Evening star., 1902-01-30
CUTTING WAR TAXES
Action of the Ways and Means
Committee.
BLOW TO RECIPROCITY With CUBA
No Prospect Of Tariff Conces-
s!ons.
THE CHAIRMAN'S STATEMENT

to their appeal for bread. That the
effect-and it may be said the intention
of the decision of the committee on ways
and means to cease further consideration
of Cuban reciprocity and to Immediately
report bill repeating all the war taxes,
amounting to sI7,000,0O0.
With this great reduction of the revenues
of the government made it will be argued
hereafter against Cuban reciprocity. and
against all other propositions for reciproc-
ity that it is not advisable to further re-
duce the revenues from customs dues.
Speaker Henderson's Suggestion.
The high protectionsts of the ways and
means committee were quick to follow
Speaker Henderson's recent suggestion to
reduce the war taxes instead of in any
way touching the tariff. Mr.. Dalzen and
Mr.. Grosvenor who, with the Speaker,
form the majority of the committee on
rules, which dictates the legislative policy
of the House. are also members of the COM
mttee on ways and means, and since the
Speaker came out fiat-footed for war tax
reduction as against tariff amendment
they have been firm opponents of the pro-
posed Cuban concessions.
The high protectionSts have intrenched
themselves in what they now consider an
fmpregnable position They have taken a
great mass of testimony in behalf of the
home sugar industry, which they will put
forward in support of their refusal to re-
duce the tariff on Cuban products. They
will also urge the necessity of maintaining
the customs revenues and will insist that
If policy of reduction is entered upon
the administration and the Senate will
have to take the responsibility.
Waiting for PRESSURE
1t is conceded on all sides that they have
pumped themselves solidIy down in
dosged determination to sit it out and
wait for that administration pressure to
bulge them
Whether they be budged is very
doubtful. Public pressure is strong against
them; great protectiOnist newspapers like
the New York Tribune. the PHILADELPHIA
Press, the Chicago Tribune and Chicago
lnter-Ocean have come out urgently for
Cuban reciprocity. Thus far, however the
contention of the beet refiners has un-
doubtedly prevailed with the committee
Right to Negotiate Reciprocity Treat
les.
Following closely upon today's action an
other step was taken in the direction of
further tying up the reciprocity advo-
Gates Mr.. Tawney of Minnesota intro
duced resolution, directing the committee
on ways and means to consider and inves-
tigate the right of the President and the
Senate to negotiate irrespective of the
House treaties which change tariff rates
AS Is well known, some senators hold that
the senate can negotiate reciprocity trea-
tIeS anu Ildt IL is not necessary to comply
with the provisions of the Dngley act re-
quiring such treaties to be submitted to
the House.
Action of the Committee.
The ways and means committee today
adopted the following resolution:
That the chairman be instructed to pre-
pare bill repeating all the remaining war
revenue taxes Except the tax upon mixed
-FOUR wiz, the additional taxes imposed by
laI An
provide ways and means to meet war ex-
pendltures, and for other purposes and
the act of March 2, 1901, amendatory there
or; the said repeal to take effect July l.
1907, except as to section 90 which shall
take effect January 1, 1903, and that he re-
port the same to this committee at an
early date"
The exception is the tax on mixed flour
Chairman Payne's Statement.
Chairman Payne made the following
statement of the committees action:
The republican members of the commit
tee on ways and means have been consid-
erlng informally the question of war reye-
nue. reduction for some little time and have
been delaying action to receive a report
from the commissioner of internal revenue,
showing the exact amount derived from
war taxes for the first six months of the
fiscal year ending the 31st of last month
This report was only recently obtained and
shows that the reduction under the act of
to s2O.O63.00O, confirming the estimate of
the committee when that bill was passed
Of s4O.OOOOOO per annum.
The report also showed that the collec-
tons under this act, as amended, for this
SIX months period were trifie over $34,-
OOOOcO which would indicate a revenue of
s6s,OOocoo per year 1t will be remembered
that the collections under this law for the
previous fiscal year were S10I ,646 000
being an increase of two millions over the
previous year. The annual increase, as
mn rod Wit n rrax "a
the revenue for the present fiscal year
about s109.0G0.OO0, less the SAC, ,0O0 600 of re-
duction, or $6o,00O,O0O. leaving the net reve-
nue. from this act for the present wear
about se9.0OOOo0
The treasury has now an available cash
balance of something over S174, 100000 1t
Is not likely that this will be Increased
materially during the present fiscal year.
as the treasury is buying bonds at a rate
that viii use up the surplus to accumu-
late between this and the end of the fiscal
Treasury's report estimated surplus for
this year of S1O0, 1000. .OOO and subsequent
results seem to confirm this estimate.
Reduction of $77,OOO,OOO.
The committee therefore thought 1t was
entirely safe to repeal the remainder Of the
war revenue taxes, amounting to S7SOOO-
600. and the tax on tea of $1,000, 600, in the
aggregate S77.0O0.C0O. at this time This
viii still leave a surplus estimated upon
two or three million dollars for the year,
while We will start upon the next fiscal
year with S174,0O0,OO0 available cash in the
treasury. The committee deem 1t wise TO
nave the repeal of the tax on tea take effect
on the list of January next, in order to
enable those, especially retailers and small
dealers, who have small stocks of the duty
paid goods on hand to dispose of them be-
lore the repeal takes effect
we can provide rebate on the tobacco
tax and guard against any fraud upon the
revenue for the reason that the internal
revenue department has this trade under
close surveillance and can and will take an
account of the stock In the dealers hands
on the 1st day of July next. But this will
De Impossible as to teas, which come in at
tne customs house. and of which the gov
ernment has no account save as they are
imported In large Quantities by the import
ers Continuing the tea tax to the 1st of
January WIZ give US six months revenue
m the next fiscal year upon tea and win
make the ultimate reduction for the next
year considerably less than $75. .0Oo, 900. The