The Washington herald., 1909-04-15
CUSTOMS EXPECTED
TO RAISE REVENUE
Aldrich Tariff Bill Plans No
Internal Taxation.
DEMOCRATS TO FIGHT HARD
Believe They Can, with Assistance
OF Republicans FavorinS Plan, P6S
Through Inheritance Tax Amend
Taent Proposed by Senator Bailey.
Discuss Course at a Meeting.

The United States must depend on Gus
toms collections to pay the running ex-
penses of the government.
That is the plan OF Senator Aldrich
and others who think they viii have the
final word in the passage Of the traif
bill. and. although they have issued no
statement TO this effect, It is known
that Is their plan.
The tariff bin does not contain an in
come, Inheritance. or stamp tax provision.
and 1t is said these were carefully left
out, following an understanding between
the leaders in the upper branch Of Con-
gress.
That this course has the approval Of
the President, also became known yes
terday. and any attempt on the part OF
the Democrats to change the bill from
this course will precipitate a fight from
the entire Senate organization.
May Add Heavy Dehcit.
Senator Aldrich and his colleagues on
the Finance Committee scoff at the state
ment that the tariff bill, as reported 10
the Senate. VIII not produce enough rev.
enues TO pay the annual expenses of the
+ government, but the radical Republicans
and Democrats still are iasistent that it
viii add an annual deficit OF more than
H00,0oO,OOo TO the Treasury. The Senate
leaders assert these charges are made
for political capital. but none of those
who first criticised the bill as a debt
producer have varied from their origi-
nal statements.
Democrats are planning a fight to tear
the bill to pieces as efectually as the
Senate did the Payne bill after the House
Of Representatives had wrestled with il
for nearly a month. A meeting of the
DemOcr5 tic Senators was held yesterday
afternoon, and for more than four hours
they discussed the various schedules All
Of them declared the measure was worse
than the Payne bill; that Il was a simple
rewrite OF the Dingley law. and all
agreed that Il was up 10 them to put up
the fight Of their lives.
six Senators Absent.
All OF the Democratic Senators were
present except six-Clarke and Davis, of
Arkansas; Bankhead. Of Alabama: New
lands. of Nevada; Tillman, of South Car
olina. and Paynter. OF Kentucky. Sena-
tor Bailey in explaining his amendment TO
his party colleagues estimated that il
would produce S9OOO0.OOO a year in reve-
nue..
Senator Daniel made an address in de-
fense Of an amendment he offered Mon
day. taxing the gross earnings Of corpora
tions. but no action was taken on the
matter. The subjects Of the inheritance
tax and a tariff commission were not dis
cussed. Neither proposition has any con-
siderable following among the Democratic
Senator'S. The Democrats believe they
have been fortunate In the selection Of
an issue. for they confidently expect sew
eral Republican recruits for the income
tax
Speeches were made in the conference
by Senators Bailey. CulbersOn, McLaurin.
Bacon, Clay, Owen, Hughes, Shiveley,
Foster. and Chamberlain.
There was some discussion Of the gen
eral party attitude toward the pending
bill. Senator McLaurin. Of Mississippi.
submitted q resolution, which, after some
verbal changes was adopted. declaring II
to be the general policy of the Demo-
cratic Senators that duties should be re-
duced on necessities of life and increased
on luXuries. The question Of the Demo
cratic position regarding the duty on
lumber. hides. sugar. and other important
controyerted questions in the bill was by
agreement sent over for settlement at an
adjourned meeting Of the conference TO
be held next Friday.
Want Duty on Hides.
The discussion disclosed the fact that
the Democratic Senators will supper;
an amendment putting a duty Of 10 per
cent on hides and will probably vote for
a duty of 81 on rough lumber Several OF
the Senators expressed a willingness to
vote for s. on lumber. but they were per-
suaded that to be consistent they could
not well afford to vote to increase the
duty fixed in the Payne bill. Senator
McLaurin. in discussing the proposed du-
~ on hides, declared that he would not
support any amendment taxing hides
that did not include the smaller skins
such as kid and goat. But these ques-
tions viii not be ultimately settled un-
I'll tomorrow, If indeed they are settled
then.
Senator Culberson, chairman of the
conference. announced Immediately after
adjournment of the conference that the
income tax matter and the declaration
of general policy for lower duties on ne
cessities and higher duties on luxuries
were the only things definitely settled
at to-days session. The details Of the
Democratic policy in dealing with the
bill IN the Senate will be worked out in
the meeting tomorrow.
The Democratic Senators went on rec
ord as unalterably opposed to any tariff
bfl that would be so deficient in revenue
producing qualities as 10 make a bond
issue necessary.
VIII Propose Income Tax.
There viii be an amendment offered BY
Senator Bailey, as soon as the Senate be-
gins consideration OF the measure. provid.
ing for an income tax. This plan mas
been discussed by the Democrats since
the passage Of the Payne bill. and yes
terday most OF them heartily approved
II. The provision viii be for a tax OF
8 per cent on all incomes Of more
than S5c02. This amendment will have
the solid support Of the minority member.
Of TIE Senate, and It is believed thai
enough Republican members Will vot,
for Il TO assure its success.
SO much time was taken up in discuss
in the Bailey amendment yesterday thai
other parts of the bill could not be con.
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