Evening star., 1944-01-18
WAR Profits Issue,
Amendments Slow
Senate Tax Action
Ry the Associated Press.

Ry the Associated Press.
Minor amendments and q ma
ior controversy over Government
controls on war profits continued
to slow the pace of Senate de-
bate on the $2,275,6O0,0 new
tax bill today.
Chairman George of the Financ.
Committee conferred with admins.
tration officials, trying to reduce op.
position which developed over com.
mittee proposals to narrow the fiele
of war contracts which the Army
and Navy can re-examine to search
out profits considered to be exces.
sive.
The committee met before today!
session In a ANAL effort to settle tn.
differences before the subject i!
trotted out for floor debate.
majority of the committeeman wan
to exempt standard commercial ar.
ticles and other items from renego.
tiation so contractors can begir
building reserves to finance tn,
change-over to peace time business
Opponents and administrator
spokesmen-contend, however, tina
the narrowing Of the scope Of re.
negotiations will open the way II
war profiteering,
Amendments Rejected.
There were other issues to occup,
the Senate as it started the eighth
days debate on the tax bill.
The Senate defeated an amend
ment yesterday by Senator May
bank, Democrat, Of South Carolina
which would have abolished a ia,
Of 10 cents per pound and $500 arr
nusl license fees on the sale Of col
ored oleomargarine.
This tax is not to raise revenue,
declared Senator Shipstead. Repub
lican, of Minnesota. 1T is regula
tory tax to prevent fraud and de
ception."
"Oleo can now be colored an,
color except yellow without pay
ing the tax" shouted Senator l.
Toilette. Progressive, 4 Wisconsin
But its manufacturers want 1t t,
look like butter and smell like but
ter. They'd like to make it tast
like butter, too, If they could"
South Keenly Interested.
t. l. !
Democrats, Of Mississippi. contende,
dairymen would not suffer from
repeal Of the margarine taxes, an,
Senator Russell, Democrat, o
Georgia. said 1T was an attemp
to erase punitive legislation"
The olemargarine issue is of par
ticular interest in the South be
cause much cottonseed oil is use,
in its manufacture.
The sole issue here Is whethe
war workers shall have an ade
quate diet" Senator Eastland de
clared. Every one knows there i
a shortage Of dairy products. Ole
is a poor mans product, but thes
taxes deny 1t to low-income groups.
The Senate also killed an amend
ment by Senator O'Daniel, Demo
crat. Of Texas, which would hav
required the Federal Government t.
pay the poll taxes for men an,
women from poll tax States who ar
in the armed forces. The propose
was shouted down on a voice vote.
Senator ODaniel said: There
been lot Of talk about soldier vot
ing. thought it would be a ZOO,
idea to flnd out just how anxiou
the United States Senator's are TO
these soldiers to vote"
IT'S up to the States, which hav
this burden to heal themselves,
countered Senator Tobey, Repub
lican. Of New Hampshire. State
shouldn't ask the Federal Govern
ment to pay for weaknesses In thei
own systems"
Talks on Reductions.
Senator Reynolds, Democrat O
North Carolina, advocating 4 post
war tax ceiling of Is per cent or
individual earnings, told the Sen
ate that ut is absolutely impossibl,
to do 1t now, but as soon as thi!
war is over we've got to begin think.
ing about tax reduction"
Senator Reynolds supported tn.
pending tax bill, which Mr.. Roose
welt has said fails to pass the test Of
realistic tax law"