The evening times., 1898-05-30
Important Conference Of fhe FL
nance Subcommittee.
TWO IMPORTANT CHANGES
II In Tentatively Agreed That the
Tax Oh Tobacco stocks ON Hand
VIII Ee Observation-Disclosures
cal Preparations Also to BE Taxed
the same as Proprietary Medi-
csnes.

An important conference was held at
the Capitol yesterday between Senators
Allison, Aldrich and Jones. Acting as a
nance, these senators went carefully over
the whole bill. correcting many Of the err
rors that have crept in owing to the hasty
manner in which some of the committee
amendments were prepared. and suggest
ing changes here and there that will be
submitted to the full committee at spe-
cial meeting to be held this morning.
The criticism that has been leveled at
that bill for some days has at last borne
fruit and when the committee takes up
the subject this morning 1t will have at
least two important amendments which
were tentatively agreed upon. The sub
ject of the taxation Of stocks on hand has
divided the committee ever since 1t has
had the bill and its subsequent action in
exempting from taxation tobacco stocks
on hand while refusing to exempt all other
taxed stocks has led to some bitter de-
nunciation Of this unjust discrimination.
1t made no difference tnat finally a pro-
vision was agreed to that tax paid stamps
should only be affixed to stock on hand
when such articles were sold; the princi-
pie Of discrimination which destroyed the
equity of the tax remained.
A prominent member of the committee
admitted last night that the Republicans
had been forced to see the injustice of the
action and that all stocks on hand. OF
whatever kind, would stand alike and be
exempt. The argument that forced the
Republicans to agree to this was the de-
cision of the Supreme Court in the income
tax case, wherein that court held that
stocks such as the bill taxes after hav-
ing passed into the hands of purchasers
became personal property and could not
be taxed in this manner. Reluctantly
convinced that they would be inserting
a provision that was unconstitutional, the
committee will strike out all reference
to the taxation of stocks on hand.
An important change will also be made
in schedule B. a schedule that has beer
tinkered with more than any other in the
bill. AS finally fixed up, this schedule
eliminated everything from taxation IN
the shape of proprietary articles not pat
ent medicines. Pharmaceutical prepara-
tions, in many cases Identical with pro-
prietary medicinal preparations, were per-
mitted to escape taxation altogether.
These preparations, turned out in enor-
nous quantities by the wholesale manu-
featuring chemists, have practically de-
stroyed the business of druggists in COM
ponding medicines from prescriptions.
That these things should escape while
proprietary articles, the only remaining
thing in which the druggist could deal
with any degree of profit. should be taxed
at civil war prices when everything else
was also taxed. brought forth a tremend-
Gus storm of protests from the druggists
of the country. Their protests have
availed. for the committee has decided
that these pharmaceutical preparations
shall be taxed equally with patent medi-
cines. The pressure which forced this
concession was so enormous that the COM
mttee. which is under the domination of
Mr. Aldrich. will not dare TO again re-
scind the action it will take today.
Why these patent medicine men should
have been selected for this tax and the
pharmaceutical corporations. all of them
with vast amounts of capital invested,
should be permitted to go free is ques-
tion the Democratic members of the
committee has been unable to answer.
unless, perhaps. the answer is found in
the fact that the men who made such a
vigorous but losing fight for the bill for
free alcohol in the arts and sciences were
the men who make these proprietary
medicinal preparations. cosmetics and
perfumery The hard fight they gave
the men opposing free alcohol, may, pos
sibly, have something to do with the
present situation. They will, however,
have the satisfaction of knowing that il
they are to be taxed according to the
civil war rates their rivals in business
must pay the same tax, all of which
strikes the average citizen as being just
and equitable arrangement.
1t is not believed that the tax on gross
receipts even as amended by Mr.. German
will prevail. To secure its passage some
Republican votes are necessary and it is
problematical if they can be obtained
Some of the Western Republican senators
would like to vote for the amendment
but the party whip will probably keep
them in line. Three Democrats, Messrs
Gray, Lindsay and Caffery, viii vote
against the German amendment. The
chances, therefore, are against its adop-
ton.
The members of the committee believe
that they can pass the bill this week and
every energy of the leaders will be d.
rected to the accomplishment of that
end.