The sun., 1919-02-09
HOUSE PASSES
$6,OOO,0OO,OOO
REVENUE BILL
Agreement Announced for
Repeal of the 10 Per Cent.
Semi-LuXuries Tax.
80 FOR AND II AGAINST
Republicans, Except Four.
Vote for 1t as War Meas
ure Despite Faults.
POSTAL ZONE REMAINS
kitchin Predicts Six Billion
Deficit in Treasury for
Second Year.
POSTAL ZONE REMAINS
Special Despatch TO THE SuN.


WASHINGTON, Feb. S.-By vote Of
80 TO II the House to-day. after six
hours discussion, accepted the confer
ence report on the revenue bill. seven
ing NO"
Those voting against the conferen ,e
report were Dies and Rayburn tTexD.
Humphries, Stephens. Venable and
Sisson tMiss). and B.ackmon tAla.),
Democrats, and Dyer CMo), Langley
and Powers tKy.). and Sells (Tenn) ,
Republicans.
A motion by Representative Venabie
TO recommit with instructions TO strike
out the child labor rider was defeated
by rising vote OF 176 to Is.
In the debate Chairman Kitchin Of
the House conferees announced that a
joint resolution repeating the 10 per
cent tax on semi-luxuries would be
passed after the enactment OF the legis-
lation. This item was expected to pro-
duce about Sli5O0,000. Mr. K!tchiu
explained that it was put in by the
House prior to the signing OF the armi-
stice more as an incentive toward ma
tional economy than as revenue rails
ing measure. The House bill carried
it at 20 per cent. and the Senate bill
10 per cent. AZ the item itself was no;
in disagreement the conferees were no,
at liberty to strike il out, but accepted
the lower figure. The signing OF the
armistice, however. obviated the situa
ton for which it was originally written
so joint resolution repeating il will
have the support of both House and
Senate revenue committees
Republican, Explain Votes.
Debate over the conference report con.
sisted largely in explanations by Re.
publican members OF considerations
which forced them TO vote FOR the meas.
ure despite its objectionable features.
The principle that the bill represented
obligations incurred as part Of the WA
programme and was therefore a war
measure was the determining factor in
the case Of most doubtful votes. on.
posed TO this was the feeling in many
quarters that the immediate future uouId
demonstrate the urgent necessity for
industrial stimulation and that the
measure should have provided for lesse,
drafts on industrial wealth and made
UP the balance needed In increased loans
Chairman k!tchin opened debate with
an attack on this view. declaring I, 70
be the upsh"t of propaganda to pro,ec,
the profits of war industries by continu.
ing the present revenue act.
III this propaganda had succeeded "
he said, the war profiteers OF the I'ni,.1
States would have escaped $500. 600 oo1
in taxes"
This would include sl65. 900 600 70;
the United States Steel Corporation
$20.000,o00 for the Standard. oil Com.
pany. sl6.00O,000 for the Bethlehem
steel Company ana s2vvvu.uvv for the
big packing concerns, he said
The Treasury Departments estimates
OF $4,000, 900, 600 for this years expendi.
lures represent $4,000. 900, 900 or s1...
00O,000,00O under what would have
been necessary had the war continued
according to Mr.. kitchin. or th..
amount $1,000, 100000 has been raised
by the Fourth Liberty Loan and alread,
expended. $1,000 10000 has been raised
by the War Saving Certificates and
Sc, 700. 900 Is proposed to be raised
under the pending bill.