The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-10-10
COMP PROMISE TAX
Senate Committee Votes AdOp-
ton Program 5 to 4.
Amendments Accepted Repeal
All Transportation Levies.
TREATIES BEFORE SENATE NOW
Ratification Assured, But by
Close Vote.
BOrah Canal Bill To Be Voted
on Late Today.

Washington, Oct. 1O.-The Repub-
lican compromise tax program was
adopted today by bare majority of
the Republican members of the senate
finance committee. The vote was 5
to 4. one of the ten Republican COM
mittee members being absent.
The vote was tied, to 4, until SEN
ator Sutherland, Republican. of West
Virginia, entered the committee room
and threw the weight OF his vote with
the proponents of the compromise.
Repeal Transportation Tax.
The amendments to the tax bill ap-
proved repeal of all transportation 4
taxes including those on oil by pipe
line and on parcel post packages, a
maximum surtaX rate of SO per cent
and increased estate taxes.
The majority also approved amend
ments for retention of the corporation
capital stock tax and for repeal of
the two thousand dollar exemption all
lowed corporations in the case of cor
porations having annual net incomes
in excess of $4,000.
Big Levy on Spirits
A flat tax of S6.4O a gallon on dis
titled spirits also was agreed upon but
with a provisO that there would be a
ASbdLO VI PAU a SallOn WheT6 1t was
SHOWN TO the SatSfa aCtiOn of the COM
missioner of internal revenue that the
spirits were used for manufacturing or
medicinal purposes.
Excise taxes proposed for repeal un-
der another amendment include the
rates on sporting goods, chewing gum,
electric fans, thermos bottles, smok-
ing and hunting equipment. moving
picture, films, toilet soaps and powders,
Photographic apparatus and acces-
sories, furs and perfumes and cos
metics.
The tax on works of art would be
reduced from ten to five per cent, the
tax on candy made three per cent flat
and the additional taxes proposed on
hotel rooms and office furniture of
hard woods eliminated
Domestic Problems Aside.
The senate will be the center of far
reaching international events of this
week, which will add several impor-
tant pages to American history.
Domestic problems like taxation will
be shunted aside temporarily, while
the German, Austrian and Hungarian
peace treaties are ratified, and the
Borah bill for free tolls for American
ships passing thru the Panama canal
is put to a vote.
No doubt lis entertained by Repub-
Hcan leaders but that the treaties will
be ratified-with reservations-after
final consideration of them is begun
at 1880 o'clock Friday.
They are not so sure about the
Borah bill, altho its supporters are
confident that it will command the
majority vote necessary to pass it. 1t
will be voted on not later than 4
o'clock today.
The vote may be close, Republican
and Democratic senators being divided
on it. Its supporters contend it in
wolves a question that is chiefly do
mestic or interstate, the right of
American vessels carrying American
commerce to use an American built
and an American controlled canal.
They charge that a powerful rail-
road lobby is pitted against its passage,
the transcontinental railroads not de-
string competition from American
shipping provided with free access
from the Atlantic to the Pacific.
Its opponents claim that to permit
American vessels to use the Panama
canal free would be a "dishonorable
breach" of the Hay-Pauncefote treaty
and discrimination against foreign
vessels to whom they aver the United
States is pledged to accord the same
privileges as American ships get in the
canal