New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-03-04

laid before the full committee and made public
before the reassembling of Congress. The feat
ures Of the bill, as described in the accompanying
statement OF Chairman Wilson, were: % The
adoption, wherever practicable, Of ad valorem
instead Of specific duties CD the freeing from
taxes of those great materials Of industry that
lie at the basis Of protection"
In addition to extensive increase in the
free list, the schedules showed reductions in
rates as compared with the Mckinley bill. on all
but small number of items. The notable addi-
ions TO the free list included iron ore, lumber
and wool. Raw sugar was left free, but the rate
on refined was reduced from one-haf to one-
quarter cent per pound, and the bounty was re-
pealed one-eighth per annum until extinguished.
Various amendments were made in the admins
trative provisions Of the tariff law II was esti-
mated that the reduction OF revenue effected
would be about xJOOOOOO0 and the committee
Set about the preparation of an internal revenue
bill To make good that deficiency. While under
consideration in committee. many changes were
made in the Tariff bill; the most important re-
lated to sugar, the duty being taken off OF re-
fined. and the repeal Of the bounty being made
immediate instead Of gradual clause was
also inserted repeating the reciprocity clause Of
the Mckinley law
The chief feature OF the internal revenue bill
was the provision for an income tax. The bill
provided also for stamp duty on playing cards,
and increased the tax on spirits to 81 a gallon.
tax OF = per cent was imposed all incomes
in excess OF $4,000 and in case Of corporations
the same tax was levied on all interest on bonds,
and on all dividends and surplus income above
dividends. except premiums returned To policy
holders by mutual life insurance companies, in
terest to depositors in savings banks and dvi-
dends Of building and loan associations The in
come tax proposal Immediately called forth lively
opposition. on February the Internal Revenue
bill was made part Of the Wilson measure, and
the latter as amended was adopted by the House
by vote Of 40 to 40 The majority was COM
posed Of 1874 Democrats and 10 Popustst, and
the minority Of 10 Republicans and ID Demo-
Gratis.
HUNDREDS OF CHANGES IN THE SENATE
In the Finance Committee of the Senate the
bill underwent a thorough revision. and many
changes were made. The most important took
sugar, iron ore and coal from the free list. and
imposed a small duty each. Many Of the
Senators much dissatisfied with the sched-
ules affecting the industries of their constituents
and in the adjustment Of the differences among
the several factions of the majority in the Senate
numerous compromises were arranged. From
the important part taken by Senator German in
conciliating the factions his name became at
taShed to the measure, il being thereafter known
the wills German bill
g. when it passed by vote of - ca Demo-
Gratis and Popusts) 10 "a (3l Republicans, l
Democrat and Populsts). The Democrat who
voted with the minority HILL of New York.
The Senate added 6:}i amendments TO the Wilson
bill. In the Conference Committee a wide d.
versty Of views was manifested and on July 10
the conferrees reported failure to agree. The
crucial point in the controversy was the sugar
schedule. The Senate wanted the Immediate re-
peal Of the bounty and a general duty Of 40 per
cent ad valoTem with an addition of One-eighth
cent per pound refined sugar and one tenth
cent more If it came from a country paying an
export bounty. The House conferrees declared
this arrangement too advantageous to the Sugar
Trust. but the representatives Of the Senate re-
fused to accept any change.
AT this point President Cleveland took a hand
in the controversy by permitting the publication
of a letter which he had written to Mr.. Wilson
on July =. in which he said that the Senate bill
fell far short of what demanded and ex-
pected by the Democratic party, and suggested
that we ought not to be driven away from the
Democratic principle and policy which led to the
taxation of sugar by the fear, quite likely ex-
aggerated. that in carrying out this principle
and policy may indirectly and inordnateIy
encourage combination OF sugar-rennlng IN
terests.
The letter had no effect except to call forth
vigorous protests from Mr. German and others,
who declared that il impugned their motives
The Senate refused to consent to material modi-
fications in its amendments. After several weeks
OF further controversy. the House yielded, and at
a caucus on August IL decided TO concur in the
Senate's amendments. The vote on accepting
them was: Yeas lS2 GA Democrats and Popu-
lists: nays loo C93 Republicans and IL Demo-
Gratis, not voting. 81 The House at once passed
separate bills placing the free list sugar. coal.
iron ore and barbed wire. These bills were later
reported favorably TO the Senate by the Finance
Committee, but no action was taken at that ses-
sion.
THE PRESIDENT WOULD NOT SIGN TT.
The Wilson German bill became law or Au-
gust - without President Cleveland's signature.
Its important features were as follows: one hum
dred and six articles dutabie under the Mckln-
ley law put on the free list, including copper ores
and pig copper lumber, binding Irvine and cot