The Washington times., 1909-04-03
Ch lairman Payne in Calcu-
lationS Placed Revenues
$45,OOO,O0O Too High.
DARK SECRET KEPT
FOR SEVERAL DAYS
Insiders Feared to Let General
Membership of House In On
The Joke.
BY I. c. WELLIYER.

A revenue problem OF the most star
Ting sort has arisen-the result of some
Investigations at the Treasury-wh
has utterly ruined all the estimates Of
revenue TO be derived under the Payne
bill.
Chairman Payne estimated the reVe-
nues under his bill just about 5,000. 900
too high. and the discovery Of his er-
ror made several days ago, has been
kept a dark secret until now among the
little group OF insiders who knew about
It. They feared 10 allow the truth 10
become known TO the general member
ship Of the House, partly because II
would be a bowling joke On the astute
and erudite Ways and Means Commit
tee, and partly because It would be GER
tain 70 cause a renewal OF the demand
for some new methods OF raising reve
nue-especially for the tax on beer.
How Error Was Made.
Mr.. Payne's error was made in this
wise: In his presentation Of his rII.
he pointed out that an average OF from
2 to per cent Of appropriations would
go uncxpended each year. That means
from S2o.0O0.0Oo to $SC, ,0o0, ,00c Of the money
appropriated Is net expended. and can,
therefore, be accounted as additional
revenue IN the succeeding year. This
item Mr.. Payne Jumped off at per cent
as a good safe average. and taking 8
per cent Of $eOO,0O0,OOO opined that this
$f5.00O,OO0 could be safely added in the
showing OF revenue.
BY this method. and counting 5000, coo
from revenue from tea, the Payne bill
made a showing which just squeezed it
up TO the point OF making ends meet,
assuming, that the Increase OF duty on
various articles would not reduce their
importation
Looked Dubious.
Now, Mr.. Payne's theory Of the Un-
expended balance looks dubious 70 some
inquiring members OF the Appropriations
Committee. and they went over 70 the
Treasury 70 learn the facts. They learn
ed that Mr.. Payne was substantially
right; but-and here was the hole IN
the Payne slSimmer-appropria are
available for three years after the close
of the fiscal year for which they are
made. IN order 10 meet expenses on con-
tnUing contracts.
Some OF them are available indefinite
ly. such are those for fOrtihcatons,
rivers, and harbors. The result is that
by the time the account for a given
year are finally closed, two or three
years afterwards. the experience IS that
the appropriations are all expended and
more. too. Instead Of being a saving
Of S45,OO0.0o0 there is actually a Anal
deficit.
Figures Shown.
An examination Of the Treasury ao-
count for a series Of years showed these
figures:
For the fiscal years ending June 80.
1901. there was expended 1886 per cent
Of all appropriations: for the fiscal year
1905, 1O2 per cent plus: for the fiscal year
1906, $500 per cent.
This gives an average for the three
years Of 99.9S per cent now expended
and there was stil enough matter un-
der the continuing appropriation up 10
and above 100 per cent for those three
ye trs.
For the fiscal year 1907 there has al
ready been spent over 90 per cent and
the accounts still TO be paid for that
remaining. Likewise for 1905 and. al
though only 81 per cent has been spent
It is estimated that the entire amount
will be drawn out.
Outlook Grewsome.
This leaves the Treasury outlook de-
cldedly gruesome unless new revenues
are provided. a few members who want
to increase the tax on beer, having
learned of this remarkable nliscalctl.a-
ton have been busying themselves
pressing harder than ever for more beer
taxes IN order 10 get the deficit covered
Continued on Third Page)