Evening journal., 1921-07-30
SPLIT ON EXCESS
PROFITS REPEAL
House Leaders, However,
Expect Treasury Pro-
poSal to Prevail
BILL READY
IN THREE WEEKS

WASHINGTON. July 3O.-Pubiic
hearings on tax revision were closed
yesterday by the House WAYS and
Means Committee. which will start
drafting the new revenue bill after
hearing Secretary Mellon. Internal
Revenue Commissioner Blair and
other Treasury officers in executive
session, beginning Monday.
Chairman Fordney said it prob
ably would take three weeks to get
the bill before the House. The ma
1ority members of the committee
have as yet had no conferences to
agree upon a revision program. and
evidence Of a difference of opinion
among them on certain changes pro-
posed has not been lacking.
All of the Republicans have not
yet agreed to the Treasury proposal
to repeal the excess profits tax and
substitute an increase in the normal
tax on corporations. but leaders gen
orally believe this program ulti-
mately will prevail. A reduction in
the surtax brackets to maximum
Of at least 40 per cent also is fore
cast, with probably some other
changes in the present law.
Like the great majority Of those
who had gone before. most wit
nesses before the committee sought
removal of the tax from their par
ticular industries. but, as Chairman
Fordney repeatedly pointed out. the
committee got few suggestions as TO
how the loss in revenue proposed
was to be made up.
! William A Brady, of New York.
and other spokesmen for the NOV
ing picture industry. including thea
tres asked that the theatre seat tax,
the per cent sales tax on films and
the 10 per cent admission tax be
removed. They declared the indus
try was in worse shape than any
other in the country, with 1000
theatres already closed and many
others planning TO shut down next
month. Mr. Brady said the high
salaries of movie stars had disap-
peared in the last year.
James A Emery. of this city. on
behalf of the National Manufactur-
ers' Association, urged repeal of the
excess profits tax and the higher
brackets in the surtax. substituting
p a general turnover or sales tax, while
representatives of the fur industry
: asked repeal or modification of the
tax on their products.
Representative Appleby, Repubn.
e can. New Jersey. argued in favor oi
his bills to impose a two-cent stamI
tax on bank checks, to repeal tn,
soda water tax and TO levy a Fedora
= tax of 40 cents per horsepower OF
y passenger automobiles and $40 a tor
on trucks, with a proportion OF thi
to go TO the States in lieu Of thi
present State taxes. He also aske,
v for a simplifcation of the income tai
q sheets.
Robert Homans. a Boston lawyer
? representing corporations and asso
q Citations holding and developing rea
estate, argued against any tncreas'
, in the normal tax on these corpora
: tons He said none of them nov
paid excess profits taxes, and tina
any increase in their taxes would b
n practically unbearable.
n Opposing repeal of the eXces
q profits tax and the other highe
groups of surtax. Charles A Lyman
- secretary of the National Board o
II Farm Organizations, said there wa
y a feeling on the part OF farmers tina
some plan could be worked ou
under which the vast accumulation
u Of wealth should bear a large paT
20 of the tax burden