Evening journal., 1909-04-13
HIGHER TAX
ON LUXURIES
How it is Proposed to Make
up the Governments S FL
nanCiaI Deficit
AMENDED TARIFF BILL TO
BE REPORTED THURSDAY
By UnIted Press Leased specIal VIE

BY United Press Leased speciai Wire
WASHINGTON. April 1s.-When
Senator Aldrich. chairman of tho
finance committee. makes his state
ment to the Senate on Thursday as
10 the effect and purposes of the amend
ed tariff bill, reported from his COM
mittee, he will admit that in his pres
cnt shape it will not produce all of the
revenues that will be needed by the
government in order to avoid de-
ficit.
In order to meet this difficulty. he
will announce that some amendments
will be reported later by the COM
mittee putting higher duties on GER
tain luxuries. But in the main he
will pin his faith to his ability TO so
frame the administrative features of
The bill as to ensure the government
getting all the revenues contemplated
in the various schedules.
Mr.. Aldrich maintains-and in this
he is supported by the treasury OFF,
cials-that the government is being de-
frauded annually out of millions OF
dollars by undervaluations and eva
sions of duties and he proposes to put
a stop TO these practices. In this way
he believes that from S25,O00,O00 to $780,
100000 can be added TO the revnues.
The revenue producing capacity OF
the new tariff bill is, Of course. a most
important consideration. When Mr.
Payne reported It to the House, he
announced that it would probably fall
short by S1O,O000O0 of producing suffi-
cient money to meet the ordinary ex-
penditures Of the government During
the discussion in the House. amend
ments were made which still further
reduced the estimates made by the
Ways and Means Committee. For in
stance, the proposed tax on tea was
stricken out. cutting off an estimated
revenue of $S,000,000 at one blow. About
couple of millions was taken off by
other amendments. In addition to these
items it is said that Mr. Payne made a
wrong estimate as to the amount of
appropriations which are annually left
unexpended in the treasury. lie put
this figure at S4500000 but Treasury
officials say that $25.0O0.00O would be
more nearly correct
so, when the bill was sent over To
the Senate its revnue producing capa-
city fas estimated TO be $4,000 600 less
than what is actually needed to carry
on the government.
Now the Senate Committee has re-
stored all spices to the free list. thus
cutting off about S1O00.000 of revenues
proposed by the House bill 1t also
put cocoa on the free list. thereby de-
stroying another S3.OO0,O0O of contem-
plated income The restoration OF
gloves and hosiery to the Dingley rates
by the Senate Committee also means
loss from the estimated returns from
the Payne bill of over $2.0O0.O0O. There
are certain increases in rates made by
the Aldrich bill. which will increase
revenues but there are also num-
Der of changes, other than those mem
toned. which win bring about losses
practically equivalent to the gains made
elsewhere.
Thus the Senate is confronted witt
the necessity CT providing for a de-
felt Of between $45OOOOOO and $780,
100000. If Senator Aldrich is correct
in his assertion that about S30,0OO.00t
can be procured through more drastic
applications of the administrative sec.
tions of the bill, there will still bl
required additional revenues from III,
schedules to the amount of aDou
500 900 900 more than is now in sight