The times., 1898-05-26
SENT BACK FOR REPAIRS
Some Account of the Way Tax
alton Is Controlled.
INFLUENCE OF THE TRUSTS
Kew the Senate Experts Led the
Committee Up the Hill and Down
Again and the War Revenue Bill
Was Repaired and Renrranged to
Exempt the Great Corporations.

Although the pending war revenue bill
was constructed in the House for the pur-
pose of raising the sinews of war and
sent to the Senate for consideration in
that body for the same commendable pur-
pose, 1t Is apparent the more the bill is
studied that II has been treated in the
Finance Committee after the fashion
that has always prevailed there in the
consideration of ordinary tariff bills. 1t
was reconstructed and reported with
rates of taxation far above those pro-
vIded by the House and then returned
TO the committee, where in several no.
table instances these rates were scaled
down with a great show of patriotism.
accompanied by representations that as
originally reported they worked hard
ship upon those against whom the taxes
were assessed.
This is the scheme always worked in
tariff bills and it is worthy of comment
that in connection with this war revenue
bill the men who dictated the duties to
be paid by the corporations of the cOun-
try when the Dingley bill was being re-
constructed have also dictated the rates
of taxation in the pending measure. The
other members of the committee, under
the leadership OF these gentlemen. who
are experts in the science of levying Gus
toms duties and internal revenue taxes.
marched up the hill and then in obedience
to the command marched down again IL
is a reproduction of the tactics that pre-
ftaT1lf
led the forces of the committee UP the hill
to a high tariff on sugar. which brought
to Washington an influential and powerful
lobby. and subsequently. after that lobby
! had got in it's work. marched back again
to lower rates and increased profits TO the
men that controlled the sugar trust.
! Public men who have studied the pend
I ing bill are not refraining from criticism
| OF the most bitter character Especially
/ is this true in the House. where the bill
was framed for the purpose of raising
revenue directly, regardless Of who might
be hit This complaint is aimed particular
! ly at two provisions and in each case was
high rate imposed and a reduction sub
sequently ordered at the alleged dietatiOn
of large corporation interests These re-
ductions only came after the representa-
| tiyes of these corporations that had been
hit reached Washington. and had several
| conferences with the leading members OF
the committee and of the Senate.
| Some Startling Facts.
The one instance referred to was the
! increased tax on manufactured tobacco.
The present tax Of six cents a pound
was increased by the House to twelve
cents. with proyiso that ali manufac-
tured stocks on hand should be taxed ac-
cordlng TO the increased rate. The Sem
ate Committee. in reporting the bill 70
the Senate. made the tax sixteen cents.
and struck out the clause taxing stocks
on hand Whether this increase was made
for the purpose of calling certain gentle
men TO Washington or not It is unnecsS-
sary 20 surmise. Il is sufficient TO know
| that they came. Il is also interesting to
know that the American Tobacco Com
pany one of the great trusts of the coun-
try. sent its personal representative here
to fight the tax which had been levied
upon its product 1t is still further in
teresting to know that a representative.
who is director in the American To-
bacco Company, Is also a director in the
! American Sugar Refining Company, and
that the Sugar Trust and the Standard
Oil Company. two of the most gigantic
monopolies this country has produced,
owns and controls a majority of the stock
of the American Tobacco Company. Any
one susceptible of adding two and two
| and reaching the conclusion that this addi-
tion makes four. can see the connections
Ibetween these trusts and combinations
| and the influence that brought about the
reduction. 1t may not be complimentary
to the intelligence or the independence of
the other members of the committee TO
know that they have blindiy followed such
leadership. but these are facts that can
not be disproven.
In like manner and under the same lead
| ership schedule B as II came from the
| House was so entirely reconstructed that
| Mr.. Dingley, when he read the bill after
ii was reported. failed to recognize any
portion of it as that which had been con-
sidered in the Ways and Means Commit
tee or on the floor of the House. II was
| printed SO as to include all proprietary
articles. whether medicinal or otherwise.
| and all articles whatsoever manufactured
or sold under a patent right or trade
mark, or produced from some secret for
| mula. The hand that penned this para
| graph was the hand of the leader who
| increased and then reduced the tax on
| tobacco. AS reported to the Senate this
| paragraph was so sweeping In its Ian
| guage that 1t. too brought to Washing
ton an influential and powerful lobby
which, like the tobacco trust, was able
to compel this paragraph TO be taken
back to the committee room for repairs
AS it again emerged everything taxed on
schedule was eliminated, with the sim
gle exception of medicinal proprietary ar
ticles or patent medicines. and a para
graph that was expected TO bring in
something like thirty millions of revenue
diminished to less than three millions.
Another Proposition.
| Statesmen who will be called upon to
vote on this bill have been asking them
selves why there should be this favorit-
ism when the essential thing to be done
is to secure a revenue to meet the ex-
| traordinary expenses incurred in this
| war. The answer to that inquiry is found
| in a proposition that has been submitted
and which will be vigorously contended
for, both on the floor of the Senate and
| in conference, that will deal exact justice
to all industries and so evenly distribute
tax that it will have the effect Of pro-