The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-01-25
By Vote of 9 to z the Ways and Means
Committee Yesterday Agreed to
the Measure.
SOP THROWN TO FARMERS
Income Tax Scheme Changed on
Motion of the Grass Burner"
Products Consumed by AgricuIturists
Will Not Be Counted i'm Their Rev.
enues-SynOpsis of the Bill.
Special to the INDIANAPOLIS Journal.

Special to the Indianapolis Journal.
WASHINGTON, Jan. 4-The internal
revenue bill is now ready to report TO the
House. II was adopted by the ways and
means committee this afternoon, the vote
standing to in favor OF reporting the
measure to the House Two Democrats
Bourke Cochran, OF New York, and NJ. T.
Stevens, of Massachusetts-and all the Re-
publican members voted in the negative.
AT the last meeting OF the committee.
to-day, Repres sentative Bynum secured two
more amendments to the income tax propo-
sition. They exempt from taxation the
full amount OF all estates in the hands OF
guardians and all products consumed by
farmers. Under these amendments the en-
tire income OF all estates i'm the hands OF
guardians will be exempt from taxation,
and farmers will be permitted TO deduct
from their revenues the value OF all prod
ucts consumed by them even though they
are produced by them. There is no exemp-
tion made for the consumption OF anything
by any other class than farmers. The in
come tax scheme is TO be voted in the tariff
bill, and income taxes are TO take the place
of the proposed revenue duty on raw sugar.
The success Of the income tax men in
finally getting the bill out OF committee
was reached after a sharp contset. At first
the Republicans refused to vote. Three
Democrats-Cockran, Stevens and Bynum--
also refused 10 vote. This broke a quo
rum and the income tax men were power
less. Then Mr.. Reed came To the rescue.
and said If another roll call was take l the
Republicans would vote TO make gu )rum
but not TO favor a report The roll call
gave fifteen votes, or four more than a
quorum. Cochran and Stevens still refused
to vote, but the quorum was made without
them. Then the motion was put on report
ing the bill to the House. This prevailed
by the following vote
Yeas-Wilson, McMillin. Bynum. Whiting.
Breckinridge, Tarsney. Montgomery, Bryan
and Turner'S, all Democrats.
Nays-Reed. Burrows, Payne. Dalzell and
Hopkins, Reps; Cochran and Stevens,
DemS-1.
A noticeable feature OF the vote wa.
the action of Chairman Wilson and Messrs.
Breckenridge and Bynum in voting 10 re-
port the bill. Representative Bryan ex-
plains a misapprehension which mas arisen
as TO the tax on the salaries of Senator's,
Representatives and other public officials.
The tax applies. to all salaries; public
exemptions are given 10 public officials as
to private individuals. The salary of d
Senator or Representative being 5000. re
ceives the exemption of 5000 and pays
a per cent. tax on the remainder. The
disbursng officers of the Senate and House
retain this 2 per cent. on $1,000 on each
Congressman's salary and turn IL over to
the revenue collector of the district. All
public officers whose salaries are over Si,-
900 must pay the same per cent. on the
excess over that $4,000. The President is.
OF course, much subject 10 the tax az
any other official and he, too, has the
same exemption Of $1,000
There will be two distinct Democratic re-
ports on the bill as the result Of the action
to-day, thus emphasizing the division in the
ma jority of the committee. Mr.. McMillin
has drawn n majority Democratic report
and Mr.. Cochran will draw a minority
Democratic report. The third report VIII
be presented by the Republicans. The ma
jority report from the committee on ways
and means on the internal revenue bill, the
most important feature of which is the IN
come tax given to the public to-day.
The committee states that the object of the
bill is 10 supply the prospective
recommends the increase in the tax
on cigarettes and whisky, the tax
on playing cards and the tax on incomes.
The new feature Of the report is that
portion which deals with the increasing
of the whisky tax. This was written 10y
Mr. Montgomery. of kentucky. 1t pro-
vides for an additional tax Of 20 cents
per gallon upon all the distilled spirits.
The 10 cents per gallon will be levied upon
all LIQUOR now in bonded warehouse as
well as the liquor that may he produced
AT the distillerieS in the future. The
bonded period is limited TO eight years II
is estimated that the increase will yield
sl0OO0.OOO additional revenue.