITS sfpnefs Daniel ~Ge7 ReperS by
Assistant Secretary' Of the treasury
|Lemngweu and BY Dr. r. s.. Adams,
cha srnan OF the excess profits tax !ad-
-Hisory hoard
+ The. plan proposes the retention of
|Axisting rates in the present excess
profits law with the alternative APP
Eplication of an excess psoats tax with
ia maximum of so per Cant. affecting
about 80 per cent of all the business
Corporations coming under this sched-
euIe.
Increased Organization Necessary.
: Mr.. Roper4told the .cenmittee today
that it Will require a largely tncreasz
Led organization in the internal rev.
enue, bureau to administer the new
revenue law abouyAto be. enacted by
Congress. He said ~ would take
which is an. n.increass,of$ 81. 600 over
the present appropriation: :@.@s
- Commissioner sR6pEr and other
Treasury experts testified before the
Committee regardingssthe administra-
tive provisions of the bilL-rs
lover 800 Million CAIN. Estimate.
Secretary McAdoo estimated that the
Treasury plan wpaM pyohnce-fron,
under the plan teffsati vs stcfengfeed to
by the committee 4eecently. =
i Though the plan as contemplated by
the committee differs from the Treas
tury plan, members of the committee
ldeclared today that an Agreement
would be reached which would bs
sstisfasssry to Secretary ess Msass abs ,es
committee. -.
"No Bayonets for Each Other"
T At the conclusion OF the sronferenee
sSeeretary McAdoo and 4Chairmali
TEitchin Joined in the Aredtctioh that
They would get tegetheE.s aM "a plan,
tand Secretary McAdoo ~added that
t@yeu see that Mr.. Kitchin and i have
no bayonets for each othert'
The first break in the cQmmi ttea
teeeurred when Representative RHinep y
saf Illinois, after making Asstand fet
eincrease of the taxes ofsfates in
Fexcess of st.000,0o0 And being voted
down. announced that he wauid carry
sths ight to the floor Of nssHease.
sNseded Bsfors Next Loan Drive.
Secretary McAdoo told the commit.
tee that 1t was iinperatfYAs that the
Efsyenue bill be enacted Ey@Congress
Esefefe the opening of ths campaign
/ for the fourth liberty loan on Sep
ktember %. The Secretaryrread to the
tscpmmittee a telegram which he sent
TO President Wilson July %, IN which
That the congressional IeEie1afive pro-
l;gram did not centsmRiaH passage OF
the bill before the end OF October.
Mr.. McAdoo empha4ised his statsa
EW ent made In a Telegram 60 chais-
l'shpold be a war profits tax at, fai
Israte OF 30 percent, and that the ex-
fcess profits tax should not be depend
ca, upon to produce increased revenue
but -5tk4eEHopdi{acHf fSsnai seEs.adesifabiE
ent law.
EIn framing the exeess profits tax,
Mr.. McAdoo said that should 1t be de=
Etded to modify the existing schedule
changes in rates shouM besmade with
of revenue as during the past year
land 'in a way more equal and less
ffnught with hardship to small busi-
ness concerns."
= To Guard Against inequalities
The drafting Of measure designed
TO raise $4,000. 100000 in revenue is q
kkFeat burden, and Inequalities are
teertain to result, he said, For that
seisaas ssassa @ eesis aa aasss ssshss,tx y was e
tHataIfze taxation upon the cefnmis-
EsIonee- Of sInaefnai. Revenue. acting
Ewith,1a board Of advisors, subject t5
the approval Of the Secretary of the
TrsastjEx: sThf ,coHMitt e has pro,
Etpqn for an advisory board, members
Eot which are to be potdtnktad. by the
President and confirm cd BY the sen-
Emphasizing that no tax should be
placed on the income derived from
EMakfng more popular the government
var securities. as set forth in his let
ter; to Chairman Kitchin June 5. Mr..
EAcAdoo said:
"Is cannot profitably enlarge upon
what I thus wrote more than two
kAiluTA TO coptinae what is In effect.
-xtt2;per, eent.taS upon normal earned
Incomes and. the failure to enact a
direrential Of. say, per cent against
hnearned incomes. making the tax
on sthe, latter 15s viii. 1t is estimated
Us ~ reyenhe to the amount of
$I45 D60n0U, while at the same time
Seriously jeopardize the program for
the issue of liberty bonds OF the
fourth liberty loan at Az per cent by
feduofngasx gasxhe7Sadhe Of the exemption
to the holders " those bonds from
nprnfsH 3hc0tfe faxes by an amount
AadaT to one-third. from Is to 10 per
cent" .4 't - y
ST Proposed Luxury Taxes.
toiS pfSRassa es 5annay
Zee, that the purpose of the proposed
bill should be not merely to raise
aIevenue, but should also be effective
fn the curtaiIing Of wastefu1 expendi-
lures III 81 sald- that, therefore. "such
taxes as that proposed upon. the em-
Rloyment OF domestic servants are of
The committee was advised against
too great an increase in super. taxes
on the. ground that such taxes might
-bacon6 dAstrpct8se rather than pro-
ducttxs, Arsgsssnae u.
PRINCE LEOPOLD FREED
6: :: FROM, g q GUARD .oF PEERS:
AMSTERDAM. August 15.-The
under which Prince
tSiedfich' ! Leopold of Prussia was
pfaced last June has been rescinded,
sfcordtnsso the Heitung am. Mittag Of
HerrW%E :%Shs, s