Evening star., 1909-03-14
Status of Tariff Bill at 6
O'Clock Last Evening.
SPECIAL TAX UNCERTAIN
Committee Members Unable to Agree
as Regards Stamps.
REMAINS AN OPEN QUESTION
Inheritance Assessment Expected to
Be Included in the Measure.
Treasury officials View.

As the tariff bill stood last night coffee
remains on the free list When the re-
publican members of the ways and means
committee ceased their labors temporarily
on the new bill at o'clock, adjourning
until tomorrow morning. the provisions
relating to special taxation had not been
decided on. The proposed tax on coffee
was for a time accepted by the committee
as the best means for providing revenue
by which to prevent the continuation of
large deficit in the Treasury The
Payne bill will not be ready for introduc-
tion tomorrow, according to member of
tn. committee.
While an inheritance tax provision will
undoubtedly be included in the bill, the
members Of the subcommittee have been
unable to agree regarding it or the propo-
sition to impose stamp tax on checks,
bonds and stocks similar to the war
revenue tax of 1898. The entire matter
of providing some means for increasl,Is
the revenue of the government, aside from
the general duties on imported articles, is
sun an open question and is being thor
oughly thraShed out by the subcommittee.
View of Treasury Officials.
The Treasury officials view with great
disfavor the proposition to levy tax on
coffee brought into the United States. 1t
is pointed out THAT several million bags of
high grade Brazilian coffee ar now held in
this country and in some of the European
centers as security for loans made to one
or the BrlZllian states and that should a
duty be imposed the coffee stored in
Europe could be readily shipped into the
United States before the new tariff bill
would become operative. This vast uuan-
tity of coffee, estimated to exceed TO-
100000 bags, is said to equal the entire
expectation of Brazilian coffee into the
United States for a whole year. Thus il
is stated. instead of being a revenue pro-
ducer, the income from the first years
importation of coffee is likely to be d
very insignificant sum.
In the brief which ii submitted to the
ways and means committee the National
Coffee and Tea Association declared that
the proposed tax on coffee or tea would
fail to produce any material revenue to
the government for nearly two years
and would increase the cost of these
beverages to every family that uses either
from $50 to So per year. They stated
that the present visible supply of coffee
in the world amounts to about 5000 OOO
bags, of which 4,OO.0OO bags are stored
here or are afloat I'm this country. Ac-
cording to the figures which they SUBJ
mtted duty of cents pound on
coffee would. they claim, mean an i'm
mediate profit of at least 500 per bag
on every bag in the United States or a
profit of nearly 81 .GOOO0O to the owners
and holders of this coffee, without pro-
viding any revenue to the country.
Supply for Two Years.
Enough would surely come here to
supply the demand for at least two
years. they contended. "as it could easily
be shipped into the country before the
duty became a law thus giving to the
foreign and speculative owners profit of
from $25,O0O0O0 to $JO.OOO,OOO more. but
not one dollar of this amount would
reach the United States Treasury
AS an average of 1,000OO0.OOO pounds
of coffee are imported annually. the tariff
trainers figured that a duty of cents
per pound would bring a revenue to the
government of nearly s3s sOO0.O0O annually.
The impOrta ations, that would be free of
duty from Porto Rico and Hawaii which
now amount to 40.0GDQ0o pounds prob
ably would increase with the prot lection
afforded by this duty. The Philippines,
which now practically exports no coffee
II Is contended. would send considerable
coffee to this country if the sugseste ed
Itax were not placed on their product.