The Washington times., 1909-03-17
Inheritance Tax One Fea-
ture-Maximum and
Minimum Rates.
NO TAX ON COFFEE;
HIDES AND STEEL CUT
Lumber Gets a Reduction, Wood
Pulp May Be Free, and Beer
Is the Same.
By J. C. wELtIvER.

ne Payne taTIT1 OIL was reported
TO the House Of Representatives to-
day. 1t is a maximum and minimum
bill, with an inheritance tax feature.
1t is estimated that 100000, 600
annual revenue will be produced, de-
spite that there is general reduction
of duties, the explanation, of course,
being that many duties now pToFlibi-
tive or nearly 50 viii be So reduced
| as to permit importation, and, con
sequently, to bring in revenues.
The estimated revenue under the
new duties is about 100000
larger than under the present ones.
No Duty on Coffee.
The coffee duty which had been fixed
in the earlier deliberations on the bill
was cut out, il is said, at midnight
Monday night. Tea is taxed at cents
when It is imported directly from the
country where il is raised. and cents
when it comes through another country
This is a direct blow at the immense
Linton business in the United States.
Lumber is the subject OF the expect
ed compromise, by which the present
duty OF g per thousand on rough lum-
Der is reduced TO 81 A like reduction OF
50 per cent is made on steel rails and
most steel goods.
The tariff is removed from hides, and
20 per cent reduction is made in the
the big revenue producing sections. sc-
cording TO expectations. while at the
same time resulting in some reduction
IN the cost Of shoes
Plate Glass a Pet.
Plate glass comes in as the pet Of the
new tariff. as tin plate was Of the 5dc-
KinIey act; the rates are largely In
creased on plate glass. in order to en-
able the home industry 10 survive and
develop in competition with the very
much cheaper labor abroad II is ex-
pected this viii develop the industry 10
a point never before possible
The inheritance tax section Of the bin
places 1 per cen+ levy on estates OF
$4,000 10 100000. per cent on those
a aboye 800, ,O00 anS Up 10 S500,0oo, and 3
per cent above that figure. with per
cent on all collateral inheritances-
The bill IS drawn. according 10 its au-
EHQTSF WlL0 the EEnEIdt purpose OF
creasing the burdens on lUxurieS. and
reducing those on the necessaries or
life. Iron ore is made free. while there
is no change in the present adjustment
on petroleum. that Is. the article IS left
on the free list, but the present counter
vailing duty is retained, which IN effect
serves TO retain high duty
On Reciprocal Basis.
Coal and agricultural implements are
put on a reciprocal basis, they viii come
in free from countries which admit ours
free. Wool, first and second class, re-
mains at the present duties
The bin provides for the issue OF $50
600, 600 of Treasury certificates for one
year. The authors believe the present
unfortunate Treasury situation wiz not
continue long. and that there is good
prospect for q return OF normal condi-
tions, in which the revenues viii take
care OF demands.
The tax on beer is not changed.
The bill contains about as many
words as a popular neutrality-suspicious.
" 100,G00-and il is vastly more exciting
10 interests which are Immediately con
cerned.
Provision is made for importing 10000
tons Of sugar annually from the Philip
pines free, with considerable amounts
OF tobacco. cigar wrapper and filler
Canadian wood pulp viii come IN free.
provided Canada and other nations VIII
not impose export duties on its forest
products; and the print paper tariff Is
reduced 80 per cent on some grades,
and 66 2-S on others.
Fear Breakfast Table Tax.
AS for a tax on tea and coffee the
Republican leaders IN the House and
Senate have been talking the PROPOSE
ton over among themselves and with
President Taft It is the conclusion OF
the leaders that IL would be unwise 10
impose a duty on coffee or tea
They fear il would be unsafe pollti-
Cally and that the cry Of "a tax on the
breakfast table" might cost the Repub-
Ucans the next House
The leaders recognize that a tariff Of
the sort proposed would be a radiCa-
departure from Republican policies ana
hence they want 10 avoid II. II IS re-
garded as certain that the pressure for
an inheritance tax viii be greatly in-
creased by reason Of the action as TO
coffee and tea
Statement Given.
Accompanying the bill was the fol-
lowing statement;
The new tariff bin introduced by Mr.
Payne In the House is a minimum and
maximum tariff bill The minimum rates
OF duty are contained In the first sec
ton, and the free list for the minimum
rates is in the second section OF the
bill
The third section contains the maxi
mum rates, which are generally equal
TO the minimum rates and 20 per cent
in addition thereto. and the articles on
the free list. in the transfer 70 the third
section, bear d duty of % per centum
ad vaiorem as a maximum rate The
maximum rate does not go into effect
in any event until sixty days after the
passage of the act
By the fourth section the 1niniruum
Continued on Third Page.)