The citizen. (Honesdale, Pa.) 1908-1914, 1909-04-28
TARIFF DISPUTE.
Bailey and AldriCh In Bout
on Income Tax.
PRESIDENTS wife IN GALLERY
Steel Trusts Immense Profits and
the Automobiles and Extrava-
ganoes of Magnates Used
as Arguments.
PRESIDENTS wife IN GALLERY

Washington. April 27.-Denouncing
the principle of II protective tariff rs
unfair In taking money from one man
to give it to another in order to en-
courage him in the pursuit of an
otherwise improbable business, Sena-
tor Bailey of Texas got into II warm
dispute with Senator Aldrlch of Rhode
Island as to his income tax amend
ment to the tariff bill.
Both floor and galleries were crowd
ed, and Mrs. Taft, wife of the presi-
dent, occupied seat in the presidents
gallery.
Mr. Bailey got into trouble with Mr..
Aldrich with regard to the latter's ut
terance in the senate in 1894 that the
income tax was supported by the So
cialist, Populist and Democratic par
ties. Mr.. Bailey said that Mr.. Taft
now favored an income tax and asked
Mr.. Aldrich If he considered the presi-
dent Socialist, Populist or Demo-
crat. Mr.. Aldrich replied that his
statement was true at the time it was
made.
Mr.. Bailey repeated his statement that
the rates of the pending bill could be
reduced 33 1-3 per cent without great
ly increasing the bulk of importations,
although the decrease would diminish
the price of manufactured articles to
] the American consumer.
"Does the senator think that the
American manufacturer makes a profit
of 33 1-3 per cent?" inquired Mr.. AID
rich.
Mr.. Bailey suggested that the United
States Steel corporation, with a capt.
tai of $3.50, 100000, had increased it's
capitalization to $1,OO0OO0,OOO and
makes Z per cent on the larger sum.
OBVIOUSLY" he said, "the steel cor
poration could reduce its profit 33 1-3
per cent and still make more than a
legitimate profit upon fair valuation
of its property"
Mr.. Aldrich asked whether the sena-
tor from Texas believed the other cor
porations could make profit If the
prices were reduced 33 1-3 per cent.
"If am permitted to judge by the
size and equipment of their automo-
biles and the size and equipment of
their yachts and by other eXtrava-
gances they fiaunt in the faces of the
American consumers, I say yes" re-
piled MIR. Bailey. "They might not be
able to go to Europe every summer
and might find 1t necessary to reduce
their expenditures, but the American
people would be better off for that"
,tnly rn
Industries make a profit of more than
33 1-3 per cent annually and regular
ly?" inquired Mr.. Aldrich.
Mr.. Bailey explained that a 33 1-3
per cent reduction in the rates of duty
would not be equivalent to 33 1-3
reduction in profit.
Mr.. Bailey said that no System OF
taxation ever devised has been so just.
so equal and so proper as an income
tax"
"How did the senator arrive at the
income of $4,000 as the proper one to
tax?" asked Mr.. Aldrich. ''instead of
$4,000 or $4,000 or SCOOP
Mr.. Bailey replied that he had fixed
that figure because he had assumed
that incomes of $4,000 are spent upon
living expenses, so that the recipient
would be compelled to pay another
than the income tax at the custom
house on everything purchased, ana
as the one tax had already been paid
exemption from the income tax seem
ed justified. But, more than that, he
said, he wished to levy the tax upon
those best able to pay 1t.
Mr.. A.drich said that laborers
abroad received $50 to $400 a year
while American labor Is paid about
$700 year. His plan, he said, would
be to reduce the protection that is be-
ing given this American labor over the
foreign cheap labor.
81 would like" said Mr.. Bailey amid
applause from the galleries, ''to make
1t impossible for that cheap labor to
come here at ALL"
!: A substitute for the maximum and
minimum feature of the Payne bill
has been worked out by Chairman
Aldrich and approved by the Repub.
fected with the aid Of Senators Root
and Curtis. The amendment provides
for the following:
Duties will be collected on all arti
cles imported from foreign countries
at the rates named In the senate bill
and 25 per cent additional from coun'
tries which assess against goods from
this country rates which are unequal
aud unreciprocal." The established