Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-04-27
MAKES
FEW REMARKS
ON TARIFF
.R0UNDLY DEN0UNCES
THEORY OF PROTECTION
.AIdrich CdticiSeS Income Tax
Provision Advocated by Texas
Senator as ending To Work
Injury to Workingman


Washington. April 26 Oenouncine
the principle of protective tariff as
unfair In taking money from one man
TO give to another. in order 10 en-
courage him IN the pursuit Of an
otherwise Improbable business, SEN
ator Bailey Of Texas today delivered
a set speech on the democratic side
In opposition to the pending tariff
bill
After he had proceeded without IN y
terruption for more than an hour
several senators engaged IN colleagues
with him
Referring to Mr. Bailey's statement
that the duties OF the pending bill
might be lowered 23 l-3 per cent, Mi
Aldrich asked whether he supposed
the profits OF American industries
equalled that amount
Mr. Bailey replied that in the case
OF the United states steel corporation
he believed they had citco the increas-
ed capitalization OF that organization
as an evidence OF enormous profit, He
insisted that such a lowering OF the
rate Of duty would not seriously af-
feet importations because he believed
American manufacturers would be
stimulated by the added foreign COM
petition and would continue to supply
the markets.
Mr. Bailey discussed his amend
ment providing for am income tax
which was criticised by Mr. Aldrich
as tending to reduce the protection for
American labor If it should result In
a proportonate decrease Of customs
duties
Mr. Bailey favored restriction of
immigration as a protection to Ameri-
can labor
Mr.. Aldrich rctorted that while Mr.
Bailey was ready to keep the foreign
lahoror from our shores he was not
averse 20 allowing the product Of this
hemp lnbm to come in 60 netitou
with the product Of American work
ing men
MrB alley said one Of the most
prosperous periods in the history OF
the United states resulted from low
tariff while Mr. Smith declared thar
one OF the most disastrous periods in
the business of the country resulted
from low tariff, referring to the
Wilson tariff act
MT Bailey also became involved in
discussion with Mr.. Aldrich in re-
gard TO the lattcr's utterance in the
senate In 1894 that the income tax
was supported by the socialist popu
list and democratic parties. Mr.. Bal
ley said that Mr Tart now favored an
income tax and asked Mr.. Aldrich iiI
he considered the president socialist
populst or democrat. Mr.. Aldrich re-
piled that his statement was true ~
the time II was made.
Mr.. Bailey declared Mr.. Aldrich had
voted for substantially all large ap
preparation measures He said tina
the Rhode Island senator's recent
statement In favor of economy indi-
Gated that he had been converted,
This conversion. contcnded Mr. Bal
ley. occurred when the burden wa
about TO be placed on the rich.
'If this bill as he presented It,
said Mr Bailey. coupled with an in
come tax. viii raise too much revenue,
let's reduce the rate that we collect
on the necessities Of life
Mr. Bailey insisted that the rates of
the pending bin could be reduced
33 l-3 por cent without greatly IN
crcasng the bulk of importations al
though in his opinion the decrease
would diminish to the extent of the re
duction in the price of manufactured
articles to the American consumer
Does the senator think that the
American manufactures makes a pro-
fit Of 33 is per ccnt2' inquired Mr..
Aldrich.
Mr Bailey suggested that the uni
ted states steel corporation with a |
capital of S250,000 600 had increased
its capitalization TO Sl000,000, 900,
and makes about Z per cent on the
larger sum.
OBVIOUSLY" he said the steel cor
poration could reduce It's profit 33 l-5
pcr cent and stlll make more than "a
legitimate profit on fair valuation
of its property
Mr. Aldrich suggested that the Uni-
ted states steel corporation produces
only from a. to 80 per cent Of thu
steel output. and asked whether the
senator from Texas believed the other
corporations could make a profit II
the prices were reduced 33 l-3 per
cent
-If am permitted to Judge los lne1
size and equipment of their automu-
biles. and the size and equipment of
their yachts and other cNtravaganccs
they flaunt In the faces of the Amcri
can consumers. I say yes. replied Nh
Bailey.
How did the senator arrive at the
income of $4,000 as tho proper one tn
taNP" asked Mt Aldrich. 'instcad nf
81 600 or $4,000 or $1,000
MT Bailey replied that he had fixed
that figure because hc had assumed
that Incomes of 5000 are spent upon
living expenses 500 that the recipient
would be compelled 90 pa} another
fhaH the income tax az tho custom
house on everything he purchased and
as the one tax had already been pdld,
exemption from the income tax seem
cd Justified.
~ know what Aou want me o. gay
and am going o. saw it, hc added
- fixed upon 5000 because ! wanted
II 20 affect as few people as pnrr lnlt
So that lt might not provoke hostility.
"In other words retorted Mr. Ala
rich. the senator wants to enact leg
fslation with class distinction 90 or
der 20 get IL through
Does the senator believe that Adam
Smith was correct in saying that taNc-
should be laid upon people best ahlc
10 bear them g. asked Mr. Bailey
certainly" said Mr. Aldrich. win"
added that the constitution and every