The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1918-12-25
LOCAL PAPERS
HEAVILY TAXED
National Magazines and News
papers Subsidized by
4 Postage Rate.
SECOND CLASS POSTAGE
RATE RAISED BY SENATE
Influence of Big Newspapers
and Magazines Overcomes
Justice in Fixing the Postage
Rates.

Rates.
: Washington, Dec. 1s.-By adopting
the finance committee amendments 10
the war revenue bill affecting secono
class postage and insurance companies
the senate today cleared the way for
disposal Of the few other contested
but Important features remaining.
Leaders now Aave increased commence
sf passing the bill before adjourn
nnent next Monday.
By a. vote of "a to % the senate ap-
proved the committee amendnaehc
proposing repeal next July 1 OF the
present zone system Of second class
postage rates and substitution OF a
rate of per cent. per pound Wlthlh
$50 miles and one and one halt cen.s
beyond. Most of the day was spent IN
spirited discussion Of this amendment
and one by Senator McKellar OF rem
nessee for modified zone plan, whlch
was rejected without roll call.
The senate also approved the COM
rnittee plan for new rates on casualty'
IRE. marine and other insurance COM
panies, except life insurance The new
rates. based on premium receipts, are
respectively, fire insurance companies
3-4 per cent; casualty, plate glass
and similar companies, IL per
cent. and marine 2 IA per cent. on
inland and / ga per cent. on export
policies.
Disposal of these and many minor
administrative and working changes
left virtually only the income, war eA-
cess profits, inheritance and luxury
tax sections to be considered.
A substitute for the committees s
bin. proposings large tax increases,
principally on the big income ana
war excess profits, was introduced
late today by Senator La FoHette'
who is expected to make a lengthy
address tomorrow in its behaE. SEN
ator Jones of New Mexico, Democrat.
plans to advocate an amendment 10
continue war profits taxation through
1920 and Senator Thomas Of Colo
rado. Democrat, is expected to pro-
nose elimination of the inheritance
taN provisions.
Disposel of the second class postage
section today was regarded as remoV-
ing a considerable obstacle from the
bin,s path. Senator Hardwick Of
Georgia and Mcclellan led the fight
on the committee amendment wnlcn
was defended by Senator Smoot OF
Utah. Opponents charged that sec
ond class publications are granted
large government subsidy, while Sen
ator Snoot declared the present zone
system tends to foster undesirable
sectionalism and would drive many
small publications out of business.
On the roll call on adoption OF the
committee amendment, 13 Democrats
and a1 Republicans supported the new
periodical rates with Is Democrats
and seven Republicans in opposition
as follows:
For adoption: Democrats-F7etcher
Gerry, Henderson, Hitchcock, Jones
(N. NJ, Kendrick, Martin (Va.), Pol
lock, Ransaell, Simmons, Smith
s .{Md.) Swanson and Underwood. To-
tai 13.
Republicans-Rora Calder, Dii>
lingham, Fernald, France, Harding,
Johnson of California, Jones Of Wash
jnston, Knox, Lodge, McCu1nber, Nc
Lean. McNary Moses, Page, Penrose,
Poindexter, Sherman. Smoot, Spencer
and Weeks Total 21. Grand total.
for 81
Against - Democrats: Beckhan1,
Hardwick, Johnson of South Dakota,
Kirby, Mcclellan, Martin Of KENTUCKY
Myers, Nugent. Pomerene. Shafroth,
Sheppard, Smith iof Arizona, Thomas,
Trammell, vardaman. Total Is.
Repubrcans@Curtis, Gronna, Kel-
logg. Kenyon, La Toilette, Norris and
Sutherland. Total Z. Grand total.
against %.
Senator's Sterling of South Dakota.
Warren Of Wyoming and Watson Of
Indiana, Republicans. voted for the
committe amendment, but because OF
absent pairs" withdrew their votes.
and Senator Gay of Louisiana, Demo
crat, announced that he was paired
and, although unable to vote for the
amendment, favored its adoption.
In lieu Of the bills levy Of 80 per
cent. on the excess corporations net
income over credits and under 20 per
cent. of invested capital, Senator La
Fo1lette's substitute prop IseS 80 per
cent. on profits under Is per cent. Of
invested capital. Instead Of the bills
tax Of so per cent. on profits in ex-
cess Of 20 per cent, the Wisconsin
members propose a tax Of 60 per cent
on profits between 10 and 20 per
cent.
The La Toilette substitute also pro-
poses to retain the II per cent. tax on
corporation incomes, but would cut
the individual normal rate from II tc
2 per cent. and secure the bulk Of
individual income revenue from sur
taxes. It also proposes graduated
surtaxes ranging from 5 per cent. or
incomes between $4,000 ~and $1,000
to Is per cent. on incomes over $780,
soHs
From individual incomes Senator La
Toilette estimates that his bill would
raise s1,7S4 100000, compared with
$1,432, 100000 estimated under the
pending measure.
In disposing Of the miscellaneous
provisionS today the senate adopted