Evening journal., 1919-02-12
TAX BILL TO PISS
IN senate TODiY
Penrose Will Urge Adop
tion Although He Wi.l
Critic z, 1t
$500, 900, TO BE
81 ENI BY NATION

WASHINGTON. Feb. i2.-The Senate
today will pass the revenut bill, 1t is
expected, and It will then be ready for
the signature OF President Wilson when
he arrives from Paris.
The conference committees report ON
the bill. which was adopted by the
House OF Representatives Saturday. was
called up in the Senate yesterday by
Senator Simmons. chairman OF the SEN
ate Finance Committee. Senator Sim
mons urged the immediate passage Of
the measure. and explained that $780,
100000 OF the .s6,OOO.OO0.OO0 which It is
hoped TO raise in revenue through the
bill already has been expended by the
Federal Government.
Senator Penrose, ranking Republican
member OF the Finance Committee and
one OF the Senate cOnferees, today will
urge the passage Of the bill as the best
measure that could be drafted under
present conditions, although he Will
voice the opposition Of the Republicans
ITO many Of its provisions.
The Senate unwlttlngly adopted the
conference report and took what ap-
peared to be a final vote on the bill a
half an hCar after IL had been called up.
Senators Penrose and France. Of
Maryland, demanded that the entire
conference report be read. and then left
the Senate chamber, with most OF the
other Senator's The reading would
have occupied the entire day. out after
half an hour, when only four Republic
cans and three Democrats were In the
chamber besides Senator Mcclellan, OF
Tennessee. who was presiding, Senator
Smooth, OF Utah, asked that the reading
be stopped, and made a point Of no
quorum.
After the quorum had responded 10
their names. Senator McKellar declared
that the adoption OF the report and the
final passage OF the bill was in order.
No roll call was taken, Senator
Thomas, Of Colorado, being the only
Senator voting against the bill. and
Senator McKellar announced that the
bill had passed
Senator Simmons, who had prepared
a long explanation OF the bill, then
asked that the vote be reconsidered so
that he could deliver his speech The
Senate placed the bill back on the cal
endar and the Finance Committee chair
man spoke for the rest u the afternoon.
Senator Simmons said the House man
ayers reluctantly" accepted the Sen
ate rate Of ~ per cent on corporations
incomes and yielded the House per
cent sur tax, or differentlal, on undls-
tributed earnings. In return. he added,
the Senate agreed TO levy 10 per cent in
stead Of per cent on 1920 corporate
incomes.
Senator Kellogg interrupted 70 criti-
clze the conference agreement extend
Ing TO 1920 the so per cent war profits
tax on government contracts. In reply.
Senator Simmons said the tax was i'm
posed only on Contracts from which
profits would accrue this year.
Senator Simmons pointed out that the
House had accepted practically all Of
the Senate rates on individual incomes,
corporate incomes and war excess
profits. He said the House also had ac-
cepted the Senator's so-called relief
provisions or cushions" by which it
Is estimated taxes and revenues will be
reduced s500000OO0.
The Senator said that many business
interests SUFFERING shrinkage and losses
during the period Of readiustme mt from
war 10 peace would pay less In taxes
under the pending bill than under the
present law, which many OF them nave
urged should not be chansed-
Discussing the Senate amendment pro
vid'ng that all campaign contributions
abont s50O should be taxed 100 per cent.
Senator Simmons said a poll OF Demo-
cratic Senators showed that II the
were retained in its orlgi-
nal retroactive form. IL would result
in serious delay, If not defeat, OF the
revenue bill:
Senator Penrose asked II 10 was real
lzed that the House conferees objected
10 the retroactive feature in the amend
ment and SUGGESTED that the Senate
conferees id not desire 10 destroy or
mar its symmetry" by altering IL.
"The effect Of the Pennsylvania Sen
ator's symmetry" replied Senator
"is so notorious that it has
often caused the defeat Of his better
iudgment."
senator Thomas declared that it was
hv "the Joint Republican and Demo-
cratic action that this amendment
which I believe would go far 10 purify
inc elections, has been slaughtered
In explaining how the second-class
hostage amendment was eliminated,
Senator Simmons said he believed II was
well understood that from the beginning
OF congressional controversy over pub
fishers rates the Senate had opposed
the present zone plan whilethe House
has been equally intent upon 1t.