The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-03-11
The Clause in the Income Tax Section
Exempting Building Associations
Stricken Out of the Measure.
PROTEST OF CIGAR MAKERS
Amount of Revenue That the Bill
Is Expected to Raise.
Deficiency This Year Not So Large as
Carlisle Estimated-Hill's Advice
to Business Men.
Special to the Indianapolis Journal.

Speclal 10 the Indianapolis Journal.
WASHINGTON, March 10.-One of the
most important amendments made to the
Wilson tariff bill by the Senate finance
committee strikes out OF the income tax
provision the exemption of building and
loan assicoations leaving them to pay the
same income tax as other corporations.
The House took the view that building and
loan associations, being maintained by me-
chanics, laboreres and others in ordinary
circumstances, should be exempt from the
taxation to which other corporations etc.
are to be subjected. The Democratic mem
bers of the finance committee took the
other view of it, and, without hesitation,
struck out these exceptions, so that the
stock which the poor man may hold In a
building and loan association and which
represents his earnings will have to pay
per cent interest, the same as a railroad
or other corporation, or the whisky, or
sugar, or any other trust company. Mr..
Bynum, Of Indiana, member of the House
committee on ways and means, says he in
tends to make an extraordinary effort to
have building and loan associations ex-
empted from income taxes, and he believes
that the House will almost unanimously
support the effort as members of that body
are held individually accountable and are
voted for directly by the people.
Jackson Landers, of Indianapolis who
arrived here last night, spent this morning
at the Capitol, and left for Richmond, Va.
this afternoon. Mr. Landers still believes
the Democrats in this Congress have not
done the proper thing in reducing the duty
on encaustic tiles. He is congratulating
himself. however, that tiles have been dealt
with more lightly than almost any other
-srI
unlikely that Mr. Landers's plea for pro-
lection to his industry Is what saved it
from complete annlhilation. 1t makes a
difference with this Congress who asks for
protection, you know.
A delegation from the Cigarmakers' Inter
national Union is at the capital this week
to endeavor to induce Congress to change
it's mind regarding the duty placed on
cigars by the Wilson bill. The delegates
are James Wood, of New York; John +.
Schreick, of Pennsylvania, and John j.
Lynch, of Chicago. They assert that it
will be impossible for Americans to COM
pete with foreign workers in any but the
cheapest grades of cigars, selling at re-
tan for cents and less. under the wilson
bill rates. The ways and means committee
of the House reduced the tariff cigars
from $3.50 per pound and per cent. ad
valorem to 50 per pound. The Senate
finance committee went further by increas-
ing the internal revenue tax from s. to s..
The cigarmakers say that former reduc-
tions in the tariff or increases in internal
revenue rates, increasing the advantage of
the foreign manufacturer have resulted in
GorreSpoadlng REDUCTIONS in the wages Of
the laboring men. They are doing personal
work with the Senator's, as far as they
are able, and Representative McGann, the
chairman of the committee on labor, has
promised to make fight for them when
the bill comes back to the House.
MEETING OF THE COMMITTEE.
The Senate committee on finance met this
morning at 1890 for the purpose Of consid-
ering the tariff bill presented by the Demo-
cratic majority. Only seven of the eleven
members of the committee were present,
Senator Jones, Of Nevada, Vance, McPher-
son and Sherman being the absentees. Mr..
Mcpherson was called out of the city yes
terday by the Illness of a member of his
family and Senator Sherman was himself
fndispOSed. The committee examined the
details of the bill and discussed its salient
features. They were hampered In this work
however, by the absence of figures showing
the effect of the bill in the production of
revenue and as compared with the present
cided, therefore, to order printed state
ments, and adjourned until Monday morn
ing, when the statements will be ready for
the inspection Of the committee.
These statements have been prepared un-
der the auspices of the committee, and
show that the Senate bill will produce from
COO if the importations prove TO be of the
same quantity and value as those of the
last fiscal year. This amount, added to the
receipts from the POStotice Department
and miscellaneous sources, amounting to
S1O5 1000. 900, will bring the government reVe-
nue. up to $493, 100000 Under the Senate bill
the customs receipts, IL is estimated, will
amount to 1855, ,000, coo, compared to $l24OOO,-
600 as shown by the Wilson bill, and $685.
COO 600 under the Mckinley law, and those
from the internal revenue portion OF the
bill to $229, 100000, as compared to $l60 900,
coo received last year from this source. This
increase is found largely in the three items
of income, spirits and cigars, the income
tax being estimated at $30,000.000 spirits
| $40 600 900 and cigars $9COO,OOO. The proceed
| ings of the committee were entirely amica-
| BILE and no material points on which the
| committee is expected TO divide were dis
cussed. 1t now looks as If IL would be a
| comparatively easy matter 10 arrive at an
| understanding as TO the time the bill
| should remain in committee.
Senator Aldrich said after the adjourI,-
nient that they would begin the real work
thought 1t possible that ii could be con
cluded next week. He believed, he said,
| that the Democratic majority would grant
| this time, they had expressed themSelN eS
| disposed TO afford ample opportunity Il
the Republicans to examine the bill and
| suggest amendments. The Republican mem
berS will make effort TO secure some
changes, and If they meet with success
| in a few they will probably try TO secure
others. They are hopeful, from assurances
| which Senator Mcpherson is said TO have
| given persons who have called upon him
| that he will join with them in trying to
secure the modification OF several schedule
| and if he should pursue this plan the bill
| will be amended to the extent that he
| may be willing to cooperate with the Re
| OuhlipaOS they will prObablV CT n