Norwich bulletin., 1910-08-29
(continued from page one.)

1 sion shows that the present tariff is l wrong and should be changed. I expect 1 to bring the matter to the attention of 1 the congress with a view to it's amend 1 fnent of the tariff in that particular l Of course, this will be impracticable
 unless congress itself shall adopt the 1 that a bill to amend one schedule Of l the tariff may not be subject to mo- 1 tion to amend by adding changes in l other schedules.
 1 It will thus be possible to take up a single schedule with respect to which l it is probable that a great majority of each house will be unprejudiced. to ad-
 init the evidence, and to reach fair | conclusion. and this method will tend l to avoid disturbing business con l ditions. For these reasons it seems l to me that all publicans-conserva- 1 tive. progressive and radical-may well | abide the situation with respect to the tariff until evidence now being ac- | cEmulated shall justify changes in the I rates; and that it is much better for | them to vote for republicans than to l help create a democratic majority
 which would be utterly at war with the | protective principle, and therefore would have no use for the findings of | the tariff commission, as we may cer- l tainly infer from the solid democratic 1 vote in the present congress against | the necessary appropriation for the i commissions work.
 Results of Payne Law.
 1 One great virtue in the new tariff
 law. including the corporation tax, is ] that, taken with the current effort of i the administration to keep down or re- i duce governm ental expenditures and to
 reform the methods of collecting the
 customs revenue. it has by it's revenue producing capacity turned a deficit in the ordinary opera tione of the govern
 ment of $58, ,000,0OO for the year ending
 June 30, 1909, to a surplus in the first full year of the law. ending Aug. 5,
 1910, of $26000,00 From a revenue standpoint. then, there can be no con- troversy over the effectiveness of the new law. Increased revenue indicates increased imports, and an examination of our imports during the past year will disclose a most substantial in- crease in manufacturers material. from which, in the making of finished pro- ducts. whether for exportation or home conSum ption, has come a larger volum e of employment for our wage earners a larger purchasing power and a greater consumption of the products of our i farms and fabrications of our factories. So far, then, as such importatiOns do not d1splace home production. they | must be of benefit to all. Generally speaking, a full measure of industrial activity in production. transportation and distribution has accompan nied the operation of the new law. Under the maximum and minimum provisions we have concluded treaties with all foreign
 nations, gaining the best possible terms for entrance to their markets without sacrificing our own. By the Payne tariff law we have at last done justice to the Philippines by allowing the pro- ducers of those islands the benefit of our markets with such 1imita tions as to prevent injury to our home indus tries.
 Again, the present law in it's cor 'pOration tax inn poses a new kind of tax which has many of the merits of an income tax It taxes success, not fail- ura. Under a personal income tax it is easily and exactly collected and by an increase or decrease in the rate en- ables congress with exactness to regu-
 late its income to it's necessary expen- ditures. More than this it furnishes an indirect but effective method of keeping the government advised as to the kind of business done by all cor porations- It is one of the most useful and important changes in our revenue
 laws as the future will show. In spite of the criticismS heaped upon it at it's
 passage, no party responsible for reve-
 nues or anxious to retain every means of legitimate supervision of corpora tions will repeal it.
 interstate Commerce.
 The next most important work of the
 present congress was the passage of
 the amendment to the interstate com
 merce bilk The republican platform
 taVcred amendment to the interstate
 commerce act with a view to giving
 greater power to the interstate com
 merce commission in regulating the
 operation of railroads and the fixing
 Of traffic rates, and also favored such
 national legislation and supervision as
 would prevent the future over-issue of
 stocks and bonds by interstate carriers
 Alter the adjournment of the congress
 at its extra session I invited two of
 my cabinet and member of the inter
 state commerce commission and a
 member Of congress to make recorn-
 mendatfons as to the needed amend
 fn fr1tn t.-%r
 These gentlemen reported to me. and in September last. in a speech in Des Moines, I foreshadowed their recorn-
 mendations as I intended to make then to the congress for the amend ment of the interstate commerce act:
 First, by the establishment of a com merc9 court; second, by empowering the commission to classify merchandise as well as to fix rates for classes
 third, by giving the right of a shipper to designate the route by which his goods shall be transported beyond the line Of the initial carrier: fourth by sider the justice or injustice of any rate without the complaint or initia- tion of shipper: fifth. by empowering the commission to suspend proposed increases of rates by carriers until the commission shall have a chance to pass upon the reasonableness of the in crease: sixth. by provisions for the federal regulation of the issue of stocks emu JULIUS bS 1HtefSIdIe Id1lWaXS. seventh, by a clause forhidding an in terstate commerce railway company from acquiring stock in a competing road; eighth, by a section permitting the making of traffic agreements be- tween competing railroads limited in point of time and subject matter. and subject to the approval of the inter state commerce commission.
 These amendments were in accord ance with the text of the republican platform. Subsequently bills were drawn embodying this recommended legislation, in which, while the prin- ciple was maintained, there were linn itations introduced. as justice suggest ed, after a conference with all the parties interested. The bill was sub mitted to the congress and after great deal of discussion both in the house and the senate, it was enacted into law. with many amendments which did not materially change the effect of the recommendations except to strike out certain provisions prom ised in the republican platform to permit traffic a agreements between railways in spite of the antitrust law
 to forbid one railway company to ac- quire stock in com pering company and to secure supervision by the in