The New York herald., 1921-10-12
SENATE VOTES OFF
RAIL TRANSPORTER
Additions to All Passenger,
Freight, Express and Pipe
Line Costs End Jan. /.
FIGHT ON BILL IS LIVELY
Harrison Says Republicans
Cringe to Agricultural
Bloc in Revision.
FIGHT ON BILL IS LIVELY
Special Despatch to THE New YORK HERALD.
New York Herald Bureau,
WaShingtOn. ID. C.. Oct. II.

Special Despatch to THE NEW YORK HERALD.
| New York Herald Bureau,
| Washington. ID. c.. Oct. II.
| The Senate voted to-day to abolish
all transportation taxes. Without a.
roll call it adopted an amendment pre-
sented In accordance with yesterdays
compromise agreement repeating the
transportation taxes outright.
AS the House has taken similar action
to-day's vote ends all controversy over
this section OF the tax revision bill
The amendment applies to taxes on pas
senger. Pullman. freight, express and
pipe line transportation. 1t will mean
an estimated loss of $145, 100000 In
revenue.
The amendment will become effective
January /. Senator Trammell (E1a.)
proposed to make 1t effective ten days
after passage of the act, but this amend
ment was rejected, 80 to 38.
Senator Harrison taunted Republican
leaders with having surrendered to die
tation OF the agricultural bloc.
II commiserate with the distinguished
members of the majority party on the
Finance Committee" he said. "I have
a very deep sympathy for them in the
treatment that has been accorded to the
so called old Guard that makes up that
committee. You are getting exactly
WtdJ is Quc you. Inc COuHltIe0 was
stacked in the beginning"
Replying TO Senator Harrison's attack,
Senator Watson served notice that the
Republicans would adopt a policy OF
treat 'em rough" toward Democratic
opposition.
There is a well defined movement
Fere to filibuster unostentatiously on
this bill and on the railroad funding
bill and on the foreign debt funding bill
to throw the protective tariff measure
over into the next year and just as
nearly to the approaching campaign as
is possible" said Senator Watson.
II intend to hold my party together
by making any concession I can up to
the point of surrendering a principle. ]
never intend to vote so as to throw the
leadership Of this party into the hands
of the Democratic party. We talk about
agricultural blocs and manufa curing
blocs and mining blocs. What want
Is the Republican bloc in the United
States Senate.
Senator Smoot estimated that the 8
per cent. producers and manufacturers
tax proposed by him would yield more
than $75,000000 year. His bill pro-
poses elimination Of miscellaneous taxes
estimated to yield $549,650. 900 for the
fiscal year 1922 and s7s9.s7s.000 in
1923.
Senator Smoot summarized in four
points his reasons for advocating sales
tax.
II submit this substitute because I
believe that:
81. 1t assumes an abundant and relia-
BILE source Of revenue collected at a
single point.
"2. 1t is simple of understanding and
administering. a
"3. Without lessening the amount of
revenue II removes the burden of in
vidiously discriminating war taxation
from selected industries upon which 1t
is imposed for the purpose OF limiting
particular production as well as raising
revenue.
a. 1t keeps the promise Of both po-
litical parties by affording the means
without loss Of revenue of reforming the
excise system. Of abandoning the taxa
tion of arbitrarily selected groups and Of
repeating Immediately the whole system
of war taxation"