The Birmingham age-herald., 1909-04-04
Payne Bill Will Lack Total of $45,OOO,OOO of NeGd-
 ed Revenues
SOMETHING MUST BE DONE
 ID MEET ALI EXPENSES
Payne Refuses to Discuss the DefI- cIency In His Bill and Republicans Are Striving to Carry the
 Measure Through.

Washington, April s.-(Speciai. )-Discov- cry today of a seeming error in estirnat- ing the revenues to be derived under the rates of the Payne bill make that meas ure apparently inadequate to meet the running expenses of the government. The error is alleged to foot up to a total of s45.OoOOOO
 The error is thus explained: Tn laying his bill before the House Chairman Payne explained that each year there is an average of from to per cent of ap- propriations that are not expended; in other words. that from s2o,OOOOO0 to ss0.ooo.- GOO of the total sums portioned out by Congress each year is never expended, and therefore can be accounted as addi- tional revenue for the succeeding year To strike a fair average, Chairman Payne estimated the annual unexpended appro- priatons at per cent, which on S9O0,00o,- 900 furnished him with the s45,oOO, 900 re- serve or a velvet" Estimating further that he would secure S7,00o,000 from tax on tea. the chair man of the ways and means committee | presented an array of figures that just about seemed to show that his bill would furnish plenty of revenue to carry the government through. A Mistake Made. But now comes the discovery that in- stead of unexpended appropriations be- ing turned back into the treasury at the 1 close of each fiscal year, all appropria- tions are available for three years after the close of the fiscal year for which they are made, in order that payments on continuing contracts may be met. In some cases, such as for fortifcations 1 rivers and harbors etc, the appropria-
 tions are available indefinitely. In fact.
 it is asserted by treasury authorities this afternoon that by the time the accounts
 for given year are finally closed, two
 or three years after the appropriation has been made, not only is the appropriation
 fully expended, but frequently there is a deficit. In view of the condition of these affairs it will be seen that the S45. O00, ,0t0 velvet which MT. Payne banked goes glimmering.
 An examination of the treasury account for series of years showed these fig ures
 For the fiscal year ending June 90, 1904,
  appropriations; for the fiscal year 1905, l02 per cent plus; for the fiscal year 1906. 9S .09 per cent This gives an average for the three years of 99 9S per cent now ex- | pended, and there was still enough matter | under the continuing appropriations up to | and above 100 per cent for those three | years.
 1 For the fiscal year 1907 there has al- ready been spent over 96 per cent and the accounts still to be paid for that year arc | estimated to absorb the balance remain | ing. Likewise for 1908 and although only S7 per cent has been spent, it is expected that the entire amount will be drawn out. Experts at Work. This discovery has started the experts at work on the figures. If the facts turn out to be as they appear on the surfacey 1t means a general swapping of the whole tariff bill with the inheritance and an in- come tax as well absolutely necessary to meet the expenses of the government. The ways and means committee today 1 decided to remove the duty from coffee ! and tea It also decided that the present countervailing duty on oil-Standard Oil- should remain where 1t is. There will be no change in the drawback provision under which the Standard oil makes it's money.
 There are to be no changes in the glove and hosiery schedules. If the pres ent bill makes gloves and stockings dearer to the wearer it is to stand in the Payne bill.
 Payne Keeps Mum. MT. Payne refused to discuss the report that he had underestmated receipts under his bill by s45, 900, but he said that the revenue laws and the collections spoke for themselves. He is certain that his bill will produce $500, ,0O0,000 or more year.
 Harrison of New York tried to have stockings and gloves put on the free list, but was defeated by the committee. The beer interests win. The committee will not increase the duty on barley from 15 cents to 25 cents per bushel as demand ed by the farmers. Spices and cloves are put on the free list.
 The steel schedule is affected in small particulars. The duty on heurspar is raised to $150 per ton and charcoal iron from $G to $i0 per ton. The duty on iron is increased half cent a pound.
 Free rice with the Philippines Is killed and the maximum duty is applied. The provision applying retaliatory treat rient with foreign governments on pat ents is repealed.
 There is to be no change in the draw back provisions of the bill Tine lumber joker is to stand. There ss to be no free lumber.
 It is stated that the committee amend- ments will not satisfy those who have opposed rule under which the Payne till may be passed.
 Against the Bill.
 Senator Elkins has lined his following up against the bill and a republican split is promised. The committee has made no change in the coal schedules as promised by Senator Aldrich and guarantees no record vote on labor
 The republicans from Virginia, West Virginia Tennessee, Wyoming. Washing ten and Pennsylvania decided that they would not vote for the bill as amended by the committee. The protected lumbermen of the House will not vote for a rule that does not choke off all debate on lumber sched- ules They have agreed to remove the ~--S-~~~<-~~~>
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