The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1909-04-27

WASHINGTON, April Ex-senator
Bailey, today presented his views on
the tariff bill with especial reference
to the desirability of an amendment
providing for an income tax.
Bailey first took up the proposition
to turn over to tariff commission the
consideration of the schedules of the
tariff bill, commenting on which, he
declared he did not believe in turn
ing over to political eunichs" the con-
sideration of such a great question
even though they were so impartial
as to entertain no aversion for what Is
bad or preference for what is good"
The question of taxation, he said, had
closely engaged the attention of states
man and he did not believe in its
withdraw from the people to place it
in the hands of commission. He
would not, he said, at this time dis
cuss free trade, which he declared was
impossible in this country. 'I do not
hesitate to say" he added, "that l be-
lieve in taxing wealth instead Of con-
sumption, and If it were in my power
would compel every man to con-
tribute towards the support of this
great government according to what
ue IdS anu uOL dCCOIuluS W "luI AC
wants"
Speaking of the principle of the pro-
tective tariff, Mr.. Bailey said:
"If your law ended when it gave
your fellow citizen an advantage over
the citizens of another country would
be one of it's most ardent supporters.
But it does not end there, because it's
inevitable effect is to give a few Of
our fellow citizens an enormous ad-
vantage over others of our country
men"
The practical effect, he said, was to
give a bounty to the favored manufac-
turer.
Referring to his proposed amend
ment for an income tax, he directed
his remarks to Senator Aldrich and
said there was a time when such a
proposition was described as plan
to redistribute fortunes. "But," he
added, "the senator from Rhode Is
land, when he recently referred to
this proposed tax forebore to repeat
the statement, because he would have
had to settle with some Is or 20 of
the men of greatest ability and high
est character on this side of the cham
her, and it was with refernce to
them, and not to save our sensitive
natures that he contented himself
with saying that such law should
not be levied because it was not nee
essary, as the bill he reported to the
senate would raise enough revenue
without the income tax"
Mr.. Bailey insisted that the senator
from Rhode Island did not escape the
Democratic argument by any such
statement as that. He said if the bill
would raise enough revenue to sup
port the government, taxation from
this source could be reduced in pro-
portion to the amount to revenue rails
ed by the income tax.
Mr.. Bailey said one of the most
prosperous periods in the history OF
the United States resulted from low
tariff while Mr.. Smith declared that
one of the most disastrous periods in
the business of the country resulted
from low tariff, referring to the Will
son tariff act.
Mr.. Bailey also became involved in
a discussion with Mr.. Aldrich with
regard to the latter's utterance in the
senate in 1894, when the income tax
was supported by the Socialist, Popu-
list and Democratic parties. Mr. Bailey
said that Mr.. Taft now favored an in
come tax and asked Mr. Aldrich if he
considered the president Socialist,
or a Democrat" Mr.. Aldrich replied
tha this statement was true at the
time it was made.
Mr.. Bailey declared Mr. Aldrich had
voted for substantially all large ap-
preparation measures. He said that
the Rhode Island senator's recent
statement in favor of economy indi-
Gated that he had been converted. This
conversion, contended Mr.. Bailey, oc-
Cured when the burden was about to
be placed on the rich.
"If this bill as he presented 1T,
said Mr. Bailey, coupled with an in
come tax, will raise too much rev.
enue, let's reduce the rate that we col
lect on the necessities of life.
Mr.. Bailey insisted the rates of the
pending bill could be reduced 33 Id
per cent, without greatly increasing
the bulk Of importations, although In
his opinion the decrease would dimin-
ish to the extent Of the reduction In
the price of manufactured articles to
the American consumer.
Does the senator think that the
American manufacturer makes a prof
1t of 331-3 per cent?" inquired Mr.
Aldrich.
Mr.. Bailey suggested that the United
State Steel corporation, with capital.
ization of $36O,00O.000, had increased
its Capitalization to $1,000,000,00O anc
makes about per cent on the larger
sum.
obviously" he said, "the steel cor,
poration could reduce its profit ant
still make more than legitimate prof
it upon fair valuation of its prop
erty"
Mr. Aldrich suggested that th'
United States Steel corporation pro
duces only from As to so per cent o
the steel output and asked whether thu
senator from Texas believed the othe
corporations could make profit /
the prices were reduced 33 1-3 pc
cent.
"If I am permitted to Judge by th'
size and equipment Of their automo
biles and the size and equipment o
their yachts and by other extrava