New-York tribune., 1919-01-25
Kitchin Defiant
Before Senators on
Tax Bill Clauses
Refuses to Surrender Posi-
ton Oh Inheritance and
Estate Features; Meet
ing May Be Held To-day
Nem York Tribune
WASHINGTON Bureau

W GSFlngtON bureau
WASHINGTON, Jan. 24.-This was a
day of stress, if not of storm, with the
revenue bill conferrees. The House
and Senate representatives., sitting
apart, exchanged views two or three
times through Chairman Kitchin. but
the latter apparently carried a never
surrender message, self-intrusted on
one point. After Mr.. Kitchin's last
visit for the day to the Finance Com
mlttee room the Senators excluded all
tnelr clerks and helpers and got down
Mr. Kltchln's final position, to decide
to an earnest. confidential review of
whether to surrender or not.
According to the best available in
formation Mr.. Kitchin, having been
asked for a shove down at about the
last moment of delay the Senators
could stand, somewhat defantly stated
surrender on the question of the es
tate or inheritance tax. He intimated
that there was a chance Of agreement
or, the new war excess profits section
which DR.. T. S. Adams, the Treasury
expert, has been drafting to meet the
divergent views.
The report spread over Washington
to-day and evidently reached New York
that it was settled that the conferrees
would disagree and that there would
be no revenue bill passed at this ses
sion. There were many long distance
telephone calls from New York in re-
gard to the report. The messages ap
parently were inspired by the ever
evident crisis that had been reached
III the conference committee.
The conferrees had planned to meet
a. 10 o'clock as usual. but soon found
that somebody had thrown a switch
overnight. SO they adjourned until
80 to let each section confer sepa-
rately. The House members did little
conferring, but the Senators took off
their coats, as in distress. The con-
forces were not in a state of mind to
meet at 80 or again at 3 o'clock.
Senator Simmons announced that
they would meet in common tomorrow
morning, but it is understood that there
Will be separate group sessions first.
If the new crisis before the confer
rees be safely passed, it is stated that
1T will be possible for an agreement
to be reached on all essential differ
ences by Monday.
One explanation Of the rather mys-
terious situation is that Senators cal
culated that by jocking along until the
time limit had been reached Mr..
Kitchin would surrender rather than
see no revenue Dill passed at LnlS SeS-
sion But to-day, according to this
view, he boldly stood pat on his bluff,
and now it is the Senators who don't
know what to do.
The tax experts read with great in
terest and some concern the decision
handed down by United States District
Judge julius NJ. Meyer in New York
City yesterday that corporation stock
dividend is not taxable as though it
were cash. The contrary is the pres
ent administrative view and it has
been actually written into the bill in
so many words by a Senate amendment
to section 20l. Strong pressure had
already been brought to bear on the
conferrees to rewrite this portion of the
bill, as other points are involved also,
and it is possible that the decision
will force a change of front in this
roSncct.