Evening star., 1921-10-12
PARCEL POSTTA
| KILLED IN SENATE
Levy on Transportation of
Packages Stricken Out
by Unanimous Vote.

Senate today struck from the tax re-
vision bill the section imposing a tax
of cent for each IS cents or fraction
for the transportation OF parcel post
packages. the change to be effective
next January T. This completed
adoption OF the compromise plan for
repeating all transportation taxes.
Penross seeks Early Vote.
An agreement with democratio lead
ers for a tlnal vote on the tax revision
bill the last Of next week or early In
the week following Is to be sought
soon by Chairman Penrose Of the
Senate finance committee. If such an
arrangement can be made, Senator
Penrose believes the measure can be
sent to the President before the end
OF this month, although this would
give less than = week for q conference
Senate.
The compromise amendments agreed
to by republican leaders have met
most OF the objections to the original
Dill made by the democrats, but the
minority leaders are prepared to
make fight for a graduated income
tax on corporations and for reduc.
tions in the taxes on individuals hav-
Ing incomes Of less than $4,000.
Fight Over Excess PROFITS.
There also Is a movement on the
democratic side for some sort Of
substitute for the excess profits tax.
Republican leaders are determined
practically solid majority vote on
this proposition. as well as on the Is
per cont corporation income tax. Re.
publican leaders in the House are
inclined to insist on the House rata
OF i'm per cent, and this difference
viii be fought out in conference.
If the compromise program pre-
vails-and Republican Senate leaders
declare It will despite the opposition
from the manufacturers bloc to some
features-the big point of difference
in ,ncea confsrsnss .r,s VIII be the ,ra maximum
growing belief at the Capitol that the
Senate maximum Of so per cent will
be materially reduced in conference.
perhaps to the original rate of 81
per cent. Senate democrats will
oppose such a plan II embodied in
ire ire conference enna,, ere report and they lock @
agricultural bloc who drew up the
pending compsomise plan. e -
Protest From Drugkists.
tax of $40 q gallon on all distilled
spirits. with rebate Of $3.50 4 tallon
on that used for Industrial or medici-
nal purposes. has brought a protest
from wholesale and retail druggists
and manufacturers Of industrial alno:
flavoring sxtracts. Associations Of
these interests have addressed joint
letter to the finance committee deciAr-
ing that this proposal would tie UP;
millions Of dollars for an .indeflnite
innumerabie immune % % small R1' nercHants @ m Hss'nssd snd
manufacturers. not possessing or able
to borrow the necessary additional
capital to finance themselves pending
adjustment by the Treasury Of alco-
hol rebate accounts.
Compromise Program Started.
The republican compromise tax re-
vision program was started on its
way through the Senate yesterday
with the adoption without a dissent.
ing or record vote OF an amendment
proposing repeal1on~ next January
Of the transportation taxes on
freight. passengers. Pullman accom-
modations. express packages and oil
by pipe line.
There were increasing Z AUDIENCES,
however, both on the floor Of the
Senate and behind the scenes that
posals would not find as easy sail
ing. Replying to an inquiry from the
democratic side, Senator Mccumber
of North Dakota, temporarily in
charge Of the revenue bill, an
nounced that the compromise amend.
ments would not be offered on be-
half of the full republican member
ship Of the finance committee; that
he was against some Of them and
that he and other committeeman re-
served the right to oppose them.
Amendment Voted Down.
Before adopting the transportation
tax repeal amendment the Senate
voted down, 3s to 80, an amendment
by Senator Trammel, democrat, Flori-
de-, proposing that the repeat be eff
fective ten days after the passage
of the bill. Disposal OF these two
constituted practically
all progress made yesterday on the
bill itself. Much OF the day was