Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-04-27

amount Of revenue raised by the in
come tax. He secuted the idea that a
lowering of custom taxes would IN
crease revenue, and declared that 1t
would only result in causing the
American manufacturer to reduce the
price of his article and to reduce his
profits already SO enormous as TO
stagger the imaginations.
William Alden Smith of Michigan
engaged in a colloquy with Bailey
concerning the difference of wages and
the manner of life Of the American and
European workmen. Bailey insisted
taking in view the superior productive
power of the American laborer, ne was
no better paid than is the laborer OF
Germany. The difference of life. ne
said, was racial because those who mad
not engaged in protected industries IN
this country showed the same I'M
proved manner of living compared
with Europeans as did the two and
half millions working in protected in
dustries. He insisted that the American
manufacturer does not pay higher
wages because he sells his goods for
higher prices, but because of the lnfiu-
ence of competition and of labor organ
izations.
Bailey said that one of the most
prosperous periods in the history OF
the United States resulted from low
tariff. but Smith declared that one OF
the most disastrous periods IN the ous-
mess of the country resulted from
low tariff. referring to the Wilson tar
if act.
Rsiiev also became involved in dis
cuss;on with Aldrich with regard to
TIL. Iatter's utterances in the Senate in
1894 that the Income tax was support
ed by the Socialists, Popnlist and DEM
ocratic parties Bailey said that Mr.,
Taft now favored an income tax ana
asked Aldrich if he considered the
President a Socialist. Pcnulist or
Democrat Aldrich replied that his
statement was true at the time 1t was
made.
Contending that he always voted
a against extlavaganoes. Bailey declared
that Aldrich voted for substantially
large appropriation measures. He sad
that the Rhode Island senator's recent
statement in favor of economy lnol-
Gated that be mad been converted. This
conversion, continued Bailey. occurred
when the burden was about to be
placed upon the rich. This bill as pre-
scnted," said Bailey. referring to the
chairman of the finance coinlnittee
coupled with an income tax will raise
too much revenue lets reduce the rates
that we collected on the necessities Of
life"
Engaging in a colloquy with Aldrich,
Bailey repeated his statement that the
rates of the pending bill could be re-
duccd Is l-3 per cent. without greatly
increasing the bulk of importations al
though in his opinion the decrease
would diminish to the extent of re-
dueing the price of manufactured arti-
ces to the American consumer.
Aldrich suggested that the United
States Steel Corporation produces only
A.. t. 50 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 80 1-3 per cent.
If l am permitted to Judge by the
size and equipment of their automo-
bilas and the size ana equipment OF
their yachts and by other eNtravagances
American consumers. l say yes" re-
piled Bailey. They might not be able
to go to Europe every summer and
might find j. necessary to reduce their
expenses, hut the American people
would be better off for that"
Does the senator think the average
industries make a profit of more than
80 1-3 per cent. annually and regu-
larIy?" inquired Aldrich.
Bailey explained that a SO 1-3 per
cent. reduction in the rates of duty
would not be equivalent to a SO 1-3 re-
duction in profit.
Again taking up the subject of in
come tax. Bailey said that NO sys-
tenn Of taxation ever devised has been
SO just so equal and so proper as an
ircone tax"
Does the senator believe that Adam
Smith vas correct III saying that taxes
should he laid upon people best able
to bear them" asked Bailey.
Certainly" said Aldrich. who added
that the Constitution and every code
of ethics and morals agreed that taxes
should I've levied with uniformity and
according to the means of the people
to pay.
That i" rather serious criticism
rotorted Bailey. of the Republican
party. who during the incumbency Of
ABRAHAM Lincoln levied an income tax
upon some and exempted some others.
Aldrich. returning to his criticism of
the income tax plan proposed by Bail
ey. said that laborers abroad received
from six to 60 cents day or from S.,
to 500 or $500 a year. while American
labor is caid about soc q year. His plan
he said. would be to reduce the pro-
lection that is being given this Ameri
can labor over the foreign cheaper la
Dor II would like" said Bailey amid
applause. from the galleries. ito make
il impossible for that CHEAP labor to
come here at all" Referring to an
"Expatriated citizen" who he said own
ed 10.G0n 900 of real estate in New York
City. Bailey said that the working men
of this country We're taxed to protect
his property while he went untaXed
during the war with Spain. The work
ing men he said who paid a tax upon
a plug of tobacco. paid Iaore for tho
support of tie federal government than
did this expatriated citizen.
For more than eight years said Bail
tho art;f,n cF ConCroSS and bp Is