New-York tribune., 1918-07-30
House Committee Will Trv
to Include Freight Cross
ing Country
~ -
No Increase Due
On Transportation
Tobacco and Liquor Rates
Are Postponed at Wash
ington Session

WASHINGTON, July 2o.-Decision
against any increase in passenger or
freight transportation taxes, majority
sentiment favoring tax on both i'm
port and export trade if constitutional,
and postponement of consideration of
increased taxes on liquors and other
beverages were announced to-day by
the House Ways and Means Committee,
which is framing the $S,000,0O0 900 rev.
onue bill
The committee deferred action as to
extending the pipe line tax so as to
include companies piping their own
products, and as to increasing taxes on
life, marine and casualty insurance.
Taxes Not Changed
Representative Henry I. Rainey, of
Illinois, acting chairman of the COM
mittee in the absence of Chairman
Kitchin, who is detained at his home
by illness, tonight issued this sum-
mary of the committees work:
Eve discussed the question of trans
portation first, and we left the trans
portation tax just as it is--3 per cent
on the amount paid for transportation
by freight. We did not increase the
tax on transportation of passengers.
We did this for the reason that the
Director General of Railroads, under
the authority granted him, already has
increased the freight charges 25 per
cent and the passenger charges so per
cent The rate with reference to the
tax on seats, berths, ETC., was not in
creased.
eve discussed the matter of trans
portation of oils by pipe lines, and We
did not agree on any proposition. We
are going to return to that later. At
present pipe lines, if operating as COM
mon carriers, are taxed per cent on
the amount paid for the transporta-
shall apply when carrying for them
selves will be investigated further.
Insurance Tax Deferred
I'VE also took up the question of in
surance--life insurance, marine insur-
ance and casualty insurance. The sem
timent of the committee favored in
creases, but we passed the proposition,
to be considered later when we receive
information VIII Il we have called upon
the Treasury Department to assemble
for u.s.
"We took up title 6 of the pending
bill, which is the tax on beverages.
We determined to postpone the ques-
tion of this tax until the very last of
al! the items, due to the fact that if
rates were increased there may be
Withdrawals of liquor before he bill
goes into effect, and we want to avoid
that. One hundred and thiry million
gallons of whiskey are subject to with
drawai for beverage purposes, and
100000 gallons can only be withdrawn
for other purposes. The committee
does not know whether it is going to
increase the tax or not, on account of
the possibility of the country going
bone dry.
That brought us up to title seven
which is tobacco. We stopped there
and will take up that subject to-mor-
row.
want Legal Opinion
"The sentiment of the committee
favors tax on the domestic part of
the haul of freight shipments originat-
ing outside of the United States The
sentiment is that we ought to extend
the freight tax so as TO make it apply
to the freight imported. The Attorney
General has stated that the subject of
constitutonality of a tax on the do
mestic part of the haul of freight for
export is debatable. The committee
will try to draft two clauses, one on
freight brought into this country,
which we know can be taxed. The other
Will be tax on that part of the haul
between United States points of export
trade so that if this export freight
tax should be held unconstitutional
that holding will not affect imports of
freight, which are to be taxed the same
as the tax on all-Amercan freight"