Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-08-13
REACH WAR PROF|TEERS
IS M'AD00's PROGRAM
Opposes Wars and Means Commit.
tees Plan for Excess Profits
Tax Increase.
KiTCHIN FRANKLY CRITICAL
Declares Treasury's Scheme Places
Power to Fix Tax Rates in That
Department Rather Than in Con
grcss-Vicws Radically Different.
KiTCHIN FRANKLY CRITICAL

WASHINGTON, August 1aLSecreS
tary McAdoo. upon his return to fiis
office in tho Treasury Department 90
day. assumed personal charge OF tnc
fight for n high war-profts tax In the
new revenue bin. File will see Chair
man Kitchin. Of the Ways ind Means
Committee. tomorrow and undertake.
to convince him that the plan worked
out by tho Treasury Department un-
der Mr.. McAdoo's direction should he
followed. rather than that already
agreed upon by the committee.
Secretary McAdoo Is prepared TO m
sist that the only way to get the real
war profitecrs is through an so per
cent tax on the profits made in tne
current taxable year as contrasted with
the prewar period. He will also op-
pose the committees plan of raising
the excess-profits rates to 30. so and so
per cent upon the ground that sucr
tax would spell ruin for capitai In
vested in all kinds Of legitimate rn-
dustry.
| Chairman Kitchin tonight declared
that the Treasury plan recommended
by Secretary McAdoo is 'mero camou-
lage. and intended for the sole pnr-
pose OF letting some of the big felio ws
escape taxation" II the committee
Yields TO the Treasury demand. Il rs
probable the fight will be carried 70
the hoor of the House by those wnc.
| like Mr.. Kitchin. insist upon raising
the excess-pronts rates.
KITCHIN GIVES HIS IDEA
OF !TREASURY'S PLAN
Mr.. Kitchin said:
The draft OF the war-pronts section
prepared by the Treasury Department
and submitted to the committee could
ali be told IN four lines. 1t would
be simply this:
IAN act to give the Treasury De-
partmcnt the discretion OF taxing cor-
porations Just as much or as little
as 1t may see fit That IS all II
amounts to. Never before has Con-
grcss been asked to give such discre-
tionaIy power into the hands OF n ae-
partmcnt of the government. Com-
sress has the sole right. under the
Constitution. to fix She rates OF t,xe-
tion, hut the Treasury Departments
plan would take this power out OF the
hands Of Congress and permit the raree
or wisdom Of the Treasury experts.
The committees scheme of rais-
ing the rates on excess profits wouiu
catch ALI the profiteers and euualize
the burden on all forms Of business.
II we put on a high wnr-rroh.s tnN
and let the eNcess-prohts rates ctun"
as they are. it would mean that cf ,;vo
corporations OF tfc same a.noUn; or
invested capital and makinE the s.:ac
income. ono might be taxed ss.noo ond
the other $4,000. can't SEQ any Jls
tice in such a plan as that"
| SECRETARY McADoo
CONFERs WITH ASSISTANTS
Secretary McAdoo spent some time
In conference with tho assistants Of
the Treasury Department who repre-
sented him before the committee dur
Ing his absence. He went over the
text OF their statements to the COM
mittee and approved them in detail.
He also sent to the committee a draft
OF the war profits section, which is TO
be studied by the committee at its
session tomorrow.
From an Official OF the Treasury De-
partment was obtained a digest Of tho
Treasury's argument. which Is as fol-
lows:
1T Is perfectly simple that the war
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