New-York tribune., 1921-11-05
Senate Defeats
SnlOotTurnOver
90
Tax, 40 to 25
Group of Republicans Alone
Supports Plan; Prospects
of Sales Levy in Pending
Bill Fade With Rejection
Ticket Brokers Must Pay
Effort to Strike Out 8 r. C.
Impost on Motor Trucks
and Parts Also Beaten

; WASHINGTON, Nov. 4.-Following
up its defeat of the Smoot amendment
for 16 per cent manufacturers and
producers sales tax last night, the
Senate to-day defeated the Smoot
& amendment which provided for a one
half of per cent turnover tax by q
/, vote of 46 to %. This definitely ends
al prospect of the plans Of the sales
i'tax advocates being adopted in the
pending tax bill.
. Senators who supported the turn
over proposal were all Republicans and
they were Brandegee, Bursum, Calder,
Cameron. Dillingham;, France, Freling-
huysen, Hale, Harreld, Johnson, Jones,
of Washington; Mckinley, Moses, New,
:, Newberry, Nicholson, Oddie, Phipps,
= poindexter, Shortridge, Smoot, Spen-
Ger, Wadsworth, Watson, Of Indiana,
and Weller.
,s - Democrats Vote "No"
=. Twenty-four Democrats and twenty
1.-TWO Republicans voted against the
Smoot plan.
. Consideration of the tax measure
was continued at night session that
LASTED till long after midnight.
~ A unanimous consent agreement lin
sting debate on the tax revision bill
s'oeginning tomorrow was reached late
tonight, after a continuous session Of
thirteen hours. An earlier effort to fix
"a definite time for final vote on the
: Bill failed
under the agreement, smendments
Wisconsin, will be taken up at 10 a. m.
tomorrow. and disposed of not later
than 3 p. m. The Soldier Bonus
Amendments will follow and must be
disposed of by midnight. Recessing
then. the Senate will meet at 10 8. m.
Monday and after that hour no Senator
would be permitted to speak for more
than ten minutes on any amendments
or on the bill itself.
Republican leaders were hopeful that
the bill might be passed Monday night.
In speaking for his amendment Sen
ator Smoot said it would raise at least
s45o,o00,O0O and possibly more.
Senator Walsh, Democrat, Of Massa
chusetts, was the chief speaker against
the amendment.
Never before have I had any knowl-
edge of men urging tax on their busi
ness" he said, referring to the many
letters from business men in support
OF the turnover suggestion.
He ascribed this to the fact that
business men desired simplifcation Of
the tax system, and were laboring
q under the mistaken impression that
/. turnover tax or the sales tax would be
: in lieu of income taxes. He thought
: many were supporting the Snoot
s amendment under q misapprehension.
!. Senator Wadsworth aroused discus
= sion by introducing an amendment to
y repeal the tax proposed by the Finance
: Committee on ticket brokers. The Sen
: ate voted the amendment down on
: division.
! Theater Ticket System Criticized
: In the arguments Senator McCumber
: charged that the theaters in the large
cities Systematically sold blocks of
! tickets to brokers as 8 method of sx-
tracing more money from the public
! without seeming to raise the quoted
! prices.
Senator Townsend offered an amend
: ment to strike out the 3 per cent on
: automobile trucks and parts and tires
for trucks. On a roll call this was
z defeated, SO to 27.
! Senator Townsend contended the law
4 should differentiate between the truck
: and the automobile. He said the for
! mer served only for practical and USE
: full purposes and held that it should not
! be subject to tax.
: The Senate adopted an amendment
4 by Senator Jones, Democrat, Of New
Z Mexico, requiring corporations in max
) ing out their income tax returns to
: show the dividends declared during the
: year for which the returns are made. It's
: purpose, the author explained, was to
: prevent the possibility Of concealing
d profits.
= The Senate rejected the amendment
Z Of Senator Harris, Democrat, proposing
: to tax political campaign contributions
z of more than 500. 1t also rejected ar
) omendment by Senator Trammell, Dem
Z ocrat, of Florida, which would have
3 provided that individuals borrowing
= money to purchase Liberty bonds could
Y deduct interest on such loans from
y their net income only in case they
: bought the bonds at par.
: Exemption Increase Defeated
3 An amendment offered by Senator
= Trammell, proposing to increase the
& normal exemptions Of both unmarried
: men and heads Of families with small
:, comes resulted from their personal
e effort, was rejected, so to so.
y After the vote Senator Reed ex-
y pressed regret over what he said was
{ apparently the policy Of the majority
s To force long session and to pass the
!. bill through process Of exhaustion" ;"
= AS the night session wore on little
g progress was made on the bill, the SEN
= ate chamber at times being almost de-
- StILeus anu WHSH quorum Calls I8lleO
( to get results the sergeant-at-arms 60
I. ing out to round up absentees.
Is A long discussion was launched on
% the transportation situation and the
i whole question of rates, when an
y amendment by Senator Mcclellan, Demo-
= crat, of Tennessee, which would re-
. quire railroads to sell mileage books
q at 21a cents mile was taken up. This
y was abruptly interrupted with another
III ~yvp& <>F
s obtained, however, and the amendment
n was then tabled.