Evening journal., 1919-01-28
CONfEREES agree
ON REVENUE BILL
80 Per Cent War Profits
: Tax Stands: Mail Zone
Rates Repealed
SENATE WINS
FIGHT OVER OIL

WASHINGTON. Jan. PA basis fol
complete agreement on the war revenue
Dill was reached yesterday by the Sen
ate and House conferees. Senator Sim.
mons. chairman Of the senate managers
announced that virtually all important
Questions remaining in dispute, inolud-
.-sng the war excess profits rates, had
been agreed upon and that all possibil-
ity OF a deadlock and failure Of the bill
had passed.
Announcement OF the conference
agreement on the war profits and other
basic disputes was deferred, but Il was
said that il would be made Wednesday
or Thursday. when a reprint OF the
bill as finally agreed 10 will be COM
pleted. The conference report is ex-
pected TO be presented to the Senate
and House late this week and the con-
ferees hope It win be adopted by both
bodies next week and the bill sent to
President Wilson In Paris for his ap-
proyal.
The basis OF agreement on the meas
ure was upon three bitterly contested
questions-war excess profits taxes this
year, the Senate allowance 10 oil and
gas interests and the Senate amend
nent to repeal the existing zone sys-
TEN OF second class mail rates. Il was
~learned that in harmonizing differences
on these basic disputes the conferees
agreed to an increase OF the Senate war
excess profits rates, adopted the oil pro-
vision substantially as provided by the
sSenate. and eliminated the second class
p mail amendment.
Corporation Profits Tax.
The agreenlenteon war excess profits
rates for 1919. it was stated. provided
Tor retention Of the Senate rate Of 30
per cent on corporations net income in
excess OF credits and not in excess OF
20 per cent Of invested capital. for In
crease from 60 TO 65 per cent on in
come In excess OF 20 per cent and for
retention OF the so per cent tax on war
profits The higher rates We're strongly
urged by Representative Kitchin and
other OF the House managers.
The Senate conferees were reported
fc have won their fight for retention OF
the Senate provision for a tax exemp-
tion OF 90 per cent on bona flde sales
Of oil and gas wells and mines. This
provision, designed TO protect and slim
ulate prospects, was opposed by the
House managers as too liberal. but they
finally yielded after the Senate con-
ferees had accepted the higher rates on
war excess profits
Elimination Of the second class post
age amendment generally had been ex-
pected. The proposal has been bitterly
. opposed by Papa sentative Kitchin and
. other Of the House conferees. 1t pro-
vidcd for repeal OF the present zone
ratas on second class mail based on
the proportion OF news and advertising
. and for substitution Of a new zone plan
? Of cent a pound on periodicals within
the first and second class parcel post
/. zones and ~ cents a pound beyond
that radius. The present rates have
been vigorously attacked by publishers
as unjust and in some cases conflsca- |
tory.
Items sim Left Open.
With the basis reached for settling /
these three vital disputes, agreement on
other provisions Of the bill stlll left
open was regarded as certain. Among
these are the amendment 10 prevent
Importation Of intoxicating liquor into
the District Of Columbia for beverage
purposes, the amendment Of Senator
Thomas lColo) levying a tax OF 100 per
rent on political campaign contributions
IN excess Of $500 and that Of Senator
frammell lFla) 10 allow a bonus OF
one months pay and uniforms to men
discharged from the military service.
Conferees said the 'bone dry" amend
ment would be retained. but the fate |
Of the others was in doubt
other amendments remaining TO be |
acted upon are several Of the so-called |
'relief' provisions Of the Senate war |
j excess profits section, some dependent /
{ Upon the basis OF agreement on rates |
reached by the conferees. Many admin |
istrative provisions also remain for
final action.