Arizona republican., 1918-12-20
SECOND GLASS RATE
 IF POSTAGE PASSES
 SENATORIAL BODY
Present Zone System Re
 pealed-Insurance Taxes
 Adjusted Way Open For
 Contested Provisions.
[Republican A.. p. Leased Wire1


 WASHINGTON, Dec. 19.-By adopt ing the finance committee amend ments to the war revenue bill, affect ing second class postage and insurance companies. the senate today, cleared the way for disposal of the few other contested, but important features re- maining. Leaders now have increased confidence of passing the bill before adjournment next Monday.
 By a vote of 34 to p the senate ap- proved the committee amendment proposing repeal next July l. of the present zone system of second class postage rates and substitution of a rate of one cent per pound within 150 miles, and one and one-half cents be- yond. Most of the day was spent in spirited discussion of this amendment and one by Senator McKellar of Ten nessee, for modified zone plan, which was rejected without Q roll call
 The senate also approved the com mittee plan for new rates on casualty, fire, marine and other insurance com panies. except life insurance. The new rates based on premium receipts, are respectively: Fire insurance compa- nies 1A per cent; casualty, plate glass and similar companies, F per cent anu / per .CenG on lHidUu, anu IA per cent on export policies.
 Disposal of these and many minor administrative and verbiage changes left virtually only the income, war ex- cess profits, inheritance and luxury tax sections to be considered.
 La FoIette to Speak
 A substitute for the committees bill, proposing large tax increases, prin- cipally on big incomes and war excess profits, was introduced late today by Senator La Folette of Wisconsin, re- publican, who is expected to make a lengthy address tomorrow in it's behalf. Senator Jones of New Mexico demo- crat, plans to advocate an amendment Ito continue war profits taxation through 1920, and Senator Thomas of Colorado, democrat, is expected to pro- | pose elimination of the inheritance l tax provisions, with Senator Kenyon of Iowa, and others, prepared to urge re- insertion of the 20 per cent tax on | 1uXuries.
 Besides these questions, that of pre- scribing 1920 tax rates, opposed by republicans, remains for disposition. Disposal of the second -class postage | section today was regarded as remov- ing a considerable obstacle from the bills path. Senators, Hardwick of Georgia and McKellar of Tennessee led the fight on the committee amend ment, which was defined by Senator Shoot of Utah. Opponents charged that second-class publications art granted a large government mai subsidy while Senator Shoot de- clared the present zone system tends to foster undesirable sectionalism, ant would drive many small publications out of business.
 On the roll call on adoption of thu committee amendment, thirteen demo crats and 21 republicans supported tn, new periodical rates, with fifteer democrats and seven republicans in op. position.
 Proposes Large Increase
 The substitute bill which Senator La Toilette will advance tomorrow proposes mainly large increase in thu war excess profits rates and individua | income surtaxes. In lieu of the bilrs levy of 30 per cent on the excess O corporation net incomes over credits and under 20 per cent of invested capital, Senator La Follette's bill pro. posed 35 per cent on profits under b per cent of invested capital. In stead of the bills tax of sixty per cen on profits, in excess of twenty pel cent, the Wisconsin member propose. a tax of sixty per cent on profits be- tween 15 and 20 per cent, and 70 pel cent on those over 20 per cent.
 The La Toilette substitute also pro poses to retain the 12 per cent tax or corporation incomes, but would cut tn, individual normal rate from 12 to
 per cent and secure the bulk of in