The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-04-27
been prosperous with a less dutya" he

inquired. e -.
gagged in colloquy with the Texas sen
ator concerning the difference of wages
and the manner of life Of the American
and European wage Garner. Mr.. Balley
insisted that, taking in view the supe-
rior productive power of the American
lnborer, he was no better paid tnan
was the laborer of Germany. The dlf-
ference Of life, he said, was racial, be
cause those who had not engaged IN
protected industries in this country
showed the same improved manner of
living compared with Europeans as dld
the two and a half millions working
in protected industries. He insisted
that the American manufactures ana
not pay higher wages because he sells
his goods for higher price, but be-
cause of the influence of competition
and of labor organizations
Mr. Bailey said one OF the most
prosperous periods in the history of the
United States resulted from low
tariff, while Mr.. Smith declared that
one Of the most disastrous periods IN
the business Of the country resulted
from low tariff, referring to the Will
son tariff act.
Colloquy With Aldrich.
Mr.. Bailey also became involved in
a discussion with Mr.. Aldrich with re-
gard to the latter's utterance in the
senate in 1894 that the income tax was
supported by the Socialist, Populist and
Democratic parties. Mr., Bailey SAID
that Mr.. Taft now favored an income
tax and asked Mr.. Aldrich if he con-
sidered the president Socialist, Popu-
list or Democrat. Mr.. Aldrich replied
that his statement was true at the
time it was made.
Mr.. Bailey declared Mr. Aldrich had
voted for substantially all large appro-
priation measures. He said that the
Rhode Island senator's recent state.
ment in favor of economy indicated
that he had been converted. This con
version, Mr.. Bailey coptended. occurred
when the burden was about to be
placed on the rich,
off this bill. as he presented it,
said Mr.. Bailey. Occupied with an in
come tax will raise TOO much revenue.
let us reduce The rate that we collect
on the necessities of life
Mr.. Bailey insisted the rates OF the
pending bill could be reduced 33 l-3
per cent without greatly increasing the
bulk Of importations, although in his
opinion the decrease would diminish
to the extent of the reduction in the
price of manufactured articles to the
American consumer.
American manufacturer makes q profit
Of 33 1.3 per cent?" inquired Mr..
Aldrich.
Growth of Steel Corporation.
Mr. Bailey suggested that the United
States Steel corporation, with cap
ital of $3.50, 100000. had increased its
capitalization to $1,000 100000 and
makes about per cent on the larger
sum.
"Obviously. - he said. ''the steel cor
poration could reduce its profit 33 1-3
per cent and still make more than a
legitimate profit upon fair valuation
of its property
Mr.. Aldrich suggested that the
duces only from 45 TO so per cent of
the steel output, and asked whether
the senator from Texas believed the
other corporations could make a profit
if the prices were reduced 33 1-3 per
cent
s'If ] am permitted TO Judge by the
size and equipment of their automo.
biles and the size and equipment of
their yachts and by other extravagances
they flaunt in the faces of the Ameri
can consumers, L say yes, replied Mr.,
Bailey
''Does the senator think the average
industries make profit of more than
33 13 per cent, annually and regular
ly!1' inquired Mr.. Aldrich.
Mr. Bailey explained that a 33 1-3
per cent reduction in the rates of duty
would not be equivalent to a 33 13 per
cent reduction in profit, Again taking
up the subject of income taxes, Mr..
Bailey said that no 'system of taxa
ton ever devised had been so just, so
equal and so proper as an income
tax
''How did the senator arrive at the
income of $4,000 as the proper one to
taxqn asked Mr. Aldrieh "instead Of
$4,000 or $4,000 or $20007'
Basis of Exemption.
Mr.. Bailey replied that he had fixed
that figure because he had assumed
living expenses, so that the recipient
would be compelled to pay another
than the income tax at the custom
house on everything he purchased, and
as the one tax had already been paid,
exemption from the income tax seemed
justified.
81 know what you want me to. say,
and I am going to say 1t, he added.
81 fixed upon $4,000 because l wanted
il TO affect as few people as possible,
so that it might not provoke hostil-
ltl-
"In other Words" retorted Mr.. Aid
rich. "the senator wants TO enact leg
islation with class distinction in or
der to get it through
''Does the senator believe that Adam
Smith was correct in saying that taxes
should be laid on people best able to
bear them?' asked Mr.. Bailey.
Certainly" said Mr., Aldrich, who
added that the constitution and every
code of ethics and morals agreed that
taxes should be levied with uniformity
and according to the means of the peo
pie to pay.
"That is rather serious criticism
Mr. Bailey, f'of the Republi-
can party, which, during the incum-
bency Of Abraham Lincoln levied an in
come tax upon some and exempted
others"
Contrast in Conditions.
Mr.. Aldrich, returning to his criti-
cism of the plan Of income tax proposed
by Mr.. Bailey. said the laborers abroad
received from g 10 go cents day and
from $50 10 $500 or $500 year, while