Pine Bluff daily graphic., 1918-12-20
SENATE KILLS
 !. ZONE POSTAGE RATE MEASURE

AA A'o.A hN/ - AA Clears the Way for Final
 Disposition of War Reve-
 nue Bill Pending. Washington, Dec. 19-The senate sitting in a committee of the whole today tentatively rejected without a record vote the McKellar amendment to the war revenue bill providing for an extension of the zone system of second class mail rates with a maximum charge of six cents a pound where the matter is sent 1,S00 miles or more.
 The senate late today adopted, 34 to P, the committee amendment to the war revenue bill providing for repeal of the present zone system of second class postage rates and sub stitutiOn of rate of one cent a pound within 150 miles and one and one-half cents pound beyond.
 By adopting the finance committee : amendments to the war reevnue bill, affecting second class postage and insurance companies, the senate to- day cleared the way for disposal of the few other contested, but import ant features remaining. Leaders TOW have increased confidence Of passing the bill before adjournment next Monday
 The senate also approved the committee plan for new rates on casualty, fire, marine and other in- surance companies, except life in- surance. The new rates, based on premimum receipts are, respectively: Fire insurance companies, 1 3-4 per cent; casualty, plate glass and simi- lar companies, 1 12 percent, and marine IA percent on inland and 1 3-4 percent on export policies.
 Disposal of these and many minor administrative and vel4biage changes left virtually only the income, war excess profits, inheritance and lux ury tax sections to be considered.
 A substitute for the committees bill, proposing large tax increases, principally on big incomes and war excess profits. was introduced late today by Senator Lafollete of Wiscon- sin, republican, who is expected to make lengthy address tomorrow Tn its behalf. Senator Jones, of New Mexico, Democrat, plans to advocate an amendment to continue war pro- fits taxation through 1920, and Senator Thomas of Colorado, Demo- crat. is expected to propose elimi- nation of the inheritance tax provi- slons, with Senator Kenyon of Iowa, ov,I oil tn Serting of the 20 percent tax on lux uries.
 Besides these questions, that of prescribing 1920 tax rates, opposed bv Republicans, remains for dispo- sition.
 Disposal of the second class post age section today was regarded as removing a considerable obstacle for the bills path. Senators Hardwick, of Georgia, and Mcclellan of Tennes- see. led the fight on the committee amendment, which was defended by Senator Shoot of Utah.
 On the roll call on adoption of the 'committee amendment, which would become effective in July, thirteen Democrats and twenty-one Republi- cans supported the new periodical rates with fifteen Democrats and sev- en Republicans in opposition, as fol- lows:
 For adoption: Democrats-Fletch- CT, Gerry, Henderson,, Hitchcock, Jones, of New Mexico; Kendrick, Martin, of Virginia; Pollock, Rand- sdell, Simmons, Smith, of Maryland; Swanson and Underwood, total 13.
 Republicans-Borah, Calder, Dill lingham, Fernald, France, Harding, Johnson, of California: Johns, of Washington; Knox, Lodge, McCum- Penrose. PoindeXter, Sherman, Shoot. Spencer and Weeks. Total 12. To- tai for 34
 Against, Democrats Beckman, Hardwick, Johnson. of South Dako- ta; Kirby, McKellar, of Kentucky; Myers, Nugent, Pomerene, Shafroth, Sheppard, Smith o Arizona; Thomas Trammel and Vardaman; total 15.
 Republicans-Curtis, Grona, Kel logg. Kenyon, Lafollette, Norris and Sutherland; total z. Total against P.
 Senators Sterling, of South Dako- ta; Warren of Wyoming, and Watson of Indiana. Republicans, voted for the committee amendment, but be- cause of absent pairs" withdrew their votes, and Senator Gaay of Loui- siana, Democrat, announced that he was paired and, although unable to vote for the amendment, favored it's adoption
 The substitute bill which Senator Lafollette will advance tomorrow pro- nOSaS fO rntajn thn 70 narcont fay 0n war excess profits rates and indivi- dual income surtaxeS
 The I4aolflete substitute also pro- poses o retain the 12 percent tax on corporation incomes, but would cut the individual normal rate from F to percent and secure the bulk of individual income revenue from sur taxes
 From individual incomes Senator Lafoilette estimates that his bill T