The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1909-06-14

must the conference committees hew
to the line of the Payne bill in order
to satisfy President Taft's desire to
give the country bill which makes
substantial reductions in duties?
The Probable Result.
The probability of the ultimate re-
suit is being figured out by the lead
, 'rS In both houses to run along lines
athing like the following:
y ding the desire of President
l. at tariff bill shall be laid be-
fore Lim for his signature making
substantial reductions in duties, con-
siderable stress is laid upon the fact
that there was a saving clause in
many of his speeches in regard to the
schedules of the existing law that are
too low," or which "do not afford the
measure or protection promised by
the Republican platform"
The finance committee leaders be-
lieve that the increase in duties made
by the senate bill upon some sched-
ules will not be obnoxious to the
president. In addition to this, the
suggestion is made that upon the four
or five principal items transferred to
the free list, or sharply reduced by
the Payne bill, turns the question of
satisfying President Taft.
The reasoning upon this PROPOSE
tion is that the tariff sentiment in the
west was based very largely upon the
demand for free lumber. In the New
England states the revision sentiment
was based upon the demand for free
hides. Added to these sentiment-mak-
ing propositions is the wood pulp and
paper duties, for which vigorous agi-
tation was made in the public press
for many months preceding the ac-
tual entry of congress upon the
work of tariff revision. There was
also considerable demand for reduc-
tions in the metal schedule, and for
lower duties in other sections of the
existing law.
Evidently the conference commit
tees of the two houses will be con-
fronted with an agreement upon lum-
ber at reduction in duties of fifty
per cent. If, as now expected, the
senate restores coal, hides and petro-
leum and its products to the dutiable
list, along with iron ore, already re-
stored, manifestly the house confer
ees will be in position to make strong
demands for concessions on some of
these items. The house voted hides
to the free list by substantial ma
jority, on a record vote. The house
also voted off all duties, including
countervailing duties, from petroleum
and its products.
Conceded to the House.
This situation leads the observing
members of both houses to :helieve
that the house will win in conference
upon the question of hides and pc
troleum, and that the rates of duty
imposed by the senate revision bill
upon iron ore and coal, materially
below the rates of the existing law,
will be retained. An effort will be
made in the senate to increase the du-
ties imposed by the Payne bill on
wood pulp and print paper, but with
no certainty, up to this time, that the
movement will be successful. 1t is
also asserted that the campaign to
place duties on hides and petroleum
will win.
If, therefore, the final conferences
on the bill shall result in a victory
by the house OH lumber, hides, wood
pulp, and paper, that would consider
ably offset the reduced duties imposed
upon iron ore and coal, If the senate
could not be induced to place these
articles on the free list. The senate
hopes to secure from the controversy
over petroleum duties at least the re-
storation of the countervaiing duties
upon petroleum and it's products.
If it be true, as some senators and
representatives hold, that a tariff bill
framed upon these lines, with respect
to the more important items, will be
satisfactory, it is probable that Presi-
dent Taft will be called upon to sign
or veto bill containing most of the
increases in duties upon other sched-
ules. 1t becomes a serious question
therefore, whether President Taft will
feel it his duty to sign such bill
The question is serious, because
even if the house should win upon
some of these important items, the
general average rates of the bill will
be as high as, If not higher than, the
existing law.
Inheritance Tax Opposed.
1t is now asserted by some of the
tariff bill managers, however. that the
general complexion of the bill will be
more satisfactory to President Taft
nues provision shall be made for
abandoning the inheritance tax pro-
vision of the Payne bill and incor-
porating the amendment for a tax
upon the net earnings of corpora
tions, which amendment its friends
declare would yield approximately
$20,O0O,000 in revenues. This, the
supporters of the tariff bill believe,
would make the income tax unneces-
sary. and would also better satisfy
President Taft, who, it is said, does
not like the inheritance tax provision,
in view of the double taxation which
would ensue as a result of similar
laws in many of the states.
Out of these prospective changes
the downward revisionists see few,
and relatively few. genuine conces-
sions in the interests of the consum-
ing public. They will have lost their
fight for free lumber. Some of the
western revisionists who favor free
lumber will also be greatly dissatis-
fed, If the concessions in conference
shall place hides on the free list,
without making more sweeping re-
ductions in the duties on leather and
boots and shoes. The downward re-
visjonists also declare that nothing