The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1909-04-27
Contends That It Is the Only
Fair Means of Raising
Revenue
OPPOSES THE IMMIGRATION OF
CHEAP lAB0RERS OF EUROPE
Fails to Show Why the Arbitrary
Limit Of Five Thousand Dollars IS
Equitable-ScnatOr Aldrich Says II
Is Class Legislation.

Washington. April 21.-The an
nouEcement that Senator Bailey
would resume the discussion OF his
amendment to the tariff bill provid-
ing for an income tax was sufficient
to crowd the galleries of the senate
today and to call to his place on the
floor nearly every senator on both
sides OF the chamber.
Mr. BAILEY said that one of the most
prosperous period in the history OF
the United States resulted from low
tariff, while Mr.. Smith declared that
one Of the most disastrous periods i'll
the business of the country resulted
from g low tariff making his refer
ence to the Wilson tariff act.
Mr.. Bailey also became involved in
q discussion with Mr.. Aldrich with
regard to the latters utterance in the
senate in 1894 that the income tax
was supported by the Socialist, Popu-
list and Democratic parties. Mr..
Bailey said that MIR. Taft now favor
drich if he considered the president a
Socialist, Populist or Democrat. Mr..
Aldrich replied that his statement
was true at the time it was made.
Contending that he had always vot-
ed against extravaganza. Mr.. Bailey
declared that Mr.. Aldrich had voted
for substantially all large appropria-
tions measures. He said that the
Rhode Island senator's recent state
ment in favor of economy indicated
that he had been converted. This
conversion. contended Mr.. Bailey
occurred when the burden was about
to be placed on the rich.
"If this bill, as he presented it,
said Mr.. Bailey, referring to the
chairman of the finance committee
coupled with an income tax will
raise too much revenue, let's reduce
the rates that we collect on the
necessities of life"
Rates Can BE Reduced.
Engaging in colloquy with Sen
ator Aldrich, Mr. Bailey repeated his
statement that rates of the pending
bill could be reduced SO 1-3 per cent.
without greatly increasing the bulk
of importations. although in his opin-
ion the decrease would diminish to
the extent of the reduction the price
of manufactured articles to the
American consumer.
Does the senator think that the
American manufacturer makes a
profit of 80 1-3 per cent ?" inquired
Mr. Aldrich.
Mr.. Bailey suggested that the Unit
ed States steel corporation with a
capital of $350,OO0.0OO, had increased
its capitalization to one billion and
makes about per cent. of the larger
sum.
OBVIOUSLY" he said. "the steel
corporation could reduce its profit
33 1-3 per cent. and still make more
than legitimate profit upon fair
valuation of it's property"
Mr.. Aldrich suggested that the
United States steel corporation pro-
duces only from as to so per cent OF
the steel output and asked whether
the senator from Texas believed the
other corporations could make a
profit if the prices were reduced
S3 1-3 per cent.
IF | am permitted to Judge by the
size and equipment of their auto
mobiles and the size and equipment
of their yachts and by other extrava-
gances they flunt in the faces of the
American consumers. l say yes." MIR.
Bailey. They might not be able to
go to Europe every summer and
might find it necessary to reduce
their expenditures. but the American
people would be better of for that"
Industrial Profit.
Does the senator think the aver
age industries make profit of more
than 33 1-3 per cent. annually and
regularly" inquired Mr.. Aldrich.
Mr.. Bailey explained that a 80 1-3
per cent. reduction in the rates of
duty would not be equivalent to a
33 1-3 reduction in profits. Again
taking up the subject of income tax,
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