The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-12-08
Report on the Bill Submitted to the
House by Mr. Payne, of the
Ways and Means Committee.
CAGES ESTIMATE IGNORED
ON GROUND THAT HIS FORECAST OF
EXPENDITURES WAS HIGH.
Brewers and Cigar Manufacturers Are
Said to Have Borne nm Undue
Share of Taxes.

nan Il a Ats
of the ways and means committee. late
this afternoon submitted the report of that
| committee, signed by all the Republican
members, in favor of the bill reducing the
war revenue taxes about $780, 0o, 900. The re-
port says, in part:
while the war for which these addi-
tional taxes were levied is ended, the train
of extraordinary expenditures has not ter
minated with the close of actual hostilities.
We find it still necessary to maintain an
army of 100, coo men until law and order is
fully restored in all our possessions. We
find it also necessary to provide troops TO
man the Notifications which we have been
building the past few years, and also TO
provide a sufficient force in the navy to
man the vessels we have recently added.
The increasing navy, too, brings new ne
cessities, all of which call for a greater
drain upon our resources.
According to the report of the secretary
of the treasury, the receipts from all
sources for the fiscal year ended June 80,
1900, were 1868, 500, 431. while the total ex-
penditures were $500, 06S.3 81, showing a sur
plus of $685. 600. He also stimate the re-
ceipts for the fiscal year ending June 80,
1901, upon the basis of existing laws, at
S6S7. 773, 253, and the expenditures at $607,-
773, 253, which would leave an estimated sur
plus of $50, 600, 900. For the fiscal year end
ing June so. 1902, the secretary of the treas
ury estimates the revenues at SIG, $685. 42
and the expenditures at $500. 374. S04. leaving
an estimated surplus of only $26, 25S, 237. 1t
will be seen that for 1902 there is an esti-
mated increase in the revenue of s29. 900. 600
over the previous year, and an increase of
expenditures of nearly $3,WO,WO.
"The committee is inclined to take a more
conservative view of the amount of ex-
penditures necessary for the year ending
June 80. 1902: at the same time it is anxious
to avoid any deficiency in the future. IL
deems il safe TO make a reduction of about
$40. O00,0 900. while the secretary of the treas
ury in his report suggests a reduction or
only 100000 600 in the revenue.
THE TAX ON BEER.
I'm making the reductions i'm the bill
reported, the committee has sought to re-
move the more annoying taxes in the war
revenue act by the entire abolition of
those which were most vexatious and by
a reduction of those which seemed TO have
proved a great burden on the several
branches of trade to which they are ap-
piled. On beer a war tax of 50 cents a
barrel was added to the tax of 81 a bar
rel previously imposed. Complaint has
been made that this tax has borne heav-
ilV upOn the brewing interests, and II was
stated before the committee last spring
that it had resulted in a decreased. con-
sumption of beer. AS evidence of this it
was claimed that the output of beer was
nearly d million barrels less in 1899 than
IL was in 1898 before the war revenue tax
took effect. But 1T will appear that this
falling off in the nsumptio has &C
CURED in a number of other years in the
last decade, and that the increase in con-
sumption in the year 1900 of 2.750.OO0 bar
refs is nearly the greatest or any one
year of the last ten"
The report then proceeds: $50 that nei-
ther the falling off in the sale or beer in
1859. nor the increased consumption In 1900
was caused by the increased tax. But the
committee recognizes that the manufac-
turers of beer have some claim in the gen.
believes the amendment propose in Sec
ton l of the bill making a net reduction
OF Is cents per barrel gives them all the
relief to which they are entitled in view
of the reduction carried by the bill.
'In the war revenue act the tax oil
cigars. averaging more than three pounds
In weight to the thousand. was made $3.50.
This 90 cents per thousand was very oner-
Gus TO the manufacturers, especially those
engaged in n small way, and making the
cheaper grade of cigars. 1t has been i'm
possible 20 distribute any of this so cents
in making a price to the consumer. and
the factories have had to bear the entire
tax of over 100000 last year. The COM
mittee has, therefore, reported an amend
InGHl IGuutllE lniS ldA Of lHt idlt VI W
cents per thousand"
THE STAMP TAXES.
The report then gives the changes in de-
tail, with estimated amount of reduction,
which has heretofore appeared. 1t con-
tinues: 1.-The 2-cent stamps on bank checks,
certificates of deposit, drafts. postal mon
ey orders, ETC.. are very annoying to a
| large class of people, and much complaint
- - ~ a II.
from the smaller towns and from farmers.
"Another source of annoyance has been
the tax oS l cent on express receipts and
telegraph messages. There is no doubt
that this taxation has caused more wide
spread annoyance and trouble than any,
thing else in the act. The committee has
stricken these taxes from the bill. The
quite burdensome in numerous instances,
as well as the tax upon insurance and
leases. The tax on promissory notes and
mortgages has been very Onerous upon the
debtor class. 1t has seemed TO the COM
mittee that it was enough to pay interest
without paying a tribute to the government
on every transaction of this kind. These
are the principal items that are stricken
from the schedule. TIL other taxes of like
character are small in amount and pre-
sent an obvious reason for their repeal"
"The committee has repealed all Of
Schedule b, except the tax on wines. This
includes the tax upon proprietary medi-
cineS and articles or Il similar nature.
There has been greater protest against the
enforcement of this tax than any other I'm
the whole law. 1t would appear that the
tax was much greater in severity than
Congress anticipated when the law was
enacted. While the per cent. of taxation
is small on the retail price of the article
sold, IL has fallen on the manufacturer TO
a large degree and has been in the ag-
gregate a large percentage of taxation
upon the wholesale price. The committee
recognized that wines were entitled TO as
much reduction as beer, but there did not
seem TO be any convenient way to divide
the tax of l cent upon a pint bottle and
therefore has left IL the same as in the
original act"
~gregating 5000 $40, the report says: I'm
making the foregoing reductions your COM
mittee believes that the bill goes as far
as il is safe TO go in reducing the revenue.
II also believes that il has made the re-
auctions so as TO do away with the most
annoying and vexatIous taxes under the
act, and also to relieve such business as
is most entitled 10 relief under all the
circumstances. While regretting that il
cannot at this time make a report finally
disposing of the war taxes. except such
as Congress may deem il wise hereafter
TO keep upon the statute book, yet IL con-
graduates the country IL Is able to report
a bill striking OF 40 per cent. OF this kind
OF taxation. After this reduction of $780,
100000 shall take effect, leaving a revenue
of SEQ, 0o0.0 under the war revenue act,
that sum will be barely sufficient 10 meet
the train of extraordinary expenditures
which follow the close of actual hOstilities.
We are certainly justified In maintaining
revenues up TO a point equal to the ex-
traordinary expenses entailed by the war"
Mr.. Payne said to-day that he would call
M the bill I'm the House next Tuesday